ElE 3010 - Parnell Final

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when collecting marketing information the entrepreneur should

****** identify competitors

from the chapter on the characteristics of an entrepreneur, we know that after the failure of a business entrepreneurs are likely to

*****continue starting new ventures

a focus group should consists of

10-12 potential customers

around ____ of businesses make it to the third generation

12%

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

when borrowing from friends and family, the entrepreneur should avoid putting agreements is writing to avoid future disagreements

false

a reflection task would involve thinking about what strategies should be used to solve a problem

false; a strategic task would

the product life cycle consists of the five main stages

false; it contains four

in the McMullen Shepherd Model the first stage is the evaluation stage

false; it is the attention stage

suggestions for surviving bankruptcy include all of the following except

file only after cash runs out

which of the following is an internal environmental variable

financial resources

equipment would be included on the balance sheet in which section

fixed assets

_____ is the process of an entrepreneur conducting business activities across national borders

international entrepreneurship

Reverse brainstorming is much like brainstorming except that:

it focuses on the negative aspects

when evaluating business plans ______ are primarily concerned with the four Cs of credit

lenders

a _____ occurs when an entrepreneur or an employee group uses borrowed funds to purchase an existing venture for cash

leveraged buyout

distribution, pricing, and promotion of the product are discussed in which section of the plan

marketing

the ____ is he written statement of marketing objectives, strategies, and activities to be followed in the business plan

marketing plan

______ 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 management team of a new venture

must operate the business full-time

which statement about capital requirements in franchising is NOT true

suggested: • Up-front support saves entrepreneur significant time and capital • Pooling of money for advertising

the concept that "the whole is greater than the sum of its parts" is known as

synergy

the ____ is the specific group of potential customers toward which a venture aims its marketing plan

target market

the difference between a board of directors and a board of advisors is that

the board of advisors meets less frequently

which of the following statements is true

the business plan describes both internal and external elements

the simplest approach to gathering primary information is

observation

a broad-scope strategy

opens the firm up to many different "fronts" of competition.

_____ 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 risk

a _____ is a contract between the government and an inventor

patent

the strategy for growth in which the entrepreneur encourages existing customers to buy more of the firm's current product is a

penetration strategy

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 tru

potential entrepreneurs should establish a formal method for monitoring and evaluating competitive products and services on the market

observation, interviewing, and focus groups are examples of collecting

primary data

reviewing meetings to make sure they are being run effectively illustrates which of the following principles

principle of analysis

which of the following is true regarding the Sarbanes-Oxley ct

private companies are not included in this act

_____ includes initiative and risk taking, as well as competitive aggressiveness and boldness

proactiveness

____ strategies involve developing and selling new products to people who are already purchasing the firm's existing products

product development

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(place), and promotion

if the new venture is a manufacturing operation a _____ in the business plan is necessary

production plan

pro forma cash flow is

projected cash inflow and outflow

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

which of the following is true about corporate entrepreneurship

a company must be willing to invest money without guaranteed return

focus groups use which of the following methods

a moderator leads the group in an open, in-depth discussion (10-12 people)

business-to-business marketing involved

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

a new entry includes all of the following except: a. offering an established product to a new market b. creating a new brand name for your company c. creating a new organization d. offering a new product to a new market

a.

one method of expanding a business is the purchase of an entire company or part of it so that the entity is completely absorbed and no longer exists as a separate company

acquisition

a two to three year plan to sell a business to employees is

an ESOP

typically debt financing requires

an asset as collateral

which of the following is NOT a purpose of the Bankruptcy Act of 1978

purposes: • Fair distribution of assets to creditors • Protection of debtors from unfair depletion of assets • Protection of debtors from unfair demands by creditors

which of the following would be considered a variable expense

raw materials

an assessment of external uncontrollable variables that may impact the business plan is known as

an environmental analysis

focus groups

are an informal method of gathering market information

fixed expenses

are incurred regardless of sales volume

private offerings

are not a viable option for new ventures*****

entrepreneurs who have the necessary abilities for the transition to more professional management practices and the aspiration to grow their business

are the most likely to achieve growth

the basic balance sheet realationship is

assets = liabilities + owner's equity

_____ refers to a diversification strategy that involved taking a step back (up) on the value chain toward the raw materials

backward integration

a computer company buys a hard-drive manufacturer. this is an example of

backward integration

what term describes the practice of paying for goods indirectly through another source

barter

this problem solving method involves developing new ideas by thinking without constraints

big dream approach

all of these are characteristics of an entrepreneurial environment except: a. new ideas are encouraged b. it uses a multidiscipline teamwork approach c. there are short term horizons d. the organization operates on frontiers of technology

c.

by delaying entry, late movers

can learn from the actions of first movers without incurring the same costs

which of the following is not one of the five C's of lending

caution (capacity, conditions, character, cash flow, collateral, and equity contribution etc. are)

which methods of bankruptcy require the entrepreneur to come up with a payment plan

chapter 11 and 13

the section of the patent application which provides the criteria by which any infringement will be determined is the

claims section

which of the following creative methods involves having participants write down their ideas several times a day

collective notebook method

entrepreneurs in the ____ quadrant of firm growth aspire to grow their businesses but do not possess the ability to do so

constrained growth

authors or publishers of software are protected under

copyrights

chapter 11 is the type of bankruptcy that results in

reorganization

suppliers demand payments as cash, payroll taxes are not paid, key personnel leave the company

early signs of bankruptcy

the basic building blocks to a firm, or the inputs into the production process

resources

which among the following influences whether customers are able to use the good or service properly and whether they are able to understand the firm's advertising or other promotional messages

education

joint ventures are sometimes called

strategic alliances

which is NOT a leadership characteristic of a corporate entrepreneur according to the text

encourages colleagues to follow hierarcy

corporate entrepreneurship is best described as

entrepreneurial action within an org

all bankruptcies are handled by the U.S. Supreme Court

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 driven 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

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

the McMullen Shepherd model 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 three main categories of patents are design, utility and provisional patents

false

which of the following is NOT a common reason why business plans fail

the promotional strategy was not taken seriously

the depth and detail of a business plan depend on

the size and scope of the new venture; depth and scope are determined by audience

which of the following is not an aspect of nonverbal or hidden language

time*******

the formula for break-even analysis is

total fixed costs divided by selling price minus variable cost per unit

Bricolage is entrepreneurs making do by applying combinations of the resources at hand to new problems & opportunities

true

Generally, independent, venture-capital based start-ups by entrepreneurs tend to outperform corporate start-ups significantly

true

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

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

entrepreneurially managed firm structure is usually flat with multiple informal networks

true

newness of a new entry is always an advantage

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

which of the follow statements is(are) not tre

unlike a patent, a trademark does not last indefinitely

in order to be the basis for a firm's superior performance, a bundle of resources must be

valuable, rare, inimitable (unique)

market segmentation is the process of

dividing the market into smaller homogeneous groups

which of the following are NOT factors in the success of joint ventures according to the text

Those that relate to success: Accurate assessment of the parties involved to best manage the new entity Degree of symmetry between the partners • Objectives and resource capabilities Expectations of the results • Reasonable, realistic, consistent Timing Most successful when two leaders work together to collaborate, have chemistry The ones that fail are the management teams who do not have chemistry

liability is one of the most critical reasons for establishing a

corporation

____ is not desirable when brainstorming is in process

criticism

entrepreneurial culture and growth orientation consist of all of the following except: a. being creative b. focusing on opportunities c. encouraging employees to generate ideas d. the desire to grow at a slow and controlled pace

d.

which stage of marketing research is considered to be the most difficult for an entrepreneur due to lack of knowledge or experience in marketing

defining the purpose or objectives

which is the first step in preparing a marketing plan

defining the target market

the ______ budget is used to evaluate expenditures that will impact the business for more than one year

depreciation******

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 most common method of harvesting a venture is through

direct sale of a business

the ___ element of the marketing mix involved decisions as to what is the most appropriate channel

distribution

corporations distribute profits to owners through

dividends

In regards to the difference between the entrepreneurial and administrative focuses which is correct: a. entrepreneurs rent or sporadically use resources managers like to own resources b. entrepreneurs focus on slow steady growth and managers focus on rapid growth c. entrepreneurs tend to use a hierarchical management structure, managers use a more fluid flat approach d. entrepreneurs are driven by controlled resources, managers by opportunity

entrepreneurs rent or sporadically use resources managers like to own resources

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

which of the following is not an example of internal financing

equity financing

which of the following is the most significant advantage of an acquisition according to the text

established image and track record

creating a positive organization culture involves

establishing a "we" spirit, not a "me" spirit in meetings and memorandum

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

ethics (space or business relationship******)

In regards to thinking structurally, superficial similarities:

exist when the base (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 organization plan describes the business'

form of ownership

_____ is an arrangement whereby the manufacturer or sole distributor of a trademarked product or service gives exclusive rights of local distribution to independent retailers in running operating prceduress

franchising

the person offering the franchise is known as the

franchisor

which of the following problem-solving techniques begins with group members not knowing the exact nature of the problem

gordon method

continuous innovations are described as

having the least disruptive influence on established consumption patterns

which of the following is NOT one of the main functions of the management team according to the text

help the entrepreneur write the business plan*****

all of the following are questions an opportunity assessment plan might answer except

how much capital do I need?

concerns regarding roads, electricity, banking facilities, communication, and educational systems have to do with a country's

infrastructure

franchising opportunities have often evolved from changes in the environment as well as important social trends. This is not one of the factors responsible

responsible factors: Good health -consumers more health conscious Time saving or convenience ice - home delivery services Health care - seniors living independently The second baby boom - child related service franchises

____ 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

the first step in establishing corporate entrepreneurship in an organization is:

securing commitment from top management

a market development strategy would NOT involve

selling new products to consumer's purchasing the firm's existing products

the marginal contribution is defined as

selling price per unit minus variable cost per unit

conducting a _____ on cash flow involves assigning a + or - probability to the estimated value

sensitivity analysis

the sales budget

should be prepared before developing the pro forma income statement

the business plan presentation for potential investors

should enable the entrepreneur to "sell" his or her business concept in a designated period of time

in which form of organization does the owner have greatest control

sole proprietorship

which type of ownership is the least expensive to start

sole proprietorship


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