Midterm (Ch 1-10)
In shaping the ultimate success or failure of a new venture, which of the following statements is most applicable?
A single strategic variable is seldom responsible.
Which of the following statements is true?
Entrepreneurship is the ability to create and build a vision from practically nothing.
A "gazelle" is a business establishment with at least 5 percent sales growth every year for 25 years.
F
A firm's pricing structure dictates almost no knowledge to customers.
F
A great abundance of reliable data is available concerning the start-up, performance, and failure of new ventures.
F
Chapter 13 bankruptcy involves a reorganization of the enterprise.
F
Common stock is the least basic form of ownership.
F
Control versus communication is an important distinction between social media marketing and traditional marketing.
F
Copyrights have to be registered with the Copyright Office.
F
Corporate venture capital can offer strategic and tactical advice, an operating budget, and credibility but started to decline in 2017, and this trend is expected to continue.
F
Corporate venturing flourishes when a vertical management system is in place.
F
Employees shouldn't expect feedback on their entrepreneurial ideas.
F
Entrepreneurs always start their business at a young age.
F
Entrepreneurs are born, not made.
F
Entrepreneurs are doers, not thinkers
F
Entrepreneurs are not extreme risk takers.
F
Entrepreneurs do not need foresight.
F
Expecting clever bootlegging of ideas should come as a surprise.
F
Few firms today realize the need for corporate entrepreneurship.
F
Immersion in business can be cured by limiting work to eight hours a day.
F
Innovation is planned and predictable.
F
Mistakes and failures along the way are to be seen as poor planning and actually hinder the design methodology.
F
Most entrepreneurs are objective when they evaluate their new idea.
F
Most entrepreneurs hire lawyers to brief them on the legal issues surrounding a new venture.
F
Resource-rich countries and market-rich countries are usually one and the same.
F
Sales forecasting is a process of projecting future sales through educated guesses.
F
The word entrepreneur is derived from the Spanish word entreprendre, meaning "to undertake."
F
There are three types of design-centered entrepreneurship.
F
Timing has little to do with a new venture's success or failure.
F
Trademark registration and search is not costly.
F
Venture capitalists are quick to invest.
F
Venture capitalists, surprisingly, require little information before they make an investment.
F
_____ people thoroughly understand the concept of corporate entrepreneurship.
Few
Which of the following statements about raising capital is true?
It often takes a great deal of time to raise capital.
Which of the following researchers believes that the social mission, not wealth creation, is the most important criterion?
J. Gregory Dees
When referring to "luck" and an entrepreneur, which of the following statements is an appropriate adage?
Luck happens when preparation meets opportunity.
Which of the following statements is false?
Management skills are not important characteristics for entrepreneurs to possess.
SEC stands for the
Securities and Exchange Commission.
_____ is one of the disadvantages of going public.
Shareholder pressure
Which of the following statements about social entrepreneurship is not true?
Social entrepreneurship is limited to the world of not-for-profit corporations.
An S corporation takes its name from
Subchapter S.
Which of the following statements is true?
Successful innovations are simple and focused.
An informal risk capitalist is referred to as
a business angel.
The franchisor's responsibility does not include providing
a business relationship.
A solid analysis is
a critical task in starting a new business
An additional consideration to keep in mind when negotiating to purchase an existing business includes requesting that the seller retain _____ in the firm.
a minority interest
Evaluation of new-venture proposals includes all the following processes except
a product prototype.
As of 2015, the largest U.S. trading partners included
Canada, China, and Mexico.
"Intensity of competition" changes the dominance of problem areas.
T
A good idea is important, but a good management team is even more important.
T
A method of raising capital is through the private placement of securities.
T
A patent is an intellectual property right.
T
A product does not have to be patented in order to be introduced into the marketplace.
T
A startup that surpasses the $1 billion level is known as a unicorn.
T
According to Robert C. Ronstadt, entrepreneurship is the process of creating incremental wealth.
T
An example of a trademark is a motto.
T
Any legal proceeding can cost an entrepreneur a lot of money in legal fees.
T
Creative people thrive in an uncertain environment and find it exhilarating.
T
Crowdfunding provides entrepreneurs with access to beta-testing and market feedback.
T
Design is now a hot topic in the business world.
T
During the past 10 years, new business start-ups averaged more than 400,000 per year.
T
Ecopreneurship is a combination of ecologically and economically sustainable development.
T
Employees embrace fear and change as a way to succeed, while entrepreneurs only take calculated risks.
T
Entrepreneurial cognition is, in part, about understanding how entrepreneurs use simplifying mental models to make assessments, judgments, or decisions about opportunities.
T
Entrepreneurs are often known as calculated risk takers, as opposed to "gamblers."
T
Entrepreneurs are often methodical people who plan their moves very carefully.
T
Entrepreneurs are the major source of innovation and job creation in the economy.
T
Gazelles do not always get venture capital funding.
T
Generally, the larger and more successful the franchisor, the greater the franchise fee that is charged.
T
In a lifestyle venture, independence, autonomy, and control are the primary driving forces.
T
In bankruptcy terms, Chapter 7 is often called liquidation.
T
In purchasing an existing business, the first question should be: "Why are you selling?"
T
Incongruities are gaps or differences between expectations and reality.
T
Informal risk capitalists are those who have already made their money and now seek to help new ventures.
T
Innovation has become more global and is no longer the exclusive domain of Silicon Valley and Route 128 in Boston.
T
Innovators must always search for new ideas, opportunities, or sources of innovation.
T
It is always important that you weigh advantages against disadvantages in purchasing a franchise.
T
It is reported that more than 400,000 new firms have emerged in the United States every year since 2010.
T
Lack of transparency and trust by the entrepreneur is a common cause of new-venture failure.
T
Licensing agreements can involve patents, trademarks, and technical know-how.
T
Marketing information that has already been compiled is known as secondary data.
T
Marketing planning is the process of determining a clear, comprehensive approach to the creation of customers.
T
Morals and law are not synonymous but may be viewed as two circles that are partially superimposed upon each other.
T
Most innovations result from a conscious and purposeful search for new opportunities.
T
New and smaller firms are responsible for 95 percent of all radical innovations.
T
New and smaller firms obtain more patents per sale than do larger firms.
T
One way that social entrepreneurship seeks to enhance social wealth is by creating new ventures.
T
Only new patterns of thinking lead to new ideas and innovation.
T
P2P lenders charge fees for brokering and servicing loans and collect penalties for late payments.
T
Patents eventually expire.
T
Peter Drucker has stated that successful innovators must look, ask, and listen.
T
Pricing becomes less of a concern when customers know about a product's unique characteristics that are superior to the competition.
T
Pricing for the product life cycle correlates with customer demand and sales volume.
T
Purpose, accountability, and transparency are characteristics associated with socially sustainable enterprises.
T
Radical innovations must be nurtured.
T
Social entrepreneurs are known to combine resources to exploit opportunities to create social value.
T
Social media marketing is the application of online collaborative media for marketing purposes.
T
Sophisticated investors are wealthy individuals who invest more or less regularly in new or early- and late-stage ventures.
T
Structured and focused chaos is necessary for creativity to occur.
T
Thanks to the North American Free Trade Agreement, each year thousands of smaller enterprises are actively engaged in the international arena.
T
The Brundtland definition of sustainable development is "meeting the needs of the present without compromising the ability of future generations to meet their needs."
T
The Greek thinker, Chilon, felt that a merchant does better to take a loss than to make a dishonest profit.
T
The actual cost of "opening the doors" of a franchise establishment can be more than $200,000.
T
The business plan is a critical element in a new-venture proposal.
T
The comprehensive feasibility analysis approach is closely related to the preparation of a thorough business plan.
T
The contemporary thrust of entrepreneurship as the major force in global business has led to a desire for entrepreneurial activity inside enterprises.
T
The displacement school of thought focuses on the negative side of group phenomena.
T
The elimination of time and effort associated with starting a company is an advantage of acquiring an ongoing venture.
T
The first step in planning a strategy of corporate entrepreneurship is sharing the vision of innovation that executives wish to achieve.
T
The growth pattern of sales is critical for an entrepreneur to make correct forecasts.
T
The most common sources of debt financing are commercial banks.
T
The success of corporate entrepreneurship depends on the entrepreneurs within the firm.
T
The terms upside gain and downside loss refer to the profits the business can make and the losses it can suffer.
T
The way to approach a new business venture is to design a good or service that is unique.
T
There are three main types of strategic international alliances.
T
There is no single definition of an entrepreneur.
T
Three primary legal forms of organization are the sole proprietorship, the partnership, and the corporation.
T
Trade credit is given by suppliers who sell goods on account.
T
Trust from the company is one key element to successful corporate entrepreneurship.
T
Uniqueness in a product or service can be demonstrated through a new-new approach or a new-old approach.
T
Use of debt to finance a new venture involves a payback of the funds plus an interest fee (interest) for the use of the money.
T
When purchasing an existing business, the prospective owner should conduct an assessment of the business's current group of employees.
T
Which of the following falls under Chapter 7 bankruptcy?
The debtor is relieved of obligations.
Which of the following is a suggestion to minimize legal costs?
Visit the lawyer during normal hours of operation.
What percentage of issued patents is considered commercially valuable?
a very small percentage
If a trademark has not been used for two consecutive years, it could be invalidated under
abandonment
Approximately how many commercial banks are there in this country?
about 5,500
Which of the following terms would be associated with the left hemisphere of the brain?
abstract
Anyone who violates an author's exclusive rights under a copyright is liable for
actual damages plus any profits from use.
The purpose of filing for Chapter 13 bankruptcy is
adjustment
Employee perception of _____ is critical for the success of corporate entrepreneurship.
an innovative environment
Which of the following parts of the marketing plan emphasizes the factors that contribute to a firm's competitive edge?
appraisal of marketing strengths and weaknesses
Successful entrepreneurs are able to identify and implement ideas that
are workable and that they have the skills to implement.
Which of the following is a psychological characteristic of consumers?
aspiration
When should a potential franchisee receive the Franchise Disclosure Document (FDD)?
at least 10 days before signing a contract or paying any money
The purpose of loss-leader pricing is to
attract customers to new products.
The four phases, in order, in the creative process are
background or knowledge accumulation, incubation, idea experience, and evaluation and implementation.
Penetration pricing is setting the price to
be below competition.
An organization that offers a range of support services and funding opportunities for new ventures is called a(n)
business accelerator.
Which of the following is more likely than the others to be deemed a potential danger of social lending?
business plan disclosure
Inhibitors to marketing research include all of the following except
distribution
Which of the following terms describes a possible leadership style for ecologically innovative firms?
ecovision
Which of the following mental habits inhibits creativity and innovation?
either/or thinking, stereotyping
All of the following should be examined when evaluating the selection of venture except
employees
After the prospective entrepreneur has gathered all of the necessary information, it is up to the _____ to make the final decision on the matter.
entrepreneur
The final decision to purchase a franchise should be up to the
entrepreneur
The macro view can be broken down into which of the following three areas?
environmental, financial/capital, and displacement
Financing includes all of the following except
equitable payback.
Which of the following is a source of capital for entrepreneurs?
equity
Which of the following is the greatest marketing challenge facing the cannabis industry?
establishing a clean image
The final critical factor in the marketing planning process is
evaluation
Secondary data consist of
existing information.
Because of the _____ doctrine, it is sometimes difficult to establish infringement.
fair use
Which of the following is not a source of stress according to researchers Boyd and Gumpert?
family requirements
Which of the following types of risks incorporates fluctuating exchange rates?
financial risks
During the prestart-up and start-up phases, _____ factors are critical.
five
There are _____ steps for an entrepreneur to consider when creating a structured approach to a market plan.
five
All of the following are methods for going international except
foreign reclamation.
Evaluating franchise opportunities include finding out more about all of the following except the
franchise location.
The individual who buys the franchise is the
franchisee
With which of the following concepts is entrepreneurship considered synonymous?
free enterprise
Entrepreneurship has become synonymous or closely linked with
free enterprise and capitalism.
Market feasibility analysis relies on
general economic trends and competitor data.
Entrepreneurs always
generate ideas and plan for their implementation.
When a trademark becomes the name of a general group of products or services, the trademark protection may be lost because of
generic meaning.
A trademark may be invalidated in all of the following ways except
generic words.
Bottom-line measures of economic performance include all of the following except
global competition.
The extra value a business can command in a sale is known as
goodwill
All of the following factors affect pricing strategies except
government mandates.
A market is a
group of consumers who have purchasing power and unsatisfied needs.
Which of the following pricing models is not indicative of pricing in the social media age?
growth stage model
Entrepreneurial stress can be caused by having a Type A personality, which can be defined as
having a chronic sense of time urgency.
Venture capital in the United States has been highest in which of the following?
health care
Copyrights can be placed on all of the following except
ideas
Copyrights may be expressed in all of the following except
ideas.
When developing a survey, you should consider
including only questions pertaining to the study.
Overnight package delivery is illustrative of which of the following sources of innovation?
incongruities
Shifts in consumer tastes and attitudes are an example of
industry and market changes.
Entrepreneurial traits include which of the following?
initiative
The study of entrepreneurship is
interdisciplinary
A franchise system can be used for handling
inventory.
Which of the following is not a common characteristic of entrepreneurs?
lack of motivational drive
Bureaucrats in an organization must
learn to give way to intrapreneurs.
Which of the following would be most commonly used for intermediate-term financing?
leasing companies
Logical and analytical skills are developed in the _____ hemisphere of the brain.
left
An infringement budget deals with
legal battles.
Major trends in the venture capital field today include all of the following except
less specialized and more homogenous funds.
Specific forms of partnership include _____ and _____.
limited partnerships; limited liability partnerships
Which of the following is not one of the major sections of the Bankruptcy Act?
liquidation
An L3C is a new legal form for social enterprises known as
low-profit, limited liability companies.
Which of the following can provide a structure that facilitates investments in socially beneficial, for-profit ventures?
low-profit, limited liability company (L3C)
Which of the following survey methods has the lowest response rate?
mail surveys
The main objective of Regulation D is to
make it easier and less expensive for small ventures to sell stock.
Which of the following characteristics is most important to an entrepreneur?
management skills
Entrepreneurs themselves perceive the concept of risk in which of the following ways?
calculated risk taking
Areas of risk to the entrepreneur include
career, family, and psychological.
Business-related reasons for selling may include all of the following except
changes in location.
A series of short paragraphs, each of which identifies a particular feature that is protected by the patent, is known as a
claim
The part of a patent application that defines and limits the patented invention is known as the
claim
The part of a patent application that identifies the features that are protected is known as the
claim
The failure of a trademark owner to file an affidavit stating it is in use is referred to as which of the following trademark invalidation reasons?
cleaning-out procedure
Which of the following is not considered in the framework of frameworks approach?
collaborative
The most common source of debt financing is
commercial banks.
Which of the following is a type of equity financing?
common stock
Which of the following influences the choice of marketing philosophy?
competitive pressure
A B corporation's legal structure expands corporate accountability to encompass all of the following except
comprehensive and transparent social performance standards.
Managerial problems include
concept of a team approach.
The first of five steps for entering the international marketplace is
conducting research.
Examples of social enterprise obligations to the environment include all of the following except
construction of energy.
Which of the following is a marketing philosophy that focuses on research?
consumer-driven philosophy
Legal protection is granted to computer programs in which of the following forms?
copyright
Intrapreneurship is also referred to as _____ entrepreneurship.
corporate
The statement, "With every new venture launched, new and unintended opportunities often arise," would be associated with the _____ principle.
corridor
A marketing information system compiles and organizes data relating to _____, revenue, and profit from the customer base.
cost
The textbook recommends that social media marketers consider which of the following three aspects of social media when using those tools for marketing purposes?
creating, enabling, and encouraging
Researchers believe that design methodology provides _____ learning mechanisms important for converting ideas into form.
specific
The text of a patent application is known as the
specification
The two parts to a patent application are claims and
specification
Sales growth is a critical factor in the _____ phase.
start-up
Large-scale or otherwise highly consequential innovations are adopted in pursuit of a firm's competitive advantage in a(n) _____ approach.
strategic entrepreneurship
One trait not common in entrepreneurs is being
structured.
Which of the following is not a factor regarding the condition of inventory?
suppliers
The entrepreneurial ego can cause the entrepreneur to
take characteristics that usually lead to success to the extreme.
Flexibility, reliability, and safety are all examples of
technical feasibility.
Which of the following does not represent a category of angel investors?
technology angels
Hiring and promotions on the basis of nepotism rather than qualification are associated with
the concept of a team approach.
Which of the following individuals must negotiate a final deal to purchase a business?
the potential buyer
Market segmentation is
the process of identifying a specific set of characteristics that differentiate one group of consumers from the rest.
Long-term debt is used for
the purchase of property or equipment.
The buyer is likely to have power over the seller in the negotiation to purchase a business if
the seller has already purchased another business.
An account framework that goes beyond the traditional measures of profit, return on investment, and shareholder value to include environmental and social dimensions is called
the triple bottom line.
A clear pattern among successful entrepreneurs is
their focus on opportunity rather than strategy.
In determining the potential market, one should look _____ into the future.
three to five years
Customers and customer demand patterns relate to which of the following sources of the market feasibility analysis?
market data
Timing is especially critical in
marketing
A patent gives the holder a temporary
monopoly
Membership in the World Trade Organization represents _____ of the world's population at present.
more than 97 percent
A trademark is a distinctive _____ that is identified with a company's product.
name
Many new ventures find that debt financing is
necessary
Informal investors find projects to invest in through
networks of friends.
Which of the following characteristic(s) that propel entrepreneurs into success can be exhibited to the "extreme"?
overbearing need for control
When buying a small business, you need to know all of the following items except the
owner's family stability and relationships.
The North American Free Trade Agreement (NAFTA) offers strong protection for
patents and copyrights.
Which of the following survey methods is the most expensive to conduct?
personal interviews
Problems associated with the managerial team include
poor relationships with parent companies.
When premature entry into the marketplace causes the failure of a new venture, it can be termed
poor timing.
Which of the following is recognized as a disadvantage of partnerships?
possible tax advantages
Financial equity instruments, which give investors a share of the ownership, may include
preferred stock.
Which of the following costs do not add to the cost of franchising?
prepaid utility bills
To effectively pursue a patent violation, experts recommend that the entrepreneur
prepare a realistic budget for infringement.
Three specific phases that a new venture goes through are
prestart-up, start-up, and poststart-up.
Customizable links to which of the 4Ps of marketing?
price
When a customer sees a product that is superior to its competitors, _____ becomes less important.
price
Two important components of creative problem solving are _____ and _____.
process; people
Which of the following is a factor contributing to new-venture failure?
product/market problems
Which of the following evaluation methods enables an entrepreneur to judge a business's potential?
profile analysis
A patent infringer can be liable for all _____ resulting from the infringement as well as for legal fees.
profits
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.
Most successful innovations are _____ and _____.
simple; focused
Which of the following is not critical to a product's success?
size
Which of the following is not a key factor affecting a marketing information system?
size of the system
In many ways, an I-Team is a
small business operating within a large business.
Financial considerations play a major role in
small profitable ventures.
SBIC stands for
small-business investment companies.
Which of the following designations is not synonymous with social entrepreneur?
social activist
The basic challenge for social enterprise is addressing the obligations of business to
society
A franchise is any arrangement where the owner has licensed others to sell goods or services by which of the following?
trademark
Product/market problems involve
unclear business definition.
Entrepreneurs and gazelles have been credited with making disproportionate contributions to all but which of the following?
unemployment
A new venture should be
unique
An analysis of the competition should look for
unscrupulous practices.
The owner of a copyright may do all of the following except
deduct the intrinsic value of the rights from one's taxes.
Which of the following are the two major variables needed to identify specific market segments?
demographic and benefit
The person who purchases the franchise is usually required to do all of the following except
design a logo for the unit.
Design patent protection lasts for _____ years.
15
Which of the following statements regarding sole proprietorships is true?
A sole proprietorship is owned and operated by one person.
_____ bank loans are made on a discounted value of the receivables pledged.
Accounts receivable financing
_____ is the most significant force for global development.
Free enterprise
Which of the following statements about conventional marketing is not true?
In conventional marketing, the role of a marketer is that of internal and external change agent.
Which of the following statements about entrepreneurial marketing is not true?
In entrepreneurial marketing, actions are constrained by resources currently controlled.
Which of the following is an indicator that an entrepreneur's business is failing?
Obligations are greater than assets.
In order to obtain a patent, an application should be filed with the
Patent and Trademark Office of the Department of Commerce.
Which of the following is not a twenty-first century trend in entrepreneurship?
There has been an enormous growth of interest in entrepreneurship around the world.
Which of the following statements is not true of venture capitalists?
They are interested in managing firms themselves.
Which of the following statements about entrepreneurs is false?
They do not use failure as a tool for learning.
Which of the following statements about the marketing skills of great entrepreneurs is true?
They have a clear vision of what they want to achieve next.
Water well strategies refer to unique
resources
The right-hemisphere skills include
using metaphors and analogies to describe things or people.
The registration of a trademark has a lifetime of
10 years plus 10-year renewable periods.
The Franchise Disclosure Document (FDD) contains how many categories?
23
According to the U.S. Patent and Trademark Office, the process of obtaining a patent takes about _____ years.
3
According to Forbes, the net worth of the richest _____ Americans was $2.29 trillion ($5.73 billion per person).
400
Gazelles have been responsible for
55 percent of innovations
Works created after January 1, 1978, have a copyright for the life of the author plus
70 years.
Being an entrepreneur who is presented with "being in the right place at the right time" is associated with which of the following myths?
All entrepreneurs need is luck.
Which of the following is a question that should not be sidestepped when buying a business?
Are there hidden problems that exist in the operation?
Which of the following statements about entrepreneurs is true?
Entrepreneurs are doers and thinkers.
In the study of contemporary entrepreneurship, which of the following concepts reoccurs?
Entrepreneurship is interdisciplinary.
A consumer-driven marketing philosophy often relies on direct selling.
F
A loss orientation toward grief recovery in dealing with failure can sometimes lessen negative emotional reactions.
F
A new venture goes through five specific phases.
F
Amazon was one of the first unicorns, breaking above $1 billion as a private company.
F
An entity that helps new ventures to develop by providing services such as management training and office space is called an entrepreneurial ecosystem.
F
Attorney-hopping is the best way to keep legal fees to a minimum.
F
Background or knowledge accumulation is the second phase of the creative process.
F
Benefit corporations are one of the oldest forms of incorporation, having been adopted in all 50 states.
F
For-profit enterprises have yet to make significant contributions to the world of social entrepreneurship.
F
Franchisees have the option of using the logo and symbols of the franchisor.
F
Importing, in essence, is buying and shipping domestically produced goods for foreign consumption.
F
In the marketing shift from the 4Ps to the 4Cs, price shifts to choice and promotion shifts to communities.
F
It is not uncommon for a buyer to be faced with a franchise fee of $250,000 to $1,000,000.
F
It is usually more expensive to gather secondary data than primary data.
F
It often is possible to obtain more capital and a better range of skills in a sole proprietorship than in a partnership.
F
Large ventures often use private placements as a method of raising capital.
F
Only a small number of informal risk capitalists are in the market today.
F
Only major strategic decisions need to be supported through marketing research.
F
Organizational boundaries allow people to focus on new ideas.
F
Peer-to-peer lenders are friends of the entrepreneur who want to invest in the new venture.
F
Pricing procedures are the same for all types of ventures.
F
Public offering is a term used to refer to corporations taking public donations to raise capital.
F
Regulation D augments the regulations for reports and statements required for selling stock to private parties, friends, employees, customers, relatives, and local professionals.
F
Sales records are of very little value to a buyer in evaluating a company's worth.
F
Social entrepreneurship avoids private-sector focus on risk taking.
F
Social entrepreneurship is rarely a vehicle for sustainable development.
F
Social responsibility consists of those obligations that society has to businesses.
F
Successful global start-ups, or entrepreneurial businesses that are "born global," surprisingly often lack internationally experienced management.
F
Surprisingly, growth of sales is generally not considered a critical factor in assessing new ventures.
F
Sustainable development is an important, but not necessarily the most prominent, topic of our time.
F
Systematic evolution of a product or service into newer or larger markets is referred to as radical innovation.
F
The Federal Trade Commission does not provide information on franchise success.
F
The cognitive ability of entrepreneurs to acquire and transform information has yet to be studied.
F
The corridor principle states that entrepreneurs often get stuck on one idea.
F
The dynamic states approach is a more of a process-oriented view that incorporates an array of the group, the environment, and the organization.
F
The first step in marketing research is to gather primary data.
F
The freemium model requires new and exciting content each month to build a long-term relationship with fee-paying customers.
F
The innovation process involves only the development of a good idea.
F
The learn stage of the build-measure-learn feedback loop is a process in which one learns by trying out an initial idea and then measuring it to validate the effect.
F
The registration of a trademark lasts for 40 years, with continuous renewal every 10 years.
F
The role of the customer in social media marketing is as an external source of intelligence and feedback.
F
The term risk versus loss refers to the amount of return for funds invested.
F
The triple bottom line is an accounting framework that focuses on optimizing short-term financial performance.
F
Which of the following statements is true?
Innovation is the specific function of entrepreneurship
Which of the following statements is true?
Innovators rarely work in more than one area.
Which of the following individuals defined the corporation as "an artificial being, invisible, intangible, and existing only in contemplation of the law"?
Justice John Marshall
Which of the following is a useful rule used to avoid pitfalls in selecting a trademark?
Never choose a trademark without first conducting a trademark search.
The Regulation D exemptions include all of the following except
Rule 503-placements of less than $500,000.
Anyone who violates an author's exclusive rights under a copyright is liable for infringement.
T
At present, the courts have held that the unauthorized use of another's mark in a domain name may constitute trademark infringement.
T
Babies and career are indicative of the priorities that shape the buying decisions of persons in the nest-building stage of the family life cycle.
T
Bottom-line measures of social performance include the unemployment rate and health-adjusted life expectancy.
T
Business brokers specialize in business opportunities and can provide leads and assistance in finding a venture for sale.
T
Entrepreneurs often display unrealistic optimism.
T
Entrepreneurs typically have enough confidence to believe that they can make a difference in the final outcome of their ventures.
T
Entrepreneurs who exploit a radical new technology to provide a product and radically disrupt the market through the creation of a new product space represent the highest level of innovation "newness" relative to other alternatives.
T
Entrepreneurship involves an interdisciplinary approach.
T
Even after marketing research is done, many entrepreneurs are unsure of how to price their products or services.
T
Failure to anticipate the technical difficulties related to developing or producing a product can sink a new venture.
T
Frugality is deemed a bootstrapping technique.
T
Geographic flexibility is greater for telephone interviews than for in-person interviews.
T
In negotiating a deal to purchase an existing business, it is possible to request that the seller retain a minority interest in the firm.
T
Marketing research involves the gathering of information about a particular market, followed by analysis of the information.
T
Mobile social media applications can be differentiated based on location-sensitivity as well as on time-sensitivity.
T
Obtaining external financing is one of the major types of problems for a new venture during its first year.
T
Once issued, the trademark is registered with the Patent and Trademark Office.
T
One of the principal advantages of a corporation is that the stockholder's liability (the most money a person can lose) is limited to an individual's investment.
T
Perhaps the greatest advantage of buying a franchise, as compared to starting a new business or buying an existing one, is that the franchisor will usually provide both training and guidance to the franchisee.
T
Shopping goods are products that consumers take time to examine carefully and compare for quality and price.
T
Social lending sites are different from so-called microlending sites.
T
The maverick entrepreneur who avoids reaching out and finding help is a myth of the past.
T
The most important area to examine prior to purchasing a business is company profitability.
T
The prospective investor should obtain as much information as possible on the franchisor.
T
The three dimensions of performance associated with the triple bottom line are people, the planet, and profits.
T
The two parts of a patent application are specification and claims.
T
There are many risks in entrepreneurship.
T
Understanding the entrepreneur is only part of understanding the entrepreneurial process.
T
What is meant by product life cycle pricing?
The pricing needs to be adjusted at each stage in a product's life cycle.
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?
Which of the following is not a key question a prospective buyer needs to ask in buying a business?
What is the owner's personal net worth?
When securing a bank loan, which of the following is not a question an entrepreneur should be prepared to answer?
What is the price of your product?
In an innovative climate, failure is viewed as
a learning experience.
Corporate social responsibility refers to
actions that further some social good beyond the interests of the firm.
All of the following techniques are used in gathering primary data except
analysis of financial records.
Which of the following was a significant contributor to job growth, with the creation of 263,950 new jobs in the United States in 2016?
angel investments
Which of the following is not a stage of the evaluation process?
beta-testing
Secretly working on new ideas on company time as well as on personal time is referred to as
bootlegging
Which of the following is not an aspect of the "dark side" of entrepreneurship?
bouts of euphoria
Which of the following is not currently cited as a trend creating business opportunities?
breakfast cereals
Characteristics often attributed to the entrepreneur include
commitment, determination, and perseverance.
Promotion links to which of the 4Cs of marketing?
communities
Entrepreneurs with a drive to achieve want to
compete
A checklist approach allows the entrepreneur to identify _____ factors of a new venture.
critical
A Chapter 11 proceeding allows the business to operate as a(n) _____, which means that the court appoints a trustee to oversee the management of the business.
debtor-in-possession
Emerging opportunities in the international arena are being fueled by a(n) _____ in trade barriers and _____ trading blocs.
decrease; the emergence of trading blocs
Retirement centers for older people reflect which of the following sources of innovation?
demographic changes
Marketing segmentation focuses on which of the following variables?
demographics
Which of the following is not a start-up expense?
depreciation
Which of the following is not a trademark?
description
The franchisee's responsibilities do not include
designing the product specifics.
Because of how they are structured, traditional industries such as textiles, furniture manufacturing, and clothing manufacturing commonly use which of the following debt financing sources?
factoring
According to the family life cycle, all of the following are identified as stages in consumer buying behavior except
family traditions
An approach developed as a criteria selection list from which entrepreneurs can gain insights into the viability of their venture is the _____ approach.
feasibility criteria
The sales-driven philosophy
focuses on personal selling and advertising to persuade customers to buy the company's output
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
Researchers have described a "fully developed new firm" with a number of characteristics, including
full-time commitment.
Key features in the success of any innovative program include all of the following except
high profitability.
The type of venture that is expected to attract venture capital would most likely be a _____ venture.
high-growth
Venture classifications include which of the following types of venture?
high-growth ventures
Items that can qualify for patent protection include all of the following except
ideas
Which of the following is not a way to combat stress?
ignoring coping mechanisms
One of the advantages of public offerings is
image
In order to develop an entrepreneurial environment, factors that organizations need to be aware of include all of the following except
imposed time constraints.
Short-term debt is paid back
in one year.
Which of the following is not associated with entrepreneurial tactics in market research?
in-person interviews
A common human resource problem is
inflated owner ego
Which of the following is not an example of recognizing relationships in creativity?
introducing Sierra Mist to the market to compete with Sprite
When the first dishwasher was introduced, it was a completely new product. This was an example of which of the following?
invention
A new business faces two great dangers: the possibility that it will not find a market for its goods or services and the chance that
it will not be able to control its costs.
A(n) _____ approach to problem-solving includes soliciting feedback from the target audience early and often and is encouraged under design thinking.
iterative
Which of the following pitfalls is described by the statement, "Engineers and technically trained people are particularly prone to falling in love with an idea for a product or service"?
lack of objective evaluation
An agreement not to compete is also known as a
legal restraint of trade.
Using the failure prediction model discussed in the chapter, the risk of failure can be reduced by using _____ in the initial stages.
less debt as initial financing and generating revenue
Which of the following are keys to understanding opportunity and its development for entrepreneurs?
logical processes and creativity
Under design-centered entrepreneurship, moving from one particular action stage back to a previous stage for further development is a _____ methodology.
macroiterations
Venture capitalists are experienced professionals who provide a full range of services for new ventures including
management consulting.
One of the external problems new ventures face is
market knowledge.
Lack of finished product availability can affect
marketing efforts.
Which of the following does the textbook identify as critical to the marketing planning process?
marketing information systems
The key to marketing analysis is
marketing research.
Skimming is setting the price to
maximize profit.
The process approach to entrepreneurship seeks to
model the various factors that characterize the entrepreneurial process.
Appositional relationships often lead to visions that result in which of the following?
new ideas, products, and services
A(n) _____ approach indicates the importance of people's awareness of their daily lives for developing new business ideas.
new-new
The _____ approach indicates the importance of people's awareness of their daily lives for developing new business ideas.
new-new
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
"Piggybacking" one's way into a new business involves using a(n) _____ approach.
new-old
Starting a business by adapting something already on the market is called a _____ approach.
new-old
Equity capital is
not a loan but a form of stock.
When buying a business, which of the following is not a factor to consider when investigating the competition?
number of employees
Many entrepreneurs lack _____ for their new venture.
objectivity
Which of the following activities does not characterize the social entrepreneur?
operating with a low sense of accountability
The triple bottom line focuses on all of the following except
precedence.
During the prestart-up and start-up phases of a new venture, which of the following is not considered one of the crucial factors for success?
price and timing
General sources for a market feasibility analysis include
pricing data.
A potential entrepreneur needs to realize that
principles of innovation can be learned.
Which of the following is a tool that enables entrepreneurs to judge a business venture's potential?
profile analysis
If we accept the argument that social entrepreneurship is a continuum, at one extreme would be social entrepreneurs driven exclusively by producing social benefits; at the other would be social entrepreneurs motivated by
profitability with social benefits being the means.
Benefit corporations concern themselves with
purpose, accountability, and transparency.
Innovation newness-technology newness and/or market newness-is linked with the level of innovation newness-incremental versus _____ innovations-to classify the overall "newness" of an innovation within an entrepreneurial venture.
radical
Which of the following terms refers to the inaugural breakthroughs launched from experimentation and determined vision?
radical innovation
Rapid technological advances in many industries cause a concern for _____ in new venture development.
rapid product obsolescence
A disadvantage of debt financing is
regular interest payments.
Advantages of debt financing include all of the following except
regular interest payments.
The textbook discusses all of the following aspects that distinguish social media marketing from traditional marketing except
relevancy
Which of the following is an example of an intangible asset?
reputation
Rewards should be based upon _____ to encourage the desired behavior.
results
Which of the following is an advantage to developing an entrepreneurial environment?
retention and motivation of the best employees
Which of the following is not a method of collecting primary data?
review of government publications
The first step in planning a strategy of entrepreneurship for enterprise is
sharing the vision of innovation.
A candy bar that is purchased at the checkout lane is an example of a _____ good.
shopping
Among the advantages for global entrepreneurs of diaspora networks is the
speed with which information flows across borders.
One reason why corporate entrepreneurship has done so well is that it allows organizations to
tap the innovative talents of their people
Robert C. Ronstadt put together a summary definition of entrepreneur that included which of the following key phrases?
the dynamic process of creating incremental wealth
The determination of fair use of copyrighted material is based on
the effect of use on the potential market for the work.
According to the text, which of the following could be considered a "deal killer" by a venture capitalist?
the excessive founder salaries
The word entrepreneur is derived from the French entreprendre, which is translated as
to undertake.
Michael Gerber, the author of The E-Myth, contends that
today's business owners are not true entrepreneurs.
Which of the following is not a disadvantage of a major franchise?
track record of the franchisor
The North American Free Trade Agreement (NAFTA) has developed
trade barrier reductions.
Which of the following would be most commonly used for short-term financing?
trade credit
Which of the following is an obstacle to corporate entrepreneurship?
traditional management techniques
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.
In the evolutionary process of economic growth, _____ plays the crucial and indispensable role of providing the "social glue" that binds together both high-tech and "Main Street" activities.
entrepreneurship
The macro view of entrepreneurship presents factors exhibiting a strong _____ locus of control.
external
An ethical concern has arisen because companies like Amazon and Yelp use customer reviews to deliberately manipulate consumers' perceptions of products or services.
F
Characteristics of entrepreneurs can neither be taught nor learned.
F
Gazelles produce half the innovations per employee that larger firms typically do.
F
In the environmental school of thought, legal issues surrounding the natural environment are primary.
F
Large firms, as opposed to entrepreneurs, are the aggressive catalyst for change in the world of business.
F
Nonrole acts are those acts against a firm in which the person fails to perform his or her managerial role.
F
Skunk works are project groups that work within the traditional lines of authority.
F
Successful entrepreneurs treat failure the same way all people do.
F
The financial/capital entrepreneurial school of thought focuses on the potential profit of the business idea.
F
The terms entrepreneur and small-business owner are never used interchangeably.
F
Entrepreneurs usually have an internal locus of control.
T
Great chef strategies focus on unique people.
T
Role distortion deals with morally questionable acts that are committed "for the firm."
T
Three characteristics of an entrepreneur are personal initiative, management skills, and a desire for autonomy.
T
The corridor principle is best described by which of the following statements?
With every new venture launched, new and unintended opportunities arise.
Entrepreneurs are best characterized as
aggressive catalysts for change.
The dynamic states model depicts ventures as being
dependent on their environment for survival.
A decision to sell pharmaceuticals that have not been cleared with the Federal Drug Administration is an example of a(n) _____ and _____ decision.
illegal; unethical
Generally, entrepreneurial stress is due to
the discrepancy between the entrepreneur's expectations and personality.
Which of the following would not be considered as encouraging to an entrepreneurial environment?
uniform compensation
The micro view is divided into which of the following three theories?
venture opportunity, entrepreneurial, and strategic
