ELE 3010 Final
A focus group should consist of:
10-12 potential customers
Once accepted, the trademark is published in the Trademark Official Gazette for ____ days to allow any party to oppose or request an extension to oppose the use of the mark.
30
Which of the following is true about corporate entrepreneurship?
A company must be willing to invest money without a guarantee of a return in the short term
Liability is one of the most critical reasons for establishing a:
Corporation
A new entry includes all of the following except:
Creating a new brand name for your company
_____ is not desirable when brainstorming is in process.
Criticism
It is a practice in some cultures to hug and even kiss when greeting a known business partner. What aspect of nonverbal language is being referred to in the above example?
Customs
Which of the following is an internal environmental variable?
financial resources
Distribution, pricing, and promotion of the product are discussed in which section of the plan?
marketing
______ is the process of gathering information in order to determine who will buy the product and what is the most appropriate distribution channel.
marketing research
The ___________ is the specific group of potential customers toward which a venture aims its marketing plan.
target market
In order to be the basis for a firms superior performance, a bundle of resources must be valuable, rare, and imitable.
False
In the McMullen-Shepherd Model the first stage is the evaluation stage.
False
It is recommended that an entrepreneur avoid using the internet as a resource for finding information to write a business plan because the information found there is often incorrect and unreliable.
False
Newness of a new entry is always an advantage.
False
The McMullen-Shepherd Mode helps identify the common traits of successful entrepreneurs
False
The SBA's Microloan program provides short-term loans of up to $100,000 to small businesses for working capital or purchase of inventory.
False
The business plan addresses only short term decision making.
False
The product life cycle consists of five main stages.
False
The three main categories of patents are design, utility and provisional patents.
False
When borrowing from friends and family, the entrepreneur should avoid putting agreements in writing to avoid future disagreements.
False
Equipment would be included on the balance sheet in which section?
Fixed assets.
The organization plan describes the business':
Form of ownership
Continuous innovations are described as:
Having very little disruptive influence on established consumption patterns
When collecting marketing information the entrepreneur should:
Identify competitors
A broad-scope strategy:
opens the firm up to many different "fronts" of competition.
A _______ is a contract between the government and an inventor.
patent
Observation, interviewing, and focus groups are examples of collecting:
primary data
Which of the following is not one of the main functions of the management team according to text?
Identify fundamental changes in the business plan as they occur
______ is defined as the risk of interference with the operations of the venture
Operating risk
__________ is the amount owners have invested and/or retained from the venture operations:
Owner's equity
Which among the following political risks is considered the biggest risk of all?
Ownership
The ________ is filed to establish a date of conception of an invention and replaces what used to be known as a disclosure document.
provisional patent
Compensation for board members can take the form of all of the following except:
Perks, such as vacations
In which phase of the SBIR grant process are funds used to create a prototype of a product or service?
Phase II
Which of the following statements is true?
Potential entrepreneurs should establish a formal method for monitoring and evaluating competitive products and services on the market.
The marginal contribution is defined as:
Selling price per unit minus variable cost per unit
The sales budget:
Should be prepared before developing the pro forma income statement
The difference between a board of directors and a board of advisors is that:
The board of advisors meets less frequently
A board of advisors has less decision making authority than a board of directors does.
True
Before writing the business plan an entrepreneur should conduct an objective self-assessment of his or her abilities which includes areas such as planning and sales skills.
True
Bricolage is entrepreneurs making do by applying combinations of the resources at hand to new problems & opportunities
True
Entrepreneurially managed firm structure is usually flat with multiple informal networks.
True
Generally, independent, venture-capital based start-ups by entrepreneurs tend to outperform corporate start-ups significantly
True
The effectuation process starts with what one has and selects among possible outcomes
True
The period of time when the environment is favorable for entrepreneurs to exploit a particular new entry is called the window of opportunity.
True
The question "what is this technology all about?" Is a comprehension question.
True
entrepreneurial opportunities are those situations in which new goods, services, raw materials and organizing methods can be sold at greater than their production cost.
True
Typically, debt financing requires:
an asset as collateral.
An assessment of external uncontrollable variables that may impact the business plan is known as:
an environmental analysis
The basic balance sheet relationship is:
assets equal liabilities plus owners' equity
What term describes the practice of paying for goods indirectly through another source?
barter
All of the following are questions an opportunity assessment plan might answer except:
can a patent be obtained?
By delaying entry, late movers:
can learn from the actions of first movers without incurring the same costs
Authors or publishers of software are protected under:
copyrights
Corporate entrepreneurship is best described as:
entrepreneurial action within an organization
Reverse brainstorming is much like brainstorming except that:
the process usually involves identification of everything wrong with an idea.
The depth and detail of a business plan depend on:
the size and scope of the new venture
The formula for break-even analysis is:
total fixed costs divided by selling price minus variable cost per unit
Focus groups use which of the following methods?
A moderator leads the group in an open, in-depth discussion.
Business-to-business marketing involves:
A more direct channel of distribution than consumer markets
Offering a small product range to a small number of customer groups is:
A narrow-scope strategy.
Focus groups:
Are an informal method of gathering market information.
Fixed expenses:
Are incurred regardless of sales volume
This problem-solving method involves developing new ideas by thinking without constraints.
Big dream approach
The _____ budget is used to evaluate expenditures that will impact the business for more than one year.
Capital
Which of the following is not one of the five C's of lending?
Caution
The section of the patent application which provides the criteria by which any infringement will be determined is the:
Claims section
Which is the first step in preparing a marketing plan?
Defining the business situation
Which stage of marketing research is considered to be the most difficult for an entrepreneur due to the lack of knowledge or experience in marketing?
Defining the purpose or objectives
The part of the plan that describes the location and size of the business, the personnel and office equipment that will be needed, and the history of the venture is called the:
Description of the venture
The _____ patent is granted for a 14-year term.
Design
Which of the following is a contract that grants the owner protection, based on the appearance of an object?
Design patent
The __________ element of the marketing mix involves decisions as to what is the most appropriate channel.
Distribution
Corporations distribute profits to owners through:
Dividends
Market segmentation is the process of:
Dividing the market into smaller homogeneous groups
Which among the following influences whether customers are able to use the good or service properly and weather they are able to understand the firms advertising or other promotion messages?
Education
Which is not a leadership characteristic of a corporate entrepreneur according to the text?
Encourages colleagues to follow hierarchy
Which of the following is not an aspect of nonverbal hidden language?
Energy
In regards to the differences between the entrepreneurial and administrative focuses which of the following is correct?
Entrepreneurs rent or sporadically use resources; managers like to own resources
Which of the following is not an example of internal financing?
Equity financing
A reflection task would involve thinking about what strategies should be used to solve a problem.
False
An entrepreneur focuses on the operating costs before completion of the sales budget.
False
Cash flow is the same thing as profit.
False
Customers always embrace change in products and services.
False
Entrepreneurially run firms are driven by controlled resources whereas traditionally managed firms are drivin by perception of opportunity.
False
In encouraging a culture for corporate entrepreneurship, using older, proven, technology is recommended in order to increase stability in the organization.
False
Concerns regarding roads, electricity, banking facilities, communication, and educational systems have to do with a country's:
Infrastructure
_____________ is the process of an entrepreneur conducting business activities across national borders.
International entrepreneurship
The simplest approach to gathering primary information is:
Interviewing
When evaluating business plans _______ are primarily concerned with the four c's of credit.
Lenders
The ______ is the written statement of marketing objectives, strategies, and activities to be followed in the business plan.
Marketing plan
Private offerings:
Must comply with Regulation D
The management team of a new venture:
Must operate the business full-time
Which of the following is true regarding the Sarbanes-Oxley Act?
Private companies are not included in this act.
_____ includes initiative and risk taking, as well as competitive aggressiveness and boldness
Proactiveness
The _______ is defined as the stages each product goes through from introduction to decline.
Product life cycle
The marketing mix consists of
Product, price, distribution, and promotion
If the new venture is a manufacturing operation a(n) __________ in the business plan is necessary.
Production plan
Pro forma cash flow is
Projected cash inflow and outflow
Which of the following would be considered a variable expense?
Raw materials
The basic building blocks to a firm, or the inputs into the production process, are:
Resources
_____ refers to the probability, and magnitude, of downside loss.
Risk
The _________ imposes oversight responsibilities on members of the board of directors.
Sarbanes-Oxley
Information that already exists is called:
Secondary data
In which form of organization does the owner have greatest control?
Sole proprietorship
Which of the following problem-solving techniques begins with group members not knowing the exact nature of the problem?
The Gordon method
Which of the following statements is(are) true?
The business plan describes both internal and external elements
Entrepreneurial culture and growth orientation consists of all of the following except:
The desire to grow at a slow controlled pace.
Which of the following is not a common reason why business plans fail?
The promotional strategy was not taken seriously
All these are characteristics of an entrepreneurial environment except:
There are short term horizons
Which of the following statements is(are) not true?
Unlike a patent, trademark does not last indefinitely.
The section of the business plan in which the entrepreneur identifies changes occurring on the national and international level is the:
environmental and industry analysis
________ financing does not require any collateral.
equity
In regards to thinking structurally, superficial similarities:
exist when the basic (relatively easy to observe) elements of the technology resemble the basic elements of the market.
An opportunity assessment plan:
focuses on the opportunity, not the venture.
The first step in establishing corporate entrepreneurship in an organization is:
securing commitment from top management
The business plan presentation for potential investors:
should enable the entrepreneur to "sell" his or her business concept in a designated period of time.
Which type of ownership is the least expensive to start?
sole proprietorship
