Entrepreneurship MCQ: February 2017

Archive for February 2017

_____ is a written document describing all relevant internal and external elements and strategies for starting a new venture; it helps determine the viability of the venture in a designated market, provides guidance to the entrepreneur in organizing his or her planning activities, and serves as an important tool in helping to obtain financing.

_____ is a written document describing all relevant internal and external elements and strategies for starting a new venture; it helps determine the...

_____ reviews industry trends and competitive strategies; includes future outlook and trends, analysis of competitors, market segmentation, industry and market forecasts.

_____ reviews industry trends and competitive strategies; includes future outlook and trends, analysis of competitors, market segmentation, industry...

____ is an assessment of external uncontrollable variables that may impact the business plan; includes economy, culture, technology, legal concerns, etc.

_____ is an assessment of external uncontrollable variables that may impact the business plan; includes economy, culture, technology, legal concerns,...

_____ provides complete overview of the products, services, and operations of a new venture; includes products, services, size of business, office equipment and personnel, background of entrepreneurs.

_____ provides complete overview of the products, services, and operations of a new venture; includes products, services, size of business, office equipment...

____ details how the product will be manufactured; includes manufacturing process, physical plan, machinery and equipment, names of suppliers of raw materials.

____ details how the product will be manufactured; includes manufacturing process, physical plan, machinery and equipment, names of suppliers of raw...

___ is a description of company's operation, flow of orders for goods and/or services, technology utilization.

___ is a description of company's operation, flow of orders for goods and/or services, technology utilization. Answer: Operations pl...

___ is a written statement of marketing objectives, strategies, and activities to be followed in business plan; describes market conditions and strategy related to how the products and services will be distributed, priced, and promoted; includes pricing, distribution, promotion, product forecasts, controls.

___ is a written statement of marketing objectives, strategies, and activities to be followed in business plan; describes market conditions and strategy...

_____ describes form of ownership and lines of authority and responsibility of members of new venture; includes form of ownership, identification of partners or principal shareholders, authority of principals, management team background, roles and responsibilities of members of organization.

_____ describes form of ownership and lines of authority and responsibility of members of new venture; includes form of ownership, identification of...

______ identifies potential hazards and alternative strategies to meet business plan goals and objectives; evaluate weakness of business, new technologies, contingency plans.

______ identifies potential hazards and alternative strategies to meet business plan goals and objectives; evaluate weakness of business, new technologies,...

______ is a projections of key financial data that determine economic feasibility and necessary financial investment commitment; includes assumptions, pro forma income statement, cash flow projections, pro forma balance sheet, break-even analysis, sources and applications of funds.

______ is a projections of key financial data that determine economic feasibility and necessary financial investment commitment; includes assumptions,...

_____ is a contractual agreement giving rights to others to use intellectual property in return for a royalty or fee.

_____ is a contractual agreement giving rights to others to use intellectual property in return for a royalty or fee. Answer: Licensi...

____ are protection against others revealing or disclosing information that could be damaging to business.

____ are protection against others revealing or disclosing information that could be damaging to business. Answer: Trade secre...

____ are rights given to prevent others from printing, copying, or publishing any original works of authorship. These protect the rights to their works of writers, artists, and composers for a period of time.

____ are rights given to prevent others from printing, copying, or publishing any original works of authorship. These protect the rights to their works...

A trademark is given an initial year registration with ____ year renewable terms.

A trademark is given an initial year registration with ____ year renewable terms. Answer: ten; t...

Trademarks last ______.

Trademarks last ______. Answer: indefinite...

____ is a word, name, symbol or devise which is used in trade with goods to indicate the source of the goods and to distinguish them from other goods of others.

____ is a word, name, symbol or devise which is used in trade with goods to indicate the source of the goods and to distinguish them from other goods...

What are the parts of a patent application?

What are the parts of a patent application? Answer: Introduction, Description of invention, and Claim...

____ are any patents trademarks, copyrights, or trade secrets held by the entrepreneur.

____ are any patents trademarks, copyrights, or trade secrets held by the entrepreneur. Answer: Intellectual proper...

_____ are given for new variety of plants and represent a limited area of interest.

_____ are given for new variety of plants and represent a limited area of interest. Answer: Plant Pate...

______ provide inventor with a negative right excluding others from making using, or selling an article having the ornamental appearance given in the drawings included in the patent. A design patent has a term of 14 years.

______ provide inventor with a negative right excluding others from making using, or selling an article having the ornamental appearance given in the...

_____ grants owner protection from anyone else making, using, and selling the identified invention. A utility patent has a term of 20 years.

_____ grants owner protection from anyone else making, using, and selling the identified invention. A utility patent has a term of 20 years. Answer:...

____ are licenses that give an inventor the exclusive right to make, use, or sell an invention for a set period of time.

____ are licenses that give an inventor the exclusive right to make, use, or sell an invention for a set period of time. Answer: Patents ...

List 10 Entrepreneurial Death Traps ?

List 10 Entrepreneurial Death Traps ? 1. The 50-50 Partnership. 2. The Three Musketeers Trap. 3. Single Customer Over-reliance. 4. Mousetrap Teams. 5....

Primary responsibilities of board of directors ?

Primary responsibilities of board of directors ? 1. Reviewing and setting corporate strategy 2. Providing an outside viewpoint / oversight 3. Appointing...

Primary difference between angel investors and VC firms ?

Primary difference between angel investors and VC firms ? Angels do not have to invest in anyon...

Factors that make business less likely to receive angel investments ?

Factors that make business less likely to receive angel investments ? o Poor assessment of entrepreneur or management team o No continuing competitive...

Factors that make business more likely to receive angel investments ?

Factors that make business more likely to receive angel investments ? o Unique competitive advantage o Capture large new primary market o Successful...

Why companies Fail VC process ?

Why companies Fail VC process ? 1. Management team deficiency 2. Lack of "fit" 3. Unrealistic expectations/demands 4. Too complicated 5. Management...

How so VC firms deal with SUMI issues?

How so VC firms deal with SUMI issues? 1. Formal due diligence process 2. Staged financing 3. Syndication 4. Compensation Contracts 5. Covenants...

What problems cause the need for venture capital?

What problems cause the need for venture capital? Soft Assets Uncertainty about the future Market conditions Information gap...

What are some reasons to decline investment? (11 Reasons)

What are some reasons to decline investment? (11 Reasons) -Lack of an experienced team -Didn't fit criteria -No competitive advantage -No clear...

Regarding the beginnings of Venture Capital, what was Doriot Mission?

Regarding the beginnings of Venture Capital, what was Doriot Mission? To invest in new technology, new market concepts, new applications and to take...

What are some of the critical issues in Financing and Financing Sources?

What are some of the critical issues in Financing and Financing Sources? Creating Value -How do you create value? Slicing the Value Pie -How are...

Define the contribution margin and its importance.

Define the contribution margin and its importance. Selling price minus variable costs divided by number of units As long as the selling price is...

Which of the following is a form of cash flow financing?

Which of the following is a form of cash flow financing? A) Installment loan B) Character loan C) Line of credit D) All of the above Answer:...

Start ups commonly use ______________ to finance initial expenses.

Start ups commonly use ______________ to finance initial expenses. A) bank loans B) capital from savings C) credit cards D) SBA loans Answer:...

Which of the following forms of financing does not require collateral?

Which of the following forms of financing does not require collateral? A) Commercial bank loan B) Line of credit C) Equity D) Character loan Answer:...

_____ financing involves using any possible methods for conserving cash.

_____ financing involves using any possible methods for conserving cash. A. SBIR B. Bootstrapping C. Private placement D. Floor planning Answer:...

Which of the following is a disadvantage of using outside financing?

Which of the following is a disadvantage of using outside financing? A. Outside capital decreases the firm's drive for sales and profits. B. Outside...

Accredited investors are:

Accredited investors are: A) investors who purchase over $5,000 of the venture's securities. B) directors, executive officers, and general...

Regulation D contains:

Regulation D contains: A. provisions designed to simplify private offerings. B. definitions of what constitutes a private offering. C. specific operating...

Private offerings:

Private offerings: A. must comply with Regulation D. B. involve more time and expense than public offerings. C. do not involve the SEC. D. all of...

Obtaining funds from private investors:

Obtaining funds from private investors: A, is inappropriate for new ventures. B. is a public offering. C. is covered by Regulation D. D. all of the...

Under the ____________ program, federal agencies with budgets over $1 billion are required to set aside 0.3 percent for small businesses.

Under the ____________ program, federal agencies with budgets over $1 billion are required to set aside 0.3 percent for small businesses. A....

When a company receives an SBIR grant, any patent rights and software generated belong to:

When a company receives an SBIR grant, any patent rights and software generated belong to: A. the Federal Government. B. entrepreneur. C. the Small...

The Small Business Innovation Development Act:

The Small Business Innovation Development Act: A. Requires federal agencies with R&D budgets over $100 million to award some of their funds to...

Most established R&D limited partnerships:

Most established R&D limited partnerships: A. allow a minimum amount of equity dilution. B. are successful. C. reduce the risks involved in the...

Equity partnerships, royalty partnerships, and joint ventures are used in the ___________ stage of limited partnerships to reap the benefits of the effort.

Equity partnerships, royalty partnerships, and joint ventures are used in the ___________ stage of limited partnerships to reap the benefits of the...

In limited partnerships:

In limited partnerships: A) the liability for any loss incurred is borne by the company. B) there is no special tax benefit for partners. C) the...

Research and development limited partnerships provide funds for entrepreneurs in high-tech fields through:

Research and development limited partnerships provide funds for entrepreneurs in high-tech fields through: A. debt from lenders. B. equity from present...

Under the SBA Microloan program, the entrepreneur can borrow up to:

Under the SBA Microloan program, the entrepreneur can borrow up to: A) $5,000. B) $50,000. C) $100,000. D) $1,000,000. Answer:...

The Small Business 7(a) Guaranty program:

The Small Business 7(a) Guaranty program: A) guarantees up to 85 percent of the amount loaned. B) helps qualified small businesses obtain financing...

The Small Business 7(a) Guaranty program:

The Small Business 7(a) Guaranty program: A) guarantees up to 50 percent of the amount loaned. B) helps qualified small businesses obtain financing...

Which of the following is not one of the five C's of lending?

Which of the following is not one of the five C's of lending? A. Character B. Caution C. Conditions D. Capacity Answer: ...

Which of the following types of credit does not require the pledging of an individual's collateral or a cosigner?

Which of the following types of credit does not require the pledging of an individual's collateral or a cosigner? A. Line of credit. B. Character...

Which of the following is not a form of cash flow financing?

Which of the following is not a form of cash flow financing? A. Trust receipt B. Character loan C. Line of credit D. Installment loan Answer:...

Mortgage financing is another term for:

Mortgage financing is another term for: A. large equipment asset-based financing. B. real-estate asset-based financing. C. sale-leaseback financing. D....

In ____ the entrepreneur sells equipment to the lender then arranges for its continued use.

In ____ the entrepreneur sells equipment to the lender then arranges for its continued use. A. a factoring arrangement B. trust receipts C. a sale-leaseback...

When inventory is the asset base for a loan:

When inventory is the asset base for a loan: A. a trust receipt may be used. B. factoring may be arranged. C. about 50 percent of it can be...

In a factoring arrangement, the factor:

In a factoring arrangement, the factor: A. takes no risk and sustains no losses. B. buys the accounts receivables of a firm. C.receives no interest...

The most frequently used source of short-term funds when collateral is available is:

The most frequently used source of short-term funds when collateral is available is: A. commercial bank loans. B. SBA 7(a) loans. C. limited partnerships. D....

When using equity financing from family and friends:

When using equity financing from family and friends: A. business arrangements should be kept strictly business. B. details such as terms of the investment...

Funds obtained from ____ are the least expensive in terms of cost and control.

Funds obtained from ____ are the least expensive in terms of cost and control. A. the entrepreneur's personal resources B. friends and family C. commercial...

A "commitment fee" is used in arranging for a:

A "commitment fee" is used in arranging for a: A) line of credit. B) character loan. C) installment loan. D) commercial loan. Answer:...

The most frequently used source of funds for start ups is:

The most frequently used source of funds for start ups is: A) bank loans. B) capital from savings. C) credit cards. D) SBA loans. Answer:...

Which of the following is not an example of internal financing?

Which of the following is not an example of internal financing? A) Profits B) Accounts receivable C) Credit from suppliers D) Equity financing...

______ financing does not require any collateral.

______ financing does not require any collateral. A. Commercial bank loan B. Line of credit C. Equity D. Character loan Answer:...

Typically, debt financing requires:

Typically, debt financing requires: A. an asset as collateral. B. a degree of ownership in the firm. C. reduction of short-term assets. D. reduction...

Bootstrap financing involves using any possible method, such as discounts for volume purchasing, to conserve cash.

Bootstrap financing involves using any possible method, such as discounts for volume purchasing, to conserve cash. A. True B. False Answer:...

Bootstrap financing maintains the company's flexibility and drive for sales.

Bootstrap financing maintains the company's flexibility and drive for sales. A. True B. False Answer: ...

When using private placement funding the entrepreneur must disclose all information as accurately as possible.

When using private placement funding the entrepreneur must disclose all information as accurately as possible. A. True B. False Answer:...

Under Rule 504 of Regulation D businesses are permitted to sell an unlimited amount of securities and to lobby investors for their support.

Under Rule 504 of Regulation D businesses are permitted to sell an unlimited amount of securities and to lobby investors for their support. A. True B....

Regulation D prohibits most private placements.

Regulation D prohibits most private placements. A. True B. False Answer: ...

Private offerings involve more time, expense, and paperwork than public offerings.

Private offerings involve more time, expense, and paperwork than public offerings. A. True B. False Answer: ...

Under the Small Business Technology transfer (STTR) program, federal agencies with budgets over $1 billion are required to set aside 0.3 percent for small businesses.

Under the Small Business Technology transfer (STTR) program, federal agencies with budgets over $1 billion are required to set aside 0.3 percent for...

Any patent rights on technology developed in SBIR grants are the property of the federal government.

Any patent rights on technology developed in SBIR grants are the property of the federal government. A. True B. False Answer: ...

Small Business Innovation Research grants are funded by federal agencies which provide a portion of their funds to small businesses.

Small Business Innovation Research grants are funded by federal agencies which provide a portion of their funds to small businesses. A. True B....

Most limited partnerships are successful.

Most limited partnerships are successful. A. True B. False Answer: ...

The costs of establishing R&D limited partnerships are greater than conventional financing.

The costs of establishing R&D limited partnerships are greater than conventional financing. A. True B. False Answer: ...

The sponsoring company in a limited partnership is the limited partner.

The sponsoring company in a limited partnership is the limited partner. A. True B. False Answer: ...

In a limited partnership the liability for losses incurred is borne by the limited partners.

In a limited partnership the liability for losses incurred is borne by the limited partners. A. True B. False Answer:...

Research and development limited partnerships provide small businesses funds from investors looking for tax shelters.

Research and development limited partnerships provide small businesses funds from investors looking for tax shelters. A. True B. False Answer:...

The SBA's Microloan program provides short-term loans of up to $50,000 to small businesses for working capital or purchase of inventory.

The SBA's Microloan program provides short-term loans of up to $50,000 to small businesses for working capital or purchase of inventory. A....

SBA guaranteed loans are guaranteed for 100 percent of the loan amount.

SBA guaranteed loans are guaranteed for 100 percent of the loan amount. A. True B. False Answer:...

The SBA's basis 7(a) Loan Guarantee program helps qualified small businesses obtain financing when they can't get a business loan through regular lending channels.

The SBA's basis 7(a) Loan Guarantee program helps qualified small businesses obtain financing when they can't get a business loan through regular lending...

The funds for a SBA guaranteed loan are provided by commercial banks.

The funds for a SBA guaranteed loan are provided by commercial banks. A. True B. False Answer: ...

To improve the chances of being approved for a bank loan, the entrepreneur should prepare a business plan for the loan committee.

To improve the chances of being approved for a bank loan, the entrepreneur should prepare a business plan for the loan committee. A. True B. False Answer:...

Commercial banks are generally less cautious in lending money than other external sources of funds.

Commercial banks are generally less cautious in lending money than other external sources of funds. A. True B. False Answer:...

Long-term loans from commercial banks are usually readily available to small startup firms.

Long-term loans from commercial banks are usually readily available to small startup firms. A. True B. False Answer:...

When a bank grants a line of credit, a "commitment fee" is assessed at the start of the loan.

When a bank grants a line of credit, a "commitment fee" is assessed at the start of the loan. A. True B. False Answer:...

About 90 percent of the value of finished goods inventory can be used as collateral for a commercial bank loan.

About 90 percent of the value of finished goods inventory can be used as collateral for a commercial bank loan. A. True B. False Answer:...

In a factoring arrangement, the bank lends the business money using accounts receivable as collateral.

In a factoring arrangement, the bank lends the business money using accounts receivable as collateral. A. True B. False Answer:...

The asset base for loans is usually accounts receivable, inventory, equipment, and real estate.

The asset base for loans is usually accounts receivable, inventory, equipment, and real estate. A. True B. False Answer:...

SBI grants are the most frequently used source of funds when the venture has collateral available.

SBI grants are the most frequently used source of funds when the venture has collateral available. A. True B. False Answer: ...

When borrowing from friends and family, the entrepreneur should avoid putting agreements in writing to avoid future disagreements.

When borrowing from friends and family, the entrepreneur should avoid putting agreements in writing to avoid future disagreements. A. True B. False Answer:...

External investors generally require the entrepreneur to commit only a small percentage of his or her personal assets.

External investors generally require the entrepreneur to commit only a small percentage of his or her personal assets. A. True B. False Answer:...

The personal funds of the entrepreneur are the least expensive in terms of cost and control.

The personal funds of the entrepreneur are the least expensive in terms of cost and control. A. True B. False Answer:...

The most frequently used source of external funds are SBA loans.

The most frequently used source of external funds are SBA loans. A. True B. False Answer:...

Extending payments to suppliers is an example of generating funds internally.

Extending payments to suppliers is an example of generating funds internally. A. True B. False Answer:...

All ventures have some equity.

All ventures have some equity. A. True B. False Answer:...

Equity financing does not require collateral.

Equity financing does not require collateral. A. True B. False Answer:...

Long-term debt financing is normally used to provide working capital to finance inventory, accounts receivable, and operation of the business.

Long-term debt financing is normally used to provide working capital to finance inventory, accounts receivable, and operation of the business. A....

Debt financing requires the entrepreneur to repay the amount borrowed plus interest.

Debt financing requires the entrepreneur to repay the amount borrowed plus interest. A. True B. False Answer: ...

A short-term, internal source of funds can be obtained by reducing all of following EXCEPT:

A short-term, internal source of funds can be obtained by reducing all of following EXCEPT: A) short-term assets. B) cash. C) fixed assets. D) inventory....

Private offerings:

Private offerings: A) must comply with Regulation D. B) involve more time and expense than public offerings. C) do not involve the SEC. D) are not...

When the bank advances a large percentage of the invoice price of goods and is paid on a pro-rata basis when inventory is sold this is called:

When the bank advances a large percentage of the invoice price of goods and is paid on a pro-rata basis when inventory is sold this is called: A)...

Which of the following is not a form of cash flow financing?

Which of the following is not a form of cash flow financing? A) Installment loan B) Character loan C) Line of credit D) Inventory loan Answer:...

The entrepreneur can borrow up to $50,000 under the ____________.

The entrepreneur can borrow up to $50,000 under the ____________. A) 504 loan program. B) SBA Microloan program. C) SBA 7(a) loan program. D) 503...

Equity financing requires collateral.

Equity financing requires collateral. A) True B) False Answer: ...

Extending payments to suppliers is an example of generating external funds.

Extending payments to suppliers is an example of generating external funds. A) True B) False Answer:...

External investors generally require the entrepreneur to commit a large percentage of his or her personal assets.

External investors generally require the entrepreneur to commit a large percentage of his or her personal assets. A) True B) False Answer:...

The type of funds most frequently used by businesses is externally generated funds.

The type of funds most frequently used by businesses is externally generated funds. A) True B) False Answer:...

Most R&D limited partnerships are unsuccessful.

Most R&D limited partnerships are unsuccessful. A) True B) False Answer: ...

____ refers to business norms that are not regulated or ruled by law, but are practices considered legitimate in a particular environment.

____ refers to business norms that are not regulated or ruled by law, but are practices considered legitimate in a particular environment. Answer:...

A country's legal system regulates what three things?

A country's legal system regulates what three things? 1. its business practices 2. the manner in which business transactions are executed 3. the...

List the factors to be considered in determining the distribution system for a country.

List the factors to be considered in determining the distribution system for a country. 1. overall sales potential 2. amount and type of competition 3....

New products in a country are created based on what?

New products in a country are created based on what? Answer: The conditions and infrastructure operant in that country. ...

Two Advantages of Entrepreneurial Partnering

Two Advantages of Entrepreneurial Partnering are 1. facilitates business transactions 2. updates the entrepreneur on business, economic, and political...

Three Impacts of Trade Barriers

Three Impacts of Trade Barriers 1. Increase costs of exporting products to a country 2. Limit entrepreneurs' ability to sell products in a country...

_____ are hindrances to doing international business.

_____ are hindrances to doing international business. Answer: Trade Barrie...

______ is a conglomerate merger involving the consolidation of two essentially unrelated firms.

______ is a conglomerate merger involving the consolidation of two essentially unrelated firms. Answer: Diversified activity merg...

______ is a type of merger that combines two firms that produce the same products but sell them in different geographic markets.

______ is a type of merger that combines two firms that produce the same products but sell them in different geographic markets. Answer: Market extension...

______ is combining two or more firms in successive stages of production.

______ is combining two or more firms in successive stages of production. Answer: Vertical Merg...

_____ is combining two firms that produce same or closely related products in the same geographic area.

_____ is combining two firms that produce same or closely related products in the same geographic area. Answer: Horizontal Merg...

____ is the purchase of over 50 percent of the equity in a foreign business.

____ is the purchase of over 50 percent of the equity in a foreign business. Answer: Majority Interest ...

_____ is the joining of two firms in order to form a third company in which the equity is shared.

_____ is the joining of two firms in order to form a third company in which the equity is shared. Answer: Joint Ventures ...

_____ is when an investing entrepreneur holds a minority ownership position in the foreign venture.

_____ is when an investing entrepreneur holds a minority ownership position in the foreign venture. Answer: Minority Interes...

_____ is obtaining sales and profits without direct equity investment in the foreign market.

_____ is obtaining sales and profits without direct equity investment in the foreign market. Answer: Nonequity Arrangemen...

______ is using independent distributors or the company's own overseas sales office for international business.

______ is using independent distributors or the company's own overseas sales office for international business. Answer: Direct Exporti...

_____ is using a foreign purchaser in the local market or an export management firm.

_____ is using a foreign purchaser in the local market or an export management firm. Answer: Indirect Exporti...

Besides providing overall socialization, _____ develop a person's concept of self and provide a baseline for compliance with norm groups.

Besides providing overall socialization, _____ develop a person's concept of self and provide a baseline for compliance with norm groups. Answer:...

_____ in any culture provide value and attitudes that influence behavior.

_____ in any culture provide value and attitudes that influence behavior. Answer: reference groups ...

What are the three components of the nonverbal (or hidden) language of a culture?

What are the three components of the nonverbal (or hidden) language of a culture? 1. Time (How flexible are meeting times? Does 5:00 mean 5:00 on...

Probably the single most important problem confronting the entrepreneur occurs when _____.

Probably the single most important problem confronting the entrepreneur occurs when _____. Answer: Crossing Cultures ...

Sometimes one of the biggest problems for the entrepreneur is ______.

Sometimes one of the biggest problems for the entrepreneur is ______. Answer: Finding a translator and having an appropriate translation of the...

What 4 areas of a country's legal system are important to some extent for every entrepreneur?

What 4 areas of a country's legal system are important to some extent for every entrepreneur? 1. Property rights 2. Contract law 3. Product safety 4....

______ is an assessment of a country's political policies and its stability that takes place prior to entering into business in another country.

______ is an assessment of a country's political policies and its stability that takes place prior to entering into business in another country. Answer:...

______ is paying for goods indirectly through another source.

______ is paying for goods indirectly through another source. Answer: Third-party arrangemen...

______ is a method of payment using non-money items.

______ is a method of payment using non-money items. Answer: Bart...

_____ is the trade status of imports/exports between countries.

_____ is the trade status of imports/exports between countries. Answer: Current Accou...

___ is the process of an entrepreneur conducting business activities across national boundaries.

_____ is the process of an entrepreneur conducting business activities across national boundaries. Answer: International Entrepreneursh...

The editorial content of these ______ can provide interesting information and insights on trends, companies, and trade shows by giving a more local perspective on the particular market and market conditions.

The editorial content of these ______ can provide interesting information and insights on trends, companies, and trade shows by giving a more local...

Some _____ do market surveys of their members' domestic and international activities and are strategically involved in international standards issues for their particular industry.

Some _____ do market surveys of their members' domestic and international activities and are strategically involved in international standards issues...

____ in the United States and throughout the world are also a good source for industry data about a particular country.

____ in the United States and throughout the world are also a good source for industry data about a particular country. Answer: Trade associati...

Name 3 sources of information available from the US government

Name 3 sources of information available from the US government 1. Census reports 2. Export/import authority 3. North American Industrial Classification...

What are the four sections of the opportunity assessment plan?

What are the four sections of the opportunity assessment plan? 1. A major section that develops the product/service idea. 2. A major section that...

How is the opportunity assessment plan different than a business plan? (List of 4)

How is the opportunity assessment plan different than a business plan? (List of 4) 1. Opportunity assessment plan is shorter. 2. Opportunity assessment...

The leaders of the organization should not consider themselves role models for their employees.

The leaders of the organization should not consider themselves role models for their employees. A) True B) False Answer: ...

The limited liability company is not automatically taxed as a partnership.

The limited liability company is not automatically taxed as a partnership. A) True B) False Answer: ...

In a ______, bonds can be used to raise capital.

In a ______, bonds can be used to raise capital. A) corporation B) limited partnership C) general partnership D) sole proprietorship Answer:...

_______ distribute profits to owners through dividends.

_______ distribute profits to owners through dividends. A) Sole proprietorship B) General partnerships C) Limited partnerships D) Corporations Answer:...

A sole proprietorship is dissolved in the event of the owner's death.

A sole proprietorship is dissolved in the event of the owner's death. A) True B) False Answer: ...

The leaders of the organization need not always consider themselves role models for their employees.

The leaders of the organization need not always consider themselves role models for their employees. A) True B) False Answer: ...

The least expensive form of ownership to start is a:

The least expensive form of ownership to start is a: A) corporation. B) limited liability company. C) partnership. D) sole proprietorship. Answer:...

A limited liability corporation:

A limited liability corporation: A) has unlimited liability. B) is automatically taxed as a partnership. C) is decreasing in popularity among venture...

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

Which of the following ways of distributing the income of corporations is taxed twice? A) Bonus B) Salary C) Profit sharing D) Dividends Answer:...

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

In a(n) ______________________, only one class of stock is permitted. A) sole proprietorship B) C corporation C) S corporation D) partnership Answer:...

The board of advisors:

The board of advisors: A) is subject to regulations stipulated in the Sarbanes-Oxley Act. B) has no legal status. C) is not advisable in a family-owned...

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

The proprietor is not personally liable for any aspects of the business. A) True B) False Answer: ...

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

A board of advisors has less decision making authority than a board of directors does. A) True B) False Answer: ...

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

The most attractive type of business formation for raising capital is partnership. A) True B) False Answer: ...

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

In an S corporation capital gains or losses from the corporation are treated as personal income or losses. A) True B) False Answer: ...

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

Investors usually insist that the management team not operate the business as a part-time venture. A) True B) False Answer: ...

The ___ of a marketing plan is sometimes dependent on the solvency of the organization.

The ___ of a marketing plan is sometimes dependent on the solvency of the organization. A) length B) success C) failure D) all of the above Answer:...

___ is an internal environmental variable.

___ is an internal environmental variable. A) Financial resources B) Technology C) Industry demand D) The economy Answer:...

______ is an example of collecting primary data.

______ is an example of collecting primary data. A) Observation B) Interviewing C) Focus groups D) All of the above Answer:...

Marketing plans often fail due to unrealistic goals.

Marketing plans often fail due to unrealistic goals. A) True B) False Answer: ...

If the company operates in a nondifferentiated product market, it is more difficult to charge a high price.

If the company operates in a nondifferentiated product market, it is more difficult to charge a high price. A) True B) False Answer:...

Internal environmental factors include the management team and the venture's company mission.

Internal environmental factors include the management team and the venture's company mission. A) True B) False Answer: ...

Focus groups are a formal method for gathering in-depth marketing information.

Focus groups are a formal method for gathering in-depth marketing information. A) True B) False Answer: ...

The last step in conducting marketing research is to define objectives or purposes.

The last step in conducting marketing research is to define objectives or purposes. A) True B) False Answer: ...

Advertising and promotion for the business-to-business market involve all of the following EXCEPT:

Advertising and promotion for the business-to-business market involve all of the following EXCEPT: A) indirect sales B) trade magazine advertising. C)...

Monitoring ___________ during the implementation of the marketing plan allows the entrepreneur to establish controls on the process.

Monitoring ___________ during the implementation of the marketing plan allows the entrepreneur to establish controls on the process. A) sales data B)...

Gathering information from primary sources is the first step in market research.

Gathering information from primary sources is the first step in market research. A) True B) False Answer: ...

If the entrepreneur closely monitors the progress of the existing plan, he or she need not be concerned about contingencies.

If the entrepreneur closely monitors the progress of the existing plan, he or she need not be concerned about contingencies. A) True B) False Answer:...

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

Which of the following is NOT an example of collecting primary data? A) Observation B) Using the Internet C) Interviewing D) Focus groups Answer:...

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

Which of the following is NOT a characteristic of a marketing plan? A) It should provide a strategy. B) It should be based on facts and valid assumptions. C)...

What is a target market?

What is a target market? A) A group of customers a venture reaches by accident. B) All consumers who purchase the venture's product. C) A specific...

The marketing mix consists of:

The marketing mix consists of: A) product, price, research, and promotion. B) product, research, distribution, and promotion. C) product, price, distribution,...

Marketing research begins with:

Marketing research begins with: A) setting the advertising budget. B) definition of objectives or purpose. C) identifying direct marketing strategy. D)...

Focus groups should be led by the entrepreneur.

Focus groups should be led by the entrepreneur. A) True B) False Answer: ...

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.

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...

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

During situation analysis, the entrepreneur should provide a review of past performance of the product and the company. A) True B) False Answer:...

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

If the market for a new venture is highly concentrated, it is advisable to consider direct sales. A) True B) False Answer: ...

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.

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

By controlling ___________, the firm can ensure maximum service to the customer.

By controlling ___________, the firm can ensure maximum service to the customer. A)production B)sales C)inventory D)costs Answer:...

The tendency among many entrepreneurs is to:

The tendency among many entrepreneurs is to: A)avoid planning. B)not take initiative. C)not market their product or services. D)lose focus on the...

The business plan is designed to guide the entrepreneur:

The business plan is designed to guide the entrepreneur: A)through the first year of operations. B)through the distribution process. C)in the financing...

Which of the following documents is not usually included in the Financial Plan?

Which of the following documents is not usually included in the Financial Plan? A)Statement of cash flows B)Income statement C)Price lists from suppliers D)Projected...

The organization plan describes the business':

The organization plan describes the business': A)physical plant and machinery layout. B)location as well as its plant(s). C)system of distribution. D)form...

Distribution, pricing, and promotion of the product are discussed in which section of the plan?

Distribution, pricing, and promotion of the product are discussed in which section of the plan? A)Marketing B)Production C)Merchandising D)Organization...

If the new venture is not a manufacturing operation, but a retail store or service, a new section of the business plan is required which is called the:

If the new venture is not a manufacturing operation, but a retail store or service, a new section of the business plan is required which is called the: A)organizational...

If the new venture is a manufacturing operation a(n) __________ in the business plan is necessary.

If the new venture is a manufacturing operation a(n) __________ in the business plan is necessary. A)ownership plan B)quality control plan C)production...

The part of the plan that describes the location and size of the business, the personnel and office equipment that will be needed, and the history of the venture is called the:

The part of the plan that describes the location and size of the business, the personnel and office equipment that will be needed, and the history of...

The section of the business plan in which the entrepreneur identifies changes occurring on the national and international level is the:

The section of the business plan in which the entrepreneur identifies changes occurring on the national and international level is the: A)merchandising...

The executive summary section should:

The executive summary section should: A)be prepared before the total plan is written. B)highlight key financial milestones that have been achieved. C)be...

The usefulness of the title or introductory page is:

The usefulness of the title or introductory page is: A)that it provides information about the company. B)such that it requires several pages. C)questionable,...

Groups of Internet visitors who share opinions and have similar interests are called:

Groups of Internet visitors who share opinions and have similar interests are called: A)page groups. B)newsgroups. C)library sources. D)news homes....

To assess the potential profitability of a venture, the entrepreneur needs to ascertain expected sales and expense figures for the first:

To assess the potential profitability of a venture, the entrepreneur needs to ascertain expected sales and expense figures for the first: A)month. B)year. C)quarter. D)three...

When collecting marketing information the entrepreneur should:

When collecting marketing information the entrepreneur should: A)not include general environmental information. B)start with narrow-based data and...

Before beginning the business plan, the entrepreneur should define the venture's goals and objectives. These goals should be:

Before beginning the business plan, the entrepreneur should define the venture's goals and objectives. These goals should be: A)general and broad. B)feasible. C)guaranteed. D)unique....

Investors often place more emphasis on the entrepreneur's _________ than lenders do.

Investors often place more emphasis on the entrepreneur's _________ than lenders do. A)experience B)character C)financial records D)personal viewpoint...

When evaluating business plans _________ are primarily concerned with the four C's of credit.

When evaluating business plans _________ are primarily concerned with the four C's of credit. A)investors B)lenders C)vendors D)employees Answer:...

While preparing the first draft of the business plan, the entrepreneur should not:

While preparing the first draft of the business plan, the entrepreneur should not: A) prepare it from his or her personal viewpoint. B) take into...

The depth and detail of a business plan depend on:

The depth and detail of a business plan depend on: A)the target audience. B)the experience of the entrepreneur. C)the size and scope of the new...

Which of the following interested parties should not have access to the venture's business plan?

Which of the following interested parties should not have access to the venture's business plan? A)Suppliers B)Lenders C)Investors D)Competitors...

Which of the following statements is (are) true?

Which of the following statements is (are) true? A)The business plan describes both internal and external elements. B)The preliminary business plan...

The business plan addresses both short term and long term decision making.

The business plan addresses both short term and long term decision making. A) True B) False Answer: ...

Planning the new venture is a process that never ends.

Planning the new venture is a process that never ends. A) True B) False Answer: ...

Which of the following is not among the three perspectives that should be considered in preparing a business plan?

Which of the following is not among the three perspectives that should be considered in preparing a business plan? A) marketing perspective B) perspective...

Raw materials, labor skills, space and location form a part of __________ information needs.

Raw materials, labor skills, space and location form a part of __________ information needs. A) marketing B) financial C) operations D) planning Answer:...

Most entrepreneurs have difficulty with gathering operations information and do not often know where to begin.

Most entrepreneurs have difficulty with gathering operations information and do not often know where to begin. A) True B) False Answer:...

The venture's form of ownership should be included and described in the production plan section of the business plan.

The venture's form of ownership should be included and described in the production plan section of the business plan. A) True B) False Answer:...

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

_____ identifies potential hazards and alternative strategies to meet business plan goals and objectives. A) Assessment of risk B) Financial planning C)...

The business plan presentation for potential investors:

The business plan presentation for potential investors: A) should be presented only in writing. B) should contain no negative projections. C) should...

A production plan usually includes:

A production plan usually includes: A) pricing. B) evaluation of the weaknesses of the business. C) names of suppliers of raw materials. D) flow of...

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

The names, addresses, and resumes of the directors and officers of the corporation forms part of the _______________ plan. A) operations B) organizational C)...

Typically business plan projections are made on a ____________.

Typically business plan projections are made on a ____________. A) bi-monthly schedule B) quarterly schedule C) six-month schedule D) 12-month schedule...

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

The business plan is an integration of functional plans such as marketing, finance, manufacturing, and human resources. A) True B) False Answer:...

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

Potential investors are not very insistent on specifications that need to be included in the business plan. A) True B) False Answer:...

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

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

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.

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

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

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