ENT- Midterm Exam
_____ are the only way a sole proprietorship may be purchased.
Key resource acquisitions
Part-time businesses are important for which of the following reasons?
Part-time self-employment is the way most people start in entrepreneurship.
In which way will working with a partner reduce the risk of a start-up?
Partners may provide capital, equipment, or advice.
A Web page in which entries are posted in reverse chronological order is a
blog.
The difference between original acquisition cost and the amount of accumulated depreciation is called the
book value.
A listed, live connection to a different Web site, which in turn displays a similar link to the first Web site is a(n)
reciprocal link.
Two challenges typical to family businesses are
role conflict and succession.
_____ entrepreneurs are people who generally have another job that is their primary one.
Occasional
Identify the statement that is not a part of the steps which make up the process of due diligence
Developing a brief business plan for the acquisition.
_____ analysis is based on the concept that the longer you have to wait to receive money, the less valuable it is right now.
Discounted cash flow
"What if people didn't have to leave their houses to go grocery shopping?" refers to which cue?
Eliminate
Which of the following entrepreneurs employ about 58 percent of America's total workforce?
Family business owners
_____ means that a firm is worthy of consideration or doing business with because of the impressions or opinions of customers, suppliers, investors, or competitors.
Legitimacy
Which of the following steps is NOT a part of due diligence?
Leveraging the contributions of the partner to provide faster growth.
Which of the following is NOT a typical career path for entrepreneurs?
Mature entrepreneurship
The microchip industry was born when someone asked the question, "What if we shrunk them?" This refers to which of the following cues?
Minimize
Which of the following represents an advantage of stand retailing?
Minimum startup investment
When Crest toothpaste introduces "New and Improved" toothpaste, it is an example of which element of SCAMPER?
Modify
Which of the following is an example of the general environment?
The economic sector
Being asked if you want to supersize your order at a fast-food restaurant is an example of
a standard business practice.
The creative thought process, according to Graham Wallas, includes all of the following stages EXCEPT
combination.
Research indicates that most service and retail firms typically start out as a
hobby.
Taking an idea and offering a way to do something slightly better than it is done presently refers to
incremental strategy.
An Internet site designed to introduce and explain a business to others is known as a(n)
informational Web site.
Doing work on a seasonal basis such as doing taxes or making Christmas wreaths is an example of
occasional entrepreneurship.
According to Graham Wallas, exploring the problem or opportunity in all directions is called
preparation.
The three general forms of legitimacy that you can develop are based on
products, people, and organization.
When a small business is first getting started, there is a lot of flexibility in terms of
roles and expected behaviors.
A business that is created by separating parts of an operating business into a separate entity is called a
spin-off.
The middle level of professionalization is called _____, where as opposed to a "best" restaurant, there is probably a restaurant you know of with great food but so-so service.
standard
Which of the following is also called multilevel marketing?
Network marketing
Which of the following is an excellent way to find businesses for sale?
Networking
Often, the alternative to negotiating together can be _____ if the amounts are small, or undertaking legal action if the amounts warrant legal fees or the hassles of enforcing small claims court decisions.
"lumping it"
Identify the simplest form of discrimination.
Access
Which popular innovation strategy can be just as effective and much more likely in the real world, than business opportunities that result from radical innovations?
Adapting
When faced with a crisis, what is the first step that a small business owner should follow?
Admit you are in trouble
Which of the following relates to expert businesses?
All the major functions of the firm follow standard business practices of the industry.
Which of the following is NOT an advantage of home businesses?
Always working "on the road" thereby enhancing productivity.
Identify the correct statement about B2B.
B2B e-commerce is larger than B2C e-commerce.
Which of the following statements about caveat emptor is true?
Caveat emptor is often the first line of defense by producers of mediocre merchandise.
Which of the following statements about certification for women- and minority-owned small businesses is false?
Certification is for every women- or minority-owned small business.
_____ of other firms in the same industry are commonly used to estimate the value of a business. One major problem with this method is that no two firms are exactly alike.
Comparable sales
According to PSED, start-up entrepreneurs feel most confident about which of the following aspects?
Complying with local/state/federal regulations
Which of the following statements about the professional management of small businesses is false?
In terms of small business, professional management is an issue of education, titles, and credentials.
Which of the following statements about business incubators is false?
Incubator participants have individual office services, such as telephone answering, and production and copying of documents.
"Why might a cell phone that can play music MP3s be a better approach than a dedicated MP3 player?" pertains to which of the following questions?
Is your product or idea innovative?
Which of the following does NOT hold true of part-time self-employment?
It is a minor portion of all current entrepreneurship.
Which of the following statements about family businesses succession is true?
Turning over management authority is not easy for most founders.
Which of the following holds true of habitual entrepreneurs?
Usually they have no succession plan
Which of the following is an idea trigger for the "substitute" cue in SCAMPER?
What opportunities can you think of that come as a result of replacing something that already exists?
"S" in the creativity tool SCAMPER stands for
substitute.
An ethical model which suggests you treat others in the manner you wish to be treated refers to
the Golden Rule.
When a small business start-up secures outside investment, one thing it accomplishes is that
the business is critically examined by outsiders.
Research into the indicators of successful start-ups shows that one of the best predictors of success is
the level of experience of the founders
For family business, the most effective approach for avoiding role conflict is
to keep family issues out of the business.
An ethical model that suggests that there is a code of right and wrong that everyone can see and follow refers to
universalism.
In all of the following situations, it might make better sense to undertake a part-time business EXCEPT when
you are buying an existing business.
Government specifications for acceptable use of land and buildings in particular areas are called
zoning laws.
Which of the following best describes a licensee?
It is a person or firm obtaining the rights to use a particular piece of intellectual property.
____ is the documented permission from the government to run your business.
Licensing
Which of the following statements about entrepreneurial teams is false?
Most teams are nonfamily related
Which of the following is NOT a focus while answering the eight questions in a typical I 2 P analysis?
People
_____ is/are probably the ultimate resource, and starting a business can tax it heavily.
Time
Following rules and orders, not swearing, and dressing appropriately would be examples of which class of ethical standards?
Employees should be dependable organizational citizens
Which of the following statements about a business plan is false?
Estimates suggest that a business plan may take anywhere from 10 to 20 hours or more if you are new to business.
_____ occurs when a person's values are in conflict, making it unclear whether a particular decision is the right thing to do.
Ethical dilemma
"S" in the creativity tool SCAMPER stands for summarize.
FALSE
Small businesses often do not try something innovative.
FALSE
Scenario: B&B MusicBart Barker has always had the talent for playing several musical instruments and has a fabulous voice. Bart has been playing music at family and friends' events for several years. At age 21, Bart is determined to open his own business with his brother Brad who is a business major. Bart is the idea person, whereas Brad is more the contemporary classic entrepreneur. Bart wants to start and own the business as a lifetime venture, whereas Brad already has an exit plan for their business. Despite these differences, the two brothers launch their business B&B Music Inc., with great fanfare.
Harvest
Which of the following are owners with an exit plan?
Harvest entrepreneurs
Which of the following observations holds true of product distribution franchising?
It provides the franchisee with specific brand named products, which are resold by the franchisee in a specified territory.
Which of the following statements about legitimacy indicators is true?
Part of legitimacy and building trust comes from the consistency of a firm's actions over time.
Which of the following U.S. industries had the most number of establishments in 2007?
Professional Services
Which of the following includes characteristics of a business, like trust, consistency, and networks that help make business operations smooth and efficient?
Social capital
_____ entrepreneurs alternate periods of growth and stability which are determined by personal or family needs.
Spiral
The product/service component of the feasibility study should include which of the following aspects?
Stage of development
_____ is an approach to operating a firm or a line of business which identifies, creates and exploits opportunities to make a profit in a way that can minimize the depletion of natural resources, maximize the use of a recycled material, or improve the environment.
Sustainable entrepreneurship
Which of the following statements about a family council is false?
The main function of the family council is to be focused on running the business.
Which of the following statements about the task environment is true?
This part of the environment is made up of those people the firm deals with every day, as well as important groups you may deal with directly less often, but that are always on your mind.
What is the goal of a feasibility study?
To assess if an idea can be profitably brought to market.
Under which of the following situations might it make better sense to undertake a part-time business first?
You want to gain basic experience
Scenario: B&B MusicBart Barker has always had the talent for playing several musical instruments and has a fabulous voice. Bart has been playing music at family and friends' events for several years. At age 21, Bart is determined to open his own business with his brother Brad who is a business major. Bart is the idea person, whereas Brad is more the contemporary classic entrepreneur. Bart wants to start and own the business as a lifetime venture, whereas Brad already has an exit plan for their business. Despite these differences, the two brothers launch their business B&B Music Inc., with great fanfare.
an average income seeker.
The purchase of substantially less than 100 percent of a business is called a
buy-in.
The limitations imposed on your property by your neighborhood group are known as
covenants.
The first step of ethical decision-making is
defining the moral problem.
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
doing a business plan.
Searching for opportunities that arise when you get rid of something or stop doing something refers to
eliminating.
The amount by which sales prices exceed product costs refers to
high margins.
A system of values that people consider in determining whether actions are right or wrong is referred to as
ethics.
A part of the external environment made up of sectors of major forces that shape the people and institutions of the task and internal environments is the
general environment.
The key for managing the demanding life of the entrepreneur is to
get advice from people in your line of business about the basic activities of the small business.
All of the following are major pitfalls that business owners can become victims of when trying to become more innovative EXCEPT
getting the "bandits on the train."
The firm that obtains the rights to use a particular piece of intellectual property is the
licensee.
Often the only competitive advantage for a "me-too" start-up is the
location
Financial statements, in performing due diligence, should include all of the following EXCEPT a(n)
mission statement analysis.
"M" in the creativity tool SCAMPER stands for
modify.
The idea and action of each person helping another refers to
mutuality.
The amount for which an asset would sell, less the costs of selling the asset is called
net realizable value.
An approach to selling in which the salesperson recruits customers to become distributors of the products or services to others is called
network marketing.