ENTR 3310: CHAPTER 13,14,15,16
Employers register within the state's labor department to provide ______ for employees.
unemployment compensation
Dangerous stakeholders possess which of the following?
urgency, power
In many types of businesses, labor can account for ______ percent of operating costs.
75
When creating content that drives sales, it is a good rule of thumb to make sure that ______ of your content is about your audience and ______ is about you.
90%; 10%
Research has shown that ______ percent of our communication is nonverbal.
93
In China, Apple lost a court battle with ______, which claimed it owned the iPad trademark in the Chinese market.
Proview International Holdings
Social media is a great way to get your brand into circulation without breaking the bank. But once it's out there, what should you do?
Reward your followers. Be responsive to your followers' needs. Listen to what your followers have to say about your brand.
One reason an angel may reject a pitch is for geographical reasons.
True
Why is it necessary to protect intellectual property (IP)?
The IP may be the most valuable property of the company.
Operating policies can greatly affect the speed at which cash makes its journey back to the company.
True
The crucial information to include on your pitch deck financials slide is 3 years of revenue projections.
True
The payables policy deals with the process and timing of paying for goods and services bought by the business.
True
The pro forma financial statement should include at least three scenarios of the financial forecast.
True
Why is it important to pick the proper legal entity?
To establish the right business structure
The question "What obstacles have you faced, and how did you overcome them?" is posed in a Q and A session. This is a team question.
True
The social venture capitalist (SVC) market is a growing one.
True
To boost your Google search ranking, be sure to link your website to your social media pages.
True
The ending cash balance on the cash flow statement should match the cash on the ______.
balance sheet
What is the financial statement that shows what the company owes, and what it owns, including the shareholder's stake, at a particular point in time?
balance sheet
What is a rigorous process that involves evaluating an investment opportunity prior to the contract being signed?
due diligence
What is the entrepreneurship ecosystem?
Certain conditions must be in place for small and medium businesses to flourish.
What law protects employees from discrimination?
Equal Employment Opportunity
A benefit corporation is the same as a not-for-profit entity.
False
A founders' agreement shields founders from disagreements in the future.
False
A pitch deck is presented in ______ (or its equivalent).
PowerPoint
What famous shoe company uses an in-store virtual reality experience as part of its branding strategy?
TOMS
Why did the inventor of the intermittent windshield wiper sue Chrysler and Ford?
They copied the technology he had patented.
Why are the financial projections in some entrepreneurs first pitch decks nothing more than guesswork?
They lack the necessary data.
Self-assured speakers do which of the following?
They make eye contact with their audience.
What is a financial report that measures the financial performance of your business on a monthly or annual basis?
income statement
Once an entrepreneur has built pro forma statements for best, worst, and likely case, it is good to compare to ______.
similar businesses
The Pixar Approach, a storytelling method, is based on the idea that all of Pixar's movies follow a narrative structure that can be summed up in ______ chronological sentences.
six
Which of the following are examples of intellectual property?
slogans logos inventions
The venture capital industry received a boost when the Small Business Investment Act of 1958 allowed ______.
small business investment companies were allowed to invest in startups
What spawned the growth of a whole new generation of venture capitalist companies?
smartphones and tablets
Which organizations can be not-for-profits if they qualify as a 501(c) under the tax code?
social clubs charitable organizations civic leagues
How far should the imaginary box, in which you can move during your presentation, extend from you in each direction?
three feet
During the question and answer period, the ______ of your pitch deck should be displayed.
title
What is the goal of the Audacious Project: Collaborative Philanthropy for Bold Ideas?
to bring together social entrepreneurs and philanthropists
The Environmental Defense Fund is an AudaciousProject awardee. What is/are its audacious goal(s)?
to build and launch a satellite to track and measure global oil and gas industry methane emissions
The Bail Project is an Audacious Project awardee. What is/are its audacious goal(s)?
to help end mass incarceration to combat racial disparity
GirlTrek is an Audacious Project awardee. What is/are its audacious goal(s)?
to improve African American women's health and well-being through daily walking
Why is it essential for an entrepreneur to know the value of a company prior to seeing investors?
to know how much equity to give up
What is a reason to seek an outside investment earlier than usual?
to stave off competition
When do the majority of VCs invest in businesses?
when significant market exists for product and service
According to Angel Capital Association, the best time to seek angel investment is ______.
when you have existing customers when you have exhausted other alternatives when the product is developed or near completion
Large-scale social problems, which are complex and have no clear solution was termed ______ by scholars in the 1960s.
wicked problems
To calculate average inventory, the business needs to know ______.
beginning and ending inventory
What did John Suh, CEO of LegalZoom, call focusing on the legal side of the business?
"the necessary evils"
Selena Gomez is a powerful social media influencer. How much do companies pay her per post?
$550,000
According to Wired Magazine founder Kevin Kelly, building a lasting, sustainable business is based on ______ true fans.
1000
According to the 2018/2019 Global Entrepreneurship Monitor (GEM) research study, the percentage of entrepreneurs in the United States has reached ______.
15%
What years were the dot.com era?
1990s The first tech firms to receive venture capital funding experienced a boom in the late 1990s. The dot.com bubble burst in 2000.
Once a company starts growing and showing potential, entrepreneurs look for ______ financing.
equity
How is the for-profit business 4Ocean funded?
It sells bracelets that are made of recycled materials.
Intellectual property rights are not protected in the same way in every country.
True
To calculate average accounts payable, the company ______.
adds beginning and ending accounts payable and then divides by 2
What is a form of organization certified by the nonprofit B Lab that ensures that strict standards of social and environmental performance, accountability, and transparency are met?
benefit corporation
The explosion of data that has left consumers harder to engage means that marketers must also be ______.
educators
A(n) ______ is a company's first opportunity to sell stocks on the stock market.
initial public offering
What is the type of research gathered by entrepreneurs through sources such as focus groups, interviews, and surveys?
primary
The difference between corporate social responsibility (CSR) and social entrepreneurship is their ______.
primary objectives
Sword and Plough, a for-profit company that employs military veterans and also uses discarded military material to create saleable products, is an example of a ______.
social consequence entrepreneurship
Bank financing is a good option when ______.
no other financing is available
In order for any item to qualify for IP protection, it must be ______.
novel
What element of the 4 Ps focuses on how you are going to tell your customers what you have to offer?
promotion
DPO is the measure of the number of days it takes to pay the bills.
True
Which of the following are forms of guerilla marketing?
A company that offers tumbling and dance classes stages a flash mob at a local Renaissance fair. A tax preparation company has a person dressed as a refund check waving a sign at a busy corner. A graphic artist advertises his children's party services by creating chalk art in a central city park that includes his contact information.
Entrepreneurial marketing requires fewer resources than traditional marketing.
True
What type of angel is one who has already started their own business?
entrepreneurial
What is the sale of shares of stock in exchange for cash?
equity financing
What companies have benefited from angel funding?
Apple, Google, Nescape
What is the measure of the average number of days it takes to sell the entire inventory of a company?
DOI
What is the measure of number of days that it takes to collect on accounts receivable?
DSO
What region of the world has the lowest rates of total entrepreneurial activity (in the early stages)?
Europe
A venture capitalist invests his or her own money into startups.
False
An entrepreneur should wait until being fully funded to hire a legal team to determine entity choice.
False
Companies like Google protect entrepreneurs and businesses from online pirates.
False
Companies must provide a retirement plan for employees.
False
Compared to traditional nonprofit startups, enterprising nonprofits are far less likely to survive in business after the first five years.
False
Entrepreneurial marketing may be new but, just as in traditional marketing, sales and marketing remain separate units
False
Mark Zuckerberg did not need outside legal help when he created Facebook.
False
Most entrepreneurs manage to make money and maintain full control of their businesses.
False
No matter how strong your personal brand, it is the company's brand that, primarily, attracts customers and convinces them to buy.
False
Social entrepreneurs, unlike business entrepreneurs, have no desire to make a profit from their business ventures.
False
Startup companies must pay interns.
False
The Equal Employment Opportunity Act is meant to protect workers around the world.
False
The elevator pitch is so named because the first one took place in an elevator.
False
The sale of stock is not included in the cash flow statement.
False
The sample pitch deck in the text demonstrates the right pitch deck format.
False
A brand strategy is a short-term plan to get your company off the ground.
False A brand strategy is a long-term plan
Bridge financing is meant to cover expenses once the business grows and starts making more revenue.
False Bridge financing covers IPO expenses.
Copyright lasts forever.
False Copyrights protect the author's work for a period of time.
The only way to obtain financing for an entrepreneur is to give away equity.
False Entrepreneurs have many different types of financing options including bank loans.
Investors do not expect the entrepreneurs to have a distribution channel set up.
False Yes! PayPal co-founder Peter Thiel believes poor distribution is the number one cause of failures.
Who is considered the father of venture capital?
George F. Doriot He founded the company that eventually invested in the Digital Equipment Company, the most recognized investment by his company.
What novel way did the founder of Chop Dawg, a mobile app and web development company, find to gain Twitter followers?
He live-streamed his meetings with the publisher of the book he's working on.
Tamal has put together a pitch deck to describe his gourmet vegan popsicle business. He has described on one slide his target market, a profile of his potential customer, how he plans to use small freezer carts to sell in parks and near busy offices, what the customer is likely willing to pay, and the promotions he will use to guarantee returning customers. What has Tamal illustrated?
He understands his customers.
During your presentation, why should you avoid holding anything in your hands?
If you're nervous, it will make it more obvious.
What does it mean to "become your brand"?
Incorporate your brand into every aspect of your business.
One of the most successful VC seed investment returns was $78 million for $250,000 investment to ______.
______ is/are the value of patents, software programs, copyrights, trademarks, franchises, brand names, or assets that cannot be physically touched.
Intangible assets
Which of the following are traditional advertising strategies?
Invest in expensive advertising campaigns. Convince mainstream media to broadcast information about your company. Hire a large salesforce to attract new customers.
Which of the following are descriptors of a good pitch deck?
It addresses profit potential. It includes a call to action. It specifies the need or problem it solves.
What is the key takeaway from Elisha Otis and the example of the first elevator pitch?
It demonstrated how the product worked.
Why do Shark Tank investors talk about pre-money valuation?
It helps them decide how much ownership to take with their offer.
Grain Surfboards used what entrepreneurial marketing strategy to establish its number-one position in the marketplace?
It shared educational information.
What "gap" in microlending did ShivaniSoroya, founder of Tala, discover and address?
Microloans were available to start a business, but there were barriers to growing a business via traditional funding sources.
On the solution slide of your pitch deck, which of the following would be acceptable?
Offer a live demonstration. If the solution is a web page, show a landing page mockup. If the product is not yet fully developed, show a prototype.
What is the stage of financing in which small or modest amounts of capital are provided to entrepreneurs to prove a concept?
Seed-stage financing
Kamala is trying to grow her custom furniture business through an active social media campaign, but she often takes shortcuts. She uses automated Tweets, often lets customer questions go unanswered for days, and doesn't participate when two customers are discussing furniture. What error has Kamala committed?
She was inauthentic.
______ is the process of sourcing innovative solutions to social and environmental problems.
Social entrepreneurship
What is the stage of financing in which the money is provided to entrepreneurs to enable them to implement the idea by funding product research and development?
Startup financing
When a social entrepreneur is evaluating stakeholders, what is "urgency"?
The extent to which that stakeholder demands attention.
Why is it risky to use online legal resources?
The information may not be accurate for your type of startup.
No matter the form that your pitch takes, what outcomes are essential?
The receiver of the pitch understands your business. The receiver of the pitch is compelled to learn more.
Which of the following accurately describe the four Ps of the marketing mix?
They are the foundation for the basic principles of marketing. They are the framework that helps define the brand. They should be considered in relation to each other.
Which of the following are among the rules for pitch decks?
They should explain the revenue/expense model. They should describe the customer. They should address the problem/need.
A common mistake is for companies to hire too quickly and terminate poor performers too slowly.
True
A pitch deck is a presentation in PowerPoint (or equivalent software).
True
A stakeholder may, at one point in time, be classified as dependent and, at another time, be classified as dominant.
True
Angels are eligible to invest in a company as long as they are an accredited investor.
True
As long as a formal agreement has been reached, the ownership is settled.
True
Building realistic projections makes it easier to convince others the idea is feasible.
True
Corporate social responsibility (CSR) initiatives tend to attract and motivate employees.
True
If an entrepreneur is asking for $150,000 in investment for 10% of the company, the post-money valuation is $1.5 million.
True
In the experiment with college students to compare first impressions of professors with assessments built over months, the indications are that a ten-second first impression is almost as powerful as those based upon months of interaction.
True
Legal fees will vary with the complexity of the startup business.
True
Most of the active venture capital firms operate very similarly.
True
One benefit of having a corporate social responsibility strategy (CSR) is that an organization may receive more lenient penalties in legal matters than a company without such a strategy.
True
People have different learning styles and you should try to appeal to multiple ones in your presentations.
True
The marketing mix is constantly changing.
True
To form a general partnership, all partners must be actively involved in the partnership.
True
Unicorn startups are rare.
True
Unlike angel investors, venture capitalists are mostly professional money managers.
True
Women in developing nations are more likely to be driven to become entrepreneurs by necessity whereas women in developed nations are more likely to be motivated by opportunity and innovation.
True
Your diction can actually be improved if you stretch appropriately before a presentation.
True
In the question and answer period, which of the following team questions is likely to arise?
Who came up with the original idea??
How should you, as a presenter, interact with your slides?
You should interact as little as possible; the focus should be on you.
If you are pitching to an investor, what should your call to action be?
a request for money
What is the money owed to the company for goods or services provided and billed to a customer?
accounts receivable
What are costs incurred by the company for which no payment has been made?
accrued expenses
Unlike traditional marketing, entrepreneurial marketing focuses on ______.
an interactive approach
What are the key parts of a balance sheet?
assets liabilities shareholder equity
A companies pricing and credit policies impact which two financial statements?
balance sheet and income statement
What items are needed to calculate the cash conversion cycle?
beginning and ending inventory beginning and ending receivables beginning and ending payables
When marketing yourself, it is important to remember that a first impression is created in ______.
between 7 and 20 seconds
The financing funds provided to cover expenses associated with the initial public offering are ______.
bridge
Every successful pitch deck ends with the ______.
call to action slide
Put the following items in order on a balance sheet.
cash prepaid expense accumulated depreciation capital stock
The number of days a company's cash is tied up in production is the ______ cycle.
cash conversion
What statement is a report that details the inflows and outflows of cash over a period of time?
cash flow statement
SJF Ventures operates as a traditional VC fund. However, it also allocates a percentage to be invested in companies that make a positive social or environmental impact. What type of fund is SJF Ventures?
community fund
A set of processes adopted by entrepreneurs based on new and unconventional marketing practices to gain attention in competitive markets is called ______.
entrepreneurial marketing
What is the policy to decide the level of pay and benefits for each type of position in the business?
compensation
This ______ angel investor is often from big multinational and typically wants a paid position in the venture.
corporate
What are some critical assumptions to analyze with different scenarios with pro forma statements?
cost of raw materials customer traffic seasonality
Which of the following are similarities between social and traditional entrepreneurs?
creating innovative services or solutions starting new organizations creating marketing initiatives
What is the policy dealing with the process and timing in which obligations to pay for products and services sold will be billed and collected?
credit
Before making a loan to a startup, banks look at ______.
credit rating collateral capital assets
What is the popular fundraising utilized by startups where they raise money from their immediate network?
crowdfunding
Much of the research for the pro forma statements should include ______.
customer and market size plus potential growth
When using the bottoms up method, an entrepreneur researches an estimate of revenue for a typical ______.
day
When the company purchases a fixed asset what is deducted on the income statement?
depreciation
Put the following items in order on a cash flow statement?
depreciation; add/subtract decrease/increase in liabilities; add/subtract net property, plant, and equipment; and add sale of stock
What is downside of forming a C corporation?
double taxation
An enterprising nonprofit pays homeless inner-city residents for cans, plastics, and glass they collect. These items are then used as raw materials to create items to sell, such as candleholders or other decorative arts. These sales are the enterprise's revenue generators. What type of activity is this?
earned-income
Why would a business need an employer identification number (EIN)?
employee reporting to state agencies filing tax returns
What type of nonprofit is Goodwill, the organization that trains hundreds of thousands of people and operates more than 3,000 donation clothing stores across the United States?
enterprising nonprofit
One of the important factors to an investor is knowing the ______.
entrepreneur's experience and team's successes
Tala, founded by Shivani Soraya, has a goal of helping businesses in developing countries ______.
establish credit scores
A profitable company will have a cash conversion cycle of fewer than three weeks.
false
During your presentation, your slides should demand as much attention as you do. They and you are two halves of a whole presentation.
false
Generally, your pitch should not exceed 5 minutes.
false
No part of your presentation should be choreographed.
false
You can usually add 20% to the time you are given for your speech and be forgiven for doing so.
false
"How much does it cost to acquire one customer?" is a ______ question.
financial
Raheem is conducting the Q and A session after his pitch. A potential investor asks about his plans should he not be able to achieve his projected revenue. What type of question is this?
financial
What helps entrepreneurs learn how to assess the viability of the company for making money?
financial projections
Potential investors tend to not invest when ______.
financial projections are not believable
What is a group of two or more people who have made a decision to co-manage and share in the profits and losses of a business?
general partnership
Snow branding is a form of ______.
guerrilla marketing
Why is it useful to know how long the cash conversion cycle is?
helps manage cash needs
The general rule of thumb when considering financing is to ______.
hold off on investment as long as possible
What is the descriptor for forms of social entrepreneurship that do not fit into the four-part typology?
hybrid
By taking the companies public, venture capitalists exited Uber and Lyft through what exit strategy?
initial public offering
What describes intangible personal property created by human intelligence, such as ideas, inventions, logos, and trademarks?
intellectual property
In a study of the Hollywood pitch process, what contributed to a better chance of a project being green-lighted?
inviting studio executives to collaborate on an idea
What does PayPal co-founder Peter Thiel consider to be the number one cause of failure by entrepreneurs?
lack of a distribution channel
Why do angel investors not carry out as much due diligence as VCs?
lack of time general lack of information resource constraints
Who can an entrepreneur turn to for valuation help?
lawyers online sites like BizBuySell and BizQuest accountants
The best resource for avoiding costly legal mistakes is ______.
legal counsel
When assessing the attributes of her stakeholders, a social entrepreneur must consider if the stakeholder's actions are appropriate, proper, and desired (within the enterprise's context). This attribute is called ______.
legitimacy
According to the Intergovernmental Panel on Climate Change, the world has ______ to reduce greenhouse emissions, one of many warnings that have spurred social entrepreneurs to tackle a variety of related problems.
less than a decade
First introduced by journalist Chris Anderson, the ______ theory holds that the focus is shifting from mainstream products and services offered by big brands (think Levis) toward a wide variety of smaller niche markets.
long tail
The 4 Ps make up the ______.
marketing mix
What voice should you use for your presentation to have the most resonance?
middle
What population continues to be underrepresented by angel groups?
minorities
What were the top industries invested in by venture capitalists in 2018?
mobile and telecommunications Internet healthcare
A successful brand all starts with a(n) ______.
name
Joao and Maria set up their business two months ago and things are going well, but they have not yet generated wages or salaries for themselves. At what phase of entrepreneurship are they, according to the GEM study?
nascent entrepreneurs
What is an impact-investment fund?
one that seeks a return on investment as well as making a social impact.
In a survey, 70% of Twitter users expect a response from a brand within ______.
one-hour
What is the amount left over from revenue once all costs and expenses are subtracted?
operating profit
If the company has no process to manage billing for products or services, it probably does not have a(n) ______ policy.
payables
Choosing the wrong entity may expose the owners to ______.
personal liabilities
Kingston sells his handmade souvenir throw pillows at an airport kiosk as well as in local hotels in Chicago. He also offers custom versions online through his website. For Kingston, the kiosk, hotels, and his website are the ______ (one of the four Ps).
place
How do investors calculate pre-money valuation?
post-money valuation less investment
Individuals who believe they have the capacity and know-how to start a business, and who are not burdened by fear of failure, are ______ entrepreneurs according to the GEM study.
potential
Typically entrepreneurs value their companies based upon ______.
potential in chosen market
If an organization with a corporate social responsibility (CSR) strategy is faced with heavy losses, it will______.
prioritize profit
If you ask the question "What are the benefits and features of my product?" you are examining what aspect of the four Ps framework?
product
In the S.A.V.E. framework, solutions replace ______ from the more traditional 4 Ps model.
product
"What is the technology behind your product?" is a ______ question.
product/customer
At your pitch meeting, if someone asks, "What are the risks?" it is a ______ question.
product/customer
Venture capitalists tend to be ______.
professional money managers
What is the policy which manages the price and timing of raw materials and other goods and services necessary to build, sell, and support products?
purchasing
When a ______ is made, the value of the product is moved from inventory (a balance sheet item) to cost of goods sold (an income statement item).
sale
MORE ON THIS TOPIC Which model will help social entrepreneurs select the most suitable communication approach for the myriad stakeholders in their enterprise?
salience
The ______ is the portion of a market subgroup that your company is realistically likely to reach.
share of market (SOM)
A common mistake of inventors is ______.
sharing the innovation prior to obtaining the patent
The person who owns a business and has full exposure to its liabilities is a ______.
sole proprietor
What amount do venture capitalists tend to invest?
starting around $1 million
Angels look for opportunities that might provide returns of ______ times their investment.
ten
Omid has started a business selling custom-designed flip-flops for surfers which are sold online for pickup at kiosks on the beach. In this business, ______ is/are the product.
the flip-flops
The founders of 4Ocean set out to solve what wicked problem?
the overwhelming amount of plastic in the ocean
All of the work that an entrepreneur has done to date to build their venture is called ______.
traction
Any word, name, symbol, or device used in a business to identify and promote a product is ______.
trademark
A backlog is an order that has been received but not delivered to the customer.
true
A methodology that is useful for entrepreneurs on the solution slide of their pitch decks is the ______, which is used in the software industry to illustrate how a user will interact with a specific piece of software.
use case
The best lawyers will not only provide legal counsel but also add ______.
value
Where did the name "angel investor" come from?
wealthy investors who invested in Broadway productions