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Second set of questions for Entrepreneurship

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Business #2

Business #2

Question 1 of 71

1

1. Which of the following is the most important thing that an entrepreneur, or team of entrepreneurs, can do to build a strong ethical culture in their organization?

Select one of the following:

  • Implement an ethics training program

  • write a mission statement

  • lead by example

  • hire an ethics compliance officer

Explanation

Question 2 of 71

1

A _______ is a formal statement of an organization's values on certain ethical and social issues.

Select one of the following:

  • code of conduct

  • code of behavior

  • code of performance

  • code of principles

  • code of morals

Explanation

Question 3 of 71

1

"Don't be evil" is the corporate motto for:

Select one of the following:

  • Facebook

  • Twitter

  • Zynga

  • Apple Inc.

  • Google

Explanation

Question 4 of 71

1

Most founders' agreements include a _____, which legally obligates the departing founder to sell to the remaining founders his or her interest in the firm if the remaining founders are interested.

Select one of the following:

  • redemption clause

  • buyback clause

  • statutory purchase clause

  • voluntary recoup clause

  • shareholder surrender clause

Explanation

Question 5 of 71

1

Which of the following is typically not included in the founder's agreement for a firm?

Select one of the following:

  • a marketing plan

  • legal form of business ownership

  • buyback clause

  • apportionment of stock

  • identity and proposed titles of founders

Explanation

Question 6 of 71

1

A(n) ______ agreement binds an employee or another party to not disclose a company's trade secret. A ____________ agreement prevents an individual fro, competing against a former employer for a specified period of time.

Select one of the following:

  • nondisclosure, noncompete

  • non breach-of-trust, nonchallenge

  • voluntary truth, nonparticipate

  • binding confidentiality, noncompete

  • ethics, nonparticipate

Explanation

Question 7 of 71

1

7. Trevor Parsons just took a job with Twitter. As part of his employment contract, Trevor signed an agreement that states that he will not disclose any of Twitter’s trade secrets. The agreement that Trevor signed is called a(n):

Select one of the following:

  • Nondisclosure agreement

  • non breach-of-trust agreement

  • ethics agreement

  • binding confidentiality agreement

  • legitimacy agreement

Explanation

Question 8 of 71

1

8. Which form of business ownership is a particularly poor choice for an aggressive entrepreneurial firm?

Select one of the following:

  • C corporation

  • Sole proprietorship

  • subchapter S corporation

  • limited partnership

  • limited liability corporation

Explanation

Question 9 of 71

1

9. Which of the following statements is incorrect regarding sole proprietorships?

Select one of the following:

  • There is one owner

  • Liquidity of the investment is high

  • Sole proprietor is in full control

  • Business ends at owner's death or loss of interest in the business

  • Money must be raised by the sole proprietor

Explanation

Question 10 of 71

1

Partnerships are organized as either:

Select one of the following:

  • specific or general partnerships

  • narrow or broad partnerships

  • inward or outward partnerships

  • general or limited partnerships

  • partial or full partnerships

Explanation

Question 11 of 71

1

a _____ sets forth the rights and duties of the general partners and limited partners, along with the details of how the partnership will be managed and eventually dissolved:

Select one of the following:

  • partnership accord

  • restricted partnership agreement

  • business partnership agreement

  • limited partnership agreement

Explanation

Question 12 of 71

1

A corporation is formed by filing ______ with the Secretary of State's office in the state of incorporation.

Select one of the following:

  • certificate of intent to incorporate

  • article of business

  • corporate credentials

  • a corporation permit

  • articles of incorporation

Explanation

Question 13 of 71

1

13. A disadvantage of corporations is that they are subject to ______, which means that a corporation is taxed on its net income and when the same income is distributed to shareholders in the form of dividends it is taxed again on the shareholders’ income tax returns.

Select one of the following:

  • Double taxation

  • dual toll

  • double duty

  • double assessment

  • dual harm

Explanation

Question 14 of 71

1

14. The ______ is a form of business organization that is rapidly gaining popularity in the United States. The connect originated in Germany and was first introduced in the United States in the state of Wyoming.

Select one of the following:

  • limited partnership

  • Limited liability company

  • general partnership

  • subchapter S corporation

  • C corporation

Explanation

Question 15 of 71

1

In what form of business ownership are owners called "members"?

Select one of the following:

  • general partnership

  • limited partnership

  • limited liability company

  • subchapter C corporation

  • C corporation

Explanation

Question 16 of 71

1

Financial management deals with two things --- managing a company's financed and:

Select one of the following:

  • operations management

  • inventory control

  • raising money

  • production management

  • supply chain management

Explanation

Question 17 of 71

1

17. Which of the following was not identified as one of the four main financial objectives of a firm?

Select one of the following:

  • stability

  • efficiency

  • Timeliness

  • liquidity

  • profitability

Explanation

Question 18 of 71

1

Match the financial objective with the correct definition.

Select one of the following:

  • stability/ the overall health of the financial structure of the firm, particularly as it relates to its debt-to-equity ratio

  • liquidity/a company's ability to make a profit

  • profitability/how productively a firm utilizes its assets

  • efficiency/a company's ability to meet its short-term obligations

  • profitability/the overall health of the financial structure of the firm, particularly as it relates to its debt-to-equity ratio

Explanation

Question 19 of 71

1

_______ is a company's ability to meet its short-term financial obligations.

Select one of the following:

  • liquidity

  • profitability

  • effectiveness

  • stability

  • efficiency

Explanation

Question 20 of 71

1

20. 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 in her store. On January 1, Peggy is taking account of her store’s:

Select one of the following:

  • long-term assets

  • owner's equity

  • accounts payable

  • accounts receivable

  • inventory

Explanation

Question 21 of 71

1

21. Southwest Airlines uses its assets very productively. Its turnaround time, or the time that its airplanes sit on the ground while they are being loaded and unloaded, is the lowest in the airline industry, In terms of the primary financial objectives of the fir, this attribute is a measure of

Select one of the following:

  • Efficiency

  • effectiveness

  • stability

  • liquidity

  • profitability

Explanation

Question 22 of 71

1

_____ depict relationships between items on a firm's financial statements.

Select one of the following:

  • financial proportions

  • fiscal relations

  • fiscal projections

  • monetary balances

  • financial ratios

Explanation

Question 23 of 71

1

23. Which financial statement records all of a firms revenues and expenses for a given period and shows whether the firm is making a profit or experiencing a loss?

Select one of the following:

  • balance sheet

  • owner's equity statement

  • statement of cash flows

  • forecast

  • Income statement

Explanation

Question 24 of 71

1

On a firm's income statement, net sales consists of:

Select one of the following:

  • operating expenses minus cost of sales

  • total sales minus allowances for returned goods and discounts

  • cost of sales minus allowances for returned goods and discounts

  • cost of sales minus operating expenses

  • total sales minus operating expenses

Explanation

Question 25 of 71

1

Cash plus items that are readily convertible to cash such as accounts receivable, marketable securities, and inventories are classified as ______ on a firm's balance sheet

Select one of the following:

  • other assets

  • intermediate term assets

  • temporary assets

  • current assets

  • fixed assets

Explanation

Question 26 of 71

1

When evaluating a balance sheet, two primary questions are:

Select one of the following:

  • whether a firm has sufficient short-term assets to cover its short-term debts and whether it is profitable

  • whether a firm is profitable and whether a firm is financially sound

  • whether its costs of sales is going up and whether it is generating excess cash that could be used to pay down debt or pay dividends

  • whether a firm has sufficient short-term assets to cover its short-term debts and whether it is financially sound

  • whether a firm is profitable and whether it is generating excess cash that could be used to pay down debt or pay dividends

Explanation

Question 27 of 71

1

Which of the financial statements used by businesses to keep track of their financial affairs is most similar to a person's end-of-the month bank statement?

Select one of the following:

  • income statement

  • balance sheet

  • statement of cash flows

  • statement of ratio analysis

  • statement of owner's equity

Explanation

Question 28 of 71

1

The statement of cash flows is divided into three separate activities:

Select one of the following:

  • profitability activities, stability activities, investing activities

  • stability activities, earning activities, financing activities

  • operating activities, capital activities, liquidity activities

  • spending activities, earning activities, capital activities

  • operating activities, investing activities, financing activites

Explanation

Question 29 of 71

1

In the context of a firm's statement of cash flows, _____ include cash raised during the period by borrowing money or selling stock and/or cash used during the period by paying dividends, buying back outstanding stock or buying back outstanding bonds

Select one of the following:

  • investing activities

  • operating activities

  • capital activities

  • financing activities

  • liquidity activities

Explanation

Question 30 of 71

1

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

Select one of the following:

  • operating activities

  • investing activities

  • capital activities

  • financing activities

  • liquidity activities

Explanation

Question 31 of 71

1

The ________ provides a firm a sense of how its activities will affect its ability to meet its short-term liabilities and how its finances will evolve over time.

Select one of the following:

  • pro forma balance sheet

  • pro forma statement of cash flows

  • pro forma income statement

  • pro forma expense statement

  • pro forma statement of owner's equity

Explanation

Question 32 of 71

1

A ________ is the group of founders, key employees, and advisors that move a new venture from an idea to a fully functioning firm.

Select one of the following:

  • new venture panel

  • startup team

  • new venture team

  • new project team

  • startup cadre

Explanation

Question 33 of 71

1

34. Jenny Templeton is preparing to launch a hoe security firm. The team of people that will launch Jenny’s firm are, as follows: Jenny (CEO), Brent (VP Finance), Carrie (VP Sales), a four person Board of Directors, a fiver person Board of Advisors, and Jenny’s primary investor who will assume an advisory role. The group of people that will launch Jenny’s firm is called its:

Select one of the following:

  • startup squad

  • new venture panel

  • New venture team

  • startup cadre

  • startup troop

Explanation

Question 34 of 71

1

Which of the following statements is untrue regarding founding teams?

Select one of the following:

  • The members of heterogenous teams are diverse in terms of their abilities and experiences

  • The members of homogenous teams are very similar in terms of their abilities and experiences

  • teams that have worked before together have an edge

  • Studies show that more than one individual starts 50 to 70 percent of all new firms

  • It is generally believed that new ventures started by an individual have an advantage over new ventures started by a team

Explanation

Question 35 of 71

1

Which of the following statements is incorrect regarding founding teams?

Select one of the following:

  • The members of heterogeneous teams are diverse in terms of their abilities and experiences

  • Teams that are working together for the first time have an advantage over teams that have worked together before

  • The psychological support that cofounders of a new business can offer one another is an important element of a firm's success

  • the members of a homogeneous team are very similar in terms of their abilities and experiences

  • Studies show that more than one individual starts 50 to 70 percent of all new teams.

Explanation

Question 36 of 71

1

The members of heterogeneous teams are:

Select one of the following:

  • diverse in terms of their abilities and experiences

  • diverse in terms of their abilities but very similar in terms of their experiences

  • similar in terms of their abilities and experiences

  • diverse in terms of their experiences, but very similar in terms of their abilities

  • sometimes diverse in terms of their abilities and experiences and sometimes similar along the same dimensions

Explanation

Question 37 of 71

1

Which of the following statements is not true regarding the attributes of the founder or founders of a firm?

Select one of the following:

  • Evidence suggests that important entrepreneurial skills are enhances through higher education

  • Founders with prior entrepreneurial experience are more likely to avoid costly mistakes

  • founders with experience in the same industry as their new ventures will typically have "blinders" on and are typically not as effective as founders new to the industry

  • Founders with broad social and professional networks have an advantage

  • new ventures that are started by a team rather than an individual have an advantage

Explanation

Question 38 of 71

1

A(n) _______is a chart that depicts the most important skills that are needed in a new venture and where the skill gaps exist

Select one of the following:

  • expertise report

  • talent profile

  • abilities summary

  • skills profile

  • talent summary

Explanation

Question 39 of 71

1

40. Jason Andersen just finished writing a business plan for a new type of office supply store. One thing Jason included in the “Management Team and Company Structure” section of his business plan is a chart that depicts the most important skills that are needed for his business and where the skills gaps exist. Jason included a(n) _____ in his business plan:

Select one of the following:

  • Skills profile

  • talent report

  • abilities profile

  • expertise reports

  • talent summary

Explanation

Question 40 of 71

1

41. Kate Harrison is in the process of launching an educational services firm. She plans to incorporate the firm. Because the firm will be incorporated, Kate is legally require to have a :

Select one of the following:

  • board of investors

  • board of advisors

  • customer advisory board

  • Board of directors

  • panel of advisors and peers

Explanation

Question 41 of 71

1

A board of directors if typically made up of both:

Select one of the following:

  • junior and senior directors

  • inside and outside directors

  • experienced and inexperienced directors

  • novice and expert directors

  • paid and unpaid directors

Explanation

Question 42 of 71

1

43. 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):

Select one of the following:

  • inside director

  • outside director

  • expert director

  • junior director

  • senior director

Explanation

Question 43 of 71

1

44. Keith Barnes is a general partner in a venture capital firm that just funded South florida Software, a software firm in Coral Gables Florida. South Florida Software is incorporated, and Keith has taken a seat on the firm’s board of directors. In Board of Directors terminology, Keith is a(n):

Select one of the following:

  • subordinate director

  • senior director

  • distant director

  • inside director

  • Outside director

Explanation

Question 44 of 71

1

A board of directors has three formal responsibilities

Select one of the following:

  • periodically update the firm's business plan, declare dividends and write the firm's marketing plan

  • appoint the officers of the firm, declare dividends and oversee the affairs of the corporation

  • write the firm's strategic plan, declare dividends, and conduct the annual meeting

  • appoint the officers of the company, conduct the annual meeting and submit the firm's annual report to the Securities and Exchange Commission

  • provide funding to the firm, write the firm's strategic plan and submit the firm's annual report to the Securities and Exchange Commission

Explanation

Question 45 of 71

1

A(n) _______________ is a panel of experts who are asked by a firm's managers to provide counsel and advice on an ongoing basis

Select one of the following:

  • consultation board

  • idea panel

  • counseling panel

  • advisory board

  • suggestion board

Explanation

Question 46 of 71

1

47. William Woods recently launched a printing company. One thing William is thinking about creating is a panel of experts who can provide him ongoing direction and advice regarding the future of his business. William is thinking about creating a(n)

Select one of the following:

  • analysis panel

  • discussion board

  • Advisory panel

  • suggestion panel

  • accountability panel

Explanation

Question 47 of 71

1

48. Which of the following is incorrect regarding the typical role of consultants in business startups?

Select one of the following:

  • give professional advice

  • international consulting firms like Accenture and Bearing Point are financially beyond the reach of most small firms

  • consultants fall into two categories: paid consultants and consultants who are made available for free

  • give expert advice

  • Help manage day-to-day activities of the firm

Explanation

Question 48 of 71

1

49. Kimberly Jones is the founder of a company in the medical equipment industry Kimberly’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 per month is Kimberly’s:

Select one of the following:

  • consumption rate

  • utilization rate

  • Burn rate

  • usage rate

  • liquidity rate

Explanation

Question 49 of 71

1

The three reasons startups need funding are:

Select one of the following:

  • cash flow challenges, capital investments and lengthy product development cycles

  • business research, cash flow challenges, and costs associates with building a brand

  • bonuses for members of the new venture team, attorney fees, and lengthy product development cycles

  • attorney fees, capital investments, and marketing research

  • bonuses for members of the new venture team, marketing research and personnel costs

Explanation

Question 50 of 71

1

51. In startup firms, inventory must be purchases, employees must be trained and paid, and advertising must be paid for before cash is generated from sales. Which of the following reasons that motivate firms to seek funding or financing is illustrated in this example?

Select one of the following:

  • Cash flow challenges

  • marketing costs

  • personnel costs

  • capital investments

  • lengthy product development cycles

Explanation

Question 51 of 71

1

52. Jason Graham’s startup, which is in the electronics industry, was launched on January 1, 2009. However, prior to its formal launch, Jason spent many hours working on his business, particularly during the feasibility analysis stage. The time and effort that entrepreneurs put into their venture, that can’t easily be measured from a financial point of view, is referred to as:

Select one of the following:

  • effort equity

  • intangible equity

  • Sweat equity

  • worry equity

  • fret equity

Explanation

Question 52 of 71

1

Equity financing (or funding) means:

Select one of the following:

  • exchanging partial ownership in a firm, usually in the form of stock, for funding

  • getting a grant or outright gift

  • getting a loan

  • getting a lease

  • getting a loan guarantee

Explanation

Question 53 of 71

1

Which of the following is not a source of equity funding?

Select one of the following:

  • initial public offering

  • angel investors

  • private placement

  • venture capital

  • government grants

Explanation

Question 54 of 71

1

Once a venture capitalist makes an investment in a firm, subsequent investments are made in rounds and are referred to as:

Select one of the following:

  • later funding

  • successive funding

  • subsequent backing

  • follow-on funding

  • ensuing backing

Explanation

Question 55 of 71

1

56. An important part of obtaining venture capital funding is going through ______, which refers to the process of investigating the merits of a potential venture and verifying the key claims made by the business plan

Select one of the following:

  • appropriate diligence

  • fit diligence

  • Due diligence

  • prior diligence

  • responsible dilligence

Explanation

Question 56 of 71

1

57. In regard to the stages (or rounds) of venture capital funding, the stage of funding that occurs when an investment is made very early in a venture’s life to fund the development of a prototype and feasibility analysis is referred to as:

Select one of the following:

  • Seed funding

  • second-stage funding

  • first-stage funding

  • mezzanine financing

  • startup funding

Explanation

Question 57 of 71

1

The main difference between SBIR and STTR programs is that the STTR program requires the participation of:

Select one of the following:

  • an attorney

  • a venture capitalist

  • researchers working at universities or other research institutions

  • a certified public accountant

  • a government agency in conducting research

Explanation

Question 58 of 71

1

Which of the following statements is incorrect about grant programs?

Select one of the following:

  • Granting agencies are very visible and well-known, so normally its not hard to find one.

  • The federal government has grant programs beyond the SBIR and STTR programs

  • It's important to avoid grant-related scams

  • There are a limited number of organizations that offer new business grants

  • There are private foundations that grant money to both existing and startup firms

Explanation

Question 59 of 71

1

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:

Select one of the following:

  • market positioning

  • market splitting

  • market targeting

  • market subdividing

  • market segmentation

Explanation

Question 60 of 71

1

Which of the following is the correct sequence of events in regard to the process of selecting a target market and position strategy?

Select one of the following:

  • creating a unique positioning strategy, selecting a target market , segmenting the market

  • segmenting the market, creating a unique positioning strategy, selecting a target market

  • segmenting the market, selecting a target market, creating a unique positioning strategy

  • selecting a target market, creating a unique positioning strategy, segmenting the market

  • creating a unique positioning strategy, segmenting the market, selecting a target market

Explanation

Question 61 of 71

1

A(n) ________________ is the set of attributes, positive or negative, that people associate with a company

Select one of the following:

  • emblem

  • logo

  • symbol

  • brand

  • trade name

Explanation

Question 62 of 71

1

Which of the following selections is incorrect regarding a firm's "positioning strategy"?

Which of the following is incorrect regarding a firm's "positioning" strategy?

Select one of the following:

  • Position is concerned with how the firm is situated relative to its competitors

  • A firm's decision about how to position itself relative to its competitors starts with a product or service that is tested and refined through feasibility analysis and marketing research

  • Position is concerned with how a firm is situated relative to competitors

  • Once a firm positions itself in a certain way, it must be able to follow through with a product or service that lives up to the image it has created

  • After selecting a positioning strategy, the firm's next step is to select a target market

Explanation

Question 63 of 71

1

Creating _______ means creating awareness and a sense of anticipation about a company and it offerings.

Select one of the following:

  • ruckus

  • noise

  • clatter

  • clamor

  • buzz

Explanation

Question 64 of 71

1

Which of the following statements is incorrect regarding the process of building a company's brand?

Select one of the following:

  • A firm's names, logo, web site design and even its letterhead are part of its brand

  • One of the keys to effective branding is to create a strong personality for the firm

  • Some companies monitor the integrity of their brands through brand management

  • Startups must build a brand from scratch, which starts with selecting the company's name.

  • Most experts recommend a heavy reliance on advertising in building a firm's brand

Explanation

Question 65 of 71

1

____________ is a term that denotes the set of assets and liabilities that are linked to a brand and enable it to raise a firm's valuation.

Select one of the following:

  • Trademark equity

  • Brand equity

  • logo equity

  • Trademark value-added

  • Trade name strength

Explanation

Question 66 of 71

1

A(n) ______ is an early user of a firm's product who is willing to give a testimonial regarding his or her experience with the product.

Select one of the following:

  • tribute account

  • reference account

  • approval report

  • appreciation account

  • acknowledgment report

Explanation

Question 67 of 71

1

68. Before Kim Green opened her Jiffy print store, she processed several large print jobs for local merchants for free, to demonstrate the quality of her service and to solicit feedback. Two of the merchants wrote favourable reviews of Kim’s service, and agreed to let Kim post the reviews on her company’s web site. The companies that wrote the favourable reviews are referred to as:

Select one of the following:

  • appreciation reports

  • acknowledgement reports

  • Reference accounts

  • tribute reports

  • approval reports

Explanation

Question 68 of 71

1

________________ refers to the activities the firm takes to communicate the merits of its product to its target market

Select one of the following:

  • Sponsorship

  • Advertising

  • Ensorsement

  • Promotion

  • Price

Explanation

Question 69 of 71

1

The Google program called ____________ allows advertisers to buy keywords on Google Home Page.

Select one of the following:

  • AdSense

  • Adcenter

  • AdWords

  • Search Marketing

  • AdGoogle

Explanation

Question 70 of 71

1

A(n) ________ is a route a product takes from the place it is made to the customer who is the end user

Select one of the following:

  • trade channel

  • product channel

  • allotment channel

  • promotion channel

  • distribution channel

Explanation

Question 71 of 71

1

A firm's sales process:

Select one of the following:

  • is typically not put in place until a year or more after a startup launches

  • describes a firm's branding strategy

  • depicts the steps it goes through to identify prospects and close sales

  • describes it social media strategy

  • depicts the steps it goes through to identify its target market and positioning strategy

Explanation

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