STS 2500 Quiz 2
stand retailing
"Light a Candle" can be described as
mission statement analysis
Financial statements, in preforming due diligence, should include all the following EXCEPT a(n)
absence of initial name recognition
Which of the following is a disadvantage of a start-up?
The application of asset valuation methods to business valuation is similar to having an annuity
Which of the following statements about asset valuation methods is false?
the access to revolving credit line
All of the following are advantages of a start-up EXCEPT
the ability to make money to sustain the business
All of the following are challenges of being a part-time entrepreneur EXCEPT
high cost of getting started
All of the following are disadvantages of home retailing EXCEPT
how many others are already working with you?
All of the following are key things an influential person looks for in your business plan presentation EXCEPT
bootstrapping
All of the following are major concerns of moonlighting EXCEPT
depreciation is an arbitrary, but nonsystematic, method of transferring asset value to expense.
All of the following are major problems with using book value EXCEPT
When there is enough time and resources to get the entire business going
All of the following are situations in which it might make better sense to undertake a part-time business EXCEPT
they need to be built in places where there is less traffic
All of the following relate to "stand retail" EXCEPT
entry wedge
An opportunity that makes it possible for a new business to gain a foothold in a market refers to
Innovative strategy
An overall strategic approach in which a firm seeks to do something that is very different from that of what others in the industry are doing is called a(n)
Scale and scope
Identify the two market decisions that Amy and her friends need to make.
amounts and schedules for returns
If Connie gets her family and friends involved as investors, which of the following would be their concern or interest?
conflict of interests
If Elizabeth starts to take days off from work to staff the kiosk at the flea market, she may be facing
consignment stores
If Elizabeth wants to have a full-time sale with only part-time involvement, she should consider
characteristics of the business that give it an advantage over others in the industry
In SWOT, strengths are
mentoring programs
In ___, executive volunteers contribute their time and energy in assisting start-up and struggling small businesses as a public service.
Partners may provide capital, equipment, or advice.
In which way wil working with a partner reduce the risk of a start-up?
Doing a business plan
Nowadays, the conventional wisdom is that if you are serious about starting a business, you ought to start a business full time and prepare for it by
40
The classic business plan contains __ pages that include financials and appendixes.
involves reviewing and confirming the prestrategy decisions that define your firm and your goal for it.
The first step of the small business strategy planning process
an industry analysis
The first thing that Amy and her friends need to do to pursue their strategy is to perform
the earnings multiple
The ratio of the value of a firm to its annual earnings is called
customers; benefits
The second step of the small business strategy planning process is considering with
obtaining and maintaining sufficient cash
The single greatest hurdle to a successful start-up is
experience
The specific concept that leads to a start-up business usually comes from the ___ of the person starting the business.
screening plan
Which of the following gives the basic overview of a firm and a detailed look at the financials?
Growth rate
Which of the following represents a business plan concern of silent partners/angel investors?
business incubator
A ___ is an organization that provides financial, technical, and managerial help to start-up a business.
Informational Web site
An internet site designed to introduce and explain a business to others is known as
B2B e-commerce is larger than B2C e-commerce
Identify the correct statement about B2B.
An RSS feed sends whatever Web material you specify to subscribers to that feed
Identify the correct statement about RSS feeds.
mission statements give the firm's major business goal, which can be stated quantitatively or qualitatively, but always with a time period
Identify the correct statement about the 5-M Model.
Developing a brief business plan for the acquisition
Identify the statement that is not a part of the steps which make up the process of due diligence.
The agreement does not require the franchisee to pay a fee for the right to enter into the business.
Identify the statement that is not essential for an agreement to constitute a franchise.
Difficulty in determining the worth of the business
If Tavanna were to buy an existing business, which of the following disadvantages should you point out?
the government and customers
The two key groups outside your business with whom you must deal with as part-time business owners are
incremental innovation
Using the degree of similarity, Amy's concept of laundromat with a workout space can be described as
learning
Value benefits can include all of the following EXCEPT
NAICS and SIC
What are the two major classification systems that code industries?
to provide supporting information that helps detail the key selling points of your plan
What is the goal of appendixes?
Zoning challenges
What is the greatest problem that home-based entrepreneurs face?
passionate customers
What types of customers are likely to generate more potential customers than any other type?
gross profit
Which of the following refers to funds left over after deducting the cost of goods sold?
R&D
Which of the following refers to the part of a business that is focused on creating new products or services and preparing new technologies, ideas, products, or services for the firm's market?
Competitive advantage
Which of the following refers to the particular way a firm implements customer benefits that keeps the firm ahead of other firms in the market?
Introduction, growth, maturity, decline, and death
Which of the following represent the five stages of industry life cycle?
Estimates suggest that a business plan may take anywhere from 10 to 20 hours or more if you are new to business
Which of the following statements about a business plan is false?
The more time and energy you spend preparing for a small-scale part-time business, the shorter it takes to make a profit
Which of the following statements about the key considerations for part-time small business start-ups is false?
Clean slate
Which of the following would you offer Tavanna as an advantage for starting a new business?
Strategy
__ is the idea and actions that explain how a firm will make its profits.
Scale; scope
__ refers to the size of the market whereas __ refers to its geographic range.
Asset
__ refers to something the business owns that has economic value or is expected to have economic value in the future.
Discounted cash flow
___ analysis is based on the concept that the longer you h ave to wait to receive money, the less valuable it is right now.
Intellectual property protection
___ represents a business plan concern of joint venture partners.
Registration
____ refers to information provdied to the government concerning the existence of, name of, nature of, and contact information for your business.
industry dynamics
Changes in competitors, sales and profits in an industry over time is called
imitative; innovative
Most small businesses are more __ than ___.
You give up control of marketing and operations
Tavanna brought with her a franchise business packet. She likes the idea but is unsure what might be its disadvantage?
heuristics
are the rules of thumb that are commonly used to estimate firm value in relation to some easily observable characteristic of the business.
Starting her business without any other founders to avoid conflict
Based on what you have learned from this class, which of the following should Tavanna NOT do to increase her chance of start-up success?
outsourcing
Contracting with people or companies outside your business to do work for your business refers to
credit
Cost benefits can come from all of the following EXCEPT
When trust is low and employees lack sills
Delegation does NOT make sense in which of the following situations?
Stand retailing
Full-time approaches include all of the following EXCEPT
consignment business.
Given that Tavanna has no inheritance possibility, all of the following are other options you could offer her for full-time business EXCEPT
Variance
Permission from a government organization to act differently than the laws state is known as
earn-outs
Purchases of existing businesses may occur through __ in which the business is bought over a period of time with money earned from the business.
net profit
The amount of money left after operating expenses are deducted for the business refers to
involves determining the best strategic direction and strategy for the firm
The fourth step of the small business strategy planning process
the to-do list
The key device for managing time for part-time business individuals is
250-500 words
The length of an executive summary should be
total population of people or firms to whom you plan to sell
The market refers to the
industry analysis
The tool appropriate for the third step of the small business strategy process to study the dynamics and trends of your industry is the
harvesting the business plan
A good marketing strategy focuses on all of the following ideas EXCEPT
franchise
A legal agreement that allows a business to be operated using the name and business procedures of another firm is referred to as a
Reciprocal link
A listed, live connection to a different Web site, which in turn displays a similar link to the first Web site is a(n)
executive summary
A one- to two-page overview of the business, its business model, market, expectations, and immediate goals represents a(n)
proprietary technology
A product or service that is kept as a trade secret or is protected legally using patents, trademarks, copyright, or service mark is called a
industry analysis
A research process that provides the entrepreneur with key information about the industry, such as its current situation and its trends is called
differentiation
A type of generic strategy aimed at clarifying how one product is unlike another in a mass market refers to ___ strategy.
shake-out
A type of life cycle stage following a boom in which there is a rapid decrease in the number of firms in an industry is the
revolving
A(n) ___ credit is a credit agreement that allows the borrower to pay all or part of the balance at any time; as the loan balance is paid off, it becomes available to be borrowed again.
market
A(n) ___ is the business term for the population of the customers for your products or services.
they talk in terms of what will make a difference for the customer or the industry
All of the following concern taglines EXCEPT
when outsiders expect it; for internal understanding
There are two circumstances under which creating a business plan is absolutely necessary: (1) __ and (2) ___.
assuming that the leadership of the business must come from within the family
To avoid having the diversity of values, goals, and motivators from becoming the source of such intrafamily strife, you and the other family business members should respect one another's differences by all of the following ways EXCEPT
the business is critically examined by outsiders.
When a small business start-up secures outside investment, one thing it accomplishes is that
Flee
When performing a SWOT analysis, where Amy's business threats meet her business weaknesses, what should her strategy option be?
It is a minor portion of all current entrepreneurship
Which of the following does NOT hold true of part-time self-employment?
SEC filing statement
Which of the following financial statements is NOT expected in the business plan?
Monitoring compliance
Which of the following is NOT a business plan concern of bankers?
Stand retailing
Which of the following is NOT a path to full-time business ownership?
Always working "on the road" thereby enhancing productivity
Which of the following is NOT an advantage of home businesses?
Existing managers and employees resisting change.
Which of the following is a disadvantage of purchasing an existing business?
Purchasing a business often requires less cash outlay than for creating a start-up.
Which of the following is an advantage to buying an existing business?
cash flow and cash cycle
Which of the following would represent Mr. Johnson's interest in Connie's business plan?