entrepreneurship final
_____________ means that as the number of employees a firm needs increases, it becomes increasingly difficult for it to find the right employees, place them in appropriate positions, and provide adequate supervision.
Adverse selection
William Woods recently launched a printing company. One thing William is thinking about creating is a panel of experts who can provide him ongoing direction and advice regarding the future of his business. William is thinking about creating a(n):
Advisory board
An opportunity has the following four essential qualities:
Attractive, timely, durable, and anchored in a product, service, or business that creates or adds value for its buyer or end user.
The two components of industry/target market feasibility analysis are industry ________.
Attractiveness and target market attractiveness
A(n) _____________ is a snapshot of a company's assets, liabilities, and owners' equity at a specific point in time.
Balance sheet
The three primary reasons that people become entrepreneurs and start their own firms are to ___________.
Be their own boss, pursue their own ideas, and pursue financial rewards.
Amy Clark just opened a soup and salad restaurant near Golden Gate Park in San Francisco. Rather than borrow money or raise funds from investors, Amy used her creativity and ingenuity and figured out how to get her business up and running, without the need for external funding. Amy is utilizing a technique referred to as:
Bootstrapping
Kimberly Jones is the founder of a company in the medical equipment industry. Kimberly's firm is still in the feasibility analysis stage and does not have a product that is ready to sell. The company is spending about $25,000 per month and expects to maintain that level of spending until it reaches profitability. The $25,000 a month is Kimberly's:
Burn rate
Many firms benefit from an increasing ability to outsource manufacturing or service functions to lower-cost foreign countries. This trend is referred to in the textbook as a(n) __________ trend.
Business
A ___________ is a firm's plan or recipe for how it creates, delivers, and captures value for its stakeholders.
Business model
Peter Watson is thinking about launching a small business consulting company. To get advice on how to proceed, he stopped by his local Small Business Administration (SBA) office. The SBA advisor told Peter that one of the first things he needs to do is to sit down and write a 25 to 35 page narrative that describes what his new business plans to accomplish and how it plans to accomplish it. The SBA advisor is telling Peter to write a(n) __________
Business plan
The three reasons startups need funding are:
Cash flow challenges, capital investments, and lengthy product development cycles.
A company's mission statement should be placed in the ______section of its business plan.
Company description
Once a firm decides to enter an industry and chooses a market in which to compete, it must gain an understanding of its competitive environment. This challenge can be undertaken by completing a(n) ____________ analysis.
Competitor
Once a firm decides to enter an industry and chooses a market in which to compete, it must gain an understanding of its competitive environment. This challenge can be undertaken by completing a(n)
Competitor analysis
A(n) ___________ involves showing a preliminary description of a product or service idea to prospective customers to gauge customer interest, desirability, and purchase intent.
Concept test
According to the textbook, the toughest decisions regarding business growth are made in the _______ stage of the organizational life cycle.
Continuous growth
Apple is an established firm that encourages and emphasizes entrepreneurial behavior throughout its various divisions. According to the textbook, Apple practices _____________ entrepreneurship.
Corporate
___________ is the process of generating a novel or useful idea.
Creativity
Aquafina operates in the bottled water industry. The companies that offer identical or similar products and go after the same customers that Aquafina does are Dasani and Zephyrhills. Dasani and Zephyrhills are Aquafinia's ________ competitors.
Direct
A disadvantage of corporations is that they are subject to _________, which means that a corporation is taxed on its net income and when the same income is distributed to shareholders in the form of dividends it is taxed again on the shareholders' personal income tax returns.
Double taxation
Andy Dungy owns a company that makes Apple iPod, iPhone, and iPad accessories. He is trying to increase his sales, primarily because he knows that increasing production lowers his average cost of each unit produced. The reason for growth illustrated in this example is:
Economies of scale
____________ are similar to economies of scale, except the advantage comes through the range of a firm's operations rather than from its scale of production.
Economies of scope
A company's ability to productively utilize its assets relative to its revenue and its profits is referred to as :
Efficiency
Brian Sentry is starting a firm in the small industry that helps football teams discern whether a player has suffered a concussion. The industry is still so new that no standard operating procedures have been developed. The industry Brian Sentry is entering is an example of a(n) _______________ industry.
Emerging
Google is a firm that is proactive, innovative, and risk-taking. From this description, we can most accurately conclude that Google has a high level of _________.
Entrepreneurial intensity.
According to the textbook, the single most important thing founders of an entrepreneurial venture can do is:
Establish a strong ethical culture for their firms.
A situation that involves doing something that is beneficial to oneself or the organization, but may be unethical, is called a(n):
Ethical dilemma
Equity financing (or funding) means:
Exchanging partial ownership in a firm, usually in the form of stock, for funding.
According to the textbook, in many instances an investor will first ask for a copy of a firm's ___________ and will request a copy of the full business plan only if that portion of the plan is sufficiently convincing.
Executive summary
The ___________ is a short overview of the entire business plan.
Executive summary
Kent Williamson owns a firm that manufacturers and sells electrical supplies. He is currently trying to grow his firm through licensing and strategic alliances. Kent is pursuing a(n):
External growth strategy
A/B split testing, landing pages, prototyping servicing, and Web site usability testing are all online tools available to assist in the _______ stage of developing a business idea.
Feasibility analysis
If a startup pioneers an industry or a new concept within an industry, the name recognition the startup establishes may create a formidable nontraditional barrier to entry referred to as a(n) ______________.
First-mover advantage
A(n) _______________ industry is one that is characterized by a large number of firms of approximately equal size.
Fragmented
_____________ is a form of business ownership in which a firm that already has a successful product or service licenses its trademark and method of doing business in exchange for an initial franchise fee and an ongoing royalty.
Franchising
Katlin Smith is investigating the feasibility of developing an iPhone app to help high school students with math. To get a good handle on the potential demand for her service, Katlin is scrounging around for information, wherever she can find it. She even spent two weeks volunteering as a math tutor at a local high school to see how students responded to her methods. Katlin is conducting _______ research.
Gumshoe
Economic forces impact the opportunities available to entrepreneurs. Which of the following alternatives reflects a set of economic forces that would be of interest to entrepreneurs?
Housing starts, consumer spending patterns, and stability of interest rates.
Terry Washington recently started a new firm in the financial services industry. Prior to starting his firm, he spent considerable time doing research on the potential of the industry. The research Terry was doing is called ______________ research.
Industry
The three most common forms of equity funding are:
Initial public offerings, business angels, venture capitalists
The five-stage creative process, the flash of recognition, or what is sometimes referred to as the "eureka" experience, occurs in the ________ stage.
Insight
New product development, other product-related strategies, and international expansion are examples of:
Internal growth strategies
A business plan is important for two reasons: it forces the founding team to systematically think through every aspect of their new venture and:
It communicates the merits of a new venture to outsiders, such as investors and banks.
Which of the following is the most important thing an entrepreneur, or team of entrepreneurs, can do to build a strong ethical culture in their organization?
Lead by example.
________________ is a company's ability to meet its short-term financial obligations.
Liquidity
When a firm's managerial resources are insufficient to take advantage of its new product and service opportunities, the subsequent bottleneck is referred to as the:
Managerial capacity problem
A business's ___________ statement describes why it exists and what its business model is supposed to accomplish.
Mission
According to the textbook, entrepreneurs are ___________.
Moderate risk takers.
_______________ 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
A skills profile is a chart that depicts the:
Most important skills that are needed in a business startup and where skills gaps exist.
The process of building and maintaining relationships with people whose interest are similar or whose relationship could bring advantages to the firm is called:
Networking
A ___________ is a place within a market segment that represents a narrower group of customers with similar interests.
Niche market
Which of the following is an example of intellectual property?
Nike's swoosh logo
There are two major advantages of getting a loan versus investment capital:
No ownership of the firm is surrendered and interest payments are tax deductible
A solo entrepreneur is an individual who identified his or her business idea ______. A network entrepreneur is an individual who identified his or her business idea _________.
On their own; through social contacts.
A(n) ______________ business plan, which is intended to be a blueprint for a company's operations, is 40-100 pages long and is intended primarily for an internal audience.
Operational
A(n) ____________ is a favorable set of circumstances that creates a need for a new product, service, or business.
Opportunity.
___________ feasibility analysis is conducted to determine whether a proposed business has sufficient management expertise, organizational competence, and resources to successfully launch its business.
Organizational
According to the textbook, the four characteristics of successful entrepreneurs are _________.
Passion for the business, tenacity despite failure, product/customer focus, and execution intelligence.
Which form of intellectual property protection is the only one expressly mentioned in the original articles of the U.S. Constitution?
Patents
Which of the following are the four key forms of intellectual property protection?
Patents, copyrights, trademarks, and trade secrets
If a new firm was launched to help businesses comply with the Affordable Care Act, that opportunity was created by ____________.
Political actions and regulatory changes.
Talking to industry experts, obtaining feedback from prospective customers, and administering surveys are examples of __________ research.
Primary
_____________ are projections for future periods based on forecasts and are typically completed for two to three years into the future.
Pro forma financial statements
Does it make sense? Is it reasonable? Is it something consumers will get excited about? Does it take advantage of an environmental trend, solve a problem, or fill a gap in the marketplace? These are the types of questions asked during the _______ feasibility component of a complete feasibility analysis.
Product/service
______________ feasibility is an assessment of the overall appeal of the product or service being proposed.
Product/service
The four main financial objectives of a firm are:
Profitability, liquidity, efficiency, and stability
According to the textbook, the five competitive forces included in the Five Forces model determine the average ____________.
Rate of return for the firms in the industry
According to the textbook, the most practical way to interpret or make sense of a firm's historical financial statements is through:
Ratio analysis
Which of Porter's five forces is most directly influenced by the number and balance of competitors, degree of difference between products, growth rate of an industry, and level of fixed costs?
Rivalry Among Existing Firms
Colorado Sandwich, Soup, and Salad is a casual dining restaurant that has been owned by Stephanie Peterson for the past 14 years. The restaurant offers a menu that is typical for casual dining restaurants and offers Stephanie a level of income that is similar to what she would earn in a conventional job. According to the textbook, this is an example of a(n) ___________ firm.
Salary-substitute.
Lincoln & Lexi, the company profiled in the opening feature for Chapter 4, was founded to:
Sell children's clothing through home parties and baby showers
Andy Zachery just launched a firm in the sporting goods industry. On the day the company was launched, Andy issued a press release, indicating that the vice president of Brunswick, a highly respected sporting goods company, had agreed to serve on his board of directors. Andy knows that such a high quality appointment will send an important message to his potential clientele. This phenomenon is referred to as:
Signaling
An increased focus on health and wellness has resulted in a number of new business ideas including healthier foods and beverages, yoga instruction and training centers, and nutrition consulting. An increased focus on health and wellness is an important __________ that is creating opportunities in many areas for entrepreneurial firms.
Social force.
True You Cosmetics, the company profiled in the opening feature in Chapter 11, sells cosmetics products. The company's marketing efforts to date have focused heavily on:
Social media
The strength and vigor of firm's overall financial posture is referred to as:
Stability
Jason Grahem's startup, which is in the electronics industry, was launched on January1, 2009. However, prior to its formal launch, Jason spent many hours working on his business, particularly during the feasibility analysis stage. The time and effort that entrepreneurs put into their venture, that cannot be easily measured from a financial viewpoint, is referred to as:
Sweat equity
Kaitlyn Harris is opening up a women's fashion boutique that will focus on professional women that are 18-30 years old. The age range of women that Kaitlyn plans to focus on is referred to as her _______ market.
Target
Hulu.com allows people to watch television shows and movies on the Internet. Hulu.com's business opportunity was made possible by ___________ that enhanced the ability of television shows and movies to be uploaded to the internet and played by anyone with a suitable computer and an Internet connection.
Technological advances.
The high failure rate among new ventures is due in part to the liability of newness, which refers to the fact that new companies often falter because:
The people who start the firms cannot adjust quickly enough to their new roles and the firms lack a "track record" with outside buyers and sellers.
The price of prescription medicine is high, partly because when someone is sick there is no real alternative to buying medicine if they want to get better. Which of Porter's five forces explains how this aspect of the prescription medicine industry keeps profitability high?
Threat of Substitutes
In general, industries are more attractive when the ___________.
Threat of each of the five forces are low
According to the textbook, opportunities are ___________.
Tough to spot.
The Partnering for Success feature in Chapter 5 focuses on three things that are important for startups to become active in to learn the ins and outs of their industries. The three items focused on in the feature are _______________.
Trade associations, trade shows, and trade journals
A ________ is any formula, pattern, physical device, idea, process, or other information that provides the owner of the information with a competitive advantage in the marketplace.
Trade secret
Every year thousands of electronic products manufacturers gather in Las Vegas to display their products and to see what their competitors are up to. This type of event is called a:
Trade show
There are three basic requirements for a patent to be granted. The subject of the patent application must be:
Useful, novel in relation to prior arts in the field, and not obvious to a person of ordinary skill in the field
The members of heterogeneous teams are:
diverse in terms of their abilities and experiences
The idea behind blogs is that they:
familiarize people with a business and help build an emotional bond between a business and its customers
According to the textbook, there are three types of startup firms:
lifestyle firms, salary - substitute firms, and entrepreneurial firms.
There are two distinctly different types of franchise systems:
product trademark franchise, business format franchise
The three types of business plans are _____________.
summary business plan, full business plan, operational business plan
According to current regulations, any copyrightable work created on or after January 1, 1978, is protected by copyright law for the life of the author plus:
70 years
The two primary audiences for a business plan are investors and other external stakeholders and __________.
A firm's employees
