74) Describe what is meant by a "general partnership" and a "limited partnership." Describe the major difference between the two.
75) What is meant by the term "piercing the corporate veil"? How can the corporate veil be pierced?
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51) Industry analysis is business research that focuses on the potential of an industry.
52) A comparison analysis is a detailed evaluation of a firm's competitors.
53) Virtually all studies have concluded that firm-specific factors are more important than industry-specific factors in terms of firm profitability.
54) The two trends that are most.
31) Which of the following statement is incorrect regarding how balance sheets are prepared?
A) The left hand side of a balance sheet shows a firm's assets.
B) The assets on a balance sheet are shown in order of liquidity.
C) Assets are recorded at fair market value rather than cost.
D) The right.
21) Which of the following is not one of the four factors identified in the textbook as critical in selecting a form of business ownership?
A) the cost of setting up and maintaining the legal form
B) the number and types of investors involved
C) accounting considerations
D) tax considerations
E) the extent to which.
11) Which of the following is a "primary" activity in the value chain?
A) resource procurement
B) technology development
C) outbound logistics
D) firm infrastructure
E) human resource management
12) According to the textbook, by studying a product's or service's value chain an organization can:
A) identify ways to create additional value and assess whether it has.
11) Peggy Owens owns a store that sells exercise equipment. Each January 1, she makes a very accurate account of all her merchandise and products waiting to be sold that are in her store. On January 1, Peggy is taking account of her store's:
A) long-term assets
B) owners' equity
C) accounts payable
D).
1) One of the most significant economic developments in recent business history relates to the:
A) growth of blue-chip corporations.
B) development of Pacific Rim countries.
C) entrepreneurial spirit.
D) additional employment opportunities offered by government institutions.
2) The recent number of job losses in large corporations compared to the jobs created by small.
51) A new venture team is the group of founders, key employees, and advisers that move a new venture from an idea to a fully functioning firm.
52) The term "liability of newness" refers to the fact that companies often falter because the people who start the firms can't adjust quickly.
109) What is an entrepreneur? Give a brief profile of a typical entrepreneur. What is the primary motivation for the typical entrepreneur?
110) Discuss the potential benefits and drawbacks of entrepreneurship.
111) Describe the factors that are driving the current entrepreneurial trend in the U.S. economy.
112) Discuss the role that the following.
31) ________ percent of all U.S. businesses are family owned and managed.
A) Twenty-five
B) Fifty
C) Seventy
D) Ninety
32) "Copreneurs" are defined as:
A) entrepreneurs that work part-time.
B) highly successful entrepreneurs with prior company experience and background.
C) those entrepreneurs that will eventually combine their business with another venture.
D) entrepreneurial couples that work together as.
41) In the context of a firm's statement of cash flows, ________ include the purchase, sale, or investment in fixed assets, such as real estate, equipment, and buildings.
A) operating activities
B) investing activities
C) capital activities
D) financing activities
E) liquidity activities
42) In the context of a firm's statement of cash flows, ________ include.
21) Jason Andersen just finished writing a business plan for a new type of office supply store. One thing Jason included in the "Management Team & Company Structure" section of his business plan is a chart that depicts the most important skills that are needed for his business and where.
81) Most home-based businesses are simple cottage industries such as crafts or sewing.
82) Not all family-owned businesses are small; in fact, approximately one-third of the Fortune 500 companies are family businesses.
83) Of the 25 million businesses in the U.S., about 40 percent are family owned and managed.
84) Ninety-percent of businesses.
31) According to the textbook, InstyMeds in prescription drug sales, Fresh Healthy Vending in food vending, and Daisy Rock in guitars are example of entrepreneurial firms who are exploiting opportunities in ________ industries.
A) emerging
B) fragmented
C) declining
D) mature
E) emerging
32) According to the textbook, Nucor in steel, JetBlue in airlines, and Cirque.
61) An increasingly important approach for recruiting employees is via social media sites like LinkedIn, Facebook, and Twitter.
62) Although a board of directors has formal governance responsibilities, its most useful role is to provide guidance and support to the firm's managers.
63) An advisory board is a panel of experts who.
41) Small companies:
A) created fewer jobs than big companies in the last decade.
B) are concentrated in the manufacturing and retail sectors.
C) are the leaders in offering training and advancement opportunities to workers.
D) account for approximately 10 percent of the nation's GDP and 25 percent of business sales.
42) The majority of.
11) Which of the following statements is incorrect regarding founding teams?
A) The members of heterogeneous teams are diverse in terms of their abilities and experiences.
B) Teams that are working together for the first time have an advantage over teams that have worked together before.
C) The psychological support that cofounders of.
41) A hub and wheel configuration with a local firm at the hub organizing the interdependencies of a complex array of firms is referred to as a:
A) trade association
B) strategic alliance
C) network
D) joint venture
E) consortia
42) An arrangement between two or more firms that establishes an exchange relationship but has no.
41) Which of the following was not identified in the textbook as an attribute of an effective board of directors?
A) homogeneous set of experiences and talents
B) customer-focused point of view
C) ability and willingness to stand up to the CEO and top managers of the firm
D) strong communication with the CEO
E).
61) An emerging industry is a new industry in which standard operating procedures have yet to be developed.
62) A fragmented industry is one that is characterized by a large number of firms of approximately equal size.
63) The primary opportunity available to firms in fragmented industries is consolidation. The most common.
91) David Birch considers "gazelles" those businesses that grow at 20 percent or more per year and gross at least $100,000 in annual sales.
92) Small companies have created at least two-thirds of the net new jobs in the U.S. economy.
93) Small businesses actually create more jobs than the number of.
61) A disadvantage of a sole proprietorship is that it is subject to double taxation.
62) A disadvantage of a general partnership is that the liquidity of each partner's investment is low.
63) The major difference between a general and a limited partnership is that a limited partnership includes two classes of.
1) Stroome, the focus on the opening feature for Chapter 6, has developed a new Web-based service for editing and remixing video. Stroome's initial business model is based on making money in the following two ways:
A) subscription fees and licensing its software to film producers
B) a "freemium" pricing model and.
101) The primary cause of small business failure is lack of capital.
102) Entrepreneurs realize that failure is a possibility, but are not paralyzed by that fear.
103) To boost sales, small businesses, especially start-ups, should grant credit to anyone who wants to buy their products or services.
104) As an entrepreneur,.
51) The only people who ________ are those who never do anything or never attempt anything new.
A) succeed
B) prosper
C) profit
D) fail
52) Which of the following was not identified as one of the suggestions for small business success?
A) Develop a business plan as you grow your business.
B) Manage your financial resources.
21) Jeff Mommer is starting an environmentally friendly lawn and garden service. One thing that Jeff has worked hard on is determining how his company will compete in the marketplace. This element of Jeff's business model is referred to as:
A) core strategy
B) strategic resources
C) partnership network
D) fulfillment and support
E) customer.
11) In a large organization, an individual may be stifled and limited by a wide variety of factors. However, by owning one's own business, the only limits are one's own creativity, talent, and determination. In this sense, small business ownership offers the advantage of the:
A) opportunity to reach one's full.
74) Briefly describe the four main components of a business model. Identify the subcomponents of each the four main components of a business model.
75) What is a strategic asset? Provide an example of a strategic asset that is utilized by an entrepreneurial firm.
.
71) What is meant by the statement, "A firm's business model takes it beyond its own boundaries"? Provide an example to illustrate your answer.
72) Why is it important for a firm to have a well-thought-out business model?
73) Describe the two potential fatal flaws of business models.
.
71) Describe the term "liability of newness" and suggest several ways that a new venture can overcome this handicap.
72) Are more firms started by individuals or founding teams? What are the advantages to founding a firm as a team rather than as an individual?
73) What is the difference between a.
31) According to the textbook, ________ are common in real estate development, oil and gas exploration, and motion picture ventures.
A) sole proprietorships
B) limited liability companies
C) Subchapter S Corporations
D) limited partnerships
E) general partnerships
32) A separate legal entity organized under the authority of a state is referred to as a:
A) limited partnership
B).
51) The single most important thing the founders of an entrepreneurial venture can do to avoid ethical misconduct is to establish a strong ethical culture for their firms.
52) The most important thing that any entrepreneur, or team of entrepreneurs, can do to build a strong ethical culture in their organization.
1) Xplosafe, the company profiled in the opening feature for Chapter 7, interviewed four attorneys before selecting the attorney they now use. They selected the attorney they did for two reasons:
A) his fees were the lowest and he is an entrepreneur himself
B) his references were the strongest and he is.
51) Financial management deals with two things: raising money and managing a company's finances in a way that achieves the highest rate of return.
52) Efficiency is the ability to earn a profit.
53) Stability is a company's ability to meet its short-term financial obligations.
54) A company's accounts receivable is money owed.
41) Corporations that trade their stock on organized exchanges like the New York Stock Exchange and the NASDAQ are called:
A) national corporations
B) civil corporations
C) public corporations
D) premier corporations
E) common corporations
42) In a ________, the voting stock is held by a small number of individuals and is very thinly or infrequently.
21) ________ reflect past performance and are usually prepared on a quarterly and annual basis.
A) Chronological financial statements
B) Ad-hoc financial statements
C) Historical financial statements
D) Concurrent financial statements
E) Pro forma financial statements
22) ________ are projections for future periods based on forecasts and are typically completed for two to three years into.
114) The following lists the ten deadly mistakes of entrepreneurship.
1.Management mistakes
2.Lack of experience
3.Poor financial control
4.Weak marketing efforts
5.Failure to develop a strategic plan
6.Uncontrolled growth
7.Poor location
8.Improper inventory control
9.Incorrect pricing
10.Inability to make the entrepreneurial transition
Select one of these deadly mistakes, describe what it may look like for the entrepreneur, and give an.
61) A company's product/market scope defines the products and markets on which it will concentrate.
62) Historically, it has been difficult for a new venture to use a differentiation strategy.
63) A core competency is a resource or capability that serves as a source of a firm's competitive advantage over its rivals.
64).
1) Scripped, the company profiled in the opening feature for Chapter 9, offers Web-based screenwriting software. Which of the following statements best reflects Scripped's personnel policy?
A) Scripped has hired aggressively and now has approximately 40 employees.
B) Its three cofounders are its only employees.
C) Scripped was founded by two UCLA MBA.
51) A business plan is a firm's plan or diagram for how it competes, uses its resources, structures its relationships, interfaces with customers, and creates value to sustain itself on the basis of the profits it earns.
52) A firm's business model resides within its own boundaries.
53) Almost all firms partner.
61) A firm's profit margin, or return on sales, is computed by dividing net income by net sales.
62) A statement of cash flows is a snapshot of a company's assets, liabilities, and owners' equity at a specific point in time.
63) The major categories of assets listed on a balance sheet.
11) Which of the following is typically not included in the founders' agreement for a firm?
A) marketing plan
B) legal form of business ownership
C) buyback clause
D) apportionment of stock
E) identity and proposed titles of the founders
12) The Savvy Entrepreneurial Firm feature in Chapter 6 focuses on the topic of vesting company.
31) Firms that have a ________ strategy strive to have the lowest costs in the industry, relative to competitors' costs, and typically attract customers on that basis. In contrast, firms using a ________ strategy compete on the basis of providing unique or different products and typically compete on the basis.
71) List and briefly describe three specific steps that an entrepreneurial organization can take to build a strong ethical culture.
72) What is a founders' agreement? Describe the purpose of a buyback clause and why it's important?
73) Describe the purpose of a nondisclosure agreement. Provide an example of when a nondisclosure.
41) According to the textbook, the first step in a competitor analysis is to:
A) develop a marketing plan
B) develop the strategic plan
C) study the strength of the industry
D) study the external environment
E) determine who the competition is
42) According to the textbook, the three different types of competitors a business will.
71) What is industry analysis? Why is it important for a new venture to complete a thorough analysis of the industry it is entering?
72) Identify the five competitive forces that determine industry profitably. Explain the purpose of analyzing these forces?
73) Discuss the nontraditional barriers to entry identified in the chapter..
31) In the context of boards of directors, a(n) ________ is someone who is not employed by the firm.
A) outside director
B) inside director
C) external director
D) impartial director
E) peripheral director
32) James Williams is the Chief Operating Officer of a startup in the health food industry. He is also a member of.
21) Entrepreneurs may find benefit from the Internet due to its potential:
A) if the organization is willing to invest millions of dollars in this effort.
B) only if the entrepreneur has a high level of technical abilities.
C) as a relatively low-cost solution to expand its revenue-generating abilities.
D) to take all pressure.
71) Describe each of the four primary financial objectives of firms.
72) Describe the difference between historical and pro forma financial statements.
73) Describe the purpose of the income statement, the balance sheet, and the statement of cash flows.
74) What is ratio analysis? Why is it important?
75) What are forecasts? What role.
1) Klymit, the company profiled in the opening feature in Chapter 8, makes cold weather apparel products and related accessories. According to the feature, one of the prominent challenges Klymit has faced is:
A) cash flow management
B) constructing realistic pro forma financial statements
C) defining its core strategy
D) hiring qualified personnel
E) finding.
