Entrepreneurship
A(n) ________ is a person who works for a business as an apprentice or trainee for the purpose of obtaining actual experience.
intern
A company's merchandise, raw materials, and products waiting to be sold are called its ________.
inventory
In the context of a firm's statement of cash flows, ________ activities include the purchase, sale, or investment in fixed assets (e.g., real estate, equipment, and buildings).
investing
A ________ partnership is a modified form of a general partnership.
limited
Advertising fees that franchisees have to pay the franchisor are typically less than ________ percent of gross income.
3
Equity investors typically have a ________ year investment horizon.
3 to 5
The Barringer/Ireland Business Model Canvas consists of ________ major category(ies) and ________ parts.
4; 12
According to the textbook, studies show that more than one individual starts ________ percent of all new firms.
50 to 70
To avoid making a hasty judgment, a franchisee may not purchase a franchise for ________ days from the time the Franchise Disclosure Document is received.
14
A utility patent is good for ________ years from the date of the original application, a design patent is good for ________ years from the date the patent is granted, and a plant patent is good for ________ years from the date of the original application.
20; 14; 20
The term of a utility patent is ________ years from the date ________.
20; of the initial application
The most notable SBA program available to small businesses is the ________.
7(A) Guaranty Program
According to current regulations, any copyrightable work created on or after January 1, 1978, is protected by copyright law for the life of the author plus ________ years.
70
According to a survey of rapid growth firms conducted by the Small Business & Entrepreneurship Council and the Financial Services Roundtable, ________ percent of all U.S. exports are accounted for by small businesses.
97
The Savvy Entrepreneurial Firm feature in Chapter 1 focuses on incubators and accelerators, those that help start-ups. ________ are organizations that offer a small amount of seed funding in exchange for small equity positions in the companies that participate in their programs.
Accelerators
The Google program called ________ allows advertisers to buy keywords on the Google Home Page.
AdWords
Corporations are organized as either ________ corporations or ________ corporations.
C; subchapter S
Which of the following statements regarding survival rates of entrepreneurial firms in the United States is correct?
As high as 50 percent after four years
________ is (are) used to generate a number of ideas quickly.
Brainstorming
________ marks are trademarks or service marks used by the members of a cooperative, association, or other collective group, including marks indicating membership in a union or similar organization.
Collective
Copyright law is governed by the ________.
Copyright Revision Act of 1976
________ is the process of generating a novel or useful idea.
Creativity
Which of the following is the correct sequence for the four steps in the entrepreneurial process?
Deciding to become an entrepreneur, developing successful business ideas, moving from an idea to an entrepreneurial firm, managing the growing entrepreneurial firm
________ patents are the second most common type of patent and cover the invention of new, original, and ornamental designs for manufactured products.
Design
________ business models are ones that do not fit the profile of standard business models, and are impactful enough that they disrupt or change the way business is conducted in an industry or an important niche within an industry.
Disruptive
Which of the following is the primary advantage of exporting as a foreign market entry strategy?
Exporting is a relatively inexpensive way for a firm to become involved in foreign markets.
Which of the following was identified in the textbook as a disadvantage of participating in strategic alliances and joint ventures?
Partial loss of decision autonomy
________ is the process of determining whether a business idea is viable.
Feasibility analysis
________ feasibility analysis is a quick financial assessment of the viability of a business idea.
Financial
________ depict relationships between items on a firm's financial statements.
Financial ratios
________ costs are costs that a company incurs whether it sells something or not. ________ costs are the costs a company incurs as it generates sales.
Fixed; Variable
________ are an estimate of a firm's future income and expenses, based on its past performance, its current circumstances, and its future plans.
Forecasts
The ________ contains 23 categories of information that give a prospective franchisee a broad base of information about the background and financial health of the franchisor.
Franchise Disclosure Document
________ is a form of business ownership in which a firm that already has a successful product or service licenses its trademark and method of doing business to other businesses in exchange for an initial franchise fee and an ongoing royalty.
Franchising
________ financial statements reflect past performance and are usually prepared on a quarterly and annual basis.
Historical
Economic forces impact the opportunities available to entrepreneurs. Which of the following alternatives reflects a set of economic forces that would be of interest to entrepreneurs?
Housing starts, consumer spending patterns, and stability of interest rates
Which form of business ownership is a particularly poor choice for an aggressive entrepreneurial firm?
Sole proprietorship
Which of the following factors is a negative as it pertains to the financial feasibility of a business venture?
Inability to forecast income and expenses with a reasonable degree of accuracy
Which of the following is a disadvantage of a C Corporation?
Income is subject to double taxation.
Which of the following is the proper sequence for when a firm should develop a business model?
Initial validation of the business idea, preparation of the business model, fleshing out the operational details of the firm
________ is the process of creating something new, which is central to the entrepreneurial process.
Innovation
Which of the following is NOT an attribute of an attractive industry?
Is late rather than early in its life cycle
Which of the following is the most important thing that an entrepreneur, or team of entrepreneurs, can do to build a strong ethical culture in their organization?
Lead by example
Which of the following was identified in the textbook as an advantage of participating in strategic alliances and joint ventures?
Learning
________ is the granting of permission by one company to another company to use a specific form of its intellectual property under clearly defined conditions.
Licensing
________ is a company's ability to meet its short-term financial obligations.
Liquidity
Which of the following is a disadvantage of growth by means of external growth strategies?
Loss of organizational flexibility
________ means that as a firm grows and adds personnel, the new hires typically do not have the same ownership incentives as the original founders, so the new hires may not be as motivated as the founders to put in long hours or may even try to avoid hard work.
Moral hazard
What section of the business plan deals with the day-to-day operations of a company?
Operations plan
________ feasibility analysis is conducted to determine whether a proposed business has sufficient management expertise, organizational competence, and resources to successfully launch its business.
Organizational
Which of the following was NOT identified in the textbook as one of the common mistakes that entrepreneurs make regarding intellectual property?
Not properly registering their Internet domain names
Which of the following are the four key forms of intellectual property protection?
Patents, copyrights, trademarks, and trade secrets
Which of the following represents the correct order of the five stages of the creative process?
Preparation, incubation, insight, evaluation, elaboration
________ research is research that is collected by the person or persons completing the analysis. ________ research probes data that is already collected.
Primary, Secondary
________ financial statements are projections for future periods based on forecasts and are typically completed for two to three years into the future.
Pro forma
________ feasibility is an assessment of the overall appeal of the product or service being proposed.
Product/service
________ refers to the activities the firm takes to communicate the merits of its product to its target market.
Promotion
Which of the following is the primary advantage of a wholly owned subsidiary as a foreign market entry strategy?
Provides a firm total control over its operations
Which of the following is an example of a long-term liability?
Real estate mortgage
Which of the following was NOT given in the textbook as a reason for the increase in the number of senior entrepreneurs?
Seniors tend to be more passionate about new business ideas than middle-aged or younger prospective entrepreneurs.
Which of the following is an example of an external growth strategy?
Strategic alliances
________ relationships are characterized by frequent interactions that form between coworkers, friends, and spouses.
Strong-tie
________ licensing is the licensing of proprietary technology that the licensor typically controls by virtue of a utility patent.
Technology
In the five-stage creative process, the flash of recognition, or what is sometimes referred to as the "eureka" experience, occurs in the ________ stage.
insight
Which of the following is an incorrect approach to administering a concept test?
The best candidates to distribute a concept statement to are family and friends.
A(n) ________ is a person who is in business for themselves, works on their own time with their own tools and equipment, and performs services for a number of different clients.
freelancer
According to the textbook, beyond their own funds, the second source of funds for many new ventures is ________.
friends and family
Which of the following statements is incorrect regarding the executive summary of a business plan?
The executive summary is the first thing that should be written in preparing a business plan.
Which of the following statements is NOT true about women-owned businesses in the United States?
The number of women-owned businesses is decreasing.
According to the textbook, the most important function of the pro forma statement of cash flows is to project whether the firm will have sufficient ________.
cash to meet its needs
In a ________ corporation, the voting stock is held by a small number of individuals and is very thinly or infrequently traded.
closely-held
In the context of competitor analysis, ________ competitors are companies that are not yet direct or indirect competitors but could move into one of these roles at any time.
future
According to the textbook, how do well-managed firms respond to the five forces that determine industry profitability?
They try to position their firms in a way that avoids or diminishes the forces.
The price of prescription medicine is high, partly because when someone is sick there is no real alternative to buying medicine if they want to get better. Which of Porter's five forces explains how this aspect of the prescription medicine industry helps keep profitability high?
Threat of Substitutes
A company's ability to productively utilize its assets relative to its revenue and its profits is referred to as ________.
efficiency
A brief, carefully constructed statement that outlines the merits of a business opportunity is called a(n) ________ speech.
elevator
The ability to notice things without engaging in deliberate search is referred to as ________.
entrepreneurial alertness
An excellent resource for doing a quick trademark search is ________.
Trademarkia
A trademark is registered with the ________.
U.S. Patent and Trademark Office
________ patents are the most common type of patent and cover what we generally think of as new inventions.
Utility
________ are limited partnerships of money managers who raise money in "funds" to invest in startups and growing firms.
Venture capital firms
Industries that sell products to seniors, such as the eyeglass industry and the hearing aid industry, are benefiting from the aging of the population, which is an important ________ trend.
environmental
A situation that involves doing something that is beneficial to oneself or the organization, but may be unethical, is called a(n) ________.
ethical dilemma
Equity financing (or funding) means ________.
exchanging partial ownership in a firm, usually in the form of stock, for funding
According to the textbook, in many instances an investor will first ask for a copy of a firm's ________ and will request a copy of the full business plan only if that portion of the plan is sufficiently convincing.
executive summary
The ________ is a short overview of the entire business plan.
executive summary
Growth Hackers, Meetup and Reddit are Web sites that provide access to ________.
feedback on business ideas
Most businesses that plan to use a fictitious name, which is any name other than the business owner's name, need a(n) ________ permit.
fictitious business name
The two primary audiences for a business plan are ________ and ________.
a firm's employees and investors; other external stakeholders
Operating leverage is highest in companies that have ________.
a high proportion of fixed costs relative to their variable costs
According to the textbook, entrepreneurship has historically had ________.
a major impact on both the economy and society
There has been ________ in the number of minority entrepreneurs in the United States over the past several years.
a substantial increase
Money owed to a company by its customers is referred to as ________.
accounts receivable
In an acquisition, the surviving firm is called the ________, and the firm that is acquired is called the ________.
acquirer; target
In the context of a firm's statement of cash flows, ________ activities include cash raised during the period by borrowing money or selling stock and/or cash used during the period by paying dividends, buying back outstanding stock, or buying back outstanding bonds.
financing
A(n) ________ is a panel of experts who are asked by a firm's managers to provide counsel and advice on an ongoing basis.
advisory board
According to a concept called ________ theory, it is more effective for the units of a growing chain to be run by franchisees than by managers because managers are usually paid a salary and may not be as committed to the success of their individual units as franchisees, who are in effect the owners of the units they manage.
agency
The Franchise Disclosure Document is accepted in (or by) ________.
all 50 states and parts of Canada
According to the textbook, from the franchisor's point of view, the primary disadvantage of franchising is that ________.
an organization allows others to profit from its trademark and business method
A multiple-unit franchisee is a person who owns ________.
and operates more than one outlet of the same franchisor
A board of directors' three formal responsibilities are to ________.
appoint the officers of the firm, declare dividends, and oversee the affairs of the corporation
According to the textbook, the three important things that a business can do to prepare for growth are ________.
appreciate the nature of business growth, stay committed to a core strategy, and plan for growth
According to the textbook, the unique value provided by business angels is they ________.
are willing to make relatively small investments
A corporation is formed by filing ________ with the Secretary of State's office in the state of incorporation.
articles of incorporation
An opportunity has the following four essential qualities: ________.
attractive; timely; durable; and anchored in a product, service, or business that creates or adds value for its buyer or end user
The two components of industry/target market feasibility analysis are industry ________.
attractiveness and target market attractiveness
A(n) ________ is a snapshot of a company's assets, liabilities, and owners' equity at a specific point in time.
balance sheet
Supplier concentration, switching costs, attractiveness of substitutes, and threat of forward integration are factors that have a direct impact on ________.
bargaining power of suppliers
The three primary reasons that people become entrepreneurs and start their own firms are to ________.
be their own boss, pursue their own ideas, and pursue financial rewards
Entrepreneurial firms ________.
bring new products and services to market by creating and seizing opportunities
Many firms benefit from an increasing ability to outsource manufacturing or service functions to lower-cost foreign countries. This trend is referred to in the textbook as a(n) ________ trend
business
Amazon.com's one-click ordering system and Priceline.com's "name-your-price" business model are examples of ________ patents.
business method
A ________ is a firm's plan or recipe for how it creates, delivers, and captures value for its stakeholders.
business model
A firm's ________ is a plan for how it competes, uses its resources, structures its relationships, interfaces with customers, and creates value to sustain itself on the basis of the value it creates.
business model
A(n) ________ is a written document that describes all the aspects of a business venture in a concise manner.
business plan
The document that does the best job of introducing potential investors and other stakeholders with the business opportunity the firm is pursuing and how it plans to pursue it is the ________.
business plan
Most founders' agreements include a ________ clause, which legally obligates the departing founder to sell to the remaining founders his or her interest in the firm if the remaining founders are interested.
buyback
Creating ________ means creating awareness and a sense of anticipation about a company and its offerings.
buzz
The primary opportunity existing for startups in emerging industries is to ________.
capture a first-mover advantage
The three primary reasons startups need funding are ________.
cash flow challenges, capital investments, and lengthy product development cycles
Most C corporations have two classes of stock- ________ and ________.
common; preferred
A business plan is important as it forces the founding team to systematically think through every aspect of their new venture, and it ________.
communicates the merits of a new venture to outsiders, such as investors and bankers
A company's mission statement should be placed in the ________ section of its business plan.
company description
Once a firm decides to enter an industry and chooses a market in which to compete, it must gain an understanding of its competitive environment. This challenge can be undertaken by completing a(n) ________ analysis.
competitor
Industry structure refers to how ________ an industry is.
concentrated or fragmented
A(n) ________ involves showing a preliminary description of a product or service idea to prospective customers to gauge customer interest, desirability, and purchase intent.
concept test
A code of ________ is a formal statement of an organization's values on certain ethical and social issues
conduct
According to the textbook, the toughest decisions regarding business growth are made in the ________ stage of the organizational life cycle.
continuous growth
To make the best impression, a business plan should follow a ________.
conventional structure for manufacturing firms and a nonconventional structure for service firms
Clothing boutiques and specialty shops often start because there is a need for a particular product, but large retailers like Wal-Mart and Costco can't sell enough of the item to stock it on their shelves. If a clothing boutique started to sell designer clothes or clothing for hard-to-fit people because the clothing wasn't being offered by a larger retailer, the best way to describe how that idea was recognized is ________.
finding a gap in the marketplace
A form of intellectual property protection that grants to the owner of a work of authorship the legal right to determine how the work is used and to obtain the economic benefits from the work is referred to as a(n) ________.
copyright
The Resources section of the Barringer/Ireland Business Model Template consists of the ________ and ________ boxes.
core competency; key assets
The four major categories in the Barringer/Ireland Business Model Template are ________.
core strategy, resources, financials, and operations
A separate legal entity organized under the authority of a state is referred to as a ________.
corporation
In ________-based pricing, the list price of an item is determined by adding a markup percentage to a product's cost.
cost
In the terminology of the Barringer/Ireland Business Model Template, a firm's ________ structure describes the most important costs incurred to support its business model.
cost
If a startup pioneers an industry or a new concept within an industry, the name recognition the startup establishes may create a formidable nontraditional barrier to entry referred to as a(n) ________.
first-mover advantage
Real estate, buildings, equipment and furniture are classified as ________ assets on a company's balance sheet.
fixed
Once a venture capitalist makes an investment in a firm, subsequent investments are made in rounds and are referred to as ________.
follow-on funding
As new products that are better than the existing generation of products are introduced, sales normally increase because the new products provide consumers increased value or worth. This process, which is called ________, stimulates economic activity, which is a good thing for the economy.
creative destruction
Cash plus items that are readily convertible to cash, such as accounts receivable, marketable securities, and inventories are classified as ________ assets on a firm's balance sheet.
current
A firm's ________ is its current assets divided by its current debt.
current ratio
Some companies set up ________ that meet regularly to discuss needs, wants, and problems that may lead to new ideas.
customer advisory boards
To make sure that its customers are satisfied and to probe for new product ideas, Intuit routinely sends employees to the facilities of their customers. This technique for generating new business ideas is called ________.
day-in-the-life research
Opportunities for leadership, niche, harvest and divestment are associated with ________ industries.
declining
The final step in the formal sales process described in the book is ________.
follow-up
A(n) ________ is a written document that deals with issues such as the relative split of the equity among the founders of the firm, how individual founders will be compensated for the cash or the "sweat equity" they put into the firm, and how long the founder will have to remain with the firm for their shares to fully vest.
founders' agreement
A(n) ________ industry is one that is characterized by a large number of firms of approximately equal size.
fragmented
Entrepreneurial businesses that grow by expanding from their original location to additional geographic sites are pursuing a ________ strategy.
geographic expansion
A firm's sales process ________.
depicts the steps it goes through to identify prospects and close sales
If a local band wrote their own rendition of a Katy Perry song, the band could try to copyright their rendition of the song as a(n) ________ work.
derivative
The two components of product/service feasibility analysis are product/service ________ and product/service ________.
desirability; demand
According to the textbook, the three different types of competitors a business will face are ________.
direct, indirect, and future
A(n) ________ channel is a route a product takes from the place it is made to the customer who is the end user.
distribution
The members of heterogeneous teams are ________.
diverse in terms of their abilities and experiences
A disadvantage of C corporations is that they are subject to ________, which means that a corporation is taxed on its net income and when the same income is distributed to shareholders in the form of dividends it is taxed again on shareholders' personal income tax returns.
double taxation
The ________ section of the business plan addresses the basic logic of how profits are earned in the business.
economics of the business
A(n) ________ industry is an industry that is experiencing significant international sales.
global
Historically, commercial banks ________.
have not been a good source of funds for startup firms
Economies of scale occur when ________.
increasing production lowers the average cost of each unit produced
A(n) ________ is a group of firms producing a similar product or service, such as soft drinks, airlines, or smartphone apps.
industry
A(n) ________ is a group of firms producing a similar product or service. A firm's ________ is the limited portion of the industry that it goes after or to which it wants to appeal.
industry; target market
According to the textbook, prior entrepreneurial experience ________.
is one of the most consistent predictors of future entrepreneurial performance
Market leadership occurs when a firm ________.
is the number one or the number two firm in an industry or niche market in terms of sales volume
According to a recent FTC report, instances of problems between franchisors and their franchisees tend to be ________.
isolated occurrences
The major advantage of leasing is that ________.
it enables a company to acquire the use of assets with little or no down payment
An entity created by two or more firms pooling a portion of their resources to create a separate, jointly-owned organization is called a ________.
joint venture
In the terminology of the Barringer/Ireland Business Model Template, ________ assets are the assets that a firm owns that enable its business model to work.
key
A ________ is a single Web page that typically provides direct sales copy, like "click here to buy a Hawaiian vacation."
landing page
The fact that companies often falter because the people who start the firms can't adjust quickly enough to their new roles and because the firm lacks a "track record" with outside buyers and sellers, is referred to as the ________.
liability of newness
According to the textbook, there are three types of startup firms: ________.
lifestyle firms, salary-substitute firms, and entrepreneurial firms
A ________ sets forth the rights and duties of the general and limited partners, along with the details of how the partnership will be managed and eventually dissolved.
limited partnership agreement
Venture capital firms are ________ of money managers who raise money in "funds" to invest in startups and growing firms.
limited partnerships
Generally, industries are more attractive when the threat of substitutes is ________.
low
Some companies monitor the integrity of their brands through a program of brand ________.
management
The ________ section of a business plan breaks the industry into segments and zeroes in on the specific segment (or target market) to which the firm will try to appeal.
market analysis
The first step in selecting a target market is to study the industry in which the firm intends to compete and determine the different potential target markets in that industry. This process is called ________.
market segmentation
The 4Ps of marketing refer to a company's ________.
marketing mix
A(n) ________ industry is an industry that is experiencing slow or no increase in demand.
mature
A business ________ is an individual who gives professional or expert advice, on a volunteer or fee basis.
mentor
A business's ________ statement describes why it exists and what its business model is supposed to accomplish.
mission
A(n) ________ statement describes why a company exists and what it aspires to become.
mission
According to the textbook, entrepreneurs are ________.
moderate risk takers
International opportunities for franchising are becoming ________.
more prevalent
A skills profile is a chart that depicts the ________.
most important skills that are needed in a business startup and where skills gaps exist
Firms that pursue a(n) ________ strategy compete for market share on a country-by-country basis and vary their product or service offerings to meet the demands of the local market.
multidomestic
The two most common strategies pursued by firms in global industries are the ________ strategy and the ________ strategy.
multidomestic; global
The term "window of opportunity," as discussed in Chapter 2, is a metaphor that describes the time period in which a firm can ________.
realistically enter a new market
A firm's profit margin, or return on sales, is computed by dividing ________.
net income by net sales
In the context of computing the cost of sales, the common way to do this is to use the percent-of-sales method, which is a method for expressing each expense item as a percentage of ________.
net sales
The process of building and maintaining relationships with people whose interests are similar or whose relationship could bring advantages to the firm is called ________.
networking
A(n) ________ team is the group of founders, key employees, and advisers that either manage or help manage a new business in its startup years.
new venture
A ________ is the group of founders, key employees, and advisers that move a new venture from an idea to a fully functioning firm.
new venture team
There are two types of disruptive business models - ________ and ________.
new-market; low-end
A ________ market is a place within a market segment that represents a narrower group of customers with similar interests.
niche
The three most common forms of equity funding are ________.
nitial public offerings, business angels, venture capitalists
The number one rule for a brainstorming session is ________.
no criticism is allowed
The two major advantages of getting a loan versus investment capital are ________.
no ownership in the firm is surrendered and interest payments are tax deductible
A(n) ________ agreement binds an employee or another party to not disclose a company's trade secret. A ________ agreement prevents an individual from competing against a former employer for a specific period of time.
nondisclosure; noncompete
The focus in organizational feasibility analysis is on ________.
nonfinancial resources
A(n) ________ details the responsibilities and the ownership shares of the partners involved with an organization.
partnership agreement
According to the textbook, the four characteristics of successful entrepreneurs are ________.
passion for the business, tenacity despite failure, product/customer focus, and execution intelligence
A grant from the federal government conferring the rights to exclude others from making, selling, or using an invention for a specific period of time is referred to as a(n) ________.
patent
In the Barringer/Ireland Business Model Template, key assets can be ________.
physical, financial, intellectual, or human
According to the textbook, there are three issues about business growth that entrepreneurs should appreciate. These issues are ________.
not all businesses have the potential to be aggressive growth firms, a business can grow too fast, and business success doesn't always scale
According to the textbook, the first rule of buying a franchise is ________.
not making a hasty decision
If a new firm was launched to help businesses comply with The Affordable Care Act, that opportunity was created by ________.
political actions and regulatory changes
According to the textbook, the passion that motivates people to launch entrepreneurial firms typically stems from the entrepreneur's belief that the business will ________.
positively influence people's lives
Merchandise and character licensing is the licensing of a recognized trademark or brand that the licensor typically controls through a registered ________.
trademark or copyright
The four types of trademarks are ________.
trademarks, service marks, collective marks, and certification marks
The three ways to identify an opportunity include ________
observing trends, solving a problem, and finding gaps in the marketplace
A firm's pace of growth is the rate it is growing ________.
on an annual basis
According to the textbook, there are three categories of costs to consider when completing the "financing/funding" section of the Barringer/Ireland Business Model Template. These are ________.
operating costs, capital costs, and costs associated with setting up the firm
The statement of cash flows is divided into three separate activities - ________.
operating, investing, and financing
The facilities and equipment that a business needs should be described in the ________ section of its business plan.
operations plan
A(n) ________ is a favorable set of circumstances that creates a need for a new product, service, or business.
opportunity
A(n) ________ is a favorable set of circumstances that creates the need for a new product, service, or business. A(n) ________ is a thought, an impression or a notion.
opportunity, idea
A(n) ________ is a graphic representation of how authority and responsibility are distributed within a company.
organizational chart
The majority of businesses go through a discernable set of stages of growth referred to as the ________.
organizational life cycle
Internally generated growth is often called organic growth because it does not rely on ________.
outside intervention
Work that is done for a company by people other than the company's full-time employees is referred to as ________.
outsourcing
The most important issues to consider in financial feasibility analysis are: financial performance of similar businesses, total cash needed, and ________.
overall attractiveness of the proposed venture
According to the textbook, the ________ are the heart of the financial section of a business plan.
pro forma financial statements
A firm's ________, in the context of its marketing mix, is the good or service it offers to its target market.
product
The operations quadrant in the Barringer/Ireland Business Model Template includes three sections. These are ________.
product (or service) production, channels, and key partners
A ________ illustrates a firm's positioning strategy relative to its major rivals.
product attribute map
Some industries, like the athletic shoe industry, are dominated by a small number of firms with strong brands. These industries are difficult to break into without spending heavily on advertising. The barrier to entry that the firms in these types of industries have erected is referred to as ________.
product differentiation
The two distinctly different types of franchise systems are ________ franchise and ________ franchise.
product trademark; business format
A firm's marketing mix consists of ________.
product, price, promotion, and place
A company's ________ scope defines the products and markets on which it will concentrate.
product/market
The four main financial objectives of a firm are ________.
profitability, liquidity, efficiency, and stability
The first step in the formal sales process described in the book is ________.
prospect for sales leads
According to the textbook, although a board of directors has formal governance responsibilities, its most useful role is to ________.
provide guidance and support to the firm's managers
Efforts to establish and maintain a company's image with the public are referred to as ________.
public relations
While franchise agreements vary, each agreement typically contains these sections: the ________ agreement and the ________ agreement.
purchase; franchise
Financial management deals with two things-managing a company's finances and ________.
raising money
According to the textbook, the five competitive forces included in the Five Forces model determine the average ________.
rate of return for the firms in an industry
Most business plan writers interpret or make sense of a firm's historical and/or pro forma financial statements through ________ analysis.
ratio
A(n) ________ is an early user of a firm's product who is willing to give a testimonial regarding his or her experience with the product.
reference account
In regard to firm growth, evidence shows that ________.
relatively few firms generate sustained growth
According to the textbook, the key to effective merchandise and character licensing is ________.
resist the temptation to license a trademark too widely
The two primary issues to consider in organizational feasibility analysis are management prowess and ________.
resource sufficiency
All of the following are advantages to buying a franchise except ________.
restrictions on creativity
A firm's ________ describe(s) the ways in which it makes money.
revenue streams
Advertising, commissions, download fees, licensing, and product sale are examples of ________.
revenue streams
The Financials section of the Barringer/Ireland Business Model Template consists of three boxes. The boxes are titled ________.
revenue streams, cost structure, and financing/funding
The two types of crowdfunding sites are ________-based and ________-based.
rewards; equity
In regard to the stages (or rounds) of venture capital funding, the stage of funding that occurs when an investment is made very early in a venture's life to fund the development of a prototype and feasibility analysis is referred to as ________ funding.
seed
The members of homogeneous teams are ________ in terms of their ________.
similar; abilities and experiences
A(n) ________ is a chart that depicts the most important skills that are needed in a new venture and where skills gaps exist.
skills profile
An increased focus on health and wellness has resulted in a number of new business ideas including healthier foods and beverages, yoga instruction and training centers, and nutrition consulting. An increased focus on health and wellness is an important ________ that is creating opportunities in many areas for entrepreneurial firms.
social force
The simplest and most common form of business entity is the ________.
sole proprietorship
According to the textbook, the businesses that have the potential to grow the fastest over a sustained period of time are ones that ________.
solve a significant problem or have a major impact on their customers' productivity or lives
The document that lays out specifically how much money a firm needs, where the money will come from, and what the money will be used for is referred to as a(n) ________.
sources and uses of funds statement
The strength and vigor of a firm's overall financial posture is referred to as ________.
stability
The two general categories of business models are ________ and ________.
standard; disruptive
A ________ is a partnership between two or more firms that is developed to achieve a specific goal and has no joint ownership involved.
strategic alliance
According to Chapter 1, investors often cite the ________ as their most important criterion in the decision to fund new ventures.
strength of the entrepreneur
Growth in both revenues and profits over a length of time is called ________ growth.
sustained
Three commonly utilized methods for determining product/service demand are ________.
talking face-to-face with potential customers; utilizing online tools, such as Google AdWords and landing pages; and library, Internet and gumshoe research
A firm's ________ market is a place within a larger market segment that represents a narrower group of customers with similar interests.
target
Kyle White owns a sporting goods store that appeals to hunters and fishers. The market that Kyle is trying to appeal to is called his ________ market.
target
An event that prompts an individual to become an entrepreneur, such as losing a job, inheriting money, or accommodating a certain lifestyle, is referred to as a(n) ________.
triggering event
According to the textbook, the main disadvantage of buying a franchise is ________.
the cost involved
For a business to be successful in the early growth stage of the organizational life cycle, the two important things that must happen are ________.
the founder or owner of the business must start transitioning from his or her role as the hands-on supervisor to a more managerial role, and increased formalization must take place
Copyright law protects any work of authorship ________.
the moment it assumes a tangible form
According to the textbook, most experts recommend ________ pricing because it hinges on the perceived value of a product or service.
value-based
The federal Economic Espionage Act, passed in 1996, criminalizes ________.
the theft of trade secrets
According to Chapter 1, a sentiment that venture capitalists often express is that ________.
they would rather fund a strong entrepreneur with a mediocre business idea than fund a strong business idea with a mediocre entrepreneur
On a firm's income statement, net sales consists of ________.
total sales minus allowances for returned goods and discounts
A ________ is any formula, pattern, physical device, idea, process, or other information that provides the owner of the information with a competitive advantage in the marketplace.
trade secret
A company's customer list is most commonly protected under ________ regulations.
trade secret
A(n) ________ is an event at which the goods or services in a specific industry are exhibited and demonstrated.
trade show
All of the following are advantages of a sole proprietorship except ________.
unlimited liability
A computer-generated image of an invention that displays the invention as a 3D model that can be viewed from all sides and rotated 360 degrees is called a(n) ________.
virtual prototype
Alex has a number of casual acquaintances that he interacts with infrequently. The relationships that Alex has with these people are referred to as ________ -tie relationships.
weak
In the majority of cases, a franchisee pays the franchisor a royalty based on ________.
weekly or monthly gross income
A common way that gaps in the marketplace are recognized is ________.
when people become frustrated because they can't find a product or service that they need and recognize that other people feel the same way
When evaluating a balance sheet, the two primary questions are ________.
whether a firm has sufficient short-term assets to cover its short-term debts and whether it is financially sound
A financial statement is a(n) ________.
written report that quantitatively describes a firm's financial health
If a business enhances the quality of a product, makes it more convenient to use, improves its durability, or makes it more up-to-date, any one of those initiatives fall under the category of ________.
improving an existing product or service
A(n) ________ franchise agreement involves the sale of a single franchise for a specific location.
individual
The first sale of stock by a firm to the public is referred to as a(n) ________.
initial public offering
There are two primary advantages to buying a franchise over other forms of business ownership. First, the franchisor typically provides training, technical expertise, and other forms of support, and second, ________.
the franchisor provides an entrepreneur the ability to own a business using a tested and refined business method
A ________ is any word, name, symbol, or device used to identify the source of origin of products or services and to distinguish those products or services from others.
trademark
Which of the following symbols is the copyright bug?
©
________ means that as the number of employees a firm needs increases, it becomes increasingly difficult for it to find the right employees, place them in appropriate positions, and provide adequate supervision.
Adverse selection
_______ are(is) generated when increasing production lowers the average cost of each unit produced.
Economies of scale
Which of the following is an advantage of growth by means of external growth strategies?
Gaining access to new products and markets
The ________ Program is a competitive grant program that provides over $2.5 billion per year to small businesses for early-state and development projects.
SBIR
In regard to international franchising, under a(n) ________ franchise agreement, the U.S. franchisor grants the rights to an individual or company (the developer) to develop multiple franchised businesses within a country or territory.
direct
An important part of obtaining venture capital funding is going through ________ diligence, which refers to the process of investigating the merits of a potential venture and verifying the key claims made by the business plan.
due
According to the textbook, a well-managed business that finds its products and services are mature often ________.
looks for partnering or acquisition opportunities to breathe new life into the firm
the main challenges for a business in the introduction stage of the organizational life cycle is ________.
making sure the initial product or service is right and starting to lay the groundwork for building a larger organization
When a firm's managerial resources are insufficient to take advantage of its new product and service opportunities, the subsequent bottleneck is referred to as the ________ problem.
managerial capacity
Some firms feel that they can better appeal to their customers if they can advertise that they are the "Number 1 firm" in their industry. This sentiment is motivated by the reason for growth labeled ________.
market leadership
In the context of strategic alliances, ________ alliances typically match a company with a distribution system with a company that has a product to sell to increase sales of a product or service.
marketing
In the context of international franchising, under a ________ franchise arrangement, the U.S. firm grants the rights to an individual or company (the master franchisee) to develop one or more franchise businesses and to license others to develop one or more franchise businesses within the country.
master
A(n) ________ is the pooling of interests to combine two or more firms into one. A(n) ________ is the outright purchase of one firm by another.
merger; acquisition
According to our textbook, the seed money that gets a company off the ground typically comes from ________.
the founders of the firm
