Entrepreneurship 2023 Final

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​_____ is the term that denotes the set of assets and liabilities that are linked to a brand and enable it to raise a​ firm's valuation.

Brand Equity

A​ company's _____ is the rate at which it is spending its capital until it reaches profitability.

Burn Rate

Lofty Ambitions has patented its method for matching loft owners with loft renters. This is an example of a​ _______ patent.

Business Method

Which of the following is NOT an example of a bootstrapping​ method?

Buy new instead of used equipment

Which of the following is NOT a bootstrapping​ method?

Buying independently of other businesses.

A business can literally have​ $1 million in accounts receivable but not be able to meet a​ $25,000 payroll. This is called the​ ____ problem.

Cash Flow Management

While a utility patent protects the way an invention is used and​ works, a​ ___ patent protects the way it looks.

Design

​A(n) _____ is the route a product takes from the place where it is made to the customer who is the​ end-user.

Distribution Channel

​_____, acquisitions, strategic​ alliances, joint​ ventures, licensing, and franchising are examples of external growth strategies.

Mergers

​____ means that as a firm grows and adds​ personnel, the new hires typically do not have the same ownership incentives as the original​ founders, so the new hires may not be as motivated as the founders to put in long hours or may even try to avoid hard work.

Moral Hazard

The Art Shoppe grew over the years by developing new products and attracting new customers. The Art​ Shoppe's growth is called​ ___________.

Organic

To free up factory space to increase production of its basic​ product, Parris Metals that used to package its products internally decides to use the services of an outside packer. Parris Metals has​___________ packaging.

Outsourced

​Judy's Home Care Products engaged in the unauthorized use of The Casey​ Corporation's patent. This is an example of​ _________.

Patent Infringement

___, trademarks,​ copyrights, and trade secrets are the four key forms of intellectual property.

Patents

When a venture has high risk with an uncertain return​ (characterized by weak cash​ flow, high​ leverage), its most appropriate source of funding is​ ______.

Personal​ funds, family and​ friends, and/or bootstrapping

The 4Ps of marketing activities are​ product, price,​ promotion, and​ ____.

Place

​A(n) ____ strategy involves making additional versions of a product so that it will appeal to different clientele or making related products to sell to the same clientele.

Product Line Extension

​______ refers to the​ firm's activities to communicate the merits of its product to its target market.

Promotion

​_____ refers to efforts to establish and maintain a​ company's image with the public.

Public relations

Which of the following is NOT a way franchisors can develop the potential of their​ franchisees?

Reduce the royalty rate.

_______ allows entrepreneurs to raise money in exchange for some type of amenity or reward.

Rewards-based crowdfunding

Which of the following is NOT a warning sign that a business is growing too​ fast?

Rising productivity

Wanderberg Machines went on a whirlwind tour that consisted of meetings in 12 key cities where the firm presented its business plan to groups of investors. This tour was a​ ______.

Road show

Market leadership occurs when a firm holds the number one or two position in an industry or niche market in terms of​ ____.

Sales Volume

Acme​ Corp., a producer of safety​ blades, produces the highest volume of products annually in the industry that results in it having the lowest average cost. Acme Corp benefits from economies of​ ___________.

Scale

When Starbucks uses the same feature to advertise Starbucks coffee along with Starbucks music and Starbucks​ apparel, it is benefitting from economies of​ ________.

Scope

There are four types of​ trademarks: trademarks,​ ____, collective​ marks, and certification marks.

Service Marks

The most common sources of debt financing are commercial banks and​ _______.

Small Business Administration-guaranteed loans

Which of the following CAN be​ trademarked?

Sounds

Pete Marsella entered into a franchising agreement where he was to pay an ongoing royalty. Pete Marsella is the​ _________.

franchisee

Domino's Pizza is an international pizza company that focuses on pizza​ delivery. Domino's operates in over 60 countries​ internationally. Approximately 90% of its stores are franchise owned with over​ 1,100 ____________.

franchisees

In determining whether to legally protect his song​ "Gotta Give It​ Up," Marvin Gaye followed the rule of thumb of​ ___________.

having value in the marketplace

Owning a franchise is typically costly and​ labor-intensive. As a​ result, the purchase of a franchise should be a​ careful, deliberate decision. Which of the following is NOT a step in buying a​franchise?

plan own training program

Entrepreneurs should weigh the possibility of purchasing a franchise against the alternatives of buying an existing business or launching their own venture from scratch. Which of the following costs are NOT typically associated with buying a​ franchise?

​one-time royalty payment

In​ 2016, the United States Patent​ & Trademark Office​ (USPTO) received more than​ ___ patent applications.

600,000

Acme Corp. finds that as the number of employees it needs​ increases, it becomes increasingly difficult for the company to find the right​ employees, place them in appropriate​ positions, and provide adequate supervision. The problem that Acme Corp. faces is called​ _____.

Adverse Selection

The faster a firm​ grows, the less time managers have to evaluate the suitability of job candidates and the higher the chances are that unsuitable candidates will be chosen. This problem is called​____.

Adverse Selection

​Managers, because they are usually paid a​ salary, may not be as committed to the success of their individual units as​ franchisees, who are in effect the owners of the units they manage. This concept gave birth to​ ____ theory.

Agency

​When, Angie​ Carmicheal, a former middle school math teacher buys the rights to open five Kumon franchises within the city limits of​ Jacksonville, Florida, this is an example of​ a(n) ________ franchise agreement.

Area

A brand is a set of​ _____, positive or​ negative, that people associate with a company.

Attributes

Which of the following is NOT a step in the sales​ process?

Bartering

_____ is the term attached to the general philosophy of minimizing start-up expenses by aggressively pursuing cost-cutting techniques and money-saving tactics.

Bootstrapping

Which of the following is NOT an industry where business format franchising​ predominates?

Computer software

The stages of the organizational life cycle are​ introduction, early​ growth, ___,​ maturity, and decline.

Continuous Growth

Marvin​ Gaye's song​ "Gotta Give It​ Up" was protected by​ ___________ .

Copyright

Engine design is what the Honda Motor Company does particularly well. This is​ Honda's _____..

Core Competency

_____ is the practice of funding a project or new venture by raising monetary contributions from a large number of​ people, typically via the Internet.

Crowdfunding

​A(n) _____ is a​ brief, carefully constructed statement that outlines the merits of a business opportunity.

Elevator speech​ (or pitch)

A​ firm's administrative framework consists of two kinds of services that are important to a​ firm's growth,​ ________ and managerial services.

Entrepreneurial

______ financing means exchanging partial ownership of a​ firm, usually in the form of​ stock, for funding.

Equity

Acme Toys produces all its educational toys in its​ Canton, Ohio plant and ships them all over Europe for sale. Acme Toys is using​ __________.

Exporting

Anthurium Florals needed cash and so it sold its​ $50,000 in accounts receivable to Omega Financing at a 20 percent discount. The financial transaction that Anthurium Florals did is called​ _____ .

Factoring

As a book​ reviewer, Charlie Smuckers often quotes short passages from the book he is reviewing. He is protected because​ ____ allows the limited use of copyrighted material for purposes such as​ criticism, comment, news​ reporting, teaching, or scholarship.

Fair Use

The offer and sale of a franchise is regulated by the​ ______.

Federal Trade Commission​ (FTC)

It costs​ Jamie's Salon​ $10,000 per month to rent its store. The rental cost is​ ___________.

Fixed

​Angie's Bakery pays a rent of​ $2,000 per month whether it sells something or not. For​ Angie's Bakery, rental costs are​ ________.

Fixed

Franchisors are required by law to disclose all their costs in a document called the​ ______.

Franchise Disclosure Document

_____ marketing is a​ low-budget approach to marketing that relies on​ ingenuity, cleverness, and surprise rather than traditional techniques.

Guerilla

Which of the following is NOT a question to ask a franchisor before buying a​ franchise?

How often will I be able to take a​ vacation?

​A(n) ______ is the first sale of stock by a firm to the public.

IPO

In which stage in the organizational life cycle does growth slow​ down?

Maturity

Which of the following is NOT an advantage of emphasizing external growth​ strategies?

Increased business complexity

In June​ 2017, Blue Apron made a first sale of its stock to the public. This was Blue​ Apron's ________.

Initial public offering

The​ __________ stage of the organizational life cycle is a very​ "hands-on" phase for the​ founder(s), who are normally involved in every aspect of the​ day-to-day life of the business.

Introduction

A​ ____ agreement is an arrangement whereby a firm with the proprietary rights to a product grants permission to another firm to manufacture that product for specified royalties or other payments.

Licensing

Which of the following is NOT a physical measure to protect trade​ secrets?

Maintaining​ low-cost overall security measures

A franchisee buys the rights to open five Jiffy Lube franchises in Grand​ Rapids, Michigan, and also the rights to sell the rights to open 15 additional Jiffy Lube locations in the same area to other individuals. This is an example of​ a(n) ___ franchise agreement.

Master

Equity financing means exchanging partial ownership of a​ firm, usually in the form of​ ____, in return for funding.

Stock

John invested​ $25,000 in Marlo​ Ventures, a home flipping business. While Sammy invested​ $20,000 in the​ venture, Daniel did not put in any money in the​ venture, but became a 50 percent equity owner because he had contributed enormous time and expertise into the venture. The 50 percent is​ ________ equity that represents the value of the time and effort that Daniel put into Marlo Ventures.

Sweat

​"Because you're worth​ it," is an example of​ a(n) _________.

Tagline

Which of the following is NOT a top reason why new products​ fail?

The potential market was underestimated.

The name​ "McDonald's" is an example of a​ ____.

Trademark

Which foreign market entry strategy gives a firm total control over its foreign​ operations?

Wholly-owned subsidiary

​Anton's Bakery made an outright purchase of​ Meg's Cakes.​ Anton's Bakery was involved in​ a(n) __________.

acquisition

The owners of Flip It​ Burgers, a potential​ franchisor, realized that in fast​ food, it is important for the franchisor to provide a formula for doing business to the franchisee along with​ training, advertising, and other forms of assistance. The right type of franchise system for Flip It Burgers is a​ __________ franchise.

business format

A​ firm's core strategy is largely determined by its​ _______.

core competencies

While there may be many advantages to​ franchising, which of the following is NOT an​ advantage?

decreased cost savings

While there may be many disadvantages to​ franchising, which of the following is NOT a​ disadvantage?

decreased legal expenses

A Los Angeles jury determined that the song​ "Blurred Lines" was copied outright from Marvin​ Gaye's "Gotta Give It​ Up" and ordered​ Grammy-winning artists Pharrell Williams and Robin Thicke to pay a​ $7.4 million fine to the Gaye family. This​ record-setting fine may have a profound effect on the music​ industry, which has always struggled with the thin line between being inspired by other artists and copying outright. The jury decided that there was copyright​ ___________ in this case.

infringement

Artist Marvin Gaye wrote a song entitled​ "Gotta Give It​ Up." This song is an example of​ _____________ property.

intellectual

There are three reasons that most entrepreneurial ventures need to raise money during their early​ life: cash flow​ challenges, capital​ investments, and​ _____.

lengthy product development cycles

The three most common​ _____ for a new venture are when it goes​ public, finds a​ buyer, or merges with another company.

liquidity events

Copyright laws protect​ "original works of​ authorship" that are fixed in a tangible form of expression. Marvin​ Gaye's "Gotta Give It​ Up" is an example of the​ ___________ category of material that can be copyrighted.

musical composition

​A(n) _____ is a place within a market segment that represents a narrow group of customers with similar interests.

niche market


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