ele midterm

when defining potential customers, an owner must: a. define a specified radius around the business b. use NAICS data c. visit all competitors d. analyze normal or ordinary competitive factors

a

fragmented markets have: a. many potential customers b. clear dominant competitors c. no clear dominant competitors d. few potential competitors

c

what does LLP stand for? a. limited land partnership b/. limited loan partnership c. limited liability partnership d. none of these

c

____________ are special funds, neither equity not debt, that do not require repayment and are designed to aid businesses in specific areas a. no-pay loans b. incubator equity c. small business loans d. grants

d

what term is used to describe the process of systematically examining the difference between what is expected and what occurs? a. difference analysis b. economic analysis c. gap slack analysis d. gap analysis

d

when should a new business owner ensure there are sufficient financial resources to operate the business? a. after six-month review b. first payroll c. opening day d. prior to the start

d

which of the following terms describes a plan to exit a small business? a. entrepreneurial plan b. business plan c. general departure plan d. harvest plan

d

small companies have flourished for all the following reasons EXCEPT: a. they operate more effectively b. they employ skilled people c. they respond more quickly d. they often expand easily in mature industries

d.

a small business has less flexibility to respond to change than a large company true or false

false

the fourth column in a gap analyss is used to list the resources requred for the successful operation of the business true or false

true

___________ is the simplest form of a business to establish, the person who owns it and the business itself are treated as the same entity a. sole proprietorship b. subchapter S corp c. subchapter c d. limited partnership

a

all of these are criteria in deciding extraordinary resources in a company EXCEPT: a. elastic b. durable c. rare d. valuable

a

the world bank estimates that one of the strongest factors in the growth of any nation's GNP is _______ a. small and medium sized enterprises b. large businesses c. global trading d. higher tariffs

a

_________________ ids, councils, assists, and protects the interests of small business concerns a. stakeholders b. fortune 500 companies c. medium-sized businesses d. the US small business administration

d

a __________ exists when a firm finds an unique position in the market through product or service a. first mover approach b. low-cost approach c. sustainable competitive advantage approach d. differentiation approach

d

a board of advisors should have both __________ and ___________ to assist small business owners a. money, legal experience b. money, insight c. insight, legal experience d. insight, experience

d

according to the book, the greatest source of sustainable advantage is: a. staffing b. location c. relationship with vendor d. personal relationship with customer

d

all of these are analytical methods focusing on financial data EXCEPT: a. sensitivity analysis b. ratios c. deviation analysis d. short surveys

d

an owner should establish the mission statement and strategies ______________ a. AT THE 30-DAY REVIEW B. AT THE FIRST DAY OF THE BUSINESS C. AT THE 90-DAY REVIEW D. PRIOR TO ITS INCEPTION

d

compared to large corporations, entrepreneurial businesses: a. are more visible b. have more resources at their disposal c. attract more attention in the media d. play just as important a part in our country

d

effective brainstorming has rules that should be followed in order to be most effective. which of the following is NOT one of the rules of brainstorming? a. avoid evaluating ideas that are contributed b. include friends and family members in the group c. generate ideas related to a specific topic or problem d. carefully examine each possible option before considering another

d

when completing a conceptual map, an entrepreneur needs to visit _______ of the potential competitors a. 50% b. 60% c. 75% d. 100%

d

what is the disadvantage of choosing a sole proprietorship? a. it cannot have mor ethan one founder b. the law dies not recognize other equity investors c. liability is solely on the owner d. all of these

D

____________ is (are) a brief statement that summarizes how and where the firm will compete in the industry a. mission statement b. goal statements c. strategies d. core values

a

_____________ is the difference between when the money goes out and when it comes in a. float b. accounts payable c. spending gap d. difference gap

a

______________ are resources that combine to allow a firm to do things better than its competitors a. capabilities b. analytical tools c. trade-outs d. measurable goals

a

all of the following are ways to identify gaps or business opportunities EXCEPT: a. read government documents'b. discuss opportunities with family members c. examine trends d. interview successful entrepreneurs

a

all of these are harvest plan strategies EXCEPT: a. franchising b. participating in an IPO (Public offering of stock) c. selling the business to another firm d. selling it to a group of investors

a

an ___________ defines companies within a specified geographic radius that will be in direct competition for the same customers a. industry b. competitors files c. tracking system d. US government blue book

a

liquidity ratios allow the owner the short-term ability to meet the firm's financial obligations. these obligations are __________ and ___________. a. debt, account payable b. debt, accounts receivable c. inventory, accounts payable d. inventory, accounts receivable

a

potential generation of new business ideas occurs: a. because of the process of identifying skills and opportunities in the market b. automatically c. when copying existing business d. when dismissing a promising idea

a

sally copies james's hamburger restaurant by starting her own hamburger restaurant on the other side of town. this is a form of ________ a. follower b. nonleader c. makret mover d. second mover

a

small businesses act as a catalyst for social chage because: a. they have the ability to generate profits in markets ignored by large corporations b. communities always want to have extra money that can be obtained from having small businesses c. owners have a better understanding of how to operate their business d. they are often started when the economy is booming

a

small businesses deal with __________ regulations than large firms a. fewer b. proportionate c. more d. same

a

the americans with disabilities act include all of the following EXCEPT: a. testing people with disabilities b. preventing dismissal of employees with disabilities c. providing accessibility to people with physical disabilities d. managing people with disabilities

a

the legal means to protect intellectual property is __________ a. all of these b. patent c. trademark d. copyright

a

A ____________ IS A CLAIM OF INTELLECTUAL PROPERTY THAT IS ASSOCIATED with a specific business a. patent b. trademark c. copyright d. watermark

b

____________ is the analysis of the differences between the predicted and the actual performance of a business a. margin analysis b. deviation analysis c. gap analysis d. profit analysis

b

____________ is working with and learning from a company outside of your industry that has a skill that is critical to the fir;s operation a. substitute-based b. benchmarking c. fragmenting d. tag lines

b

______________ are the capabilities and skills of the founder or employees a. critical assets b. intangible assets c. system assets d. tangible assets

b

a __________ projects all the expenses incurred by a business over specified period of time a. financial map b. budget c. cash flow statement d. float

b

a ______________ analysis is a chart tracking various performance measures from one time period to the next a. leverage b. deviation c. financial d. sensitivity

b

a ______________ describes estimates by a small business owner of what the balance sheets and income statements will look like in the future. a. cash flow b. pro forma c. current asset d. balance sheet

b

all of the following are benefits of a subchapter S corp EXCEPT: a. easy formation b. limited number of shareholders c. legitimacy in the market d. limited liability

b

an ___________ is an analytical tool to organize information about direct competitors on all points of competition a. analysis gap b. competitive map c. deficient map d. completion map

b

company analysis should proceed from the _________ and move toward the ____________ a. specific, general b. general, specific c. negative, positive d. lowest, highest

b

debt is a form of ___________ financing a. venture b. non-equity c. asset d. equity

b

funding for any new business starts with a(n) ____________ a. investment banker b. founder(s) c. grant d. bank

b

in a limited partnership, there must be a(n) __________ a. limited liability b. general partner c. unlimited liability d. active investor

b

mary has established a reasonable geographic radius for her flower shop. as a result, she should be able to: a. define normal or ordinary competitive factors b. examine potential customers c. predict her price point d. predict sale price

b

the assets minus the liabilities of a firm reflected on the balance sheet should total: a. the number on the pro forma b. zero c. one half of profits d. current liabilities

b

what term is used to describe Walmart's ability to purchase more advertsing space ata lower cost per ad? a. advertising nous b. economies of scale c. volume excess d. busing bonus

b

which of the following is NOT a characteristic of a high-growth venture? a. often hire an experienced president to grow the company b. is designed to reflect the mission of the founder c. usually hire a relatively large number of employees d. have a well-developed organization structure

b

which of the following is NOT included in the second column of labeled categories in a gap analysis? a. finances b. inventory resources c. non financial resources d. time

b

_________ is a series pf ratios along four areas of company performance (liquidity, activity, leverage, and profitability) that provides a picture of health of the company a. deviation analysis b. sensitivity analysis c. ratio analysis d. profitability analysis

c

____________ is an organization orm that treats a firm as a unique entity (separate from the owners) and is responsible for its own taxes a. subchapter X corp b. subchapter S corp c. subchapter C corp d. limited liability corp

c

a(n) ___________ exists if the service or product performs a simialr function a. product/service flexibility b. trade-in c. substitute d. elasticity of demand

c

according to the book, the greatest contributor to an owner's success is ________ a. opportunities not available in large company b. no risk involved c. the owner doing something they enjoy d. spending less time at work

c

according to the book, which of the following sequences is correct when you want to start a new business? a. identify exact competitors within that industry, determine who your potential customers might be, define the industry that interests you b. determine who your potential customers might be, identify the exact competitors within he industry, define the industry that interest you c. define the industry the interests you, determine who your potential customers might be, identify the exact competitors within that industry d. identify the exact competitors within that industry, define the industry that interests you, determine who your potential customers might be

c

an entrepreneur cannot leave his or hr business due to the amount of money that was invested. this is a(n): a. harvest plan b. exit strategy c. exit barrier d. benchmarking

c

an example of an idea for a new start-up from a hobby is________ a. a computer salesperson seeing the possibility of opening a new electronic store n a different art of the city b. a purposeful exploration to find a new idea c. a sports card collector who bought and sold cards for a year to build a personal collection, deciding to become a sports card dealer d. a baker who tosses ingredients together to see what they taste like

c

jane has developed a special Italian sauce for pizza. the sauce cannot be easily copied. this is a(n): a. tangible asset b. unorthodox practice c. sustainable competitive advantage d. orthodox practice

c

mark brings his friends together to generate ideas on his new business. Mark will identify what his skills are, and then ask his friends to generate a list of business ideas that he might start. this is called __________ a. business meeting b. gap analysis c. brainstorming d. focus group

c

the advantage of factoring for a small business is: a. segmenting all the company's accounts receivable b. operating the company on minimal outlay c. receiving money from accounts receivable immediately d. not receiving the full amount of bill due

c

the evaluation of a firms starts with: a. ratio analysis b. short surveys c. the mission of the firm d. deviation analysis

c

the first section of an external analysis is to: a. develop a competitive edge b. identify potential potential customers c. determine in which industry the new business will compete d. research potential substitutes

c

what are the two measures used to evaluate whether a person or firm is meeting its goals? a. orthodox and unorthodox b. tangible and intangible c. quantitative and qualitative d. actionable and non actionable

c

what is the difference between venture capital companies and business angels? a. venture capital companies usually invest in small businesses, whereas business angels usually invest in big businesses b. venture capital companies make only small investments, whereas business angels make both small and big investments c. venture capital companies usually invest in large businesses, whereas business angels usually invest in small businesses d. venture capital companies have a philanthropic attitude, whereas angels have a profit-minded attitude

c

what is the major difference between board of directors and board of advisors? a. there is no difference between the two b. boards of directors are individuals from outside the firm, whereas board of ad visors are individuals from inside the firm c. board of directors have fiduciary responsibility, whereas board of advisors advise the firm d. board of directors always direct large companies, whereas board of advisors are usually found in small firms

c

when a corporation suffers losses, the founders will: a. be responsible b. share equity investments c. lose only their investment in the business d. have unlimited liability

c

when forming a sole proprietorship or a partnership, the business debts are: a. paid by purchase order b. accumulated c. responsibility of the owners d. paid the first day of the month

c

which of the following figures is also known as earnings before interest and taxes (ebit)? a. gross profit margin b. return to equity c. operating profit margin d. net profit margin

c

which of the following is the definition of brainstorming? a. a creative process whereby an individual is used to develop ideas followed by evaluation of each potential idea b. a simple process of systematically examining he different between what is expected and what occurs c. an imaginative process whereby a group of individuals are brought together and asked to generate ideas with little or no effort made to evaluate the potential for each idea d. rational decision making by a group of individuals

c

which of the following items is an example of things that can be trademarked? a. names of the firm's products b. name of the firm c. all of these d. a symbol representing the firm

c

which of the following statements about having a measurement focus is correct? a. focus on orthodox actors b. focus on unorthodox factors c. concentrate the analysis efforts on areas that are extraordinary d. concentrate the analysis efforts on areas that are ordinary

c

you should not use a cookie-cutter business plan program because a. each business plan should have its own voice, feel, and presentation b. potential investors are often family members, which males t critical that the entrepreneur seek to ensure the chances of success by doing thorough planning and thinking c. all of these d. a good plan is best developed by the individual contemplating the business, not a paid consultant

c

___________ are high-net-worth individuals who invest in business not as a business, but individually a. venture capitalists b. equity investors c. supplier capitalists d. business angels

d

_____________ is an area of business that uses standards that are necessary for the business a. competitive map b. unusual or unique competitive factors c. benchmarking d. normal or ordinary competitive advantage

d

______________ demonstrates how easy it is for a customer to switch to substitutes a. trade-in b. competitive map c. benchmarking d. elasticity of demand

d

______________ lets individuals from outside an industry establish a new business in a way not previously considered a. constricted rationality b. unconstricted rationality c. logic rationality d. bounded rationality

d

a competitive map is used for the following reasons: a. insights will be developed regarding pricing b. knowledge about each competitor allows the entrepreneur to better position the new business c. its less expensive d. all of these

d

a small business has ___________ formal procedures as compared to a larger firm to operate the company a. proportionate b. same c. many d. few

d

according to the book, new product ideas for small business start-ups originate from all of the following EXCEP: a. educational background b. prior work experience c. personal interests and hobbies d. existing records of a business

d

what are he three means to view business strategy developed by Michael Porter? a. high cost, nonsuitable, and focus b. low cost, nonsuitable, and focus c. high cost, differentiation, focus d. low cost, differentiation, and focus

d

large firms can fill market niches that small companies cannot afford to fill true or false

false

the first column in a gap analysis is devoted to various business ideas true pr false

false

the unlimited theory suggests that individuals act o maximize their own individual benefit true pr false

false

there is one crucial person in a large organization: the chief executive officer true or false

false

dan asked mike to invest in his sports shop. Mike gave $10,000 and wants 25 % of the profits. this is a form of equity investment true or false

true

having very little to lose financially by a failure could be a trigger for a new business true or false

true