ENT3003 exam 2

For ____ companies, the actual delivery costs must be based initially on information gathered from other companies in the industry. a. product b. service c. technology d. All of these choices e. None of these choices

b. service

Beginning in the late 1990s what percent of the Fortune 100 companies' market capitalization was based on intellectual property? a. 77 percent b. 65 percent c. 75 percent d. 93 percent e. 85 percent

c. 75 percent

____ are more likely to make the mistake of putting structure on the organization before its time. a. Personal advisors b. Founding teams c. Startup teams d. High-tech teams e. Virtual teams

c. startup teams

Once the entrepreneur determines where the new venture lies in the value chain, he or she must create a ____. a. process map b. feasibility analysis c. business plan d. timeline e. None of these choices

d. timeline

Intellectual-property rights are protected by ____. a. patents b. trademarks c. copyrights d. trade secrets e. All of these choices

e. all of these choices

Which of the following is not an independent contractor you would expect to find on an entrepreneur's extended team? a. Consultants b. PEOs c. Manufacturing support d. Sales support e. Board of advisors

e. board of advisors

Customer identification, customer validation and ____ are all part of the product development cycle. a. product protection b. value creation c. outsourcing d. product creation e. business creation

e. business creation

Entrepreneurs typically face two types of POC: the technology or product POC, and the ____ POC. a. prototype b. marketing c. business plan d. operations e. business model

e. business model

Pro forma financials are a key part of the ____. a. feasibility analysis b. business launch c. cash flow d. startup capital e. business plan

e. business plan

All of the following are part of an entrepreneur's extended network except ____. a. government agencies b. personal advisors c. manufacturing support d. sales support e. customers

e. customers

Entrepreneurs need to remember that ____ costs are the biggest costs the business will bear. a. production b. startup c. overhead d. inventory e. employee

e. employee

The ____ gives information about the projected profit or loss status of the business for a specified period of time. a. balance sheet b. statement of cash flows c. current ratio d. profit margin e. None of these choices

e. none of these choices

The bottom line for any new venture is to have ____. a. positive inventory b. good income statements c. great employees d. a strong founding team e. positive cash flow

e. positive cash flow

A month-by-month timeline shows a year in the life of a business with key milestones and anticipated ____. a. pricing b. growth c. financial metrics d. losses e. triggers

e. triggers

Which of the following is not one of the categories into which the resources of a company are often divided? a. Human b. Social c. Financial d. Physical e. Value chain

e. value chain

Somewhere in the micro strategy process, the business is actually launched in a small, controlled way.

True

Under the Copyright Extension Act of 1998, a copyright lasts for the life of the holder plus ____ years. a. 50 b. 60 c. 70 d. 80 e. 100

c. 70

POC tests involve field work with the customer.

True

____ are primarily interested in the company's margins and cash flow projections. a. Bankers/lenders b. Suppliers/creditors c. Customers/stakeholders d. Investors e. Strategic partners

a. Bankers/lenders

____ status or legitimacy is derived principally from the entrepreneur's education and experience. a. Achieved b. Affiliation c. Ascribed d. Aptitude e. None of these choices

a. achieved

To determine whether the accounting and control procedures are adequate once the new venture is beyond the startup phase and is growing consistently, ____. a. an annual audit is needed b. financial statements are not required c. a business agent is not required d. a labor union is essential e. the entrepreneur should file with the SEC

a. an annual audit is needed

The ____ is different from the other financial statements in that it looks at the financial health of the business at a single point in time. a. balance sheet b. statement of cash flows c. current ratio d. profit margin e. income statement

a. balance sheet

There are two types of ____ agreements: a cross-purchase agreement and a stock redemption agreement. a. buy-sell b. equity c. investor d. advisor e. None of these choices

a. buy-sell

A financially healthy company will see its major source of ____ coming from operating sources, such as sales. a. cash inflows b. cash outflows c. profit d. equity e. assets

a. cash inflows

In figuring ____, entrepreneurs must convert time to dollars and consider an opportunity cost. a. customer acquisition cost b. revenue for direct sales c. revenue per sales person d. lifetime value per customer e. customer retention cost

a. customer acquisition cost

Anyone investing in a new venture has four principal concerns: rate of growth, return on investment, ____ and ____. a. degree of risk / protection b. cash flow / degree of risk c. founding team / protection d. balance sheet / income statement e. assets / equity

a. degree of risk / protection

A/an ____ statement is, essentially, a cash budget or sources and uses statement, a. direct cash flow b. in-process flow c. return on investment d. cost of goods sold e. pro forma

a. direct cash flow

Which of the following would not be considered a startup resource? a. Feasibility analysis b. Founding team c. Independent contractors. d. Equipment e. Equity

a. feasibility analysis

A good way to test a new concept in the marketplace is through a ____. a. feasibility study b. marketing plan c. business plan d. market test e. business test

a. feasibility study

To qualify for ____, the work must be in a fixed and tangible form; that is, one must be able to see or hear it. a. federal copyright protection b. federal patent protection c. trade secrets d. a trademark e. None of these choices

a. federal copyright protection

____ is found if a mark is likely to cause confusion with a trademark already existing in the marketplace. a. Infringement b. Dilution c. Counterfeiting d. Trademark violation e. None of these choices

a. infringement

A board member who is a founder, employee, or retired manager of the firm is a/an ____. a. inside board member b. outside board member c. personal advisor d. officer e. chair of the board

a. inside board member

Poor execution, time-to-market increases, and missed first-to-market opportunities are some of the problems associated with ____. a. lack of new product development resources b. new product development failure c. failure to protect intellectual property d. lack of teamwork e. All of these choices

a. lack of new product development resources

The board is headed by the chairperson, who, in a new, private venture, is typically the ____. a. lead entrepreneur b. founder c. CEO d. CFO e. advisor

a. lead entrepreneur

The new environment for business planning makes the case for the importance of a feasibility study and ____ to prove the concept and enable the founding team to launch the venture before completing the formal business plan. a. micro strategies b. marketing plan c. POC d. executive summary e. prototype

a. micro strategies

____ represent(s) how the startup uses its cash to cover its overhead before it generates a positive cash flow from operations. a. Monthly burn rate b. Contribution margin c. Financial metrics d. Bootstrapping e. Process map

a. monthly burn rate

Lack of good market analysis, technical problems, and human error are reasons for ____. a. new product failure b. product simplification c. research and development d. shortened product life cycles e. All of these choices

a. new product failure

The Law of Agency defines the terms employee and independent contractor ____. a. on issues of trade b. on issues of education c. in securing a loan d. in securing private consultants e. in securing grants

a. on issues of trade

The ____ plan focuses on issues related to processes the venture will own and outsource, as well as where it will get its raw materials, and what type and quantity of labor will be required. a. operations b. marketing c. financial d. growth e. industry

a. operations

____ product development provides a young firm with a network of expertise that it couldn't afford to hire in-house. a. Outsourcing b. Patenting c. Protecting d. Networking e. Testing

a. outsourcing

The functions assumed by a professional employer organization include ____ functions. a. payroll and human resource b. marketing research c. manufacturing d. All of these choices e. None of these choices

a. payroll and human resource

____ starts with a high price to establish uniqueness; then drops the price as competitors enter the market. a. Price skimming b. Premium pricing c. Product bundle pricing d. Captive product pricing e. Demand-based pricing

a. price skimming

Creating a ____ is the first step in calculating startup capital requirements. a. process map b. feasibility analysis c. business plan d. balance sheet e. timeline

a. process map

____ can be defined as the activity that transforms a set of requirements into a format that brings all the elements into an integrated whole or system. a. Product design b. Feasibility analysis c. Prototyping d. Industry analysis e. None of these choices

a. product design

Increasingly, we are seeing more firms founded by ____ going international from startup. a. startup teams b. angel investors c. technology partners d. entrepreneurial networks e. None of these choices

a. startup teams

Which of the following is not part of direct selling expenses? a. Telephone expenses b. Advertising costs c. Travel costs d. Sales salaries e. Commissions

a. telephone expenses

The three major categories of patents are design patents, business method patents, and ____ patents. a. utility b. prior art c. manufacture d. obviousness e. None of these choices

a. utility

____ patents are the most common type of patent. a. Utility b. Trademark c. Design d. Business method e. Technology

a. utility

____ is created when the business is adequately capitalized and has highly regarded investors, an experienced management team, customers, a unique technology, product, or service, the ability to continually innovate, and a rapidly expanding market. a. Value b. Income c. Cash flow d. Equity e. None of these choices

a. value

Which of the following is not a professional advisor to an entrepreneur? a. Attorney b. Board of directors c. Accountant d. Banker e. Insurance agent

b. board of directors

____ is found by subtracting variable costs from revenues and dividing the difference by revenues to yield a percentage. a. Return on investment b. Contribution margin c. Profit margin d. Cash flow e. None of these choices

b. contribution margin

One of the biggest incentives for taking on the risk of a startup venture is the opportunity to acquire a/an ____ stake and participate in the potential upside if the startup is a success. a. buy-sell b. equity c. investor d. advisor e. None of these choices

b. equity

Entrepreneurs should keep in mind that the purpose for doing a/an ____ is to sell the business. a. prototype b. executive summary c. feasibility analysis d. business plan e. None of these choices

b. executive summary

Determining what resources are needed, when they are needed, and how to acquire them is a critical piece of the ____. a. business plan b. feasibility analysis c. founding team experience d. marketing plan e. profit and loss statements

b. feasibility analysis

The best way, and sometimes the only way, to accurately gauge customer demand is to ____. a. test a prototype b. go into limited production c. do market research d. do a feasibility study e. None of these choices

b. go into limited production

The main reason for new product development failure is lack of ____. a. sufficient funding b. good market and industry analysis c. effective leadership d. innovation e. patents

b. good market and industry analysis

The section of the business plan that presents the strategy that will be used to ensure that the business is sustainable and continues to scale over its life is included in the ____. a. financial plan b. growth plan c. marketing plan d. contingency plan e. production schedule

b. growth plan

Parties who run their own businesses and are hired by the entrepreneur to do a specific job are ____. a. labor unions b. independent contractors c. co-operatives d. secret partnerships e. silent partnerships

b. independent contractors

Which of the following is not a flaw that investors commonly find in business plans? a. Overly optimistic projections b. Lack of enthusiasm c. Too much hype d. Poor explanation of the business model e. No demonstration of customer demand

b. lack of enthusiasm

____ staff is a way for a new business to enjoy the advantages of having the kind of skilled work force available to major corporations without incurring so many of the expenses. a. Hiring b. Leasing c. Outsourcing d. Borrowing e. None of these choices

b. leasing

The ____ for POC consists of three primary elements: outcomes, assets, and actions. a. prototype b. micro strategy c. business plan d. feasibility test e. executive summary

b. micro strategy

Attorneys can provide the new venture with a wealth of support, which includes all the following except ____. a. assisting in complying with federal, state, and local laws b. preparing financial statements c. advising and preparing documents for intellectual-property rights acquisition d. negotiating and preparing contracts e. apprising the entrepreneur of the latest tax reform legislation and helping minimize the venture's tax burden

b. preparing financial statements

In the context of patent protection, ____ is knowledge that is publicly available or was published prior to the date of the invention⎯that is, before the filing of the patent application. a. utility b. prior art c. copyright d. intellectual property e. None of these choices

b. prior art

The entrepreneurial team owns all or the majority of the stock in a ____. a. publicly held company b. privately owned corporation c. governmental operation d. sole proprietorship e. strategic partnership

b. privately owned corporation

In service businesses, the cost of goods sold (COGS) is equivalent to the time expended to ____ and ____ the service. a. sell / deliver b. produce / deliver c. produce / market d. test / produce e. None of these choices

b. produce/deliver

Opportunity recognition, technical feasibility analysis, and prototype building and field testing are elements of the ____. a. industry life cycle b. product development cycle c. trademark process d. new product checklist e. successful product realization

b. product development cycle

The micro strategy process repeats itself over and over again and with each successful outcome, the new business is moved toward a complete ____. a. prototype b. proof of concept c. business plan d. feasibility test e. executive summary

b. proof of concept

A ____ is a way for inventors to use the term patent pending. a. non-provisional patent b. provisional patent c. pending patent d. foreign patent e. patent application

b. provisional patent

Which of these pricing strategies will help a new firm maximize cash flow? a. Lower price to raise volume b. Raise price and reduce direct costs c. Set a higher price to raise perceived value d. Sell online e. None of these choices

b. raise price and reduce direct costs

The probability of success for a new product launch is about ____ percent. a. 40 b. 50 c. 60 d. 70 e. 80

c. 60

In 2006, the ____ was signed into law to provide relief to owners whose marks have been tarnished by third-party marks. a. Trademark Fair Act b. Trademark Infringement Act c. Trademark Dilution Revision Act d. Copyright Dilution Revision Act e. Trade Secret Protection Act

c. Trademark Dilution Revision Act

Which of the following is not eligible for a patent? a. A machine b. A business method c. A naturally occurring substance d. An improvement on a machine e. A food additive

c. a naturally occuring substance

The firm's ____ should be thought of as a business partner who can be a source of information and networking; help make decisions regarding capital needs; and assist in preparing pro forma operations and cash-flow analyses. a. accountant b. auditor c. banker d. board e. None of these choices

c. banker

A ____ will tell the entrepreneur whether people are interested in the product/service and prove that it's worth the time and money to build out a more elaborate site. a. virtual store b. website c. beta site d. virtual prototype e. None of these choices

c. beta site

The need of Internet companies to protect their ways of doing business is addressed by a/an ____ patent. a. design b. utility c. business method d. prior art e. general usage

c. business method

A ____ depends on a feasible business model that has been market-tested and is reliable. a. feasibility study b. marketing plan c. business plan d. micro strategy e. POC

c. business plan

When an entrepreneur decides to use a team effort to create the new venture, he or she generally looks for people who have ____ skills. a. independent b. competing c. complementary d. differentiated e. homogeneous

c. complementary

____ protect original works of authors, composers, screenwriters, and computer programmers. a. Trademarks b. Patents c. Copyrights d. Trade secrets e. All of these choices

c. copyrights

Because they tend to be fairly expensive, consultants are best used for ____. a. technology startups b. human resources c. critical one-time advice or problem solving d. employee leasing e. repetitive tasks

c. critical one-time advice or problem solving

The higher the ____, the more liquid the company is and the more easily these assets can be converted to cash to pay off short-term obligations. a. return on investment b. inventory turnover c. current ratio d. profit margin e. income statement

c. current ratio

Internet ventures have unique metrics because they typically start with three types of "customers": visitors, contributors, and ____. a. investors b. end users c. distributors d. partners e. traffickers

c. distributors

The ____ protects inventors from infringers who would violate a patent by making small, insignificant changes in the claims. a. dilution act b. infringement act c. doctrine of fair use d. doctrine of equivalents e. None of these choices

c. doctrine of fair use

Today most investors want to see a well-written ____ that tells a compelling story and grabs their interest. a. business plan b. elevator speech c. executive summary d. proof of concept e. marketing plan

c. executive summary

A high-tech venture with significant up-front funding and the potential for exponential growth requires a management team of ____. a. creative founders b. young entrepreneurs c. experienced professionals d. scientists and technical experts e. venture capitalists

c. experienced professionals

When choosing people to serve on the board of directors, consider those who have all of the following characteristics except ____. a. important contacts in the industry b. a personality compatible with the rest of the board c. exploitive behavior d. good problem-solving skills e. honesty and integrity to engender a sense of mutual trust

c. exploitive behavior

So that entrepreneurs do not have to incur the tremendous cost of purchasing equipment for a manufacturing plant, they may ____. a. acquire stakeholders b. purchase suppliers c. form a strategic alliance d. downsize their operations e. change their strategy

c. form a strategic alliance

Whenever there is competitive rivalry, prices tend to be ____. a. the same b. slightly higher c. lower d. 50 percent higher e. None of these choices

c. lower

One mistake that entrepreneurs make is to set their prices so that they cover ____ costs plus a margin the entrepreneur is expecting to achieve. a. inventory b. total c. marginal d. variable e. All of these choices

c. marginal

To avoid ____, the team needs to change its angle of vision by looking at the situation in a new way and then testing alternative hypotheses. a. contingency planning b. relying on intuition c. pattern recognition bias d. excessive optimism e. None of these choices

c. pattern recognition bias

Indirect selling expenses are not linked to the sale of a specific product and include interest, telephone expenses, and ____. a. cost of promotional supplies b. salaries of non-sales personnel c. postal charges d. rent e. utilities

c. postal charges

Which of the following is not a technique that can help entrepreneurs arrive at a realistic forecast of demand for their product or service? a. Talk to customers b. Interview prospective end-users and intermediaries c. Prepare revenue forecasts d. Apply the entrepreneur's knowledge and experience e. Go into limited production

c. prepare revenue forecasts

An accountant can help a growing business in all of the following except ____. a. auditing b. bookkeeping c. preparing documents for acquisition of intellectual-property rights d. setting up control systems for operations and payroll e. preparing taxes

c. preparing documents for acquisition of intellectual-property rights

It is important to ensure that the final price to the customer or end user is tolerable, given all the mark-ups along the value chain. This is called ____. a. premium pricing b. price skimming c. product bundle pricing d. captive pricing e. demand-based pricing

c. product bundle pricing

Once the new venture has passed the startup stage, additional value is created by ____. a. bankers/lenders b. suppliers/creditors c. significant customers d. low return on equity e. investors

c. significant customers

Which of the following is not a concern for lenders when they consider an entrepreneur for a loan? a. The amount of money that is needed b. The kind of positive impact the loan will have on the business c. The number of strategic partners the venture has d. The kinds of assets the business has for collateral e. How the business will repay the loan

c. the number of strategic partners the venture has

A ____ consists of a novel and confidential formula, device, idea, process, pattern, or compilation of information that gives the owner a competitive advantage in the marketplace. a. copyright b. patent c. trade secret d. property right e. trademark

c. trade secret

____ consist(s) of a formula, device, idea, compilation of information, process, or pattern. a. International protection b. Copyrights c. Trade secrets d. A patent e. All of these choices

c. trade secrets

Like patents, ____ can suffer from infringement, counterfeiting, or misappropriation. a. trade secrets b. copyrights c. trademarks d. All of these choices e. "trade secrets" and "copyrights" only

c. trademarks

Most countries require that an invention be manufactured in the country within ____ of the issuance of the foreign patent. a. six months b. one year c. two years d. three years e. four years

c. two years

The chances of success are greater when the lead entrepreneur and the team share the same ____ for the new venture. a. advisors b. skills c. vision d. network e. status expectations

c. vision

What percent of all patents come from large companies? a. 88 percent b. 78 percent c. 85 percent d. 80 percent e. 90 percent

d. 80 percent

____ is knowledge that is publicly available or was published prior to the date of the invention⎯that is, before the filing of the patent application. a. Utility b. Fair use c. Prior use d. Prior art e. Fair art

d. Prior art

An informal panel of experts and other people who are interested in seeing the new venture succeed is a/an ____. a. mentor board b. startup team c. virtual team d. advisory board e. consulting firm

d. advisory board

Entrepreneurs can reach a price that can be tested in the market by considering costs, competitor pricing, and ____. a. feedback from customers b. feedback from value chain partners c. customer behavior d. Both "feedback from customers" and "feedback from value chain partners" e. Both "feedback from customers" and "customer behavior"

d. both "feedback from customers" and "feedback from value chain partners"

Which of the following is a service that consultants do not provide? a. Training sales staff and/or management b. Conducting market research c. Acting as temporary key management d. Bringing the activity in-house e. Conducting research and development

d. bringing the activity in-house

The ____ plan reflects recognition that sometimes the "best laid plans" do not work the way you intended. a. business b. production c. financial d. contingency e. media

d. contingency

In manufacturing businesses, forecasting expenditures is a bit more complex because ____ must be derived first. a. salaries b. inventory expenses c. factory overhead d. cost of goods sold e. in-process flow

d. costs of goods sold

The intense effort required of a startup can be shared when the entrepreneur uses a ____. a. creditor b. business agent c. stockholder d. founding team e. board of directors

d. founding team

How a product or service is priced is a function of the company's ____. a. business plan b. feasibility analysis c. process map d. goals e. product demand

d. goals

A/an ____ is an advocate, but a/an ____ is bound by rules and ethics that do not permit advocacy. a. insurance agent / banker b. banker / insurance agent c. consultant / government agency d. lawyer / accountant e. accountant / lawyer

d. lawyer/accountant

Which of the following is not a principle concern of investors? a. Rate of growth b. Return on investment c. Degree of risk d. Market analysis e. Protection

d. market analysis

The ____ plan specifies the legal form of organization that the venture will take, whether that be sole proprietorship, partnership, LLC, or corporation. a.operations b.marketing c.financial d.organization e.industry

d. organization

A board member with no direct connection to the business is a/an ____. a. inside board member b. personal advisor c. partner d. outside board member e. insurance agent

d. outside board member

An executive summary should demonstrate a clear link between the ____ and the ____. a. customer / market b. founder / team c. return on investment / cash flow d. pain / solution e. None of these choices

d. pain/solution

A ____ is the primary means of protecting an original invention. a. trademark b. copyright c. trade secret d. patent e. None of these choices

d. patent

A/An ____ consists of individuals whom the entrepreneur respects and trusts. They serve as a sounding board for ideas and act as coaches. a. advisory board b. board of directors c. founding team d. personal mentor board e. independent contractor

d. personal mentor board

In a manufacturing business, which of the following is not part of the calculations used to forecast the costs of goods sold (COGS)? a. Direct labor b. Cost of materials c. Direct factory overhead d. Product delivery e. Work-in-process flow

d. product delivery

Which section of the business plan details features and benefits as well as the plan for prototyping and testing? a. Industry/market analysis b. Operations plan c. Marketing plan d. Product/service plan e. None of these choices

d. product/service plan

Which ratio uses net income and net sales from the income statement to give the percentage of each dollar of sales remaining after all costs of normal operations are accounted for? a. Return on investment b. Inventory turnover c. Current ratio d. Profit margin e. Income statement

d. profit margin

A ____ is simply evidence that a technology, product, business model, or idea is feasible. a. prototype b. marketing plan c. business plan d. proof of concept e. feasibility study

d. proof of concept

Initial market tests are accomplished using a working ____ of near production quality. a. concept b. platform c. model d. prototype e. None of these choices

d. prototype

The ____ is an amount of cash that is often based on the sales and collection cycle of the business. a. cash flow b. in-process flow c. risk factor d. safety margin e. None of these choices

d. safety margin

A feasibility study and a business plan are essentially the same.

false

A highly focused executive summary and pitch presentation are best developed from a completed business plan.

false

A new venture's health is measured by its balance sheet.

false

An accountant is your advocate, but your lawyer is bound by rules and ethics that do not permit advocacy.

false

Choosing a good attorney is a time-consuming but vital task that should be accomplished immediately after startup.

false

Investors consider research and development, engineering, and testing of new products to be low-risk, so funding for these activities is not difficult for the entrepreneur to secure.

false

Investors tend to look for technology-driven companies rather than market-driven companies.

false

Laws and phenomena of nature, naturally occurring substances, abstract mathematical formulas, and ideas are eligible to be patented.

false

Price skimming is finding out what customers are willing to pay for the product and pricing it accordingly.

false

Product development and intellectual-property development are not closely intertwined.

false

The executive summary of the business plan should be no more than two pages long.

false

The least important part of any financial plan is the assumptions on which it is based.

false

The strongest product POC is a working prototype.

false

With the benefits of information and systems technologies, the success rate of new product development has climbed to 85 percent at launch.

false

Working boards are crucial in the startup phase.

false

When choosing a banker, the entrepreneur planning a new venture should seek out an officer with the rank of assistant vice president or higher.

true

Where the new venture lies in the value chain will determine what its margins are, who its customer is, and how much it can charge for its products and services.

true

A board of directors can be made up of inside or outside members or a combination of the two.

true

A patent gives the patent holder the right to defend the patent against others who would attempt to manufacture, use, or sell the invention during the period of the patent.

true

A process map details how information flows through the business.

true

A product life cycle is analogous to an industry life cycle with periods of product development, market introduction, growth, maturity, and decline.

true

As long as the market is growing, it is more important that the entrepreneur is solving a critical pain with a value proposition the customer quickly understands.

true

Because consultants tend to be fairly expensive, they are best used for critical, one-time advising or problem-solving assignments.

true

Bootstrapping refers to minimizing of resources at startup in order to keep fixed costs as low as possible.

true

Building a POC prototype reduces the risk of failure and clarifies customer needs.

true

Determining what resources are needed, when they are needed, and how to acquire them is a critical piece of the feasibility puzzle.

true

Each time a new product or service or an improvement to an existing product or service is introduced, it will have gone through a design and development process.

true

How a product or service is priced is a function of a company's goals.

true

If a new venture is a corporation, a board of directors is required.

true

In a wholly owned or closely held corporation, there really is little distinction between the functions of a board of directors and those of a board of advisers.

true

Intellectual-property rights are legal rights associated with patents, trademarks, copyrights, and trade secrets.

true

Most entrepreneurs try to avoid hiring employees as long as possible, because employees are the single biggest expense in the business.

true

Poor execution in product development results in missed opportunities to enter the market at a quiet time without immediate competition.

true

Pricing is not designed to cover total costs but to maximize total contribution⎯that is, unit price minus unit variable costs.

true

Submitting a professionally crafted business plan is less important than making it clear what the entrepreneur has accomplished in the way of starting the business.

true

The board is headed by the chairperson, who, in a new, private venture, is typically the lead entrepreneur.

true

The product development cycle consists of a series of tasks leading to introduction of the product to the marketplace.

true

When an entrepreneur is attempting to gauge levels of demand, the customer is the prime source of information.

true