Exam 2

A franchise system can be used for handling

Goods and services

The person who sells a franchise is usually required to do all of the following, except

Pay a fee

Which of the following is not one of the most common questions typically required to be answered by entrepreneurs seeking funding

What exact date will you repay the money?

The extra value a business can command in a sale is known as

Goodwill

Is one of the disadvantages of going public

Liquidity

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

Prepaid utility bills

A business has to increase its sales annually to net as much as it did in the previous year, when

Profits are not rising as fast as sales

The basic challenge for social enterprise is addressing the obligations of business to

Society

Which of the following is not a factor regarding the condition of inventory?

Suppliers

According to the text, which of the following could be considered a deal killer by venture capitalist

The excessive founder salaries

An account framework that goes beyond the traditional measures a Profit return on investment and shareholder value to include environmental and social dimensions is called

Triple bottom line

When doing marketing research, triangulation means ____

Using more than one data collection method

Key elements in plans to create a sustainable future are likely to include eliminating the concept of

Waste

Global entrepreneurs are now considered by others as

Wearing different hats

The most common source of debt financing is

commercial banks

Examples of social enterprise obligations to the environment, include all of the following, except

construction of energy

Which of the following is not a start up expense?

depreciation

Many new ventures find that debt financing is

Necessary

Piggybacking one's way into a new business involves using a ___ approach

New-old

Which of the following activities does not characterize the social entrepreneur?

Operating with a low sense of accountability

Which of the following terms is synonymous with social lending?

Peer to peer lending

You start collecting the information you believe you need to analyze a business opportunity by using community statistics provided by the Chamber of Commerce. these statistics are ___ data

Secondary data

Which of the following designations is not synonymous with social entrepreneur?

Social activist

You start your market research by looking for information about

Your competition and your target market

Which of the following types of risks incorporates fluctuating exchange rates

Financial risks

The advantages of franchising do not include

Franchise fees

The individual who arranges for a dealer to handle a specific product or service under certain mutually agreed-upon conditions is known as the

Franchisor

Bottom line measures of economic performance include all of the following, except

Global competition

Short term debt is paid back

In one year

Any competitors product that satisfies the same need for a customer as your product, but in a different way is ____ competition

Indirect

____ bank loans are made on a discounted value of the receivables pledged

Accounts Receivable financing

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

Breakfast cereals

An organization that offers a range of support services and funding opportunities for new ventures is called a

Business accelerator

Which of the following is more likely than the others to be deemed a potential danger of social lending

Business plan disclosure

Which of the following is a type of equity financing?

Common stock

The person who purchases a franchise is usually required to do all of the following, except

Design a logo for the unit

Which of the following terms describes a possible leadership style for ecologically, innovative firms

Eco vision

The final decision to purchase a franchise should be up to the

Entrepreneur

Financing includes all of the following, except

Equitable payback