Entrepreneurial Midterm

Of the following, which is not typically identified as a bootstrapping technique?

hiring seasoned veterans

​The average size of social loans is around $17,000.

true

Which of the following would be most commonly used for long-term financing?

insurance companies

Which of the following is a key question to ask when performing a feasibility criteria approach?

is it proprietary

Relying on abstractions can

limit on'es perception on reality

Coming up with a unique good or service is a _____ approach, while adapting something that is currently on the market or extending the offering to an area where it is not presently available is a(n) _____ approach.

new new, new old

Equity capital is

not a loan but a form of stock.

Innovation is planned and predictable.

false

Venture capitalists are quick to invest.

false

Informal risk capitalists are often referred to as "business angels."

true

Only a small percentage of new ventures succeed.

true

The person who gets the franchise is usually required to do all of the following except:

design a logo for the unit

Truly creative people are always geniuses.

false

According to Forbes, the net worth of the richest ______ Americans was $2.29 trillion ($5.73 billion per person).

400

Which of the following is not currently cited as a trend creating business opportunities?

breakfast cereals

All of the following should be examined when evaluating the selection of venture except

employees

Process needs

exist when and entrepreneur can meet a new source of demand.

It is really genius and not hard work that creates success for the entrepreneur.

false

Much franchise litigation has arisen over termination of owners.

false

The creative climate rejects the ambiguity common in work and life.

false

The sources of new business ideas among men and women are identical in type and proportion.

false

The venture capital pool is rapidly declining due to overfunding.

false

Synthesis is the combining of two existing concepts into a new formulation.

true

The terms upside gain and downside loss refer to the profits the business can make and the losses it can suffer.

true

Uniqueness in a product or service can be demonstrated through a new-new approach or a new-old approach.

true

Lack of finished product availability can affect

marketing efforts

When premature entry into the marketplace causes the failure of a new venture, it can be termed

poor timing

Which of the following costs do not add to the cost of franchising?

prepaid utility bill

Rapid technological advances in many industries cause a concern for in new venture development.

rapid product obsolescence

All of the following are characteristics of a creative climate except

restricted communication with outsiders.

Which of the following is not critical to a product's success?

size

SBIC stands for the

small-business investment companies

Sales growth is a critical factor in the

start up phase

What is not a factor when looking at the condition of the inventory?

suppliers

Which of the following can help speed up the idea process?

taking breaks while working

Evaluating franchise opportunities include finding out more about all of the following except

the franchise location

When should a potential franchisee receive the FDD (Franchise Disclosure Document)?

at least ten days before signing a contract or paying any money

Independence, autonomy, and ______ are the major driving forces behind lifestyle ventures.

control

Shifts in consumer tastes and attitudes are an example of

industry and market changes

A common human resource problem is

inflated owner ego

Many inventions and innovations are a result of inventors seeing new and different relationships among objects, processes, materials, technologies, and people.

true

Pricing becomes less of a concern when customers become aware of a product's unique characteristics that are superior to the competition.

true

Which of the following statements is true with regards to creativity?

People's process will remain the same, but their approach will change.

When this asset is purchased, the buyer should be sure to deduct those that they are deemed uncollectible.

accounts receivable

Which of the following is a type of equity financing?

common stock

What criteria must be met in the design methodology approach?

concept feasibility

Managerial problems include which of the following?

concept of team approach

When starting a business, which of the following sources of financing are least likely to be used?

insurance companies

Sophisticated investors are wealthy individuals who invest more or less regularly in new and/or early- and late-stage ventures.

true

Many entrepreneurs of new ventures lack

a unique angle for the venture