Entrepreneurship 2023 Final
_____ 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 afranchise?
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
