Term
| Which of the following is not one of the three components of intellectual capital? |
|
Definition
|
|
Term
| The strongest of the five forces in most industries is: |
|
Definition
| rivalry among companies competing in the industry |
|
|
Term
| The aggregation of factors that sets a company apart from its competitors and gives it a unique position in the market superior to its competition is its: |
|
Definition
|
|
Term
| The process in which entrepreneurs test their business models on a small scale before committing serious resources to launch a business that might not work is known as: |
|
Definition
|
|
Term
| ________ are a unique set of capabilities that a company develops in key operational areas “such as service, innovation, and others” that allow it to potentially vault past its competitors. |
|
Definition
|
|
Term
| Conducting ________ research involves collecting data firsthand and analyzing it while ________ research involves gathering data that has already been complied and is available. |
|
Definition
|
|
Term
| The key to entrepreneurial success over time is to build a ________ competitive advantage. |
|
Definition
|
|
Term
| The primary purpose of a business plan is to: |
|
Definition
| guide a company by charting its future course and devising a strategy for success |
|
|
Term
| A small company's mission statement: |
|
Definition
| all of the above (defines what the company is, why it exists, and its reason for being, gives the business and everyone in it a sense of direction, establishes its purpose in writing) |
|
|
Term
| The three "tests" associated with a business plan are: |
|
Definition
| reality, competitive, and value |
|
|
Term
| Kevin Abt noticed that people were cooking meals in their homes less often but wanted to avoid the hassle of going out to eat. They wanted to "eat in" without cooking. Abt launched a company, Takeout Taxi that delivers restaurant-prepared food to his customers' homes and businesses. Takeout Taxi is the result of a(n): |
|
Definition
|
|
Term
| The reality test that a business plan must pass in order to attract financing from lenders and investors involves proving: |
|
Definition
| that a market for the company's product or service actually does exist and that the company can actually build it for the cost estimates included in the plan |
|
|
Term
| Gathering competitive intelligence, such as "dumpster diving" in a competitors trash, may raise questions regarding: |
|
Definition
|
|
Term
| The ________ serves as the "thesis statement" for the entire business plan and is the broadest expression of a company's purpose and defines the direction in which it will move. |
|
Definition
|
|
Term
| Which of the following is not a recommended method of collecting competitive intelligence? |
|
Definition
| Pay competitors' employees to become informants about their companies' strategies, markets, and trade secrets. |
|
|
Term
| The key to choosing the right form of ownership is: |
|
Definition
| understanding the characteristics of each form and knowing how they affect your business and personal circumstances |
|
|
Term
| A franchise is a system of distribution in which semi-independent business owners pay ________ and ________ to a parent company in return for the right to become identified with its trademark, to sell its product or services, and often to use its business format and system. |
|
Definition
|
|
Term
| When done correctly, the due diligence process will: |
|
Definition
| reveal both the positive and negative aspects of an existing business |
|
|
Term
| The most critical disadvantage of the sole proprietorship is: |
|
Definition
| the owner's unlimited personal liability |
|
|
Term
| McDonald's is an example of a ________ franchise. |
|
Definition
|
|
Term
| The first step an entrepreneur should take when buying an existing business is to: |
|
Definition
| analyze his or her skills, abilities, and interests in an honest self-audit |
|
|
Term
| Probably the most important reason to have a partnership agreement is that it: |
|
Definition
| resolves potential sources of conflict that, if not addressed in advance, could later result in partnership battles and dissolution of an otherwise successful business |
|
|
Term
| Which of the following is not a potential advantage of franchising for the franchisee? |
|
Definition
|
|
Term
| During the acquisition process, the potential buyer usually must sign a ________, which is an agreement to keep all conversations and information secret and legally binds the buyer from telling anyone any information the seller shares with her. |
|
Definition
|
|
Term
| In a general partnership: |
|
Definition
| each partner is held responsible for an agreement/decision made by any one of the partners |
|
|
Term
| When it comes to purchasing products, equipment, and incurring other expenses, the franchiser: |
|
Definition
| can set prices franchisees pay for the products but cannot set the retail price the franchisees charge |
|
|
Term
| The three main sources of potential legal liabilities for the buyer of an existing business include all but which of the following? |
|
Definition
|
|
Term
| Acme Corporation is chartered in Delaware, but its primary area of operation is in South Carolina. In South Carolina, Acme would be considered a(n) ________ corporation. |
|
Definition
|
|
Term
| Which of the following should make a potential franchisee suspicious about a franchiser's honesty? |
|
Definition
| claims that the franchise contract is a standard agreement and that there is no need to read it or have an attorney look it over |
|
|
Term
| A study by the International Franchises Association reports that minorities own more than ________ percent of all franchises and women own ________ percent of franchises. |
|
Definition
|
|
Term
| ________ is the process of creating and delivering desired goods and services to customers and involves all of the activities associated with winning and retaining loyal customers. |
|
Definition
|
|
Term
| The two regions of the world with the highest penetration of the Internet are ________ and ________. |
|
Definition
| North America; Oceania/Australia |
|
|
Term
| The focus of a small company's marketing plan should be on: |
|
Definition
|
|
Term
| To avoid unpleasant surprises in launching an e-commerce effort an entrepreneur should: |
|
Definition
| test the Web site with real customers to make sure it is easy to navigate |
|
|
Term
| Entrepreneurs should make sure they do not fall victim to any of the e-commerce myths. Which of the following is not an e-commerce myth? |
|
Definition
| privacy and site security is an important issue on the Web |
|
|
Term
| Which of the following is not one of the objectives a guerrilla marketing plan should accomplish? |
|
Definition
| determine how the company will be able to serve all customers |
|
|
Term
| Successful e-tailers have discovered that these factors enhance their reputations for online customer service: |
|
Definition
| all of these factors enhance a Web-based reputation |
|
|
Term
| Companies whose products or services are ________ from major social, demographic, and economic trends rather than ________ with them must change their course or run the risk of failing. |
|
Definition
|
|
Term
| Before a Web site can become the foundation for a successful e-business: |
|
Definition
| it must be created with the target audience in mind |
|
|
Term
| Which of the following is not a secondary source of market research data? |
|
Definition
|
|
Term
| Which of the following is not a common reason customers leave Web sites before checking out? |
|
Definition
| the privacy policy was not posted |
|
|
Term
| The ________ while downloading a Web page is one of the most important determinants of its sales effectiveness. |
|
Definition
|
|
Term
| Research shows that repeat customers spend ________ percent more than new customers. |
|
Definition
|
|
Term
| For entrepreneurial companies that lack brand and name recognition, and if building name recognition is one of the keys to success on the Web, one effective and affordable option may be to: |
|
Definition
| form strategic alliances with larger companies that can add credibility |
|
|
Term
| Attracting a new customer costs ________ as much as keeping an existing one. |
|
Definition
|
|
Term
| Setting prices for products and services requires entrepreneurs to balance a multitude of complex forces as entrepreneurs determine prices for their goods and services that will draw customers and: |
|
Definition
|
|
Term
| The ________ shows what assets the business owns and what claims creditors and owners have against those assets, and is built on the basic accounting equation: Assets = Liabilities + Owner's Equity. |
|
Definition
|
|
Term
| Generally, entrepreneurs should avoid head-to-head price competition with other firms that can more easily achieve lower prices through: |
|
Definition
|
|
Term
| ________ are those items of value the business owns; ________ are those things the business owes. |
|
Definition
|
|
Term
| When pricing a new product, a small business owner should strive to always satisfy which three objectives? |
|
Definition
| product acceptance, maintaining market share, and earning a profit |
|
|
Term
| The ________ ratio is a conservative measure of a firm's liquidity and shows the extent to which a firm's most liquid assets cover its current liabilities. |
|
Definition
|
|
Term
| Although many retailers much match competitors' prices on identical items, maintaining a ________ pricing policy may not be healthy for a small business because it robs the company of the opportunity to create a distinctive image in its customers' eyes. |
|
Definition
|
|
Term
| ________ is one indication that a small business may be undercapitalized. |
|
Definition
| a debt-to-net worth ratio above 1:1 |
|
|
Term
| The fee that banks collect from retailers whenever customers use a credit or a debit card to pay for a purchase is known as the: |
|
Definition
|
|
Term
| Which ratio would be most helpful to a business owner to measure the profit per dollar of sales? |
|
Definition
|
|
Term
| One of the requirements to be able to offer ________ is to make certain that the firms' cash position is ________. |
|
Definition
| trade credit; strong enough to support the additional pressure |
|
|
Term
| Which of the following is an assumption of break-even analysis? |
|
Definition
| all of the above (variable expenses change in direct proportion to changes in sales volume, fixed expenses remain constant for all levels of sales volume, changes in sales volume have no effect on unit sales price) |
|
|
Term
| A reliable cost accounting system is necessary for accurate pricing. The traditional method of product costing, where the costs of direct materials, direct labor, and factory overhead are included in a finished product's total cost is called ________. |
|
Definition
|
|
Term
| ________ ratios help a business owner evaluate the company's performance and indicate how effectively the business employs its resources. |
|
Definition
|
|
Term
| An MP3 player is sold at a price close to the break even point, but the accessories for the product are priced at a premium, offer impressive contribution margins. This is an example of: |
|
Definition
|
|
Term
| ________ is the most important, yet least productive, asset that a small business owns. |
|
Definition
|
|
Term
| Unlike entrepreneurs of the past, today's entrepreneurs: |
|
Definition
| have to piece their capital together from several sources |
|
|
Term
| ________ typically lead(s) sales; ________ typically lag(s) sales. |
|
Definition
|
|
Term
| The primary advantage of equity capital is: |
|
Definition
| that it does not have to be repaid like a loan does |
|
|
Term
| Jane is arguing with Joan about how much cash their small retail outlet needs as they prepare their cash budget. Jane feels that with the Christmas season coming, their busiest time, they need more cash available while Joan feels they do not because their sales volume will be up significantly. Jane and Joan are discussing which step of the cash budgeting process? |
|
Definition
| forecasting cash receipts |
|
|
Term
| When looking for an angel, the key is: |
|
Definition
|
|
Term
| When a firm sells goods or services on credit, the owner needs to remember that for cash budgeting purposes: |
|
Definition
| she must account for a delay between the sale and the actual collection of the proceeds |
|
|
Term
| Which of the following is not a characteristic of a typical angel investor? |
|
Definition
| purchasing majority ownership in the company |
|
|
Term
| Venture capitalists look for ________ as the most important ingredient in the success of any business. |
|
Definition
|
|
Term
| By planning cash needs ahead of time, a small business is able to achieve all but which of the following? |
|
Definition
| provide the opportunity to forgo quantity and cash discounts |
|
|
Term
| Less than ________ percent of all U.S. companies are publicly held corporations. |
|
Definition
|
|
Term
| ________ small businesses take the time to conduct a credit check. |
|
Definition
|
|
Term
| Typically, the entire process of going public takes ________, but it can take much longer if the issuing company is not properly prepared for the process. |
|
Definition
|
|
Term
| Once a small business has established a firm written credit policy and has clearly communicated it, the next step in building an effective credit policy is to: |
|
Definition
|
|
Term
| Which of the following kinds of securities can an entrepreneur sell through a Small Company Offering Registration (SCOR)? |
|
Definition
| all of the above (convertible preferred stock, preferred stock, common stock) |
|
|
Term
| The first phase of determining where to locate a business is: |
|
Definition
| determining which regions of the country are experiencing growth |
|
|
Term
| For an entrepreneur, expanding into international markets: |
|
Definition
| helps it grow faster and survive competition better |
|
|
Term
| Posting job openings on the Internet has proven to be: |
|
Definition
| a cost effective method to attract candidates from other areas |
|
|
Term
|
Definition
| contains the names of every street in the country and detailed block statistics for 345 urban areas |
|
|
Term
| An export trading company: |
|
Definition
| typically offer a wide range of services such as exporting, shipping, storing, distributing, and others to their clients |
|
|
Term
| Luisa, the director of human resources, is discussing the duties and responsibilities of a new position and its working conditions with Delmar, the manager over the position. Luisa and Delmar are discussing a: |
|
Definition
|
|
Term
| Which of the following characteristics for selecting a city would be of greatest interest to a retail store selling fine china and collectibles? |
|
Definition
| population characteristics |
|
|
Term
| The most important ingredient for a successful joint venture is: |
|
Definition
| choosing the right partner |
|
|
Term
| Effective interviewers spend about ________ percent of the interview talking and ________ percent listening. |
|
Definition
|
|
Term
| The purpose of zoning regulations is to: |
|
Definition
| contain similar types of activities in suitable locations |
|
|
Term
| Nature's Way, a health food store, has just opened in a popular neighborhood shopping center next to Silver's Gym, a physical fitness center catering to both men and women. Nature's Way is relying on which location principle? |
|
Definition
|
|
Term
|
Definition
| an agreement in which a licenser gives a licensee in another country the right to use that licenser's patent, trademark, copyright, technology, and products in return for a percentage of the licensee's sales or profits |
|
|
Term
| Which government agency is responsible for enforcing employment laws? |
|
Definition
| the Equal Employment Opportunity Commission |
|
|
Term
| Central Business District (CBD) |
|
Definition
| all of the above (in many cities experienced decay in years past as customers began shopping more frequently at malls and shopping centers, but are now going through revitalization programs, is the traditional center of town, attracts customers from the entire trading area of the city) |
|
|
Term
| Which of the following is not one of the three major advantages to establishing an international location? |
|
Definition
|
|
