Technical ENT Final True/False Ch. 7-11
True
A budget is one of the most powerful tools that an entrepreneur can use in planning business operations.
True
A copyright provides exclusive rights to creative individuals for the protection of their artistic productions
True
A trademark is a distinctive name, mark, or symbol that is identified with a company's product.
False
Equity financing is money invested in the venture with legal obligations to repay the principal amount of interest or interest rate on it.
True
Financial information pulls together all the information presented in the other segments of the business.
True
In negotiating a deal to purchase an existing business, it is possible to request that the seller retain a minority interest in the firm.
False
It is usually more expensive to gather secondary data than primary data.
False
Laws governing intellectual property rights include copyrights, trademarks, and leases.
True
Pricing the social media age is sometimes based on a model that offers basic levels of service for free.
True
The principal objective of capital budgeting is to maximize the value of the firm.
False
The traditional accounting equation is: assets + liabilities = owner's equity.
True
The two parts of a patent application are specification and claims.
True
Three primary legal forms of organization are the sole proprietorship, the partnership, and the corporation.
False
The Federal Trade Commission does not provide information on franchise success.
True
The Franchise Disclosure Document (FDD) is a legally required disclosure document that must be presented to potential franchisees during presale discussions.
True
The cash-flow budget provides an overview of cash inflows and outflows for the budget period
True
The elimination of time and effort associated with starting a company is an advantage of acquiring an ongoing venture.
True
The terms upside gain and downside loss refer to the profits the business can make and the losses it can suffer.
False
Franchisees have the option of using the logo and symbols of the franchisor.
False
Because the advantages of going public outweigh the disadvantages, it is in a corporation's best interest to go public.
True
Break-even analysis is used to tell how many units must be sold in order to break even at a particular selling price.
False
Chapter 7, Chapter 9, and Chapter 11 are the most common forms of bankruptcy.
False
Contribution margin is the difference between the selling price and the fixed cost per unit.
True
In the marketing shift from the 4Ps to the 4Cs, price shifts to choice and promotion shifts to communities.
True
Informal risk capitalists are often referred to as "business angels."
True
Informal risk capitalists are those who have already made their money and now seek to help new ventures
False
It often is possible to obtain more capital and a better range of skills in a sole proprietorship than in a partnership
True
Marketing information that has already been compiled is known as secondary data.
True
Marketing research involves the gathering of information about a particular market, followed by analysis of the information.
True
Mobile social media applications can be differentiated based on location-sensitivity as well as on time-sensitivity.
False
Only major strategic decisions need to be supported through marketing research
False
Pro forma statements show the firm's present financial position.
True
Perhaps the greatest advantage of buying a franchise, as compared to starting a new business or buying an existing one, is that the franchisor will usually provide both training and guidance to the franchisee.
False
Pricing procedures are the same for all types of ventures.
True
Private placement is a method of raising capital through the private placement of securities.
False
The first step in the preparation of the cash flow budget is the identification and timing of cash outflows.
True
The prospective investor should get as much information as possible on the franchisor.
False
The registration of a trademark last for 40 years, with continuous renewal every 10 years.
True
One of the principal advantages of a corporate form of ownership is that liability (the most money a person can lose) is limited to an individual's investment.
False
Regulation D augments the regulations for reports and statements required for selling stock to private parties, friends, employees, customers, relatives, local professionals.
False
Skimming is setting prices at such a low level that products are sold at a loss.
True
Social media marketing is the application of online collaborative media for marketing purposes.
True
Sophisticated investors are wealthy individuals who invest more or less regularly in new and/or early- and late-stage ventures.
True
Sources of debt financing include trade credit, accounts receivables, factoring, and finance companies.
True
Uniqueness in a product or service can be demonstrated through a new-new approach or a new-old approach.
True
Use of debt to finance a new venture involves a payback of funds plus an interest fee for the use of the money.
False
Venture capitalists, surprisingly, require little information before they make an investment.
True
When purchasing an existing business, the prospective owner should conduct an assessment of the business's current group of employees.
True
Works created and copyrighted after January 1, 1978, are protected for the life of the author plus 70 years.
False
The set of assumptions on which financial projections are based have little meaning.
