Sustainability Final
A ________ illustrates a firm's positioning strategy relative to its major rivals. A) product attribute map B) positioning analysis grid C) positioning plot D) competitive analysis grid E) positioning diagram
A
A ________ is something that takes on a physical form, such as a smartphone or a laptop computer. A ________ is an activity or benefit that is intangible, such as an airplane trip or advice from an accountant. A) product; service B) service; component C) component; service D) formation; service E) service; product
A
A firm's marketing mix consists of ________. A) product, price, promotion, and place B) passion, pride, promotion, and place C) passion, pleasure, product, and price D) enthusiasm, passion, product, and price E) place, promotion, passion, and product
A
Birchbox's phrase "The Box is Monthly, the Discoveries are Endless" is an example of a(n) ________. A) tagline B) grabline C) notice-line D) catchline E) attention-line
A
Equity financing (or funding) means ________. A) exchanging partial ownership in a firm, usually in the form of stock, for funding B) getting a grant or outright gift C) getting a loan D) getting a lease E) getting a loan guarantee
A
In ________-based pricing, the list price of an item is determined by adding a markup percentage to a product's cost. A) cost B) compliance C) value D) competitive E) economic
A
James Williams is the Chief Operating Officer of a startup in the health food industry. He is also a member of his firm's board of directors. In board of directors terminology, James is a(n) ________ director. A) inside B) outside C) expert D) junior E) senior
A
Sam Simpson is a four-time business owner. One thing that has served Sam well throughout his entrepreneurial career is his ability to build and maintain relationships with people whose interests are similar or whose relationships could bring advantages to his new ventures. According to the textbook, Sam is a good ________. A) networker B) socializer C) linker D) assembler E) connector
A
Susan Howard owns a seafood restaurant in Naples, Florida. She is currently owed $21,000 by a corporation that she catered a series of meetings for and $3,000 on an overdue account. Amanda has $24,000 in ________. A) accounts receivable B) inventory C) accounts collectable D) accounts obtainable E) accounts payable
A
The members of heterogeneous teams are ________. A) diverse in terms of their abilities and experiences B) diverse in terms of their abilities, but very similar in terms of their experiences C) similar in terms of their abilities and experiences D) diverse in terms of their experiences, but very similar in terms of their abilities E) sometimes diverse in terms of their abilities and experiences and sometimes similar along the same dimensions
A
The three primary reasons startups need funding are ________. A) cash flow challenges, capital investments, and lengthy product development cycles B) business research, cash flow challenges, and costs associated with building a brand C) bonuses for members of the new venture team, attorney fees, and lengthy product development cycles D) attorney fees, capital investments, and marketing research E) bonuses for members of the new venture team, marketing research, and personnel costs
A
Which of the following selections correctly matches the financial statement with its description? A) Income statement — tells how much a firm is making or losing. B) Income statement — depicts the structure of a firm's assets and liabilities. C) Balance sheet — shows where a firm's cash is coming from. D) Balance sheet — tells how much a firm is making or losing. E) Statement of cash flows — depicts the structure of a firm's assets and liabilities.
A
________ is a company's ability to meet its short-term financial obligations. A) Liquidity B) Profitability C) Effectiveness D) Stability E) Efficiency
A
2) Which of the following was NOT identified as one of the four main financial objectives of a firm? A) Stability B) Efficiency C) Timeliness D) Liquidity E) Profitability
C
A ________ is the group of founders, key employees, and advisers that move a new venture from an idea to a fully functioning firm. A) new venture panel B) startup team C) new venture team D) new project team E) startup cadre
C
A(n) ________ is a person who works for a business as an apprentice or trainee for the purpose of obtaining actual experience. A) freelancer B) consultant C) intern D) virtual assistant E) novice
C
________ financial statements are projections for future periods based on forecasts and are typically completed for two to three years into the future. A) Chronological B) Pro forma C) Ad-hoc D) Concurrent E) Historical
B
According to the textbook, studies show that more than one individual starts ________ percent of all new firms. A) 20 to 25 B) 50 to 70 C) 5 to 15 D) 30 to 40 E) 75 to 90
B
According to the textbook, the unique value provided by business angels is they ________. A) are willing to make relatively large investments B) are willing to make relatively small investments C) require a fairly low rate of return on their money D) invest money but typically don't take a seat on a company's board of directors E) are easy to find
B
Efforts to establish and maintain a company's image with the public are referred to as ________. A) open relations B) public relations C) civic relations D) community relations E) advertising
B
Liz Zackery just launched a firm in the sporting goods industry. On the day the company was launched, Liz issued a press release, indicating that the vice president of New Balance, a highly respected athletic shoe and sports apparel company, had agreed to serve on her board of directors. Liz knows that such a high quality appointment will send an important message to her potential clientele. This phenomenon is referred to as ________. A) championing B) signaling C) profiling D) indicating E) trumping
B
The ________ Program is a competitive grant program that provides over $2.5 billion per year to small businesses for early-state and development projects. A) SBTA B) SBIR C) SBAP D) SAIR E) SBTR
B
The fact that companies often falter because the people who start the firms can't adjust quickly enough to their new roles and because the firm lacks a "track record" with outside buyers and sellers, is referred to as the ________. A) liability of preparedness B) liability of newness C) burden of novelty D) burden of freshness E) millstone of innovation
B
________ are individuals who invest their personal capital directly in start-ups. A) Venture capitals B) Business angels C) Institutional investors D) Investment bankers E) Business capitalists
B
According to the textbook, the three numbers that receive the most attention when evaluating an income statement are ________. A) depreciation, interest income, and income tax expense B) cost of sales, gross profit, and operating expenses C) net sales, cost of sales, and operating expenses D) gross profit, net sales, and income tax expense E) gross profit, other income, and net income
C
An important part of obtaining venture capital funding is going through ________ diligence, which refers to the process of investigating the merits of a potential venture and verifying the key claims made by the business plan. A) appropriate B) fit C) due D) prior E) responsible
C
Courtney Young is the founder of a company in the semiconductor industry. Courtney's firm is still in the feasibility analysis stage and doesn't 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 Courtney's ________ rate. A) consumption B) utilization C) burn D) usage E) liquidity
C
Financial management deals with two things—managing a company's finances and ________. A) operations management B) inventory control C) raising money D) production management E) supply chain management
C
Katy Anderson's startup, which is in the organic fruit and vegetables industry, was launched on January 1, 2015. However, prior to its formal launch, Katy spent many hours working on her business, particularly during the feasibility analysis stage. The time and effort that entrepreneurs put into their venture, that can't be easily measured from a financial point of view, is referred to as ________ equity. A) effort B) intangible C) sweat D) worry E) fret
C
Shelly Cook recently launched a social network for chefs. One thing Shelly is thinking about creating is a panel of experts who can provide her ongoing direction and advice regarding the future of her business. Shelly is thinking about creating a(n) ________. A) analysis panel B) discussion board C) advisory board D) suggestion panel E) accountability panel
C
The Google program called ________ allows advertisers to buy keywords on the Google Home Page. A) AdSense B) Adcenter C) AdWords D) Search Marketing E) AdGoogle
C
The three most common forms of equity funding are ________. A) friends and family, venture capital, bank loans B) SBIR grants, SBA guaranteed loans, bank loans C) initial public offerings, business angels, venture capitalists D) friends and family, business angels, bootstrapping E) SBIR grants, venture capital, initial public offerings
C
Which of the financial statements used by businesses to keep track of their financial affairs is the most similar to an ordinary person's end-of-the month bank statement? A) Income statement B) Balance sheet C) Statement of cash flows D) Statement of ratio analysis E) Statement of owners' equity
C
________ financial statements reflect past performance and are usually prepared on a quarterly and annual basis. A) Chronological B) Ad-hoc C) Historical D) Concurrent E) Pro forma
C
A(n) ________ is a chart that depicts the most important skills that are needed in a new venture and where skills gaps exist. A) expertise report B) talent profile C) abilities summary D) skills profile E) talent summary
D
A(n) ________ is a snapshot of a company's assets, liabilities, and owners' equity at a specific point in time. A) income statement B) statement of cash flows C) effectiveness statement D) balance sheet E) efficiency statement
D
According to the textbook, a successful brand can increase the market value of a company by ________ to ________ percent. A) 5; 10 B) 20; 30 C) 40; 50 D) 50; 75 E) 75; 100
D
Calvin Tucker is in the process of launching an educational services firm. He plans to incorporate the firm. Because the firm will be incorporated, Calvin is legally required to have a ________. A) board of investors B) board of advisors C) customer advisory board D) board of directors E) panel of advisors and peers
D
Which of the following statements is correct regarding the concept of branding? A) Brands cannot be built through advertising, public relations, sponsorships, social media, or similar techniques. B) A company doesn't normally want its customers to identify with its brand. C) Startups usually start with an established brand. D) A brand can be one of a company's most valuable assets. E) A brand can denote a negative impression of a company.
D
________ refers to the activities the firm takes to communicate the merits of its product to its target market. A) Sponsorship B) Advertising C) Endorsement D) Promotion E) Price
D
A brief, carefully constructed statement that outlines the merits of a business opportunity is called a(n) ________ speech. A) subway B) sway C) bootstrap D) teaser E) elevator
E
According to our textbook, the seed money that gets a company off the ground typically comes from ________. A) angel investors B) venture capitalists C) commercial banks D) governmental agencies E) the founders of the firm
E
Amy Clark just opened a soup and salad restaurant near Golden Gate Park in San Francisco, CA. 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 ________. A) networking B) reaching C) scrounging D) prospecting E) bootstrapping
E
Annie Clarke owns a smartphone app development firm. The way Annie prices her products is to determine what consumers are willing to pay, and then she backs off a bit to provide a cushion. The method that Annie used to determine her prices is called ________ pricing. A) predatory B) technical C) cost-based D) competitive-based E) value-based
E
Broadway Dance Center in New York City targets serious dancers who aspire to earn a living dancing in Broadway plays. This specific portion of the overall dance industry is referred to as a ________ market. A) gap B) task C) position D) hole E) niche
E
Historically, commercial banks ________. A) have been a good source of funds for startup firms B) have not funded startup firms at all C) have been a good source of funds for manufacturing firm startups but not for service firm startups D) have been a good source of funds for service firm startups but not for manufacturing firm startups E) have not been a good source of funds for startup firms
E
The first sale of stock by a firm to the public is referred to as a(n) ________. A) original public submission B) first unrestricted offering C) preemptive initial offering D) original open offering E) initial public offering
E
The first step in selecting a target market is to study the industry in which the firm intends to compete and determine the different potential target markets in that industry. This process is called ________. A) market positioning B) market splitting C) market targeting D) market subdividing E) market segmentation
E
Which of the following sets of characteristics places a startup in the strongest position to apply for equity funding? A) Weak cash flow, high leverage, low-to-moderate growth, unproven management B) Strong cash flow, low leverage, audited financials, good management, healthy balance sheet C) Unique business idea, strong cash flow, low-to-moderate growth, broad market D) Strong cash flow, high leverage, low-to-moderate growth, unproven management E) Unique business idea, high growth, niche market, proven management
E
________ depict relationships between items on a firm's financial statements. A) Financial proportions B) Fiscal relations C) Fiscal projections D) Monetary balances E) Financial ratios
E