Venture Growth 4030 Midterm

________ is a tool for the estimation of the point-in-time where a business's income exceeds its expenses.

Break-even analysis

________ are high-net-worth individuals who invest in business not as a business entity, but as an individual.

Business Angels

A critical path chart should be updated ________.

Constantly

A(n) ________ is when a company hires independent salespeople with a variety of experiences and contacts on a contract basis.

Contract sales force

A small business determines the cost of providing a product or service, and then adds some level of profit determined to be appropriate. This is called:

Cost-plus pricing method

A(n) ________ demonstrates how a set of activities are dependent on each other and which activities take the longest time.

Critical Path Chart

________ include accounts payable, notes payable, or bank notes.

Current Liabilities

A pro forma ________ projects the future income of an entrepreneurial firm.

Income Statement

According to the book, which of the following is an example of circumstance motivators?

Individuals are laid off, are demoted, or are forced to take reduced pay by their prior employer.

Which of the following terms is used by key stakeholders for acceptance of a company as a reputable ongoing business?

Legitimacy

________ are owed by a business and are ultimately due more than a year from the current date.

Long-term liabilities

Which of these personality tests is based on the philosophy of Carl Jung?

Myers- Briggs

Which of the following items is an example of things that can be trademarked?

Names of the firm's products, name of the firm and a symbol representing the firm

________ presents a picture of the relative margin after all obligations and expenses are considered. It is the bottom line bottom-line calculation from the income statement.

Net profit margin

A ________ is a claim of intellectual property that covers a specific invention.

Patent

The legal means to protect intellectual property is ________.

Patent, trademark and copyright

The potential entrepreneur needs to consider ________ when starting a new business.

Prior experience, personality orientation and risk tolerance

What kind of chart provides a detailed understanding of a firm's production process?

Production Chart

The focus of an income statement is on:

Profits

All of the following are triggers to start a new business:

being laid off, experiencing mid-life crisis and very little to lose financially by a failure

________ is working with and learning from a company outside of your industry that has a skill that is critical to the firm's operation.

benchmarking

________ is the calculation of a series of ratios along four areas of company performance (liquidity, activity, leverage, and profitability) that provides a picture of the health of the company.

ratio analysis

What are negatives for an owner in a family business

reprimanding a family member, firing a family member, and promoting a family member

A(n) ________ exists if the service or product performs a similar function.

substitute

________ provides you with the opportunity to make money when other businesses cannot easily copy your advantages.

sustainable competitive advantage

________ are items that include equipment or location.

tangible assets

When developing a mission statement, a new business founder needs to ensure this characteristic is used to make it effective.

universal, measurable and specific

What percentage of businesses have a production process?

100%

A ________ is a summary of the assets and liabilities of a small business.

Balance sheet

________ costs must be paid no matter how many products or services are sold.

Fixed

________ have a physical presence including land, buildings, office machines, or equipment.

Fixed Assets

Venture capitalists are seeking a(n) ________.

IPO, sale to a larger company within a relatively short time and high growth business that has the opportunity to cash out

________ refers to the individuals who build and maintain relationships with customers.

Sales Management

________ is the simplest form of a business to establish; the person who owns it and the business itself are treated as the same entity.

Sole Proprietorship

Universal Studios, who made the Indiana Jones movies, forms a relationship with Burger King to put advertisements for the movie on drink cups. This is a form of ________.

Strategic Alliance

________ is an organizational form that treats a firm as a unique entity (separate from the owners), and is responsible for its own taxes.

Subchapter C Corporation

What is the disadvantage of choosing a sole proprietorship?

The law does not recognize other equity investors, it cannot have more than one founder and liability is solely on the owner

In the United States, where must a patent application be filed?

United States Patent and Trademark Office

________ costs change according to how many goods are produced.

Variable

Which of the following is an example of the list of items that the entrepreneur should include while visiting and making comparisons to his/her potential competitors?

access from road, size of facility and nearby attraction to customers

________ measures the efficiency with which a company can handle its resources. (Examples of resources: Inventory, fixed assets, accounts receivable)

activity ratio

A tool to better understand competitors and their capabilities is:

competitive map

A(n) ________ is an analytical tool to organize information about direct competitors on all points of competition.

competitive map

A ________ can easily be converted to cash, such as accounts receivable and notes receivable.

current asset

An income statement provides both the ________ and the ________ profit margins for a firm.

gross; net

The ________ ratio provides information on the portion of a business owned by the lenders (banks, etc.) and that portion owned by the founders (or other investors in the form of stock, etc.).

debt-to-equity

A marketing plan should include:

developing promotions, pricing policy and identifying your market

An entrepreneur cannot leave his or her business due to the amount of money that was invested. This is called a(n) ________.

exit barrier

A mission statement can also be described as:

goals, overall strategy and simple rules

Some communities offer facilities that house new businesses and provide resources for them. These are called ________.

incubators

________ are the capabilities and skills of the founder or employees.

intangible assets

The information from the North American Industry Classification System (NAICS) can be found from

internet, library, and government

________ are used to measure the level of indebtedness of a small business. (Examples of indebtedness: Bank loans, suppliers that have allowed the company to buy on credit.)

leverage ratios

All of the following are benefits of a Subchapter S Corporation EXCEPT:

limited number of shareholders

Dennis wants to measure the short-term ability of his company to meet (pay) its financial obligations . He would use ________. (Examples of short term financial obligations: short term loan/debt payments, etc.)

liquidity ratios

When a corporation suffers losses, the founders will:

lose only their investment in the business

________ is (are) a brief statement that summarizes how and where the firm will compete in the industry.

mission statement

Organizational slack

occur(s) in large companies that have excess resources such as equipment and employees.

What is a marketing plan?

plan developed by a business to specify who the customers are and how they will be attracted to the company

________ examine the performance of a business and its ability to make economic returns (make money) over and above its costs.

profitability ratios