entrepreneurship final

In an encouraging climate for corporate entrepreneurship, rewards should be based on the attainment of established performance goals.

TRUE

Fixed expenses:

are incurred regardless of sales volume

Which of following creative problem solving method starts with a problem statement that is neither too broad nor too narrow?

brainstorming

Barriers to entry include all of the following except:

environmental instability

An opportunity assessment plan:!

focuses on the opportunity, not the venture.

A limited liability corporation:

is automatically taxed as a partnership

Motivation to launch a new venture can arise from all of the following except:

lack of prior experience

The marketing mix consists of:

product, price, distribution, promotion

Newness of a new entry is sometimes a disadvantage.

TRUE

Creativity declines with

age, education and lack of use.

The General Agreement on Tariffs and Trade ___________________________.

has little authority to enforce trade practices due to voluntary membership

Profits and tax benefits are common motivations for going global.

true

Typically business plan projections are made on a ____________.

12 month schedule

What is a target market?

A specific group of potential customers toward which a venture aims its marketing plan.

Potential investors are not very insistent on specifications that need to be included in the business plan.

FALSE

In a(n) ______________________, only one class of stock is permitted.

S corporation

A turn-key project is best defined as:

a method of doing business whereby a foreign entrepreneur supplies the manufacturing technology or infrastructure for a business and then turns it over to local owners

_______ identifies potential hazards and alternative strategies to meet business plan goals and objectives.

assessment of risk

The basic balance sheet relationship is:

assets equal liabilities plus owners' equity

On the education background, entrepreneurs:

cite an educational need in the areas of finance, strategic planning, marketing, and management.

Questions designed to increase an entrepreneurs' understanding of the nature of the environment are known as:

comprehension questions

marketing research begins with

definition of objectives or purpose.

Which of the following ways of distributing the income of corporations is taxed twice?

dividends

Which among the following influences whether customers are able to use the good or service properly and whether they are able to understand the firm's advertising or other promotional messages?

education

The set of decisions, actions, and reactions that first generate, and then exploit over time, a new entry is:

entrepreneurial strategy

In regards to thinking structurally, superficial similarities:

exist when the basic (relatively easy to observe) elements of the technology resemble the basic elements of the market.

A disadvantage of using licensing as an entry strategy for a foreign market is the high amount of risk involved.

false

A new entry can be either offering a new product to a new market or creating a new organization.

false

An organization that wants to become more entrepreneurial must learn to obtain as many resources as possible in order to be more productive.

false

Breakeven is the volume of sales a venture needs to make profits.

false

Comprehension questions are designed to stimulate entrepreneurs to think about their own understanding.

false

In brainstorming, quality of ideas is desired the fewer the individuals coming up with good ideas, the greater the likelihood of the emergence of useful ideas.

false

In writing the business plan an entrepreneur should consider four perspectives: the investor, the customer, the employees and themselves.

false

Innovations such as penicillin, the steam engine, the computer, the airplane, the automobile, the Internet, and nanotechnology are all classified as technological innovations.!

false

Investors consider the section on description of the venture as important because they can determine the amount of investment needed without having to read through the entire plan.

false

Nonverbal or hidden language of the culture can be thought of in terms of several components - time, intangible value, and business relationships.

false

Sales revenue for an Internet start-up is often more easier to project.

false

Technological knowledge refers to the entrepreneur's possession of information, technology, know-how, and skills that provide insight into a market and its customers.

false

The most attractive type of business formation for raising capital is partnership.

false

The proprietor is not personally liable for any aspects of the business.

false

Traditionally managed firms commitment to opportunity is revolutionary with long duration.

false

While a marketing plan may enable the entrepreneur to understand and recognize the critical issues, it may not help in the event of any change in the environment.

false

While effectuating, entrepreneurs think through a problem in a way that starts with a desired outcome and focuses on the means to generate that outcome.

false

focus groups should be held by the entrepreneur

false

The board of advisors:!

has no legal status

_____ leads to increased initiative and persistence and thus improved performance.

high self efficacy

An entrepreneur who pursues a new entry opportunity only to find out that he or she had overestimated his or her ability to create customer demand is:

in error of commission

Entrepreneurial endeavors consist of all of the following key elements except:

increasing productivity

Which of the following is NOT a characteristic of a marketing plan?

it should be long and detailed

______________ knowledge refers to the entrepreneur's possession of information, technology, know-how, and skills that provide insight into the industry and customers.

market

A production plan usually includes:

names of suppliers of raw materials

The names, addresses, and resumes of the directors and officers of the corporation forms part of the _______________ plan.

organizational

Which of the following is an example of cash flow?

payment on a loan

In which stage is consumer reaction to the physical product/service determined?

product development stage

Which of the following would NOT be a current asset?

property

In determining the best channel of distribution system for a country, the global entrepreneur needs to consider several factors. Which of the following is not a factor for consideration?

quality of human resources available

__________ are designed to stimulate thought about entrepreneurs' understanding and feelings as they progress through the entrepreneurial process.

reflection tasks

The first step in establishing corporate entrepreneurship in an organization is:!

securing commitment from top management

the sales budget:

should be prepared before developing the pro forma income statement.

The business plan presentation for potential investors:

should enable the entrepreneur to "sell" his or her business concept in a designated period of time.

The least expensive form of ownership to start is a:

sole proprietorship

In the causal process of thinking:

starts with a desired outcome and focuses on a means to generate that outcome.

Determining first-mover advantage depends on all of the following except:

the ability of the company to maintain a legal monopoly in the market.

The largest source of new product ideas is:

the entrepreneur's research and development.

Reverse brainstorming is much like brainstorming except that:

the process usually involves identification of everything wrong with an idea..

All these are characteristics of an entrepreneurial environment except:

there are short term horizons

A board of advisors has less decision making authority than a board of directors does.

true

An entrepreneur with loss-orientation would talk about the business-failure with a close friend or relative.

true

An example of a window of opportunity closing is when another entrepreneur has entered the industry and erected substantial barriers to entry and to imitation.

true

Bricolage is entreprenuers making do by applying combinations of the resources at hand to new problems and opportunities.

true

During situation analysis, the entrepreneur should provide a review of past performance of the product and the company.

true

Entrepreneurial opportunities are those situations in which new goods, services, raw materials and organizing methods can be sold at greater than their production cost.

true

Generally, independent, venture-capital-based start-ups by entrepreneurs tend to outperform corporate start-ups significantly.

true

If the market for a new venture is highly concentrated, it is advisable to consider direct sales.

true

In an S corporation capital gains or losses from the corporation are treated as personal income or losses.

true

In the collective notebook method, participants consider the problem and its possible solutions, recording ideas at least once, but preferably three times, a day.

true

Investors usually insist that the management team not operate the business as a part-time venture.

true

Key success factors are the requirements that any firm must meet to successfully compete in a particular industry.

true

Marketing research involves the gathering of information in order to determine who will buy the product and what the most effective promotion strategy would be.

true

Members of the distribution channel are usually good sources of ideas for new products.

true

Only the test marketing phase of product planning provides actual sales results to judge the product's customer appeal.

true

The McMullen-Shepherd Model explains how knowledge and motivation influence two stages of entrepreneurial action. Correct!

true

The United States is a relative newcomer to the international business arena.

true

The business plan is an integration of functional plans such as marketing, finance, manufacturing, and human resources.

true

The indirect method of projecting cash flow is the most popular.

true

The key to successful entrepreneurship is to develop an idea that has a market with a need for the product or service idea conceived.

true

The purpose of the pro forma sources and applications of funds is to show how net income and financing were used to increase assets or to pay off debt.

true

When estimating expenses for the pro format income statement, it is best to be conservative.

true

When gathering financial information, the entrepreneur should develop a budget that includes expected sales and expense figures for the first year.

true

Which of the following is NOT an example of collecting primary data?

using the internet