Entrepreneurship 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

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.

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

Patents

​______ 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.

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

Small Business Administration-guaranteed loans

Which of the following CAN be​ trademarked?

Sounds

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

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

franchisee

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

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

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

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

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

​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

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

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

service marks

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

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

trademark

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

​600,000

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

​Rewards-based crowdfunding

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

​Wholly-owned subsidiary

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

​_____ 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

​_____ 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

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

Federal Trade Commission​ (FTC)

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

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

Mergers

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

Increased business complexity

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

Maintaining​ low-cost overall security measures

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

The potential market was underestimated.

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

decreased legal expenses

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

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

elevator speech​ (or pitch)

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

acquisition

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

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

equity

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

burn rate

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

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

business method

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

copyright

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

decreased cost savings

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

initial public offering

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

intellectual

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

niche market

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

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

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

liquidity events

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

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