Midterm ELE 4010 Quiz questions

______ measures the efficiency with which a company can handle its resources. (inventory, fixed assets, accounts rec)

Activity ratio

_____ is working with and learning from a company outside of your industry that has a skill that is critical to the firm's operation

Benchmarking

______ are high-net-worth individuals who invest in a business not as a business entity, but as an individual

Business angels

The _____ ratio provides info on the portion of a business owned by the lenders (banks) and that portion owned by the founders (other investors in the form of stock)

Debt-to-equity

A(n) _____ is an analytical tool to organize information about direct competitors on all points of competition

Competitive map

A pro forma _____ projects the future income of an entrep. firm

Income statement

Some communities offer facilities that house new businesses and provide resources for them. these are called ___

Incubators

According to the book, which of the following is an example of circumstance motivators?

Individuals are laid off, are demoted, or are forced to take reduced pay by their employer

____ are the capabilities and skills of the founder or employees

Intangible assets

What is the disadvantage of choosing a sole proprietorship?

It cannot have more than one founder, liability is solely on the owner, the law does not recognize other equity investors (all of these)

_____ are owed by a business and are ultimately due more than a year from the current date

Long-term liabilities

When developing a mission statement, a new business founder needs to ensure this characteristic is used to make it effective

Measurable, universal, specific (all of these)

____ is (are) a brief statement that summarizes how and where the firm will compete in the industry

Mission statement

Which of these personality tests is based on the philosophy of Carl Jung?

Myers-Briggs

Which of the following items is an example of things that can be trademarked?

Name of firm, symbol representing firm, names of the firms products

______ presents a picture of the relative margin after all obligations and expenses are considered. It is the bottom line calculation from the income statement

Net profit margin

A _____is a claim of intellectual property that covers a specific invention

Patent

The potential entrepreneur needs to consider _____ when starting a business

Prior experience, risk tolerance, personality orientation

What kind of chart provides a detailed understanding of a firm's production process?

Production chart

______ examine the performance of a business and its ability to make economic returns over and above its costs

Profitability ratios

_____ is the calculation of a series of ratios along four areas of company performance (liquidity, activity, leverage, and profitability) that provides a picture of the health of the company

Ratio analysis

_______ is a tool for the estimation of the point-in-time where a business's income exceeeds its expenses

break-even analysis

A mission statement can also be described as:

simple rules, goals, overall strategy (all of these)

Which of the following is an example of the list of items that the entrepreneur should include while visiting and making comparisons to his/her potential competitors?

size of the facility, nearby attraction from customers, access from road (all of these)

Universal studios, who made the indiana jones movies, forms a relationship with burger king to put advertisements for the movie on drink cups. This is a form of _____

strategic alliance

A(n) ______ exists if the service or product performs a similar function

substitute

_____ provides you with the opportunity to make money when other businesses cannot easily copy your advantages

sustainable competitive advantage

The information from the North American Industry Classification System (NAICS) can be found from:

the library, internet, government

The legal means to protect intellectual property is _______

trademark, copyright, patents

what percentage of businesses have a production process?

100

What is a marketing plan?

A plan developed by a business to specify who the customers are and how they will be attracted to the company

A _______ is a summary of the assets and liabilities of a small business

Balance sheet

Venture capitalists are seeking a(n) _________

High growth business that has the opportunitiy to cash out, IPO, sale to a larger company within a relatively short time

_______refers to the individuals who build and maintain relationships with customers

Sales management

____ is the simplest form of a business to establish; the person who owns it and the business itself are treated as the same entity

Sole proprietorship

______ is an organization form that treats a firm as a unique entity (separate from the owners) and is responsible for its own taxes

Subchapter C corp

______ are items that include equipment or location

Tangible assets

In the US where must a patents application be filed?

United states patent and trademark office

______costs change according to how many goods are produced

Variable

A tool to better understand competitors and their capabilities is:

competitive map

A critical path chart should be updated

constantly

A(n) ______ is when a company hires independent salespeople with a variety of experiences and contacts on a contract basis.

contract sales force

A small business determines the cost of providing a product or service, then adds some level of profit determined to be appropriate. Tis is called:

cost-plus pricing method

A(n) ______ demonstrates how a set of activities are dependent on each other and which activities take the longest time

critical path chart

A ______ can easily be converted to cash, such as accounts receivable and notes receivable

current asset

______ include accounts payable, notes payable, or bank notes

current liabilities

All of these are negatives for an owner in a family business EXCEPT:

promoting a family member, reprimanding a family member, firing a family member (all of these)

a marketing plan should include:

developing promotions, identifying your market, pricing polocy

An entrepreneur cannot leave his or her business due to the amount of money that was invested. This is called a(n) _____

exit barrier

_____costs must be paid no matter how many products or services are sold

fixed

_____ have a physical presence including land, buildings, office machines, or equipment

fixed assets

An income statement provides both the ______ and the _____ profit margins for a firm

gross; net

All of the following are triggers to start a new business EXCEPT:

intolerable risk level

Which fo the following terms is used by key stakeholders for the acceptance of a company as a reputable ongoing business?

legitamacy

_____ are used to measure the level of indebtness of a small business. (ex: bank loans)

leverage ratios

All of the following are benefits of a subshapter S corp. EXCEPT:

limited number of shareholders

Dennis wants to measure the short-term ability of his company to meet (pay) its financial obligations. he would use ____ (Examples of short term financial obligations:short term loan/debt payments etc)

liquidity ratios

When a corporation suffers losses, the founders will:

lose only their investment in the business

Organizational slack

occurs in large companies that have excess resources such as equipment and employees

The focus of an income statement is on:

profits