ba 3305 final
FALSE
A buyout refers to starting a business from scratch.
FALSE
According to the Panel Study of Entrepreneurial Dynamics, the business idea and the decision to start a business were simultaneous for a majority of entrepreneurs.
FALSE
Financial accounting is forward-looking and attempts to predict the results of management decisions.
imitative; innovative
Most small businesses are more _____ than _____.
Supply chain costs
Which of the following is not one of the four key factors considered when determining an optimum price?
FALSE
A direct mail approach needs major inventory investment.
franchise.
A legal agreement that allows a business to be operated using the name and business procedures of another firm is referred to as a:
TRUE
A license is a legal agreement that grants rights to use a particular piece of intellectual property.
TRUE
A product can include goods, services, and ideas.
business
A(n) _____ plan is a document designed to detail the major characteristics of a firm—its product or service, its industry, its market, its manner of operating and its financial outcomes with an emphasis on the firm's present and future.
managerial accounting
An accounting method that is specifically intended to be used for planning, directing, and controlling a business is called:
tangibility
An item's capability of being touched, seen, tasted, or felt is called _____.
TRUE
As a firm establishes a track record for performance, that performance, along with the goods or services it creates become key elements of the firm's and entrepreneur's identity.
TRUE
Business plans are essential for external legitimacy and internal understanding.
organizational identity
Following the BRIE model in starting a business, an entrepreneur creates a boundary within the environment, setting his firm apart from the rest of the environment. In doing this, the entrepreneur gives the firm an _____.
TRUE
Franchising a new business is one of the ways to business ownership.
FALSE
Gathering resources for a business is easier during economic recessions than during economic boom times.
FALSE
In the context of a business plan, a firm's responsiveness to customers is a key concern of bankers.
TRUE
Most entrepreneurs start out working part time on their new business.
TRUE
One reason why accounting is important to a small business is that it shows how much your business is worth.
TRUE
One way entrepreneurs display passion is by being persistently focused on the business.
FALSE
Part-time employment refers to working for 50 or fewer hours a week.
sales leads
People who receive a promotional impression and who give some thought to buying the product are referred to as _____.
opportunity recognition
Researchers in the field of entrepreneurship and small business believe that _____ behavior is the most basic and important entrepreneurial behavior.
TRUE
Sales leads who actually make some sort of effort to learn more about the product, service, or business in anticipation of a possible purchase are known as prospects.
TRUE
Search and capture of new ideas that lead to business opportunities is called opportunity recognition.
FALSE
Services have separability of production and consumption.
FALSE
Small businesses typically use the strategy of innovativeness rather than imitativeness.
TRUE
Strategy is the idea and actions that explain how a firm will make its profits.
the novelty in their products, services, or business models.
The _____ is a U.S. government agency that helps people start a business and also provides them support and advocacy.
external legitimacy
The extent to which a small business is taken for granted, accepted, or treated as viable by organizations or people outside the small business is referred to as _____.
FALSE
The majority of new businesses are run by a solo entrepreneur.
FALSE
The majority of new firms go through similar startup processes with those most likely to be successful following a four-step process: Finance, Construct, Promote, Demonstrate.
FALSE
The three most popular types of rewards for small business owners are personal growth, building wealth, and creating products.
The success stage.
This stage of the business life cycle occurs once the firm is established in its market.
the novelty in their products, services, or business models.
Truly entrepreneurial businesses are characterized by:
TRUE
When pricing your product, the optimum price is the highest price that will produce your desired level of sales in your intended market.
Dorothy, who works in her small bakery for less than 30 hours a week
Which of the following is an example of part-time business?
Franchising
Which of the following is one of the ways to get into small business management?
Most top managers at family firms tend to stay in their positions much longer than those at nonfamily firms.
Which of the following statements concerning family businesses is correct?
Most of the products sold today are combinations of both goods and services.
Which of the following statements is true about products?
Marketing funnel
Which of the following terms refers to a rule of thumb about how many prospective customers it takes to find one who will actually make a purchase?
distribution channels
Wholesalers and retailers who connect manufacturers to consumers are referred to as _____.
TRUE
Your hit rate is how many prospects or leads you need to approach in order to make one sale. Also called the conversion rate.
Financial accounting
_____ is a formal, rule-based set of accounting principles and procedures intended for use by outside owners, investors, banks, and regulators.
Tax accounting
_____ is an accounting approach based on specific accounting requirements set by governmental taxing agencies.
Strategy
_____ is the idea and actions that explain how a firm will make its profits.
Opportunity recognition
_____ refers to searching and capturing new ideas that lead to business opportunities.
Environment
_____ refers to the sum total of forces outside of an entrepreneur and a firm.
Part-time employment
_____ refers to working for 35 or fewer hours a week.
