Professor Tepfer's courses - ProfessorTepfer



ExamName___________________________________MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.1) The three primary reasons that people become entrepreneurs and start their own firms are to:1) _______A) do what they were "born" to do, be their own boss, and gain prestigeB) be their own boss, pursue their own ideas, and realize financial rewardsC) take big risks, be their own boss, and do what they were "born" to doD) gain prestige, realize financial rewards, and eliminate risk in their livesE) take advantage of government subsidies, pursue their own ideas, and realize financial rewardsPage Ref: 72) According to the textbook, the four characteristics of successful entrepreneurs are:2) _______A) passion for the business, on the cutting edge of technological change, very charismatic, and tenacity despite failureB) young and energetic, passion for the business, product/customer focus, and seeks recognitionC) passion for the business, tenacity despite failure, product/customer focus, and execution intelligenceD) passion for the business, seeks recognition, young and energetic, and execution intelligenceE) on the cutting edge of technological change, forward thinking, tenacity despite failure, and product/customer focusPage Ref: 93) The number one characteristic shared by successful entrepreneurs is:3) _______A) a desire to achieve financial rewardsB) a desire to employ other peopleC) a desire to bring a revolutionary new product or service to marketD) passion for the businessE) a desire to fulfill a lifetime dreamPage Ref: 94) Stacey Wills, who is at heart a craftsperson, recently started a firm to manufacturer a new innovative food blender. Stacey's desire is to sell her food blender to as many people as possible, because she firmly believes in the merits of her product. Stacey's story best illustrates which of the following characteristics, or attributes, of a successful entrepreneur?4) _______A) product/customer focusB) a desire to gain financial rewardsC) execution intelligenceD) a desire to please consumersE) tenacity despite failurePage Ref: 115) Which of the following is not one of the five common myths about entrepreneurs?5) _______A) Entrepreneurs are moderate risk takers.B) Entrepreneurs are born not made.C) Entrepreneurs love the spotlight.D) Entrepreneurs are tenacious.E) Entrepreneurs should be young and energetic.Page Ref: 156) Which of the following is not a personality trait or characteristic common among entrepreneurs?6) _______A) alert to opportunitiesB) promoterC) visionaryD) short attention spanE) self-starterPage Ref: 167) According to the textbook, there are three types of startup firms: entrepreneurial firms, lifestyle firms, and:7) _______A) innovative firmsB) salary-substitute firmsC) civil firmsD) statutory firmsE) standard-of-living firmsPage Ref: 178) Tahoe Trips & Trails, a company mentioned in Chapter 1, leads multiday outdoor adventure trips for private groups and corporate clients to Lake Tahoe, Yosemite, Death Valley, and similar locations. The company was started by Hanna Sullivan, an individual that gave up a prestigious job with a private investment company because Tahoe Trips & Trails better accommodates her personal lifestyle. Tahoe Trips & Trails is an example of a(n) ________ firm.8) _______A) entrepreneurialB) standard-of-livingC) statutoryD) lifestyleE) salary-substitutePage Ref: 189) Entrepreneurial firms:9) _______A) offer to customers common products that are not particularly innovative, and provide their owner or owners the opportunity to pursue a particular lifestyle and earn a living while doing soB) are small firms that yield a level of income for their owner or owners that is similar to what they would earn when working for an employerC) provide their owner or owners the opportunity to pursue a particular lifestyle and earn a living while doing soD) bring to market new products and services that are not particularly innovativeE) bring new products and services to market by creating and seizing opportunitiesPage Ref: 1810) According to the textbook, entrepreneurship has historically had:10) ______A) a major impact on the economy and minor impact on societyB) a major impact on both the economy and societyC) a major impact on society and minor impact on the economyD) a minor impact on both the economy and societyE) no impact on either the economy or societyPage Ref: 2111) ________ is the process of creating something new, which is central to the entrepreneurial process.11) ______A) Creative destructionB) InnovationC) CreativityD) ModernismE) ExecutionPage Ref: 2112) A(n) ________ is a written document that describes all the aspects of a business venture in a concise manner.12) ______A) business modelB) corporate planC) business planD) operations planE) contingency planPage Ref: 2513) A firm's ________ is a plan for how it competes, uses its resources, structures its relationships, interfaces with customers, and creates value to sustain itself on the basis of the value it creates.13) ______A) tactical modelB) business modelC) operations modelD) business planE) strategic planPage Ref: 2514) A(n) ________ is a favorable set of circumstances that creates a need for a new product, service, or business.14) ______A) ideaB) opportunityC) proposalD) schemeE) designPage Ref: 4315) According to the textbook, opportunities are:15) ______A) neither easy nor tough to spotB) easy to spot in fast growing industries but tough to spot in slow growing industriesC) easy to spot in the manufacturing sector but tough to spot in the service sectorD) tough to spotE) easy to spotPage Ref: 4316) A(n) ________ is a favorable set of circumstances that creates the need for a new product, service, or business. A(n) ________ is a thought, an impression or a notion.16) ______A) scheme, notionB) notion, schemeC) idea, designD) idea, opportunityE) opportunity, ideaPage Ref: 4317) A common way that gaps in the marketplace are recognized is:17) ______A) by observing changing environmental trendsB) when people become frustrated because they can't find a product or service that they need and recognize that other people feel the same wayC) by recognizing problems that need to be solvedD) via studying industry reportsE) via combined focus groups and brainstorming sessionsPage Ref: 5418) ________ is the process of generating a novel or useful idea.18) ______A) Imagining B) VisualizationC) CreativityD) EnvisioningE) InnovationPage Ref: 5719) ________ is (are) used to generate a number of ideas quickly.19) ______A) Survey groupsB) Examination groupsC) BrainstormingD) Competitive intelligence gatheringsE) Insight groupsPage Ref: 5920) ________ is the process of determining whether a business idea is viable.20) ______A) Feasibility analysisB) Viability analysisC) Scenario analysisD) Opportunity recognitionE) Achievability analysisPage Ref: 7921) Talking to industry experts, obtaining feedback from prospective customers, and administering surveys are examples of:21) ______A) fundamental research B) secondary researchC) derivative researchD) principal researchE) primary researchPage Ref: 7922) ________ feasibility is an assessment of the overall appeal of the product or service being proposed.22) ______A) Purchaser/end-userB) Product/serviceC) ConsumerD) Industry/marketE) Industry/market segmentPage Ref: 8123) A(n) ________ is a group of firms producing a similar product or service. A firm's ________ is the limited portion of the industry that it goes after or to which it wants to appeal.23) ______A) competitive group, target marketB) industry, trade groupC) industry, target marketD) trade group, industryE) target market, industryPage Ref: 8824) A(n) ________ is a group of firms producing a similar product or service, such as electronic games, smartphones, or computers.24) ______A) business groupB) industryC) trade groupD) commerce groupE) conglomeratePage Ref: 8825) ________ is conducted to determine whether a proposed business has sufficient management expertise, organizational competence, and resources to successfully launch its business.25) ______A) Financial feasibility analysisB) Organizational feasibility analysisC) Product/service feasibility analysisD) Industry/market feasibility analysisE) Institutional feasibility analysisPage Ref: 9126) ________ is a quick financial assessment of the viability of a business idea.26) ______A) Industry/market feasibility analysisB) Organizational feasibility analysisC) Financial feasibility analysisD) Institutional feasibility analysisE) Product/service feasibility analysisPage Ref: 9327) Martin Nelson is thinking about launching a small business consulting company. To get advice on how to proceed, he stopped by his local Small Business Administration (SBA) office. The SBA advisor told Martin that one of the first things he needs to do is to sit down and write a 25 to 35 page narrative that describes what his new business plans to accomplish and how it plans to accomplish it. The SBA advisor is telling Martin to write a(n):27) ______A) operations planB) marketing planC) business planD) feasibility analysisE) tactical planPage Ref: 11228) The document that does the best job of introducing potential investors and other stakeholders with the business opportunity the firm is pursuing and how it plans to pursue it is the:28) ______A) industry analysisB) opportunity analysisC) marketing planD) feasibility analysisE) business planPage Ref: 11329) Most business plan writers interpret or make sense of a firm's historical and/or pro forma financial statements through:29) ______A) assumptions analysisB) scenario analysisC) ratio analysisD) proportion analysisE) relative analysisPage Ref: 13130) According to the textbook, the ________ are the heart of the financial section of a business plan.30) ______A) financial ratiosB) sources and uses of funds statementsC) break-even analyses D) pro forma financial statementsE) budgetsPage Ref: 13131) Jeremy Banks recently started a new firm in the financial services industry. Prior to starting his firm, he spent considerable time doing research on the potential of the industry. The research that Jeremy was doing is called:31) ______A) commercial analysisB) target market analysisC) business analysisD) sector analysisE) industry analysisPage Ref: 14832) A(n) ________ is a group of firms producing a similar product or service, such as soft drinks, electronic games, or computers.32) ______A) clusterB) divisionC) networkD) industryE) sectorPage Ref: 14833) Once a firm decides to enter an industry and chooses a market in which to compete, it must gain an understanding of its competitive environment. This challenge can be undertaken by completing a(n):33) ______A) competitor analysisB) business analysisC) strategic analysisD) industry analysisE) market analysisPage Ref: 14934) The two most common strategies pursued by firms in global industries are the ________ strategy and the ________ strategy.34) ______A) multidomestic, globalB) inclusive, globalC) multidomestic, worldwideD) home, worldwideE) inclusive, multidomesticPage Ref: 16335) According to the textbook, the first step in a competitor analysis is to:35) ______A) develop a marketing planB) study the strength of the industryC) study the external environmentD) determine who the competition isE) develop the strategic planPage Ref: 16336) In the context of competitor analysis, businesses that offer identical or similar products are referred to as:36) ______A) urgent competitorsB) indirect competitorsC) direct competitorsD) immediate competitorsE) straight competitorsPage Ref: 16437) In the context of competitor analysis, ________ offer close substitutes to the product sold by the firm completing the analysis.37) ______A) indirect competitorsB) direct competitorsC) potential competitorsD) impending competitorsE) future competitorsPage Ref: 16438) In general, industries are more attractive when:38) ______A) the threat of each of the five forces is lowB) the majority of the threats are highC) the threat of each of the forces is neutralneither low nor highD) the majority of the threats are lowE) the threat of each of the five forces is highPage Ref: 15239) Which of Porter's five forces is most closely associated with the concept "barrier to entry"?39) ______A) bargaining power of suppliersB) rivalry among existing firmsC) threat of substitutesD) bargaining power of buyersE) threat of new entrantsPage Ref: 15340) John Petersen is thinking about starting a firm in the specialty chemical industry. In the industry analysis John has been conducting, one thing he has noticed is that the specialty chemical industry is characterized by the following factors: high supplier concentration, high switching costs for buyers when they switch from one supplier to another, and no attractive substitutes for the products that most of the suppliers provide. These factors concern John because they tell him that the profitability of the specialty chemical industry is suppressed by the:40) ______A) bargaining power of suppliersB) threat of new entrantsC) rivalry among existing firmsD) bargaining power of buyersE) threat of substitutesPage Ref: 15741) A(n) ________ industry is one that is characterized by a large number of firms of approximately equal size.41) ______A) decliningB) globalC) matureD) emergingE) fragmentedPage Ref: 16142) A(n) ________ industry is an industry that is experiencing slow or no increase in demand.42) ______A) fragmentedB) globalC) matureD) decliningE) emergingPage Ref: 16143) Opportunities for leadership, niche, harvest and divestment are associated with ________ industries.43) ______A) decliningB) fragmentedC) matureD) emergingE) globalPage Ref: 16144) Firms that pursue a(n) ________ strategy compete for market share on a country-by-country basis and vary their product or service offerings to meet the demands of the local market.44) ______A) inclusiveB) contemporaryC) multidomesticD) universalE) worldwidePage Ref: 16345) Catherine Smith has just finished writing a business plan for a startup in the medical products industry. She has now reached the point where she needs to develop a plan for how her firm will compete, use its resources, structure its relationships, interface with customers, and create value to sustain itself on the basis of the profits it earns. Jennifer needs to establish her firm's:45) ______A) business templateB) business modelC) feasibility planD) tactical planE) operating planPage Ref: 18046) Which of the following are the primary elements of a startup's core strategy?46) ______A) mission statement, product/market scope, basis for differentiationB) core competencies, strategic assets, funding modelC) target customer, fulfillment and support, pricing structureD) suppliers, partners, other key relationshipsE) pricing structure, suppliers, strategic assetsPage Ref: 18947) A firm's ________ describes why it exists and what its business model is supposed to accomplish.47) ______A) mission statementB) feasibility statementC) vision statementD) duty statementE) responsibility statementPage Ref: 19048) From a broad perspective, firms choose one of two generic strategies to position themselves in the marketplace. These are:48) ______A) value and low costB) cost premium and separationC) cost leadership and differentiationD) discount pricing and premium pricingE) high quality and low costPage Ref: 19049) Jared King is starting a firm in the electronic games industry. The firm will produce games similar to popular games on the market, but they won't be as sophisticated and will be priced at the low end of the market. Jared has chosen the generic strategy referred to as:49) ______A) quality plusB) price reductionC) differentiationD) cost differentiationE) cost leadershipPage Ref: 19250) 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 of quality, service, timeliness, or some other important dimension.50) ______A) cost leadership, differentiationB) differentiation, cost leadershipC) cost differentiation, quality plusD) cost emphasis, quality leadershipE) price reduction, quality plusPage Ref: 19251) ________ are anything rare and valuable that a firm owns.51) ______A) Strategic assetsB) Tactical propertiesC) Tactical assetsD) Deliberate assetsE) Operational assetsPage Ref: 19352) A supplier is a company that:52) ______A) helps a firm put together its network of contactsB) provides parts or services to another companyC) purchases a company's productsD) provides startups with business adviceE) provides startups with fundingPage Ref: 19453) The network of companies that participate in the production of a product, from the acquisition of raw materials to the final sale, is referred to as the:53) ______A) input chainB) supply chainC) participation chainD) contribution chainE) involvement networkPage Ref: 19454) A firm's ________ is the limited group of individuals or businesses that it goes after or tries to appeal to.54) ______A) target marketB) object marketC) goal objectiveD) target objectiveE) intention marketPage Ref: 19755) 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?55) ______A) hire an ethics compliance officerB) write a code of conductC) write a mission statementD) implement an ethics training programE) lead by examplePage Ref: 21756) A(n) ________ is a written document that deals with issues such as the relative split of the equity among the founders of the firm, how individual founders will be compensated for the cash or the "sweat equity" they put into the firm, and how long the founder will have to remain with the firm for their shares to fully vest.56) ______A) originators' agreementB) creators' agreementC) entrepreneurs' agreementD) initiators' agreementE) founders' agreementPage Ref: 22157) ________ is the process in which an impartial third party helps those involved in a dispute reach an agreement.57) ______A) MediationB) Conciliation C) ReconciliationD) NegotiationE) AppeasementPage Ref: 22658) The simplest form of business entity is the:58) ______A) general partnershipB) subchapter S corporationC) C CorporationD) sole proprietorshipE) limited liability companyPage Ref: 23059) All of the following are advantages of a sole proprietorship except:59) ______A) unlimited liabilityB) business losses can be deducted against the sole proprietor's other sources of incomeC) it is not subject to double taxationD) the owner maintains complete control of the businessE) creating one is easy and inexpensivePage Ref: 23260) Partnerships are organized as either:60) ______A) general or limited partnershipsB) inward or outward partnershipsC) narrow or broad partnershipsD) specific or general partnershipsE) partial or full partnershipsPage Ref: 23261) A separate legal entity organized under the authority of a state is referred to as a:61) ______A) conglomerateB) limited partnershipC) corporationD) general partnershipE) sole proprietorshipPage Ref: 23362) Corporations are organized as either:62) ______A) C corporations or subchapter S corporationsB) general corporations or limited corporationsC) permanent corporations or temporary corporationsD) regular corporations or limited liability corporationsE) voluntary corporations or statutory corporationsPage Ref: 23363) Most C corporations have two classes of stock:63) ______A) common and preferredB) standard and substandardC) regular and specialD) premium and normalE) ordinary and distinctPage Ref: 23364) 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 shareholders' personal income tax returns.64) ______A) double assessmentB) dual tollC) double dutyD) dual harmE) double taxationPage Ref: 23465) Corporations that trade their stock on organized exchanges like the New York Stock Exchange and the NASDAQ are called:65) ______A) common corporationsB) national corporationsC) public corporationsD) civil corporationsE) premier corporationsPage Ref: 23466) A ________ combines the advantages of a partnership and a C corporation.66) ______A) subchapter K corporationB) subchapter S corporationC) sole proprietorshipD) general partnershipE) limited partnershipPage Ref: 23567) The four main financial objectives of a firm are:67) ______A) efficiency, effectiveness, strength, and flexibilityB) control, effectiveness, liquidity, and powerC) profitability, liquidity, efficiency, and stabilityD) power, success, efficiency, and effectivenessE) success, strength, liquidity, and profitabilityPage Ref: 25668) ________ is a company's ability to meet its short-term financial obligations. 68) ______A) LiquidityB) EffectivenessC) ProfitabilityD) StabilityE) Efficiency Page Ref: 25669) A company's ability to productively utilize its assets relative to its revenue and its profits is referred to as:69) ______A) efficiencyB) profitabilityC) effectivenessD) liquidityE) stabilityPage Ref: 25670) Money owed to a company by its customers is referred to as:70) ______A) accounts collectableB) accounts obtainableC) inventoryD) accounts receivableE) accounts payablePage Ref: 25671) 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 a firm, this attribute is a measure of Southwest's:71) ______A) liquidityB) stabilityC) efficiencyD) effectivenessE) profitabilityPage Ref: 25672) ________ are an estimate of a firm's future income and expenses, based on its past performance, its current circumstances, and its future plans.72) ______A) ForecastsB) Prediction statementsC) Calculation statementsD) Financial statementsE) Statements of cash flowPage Ref: 25773) ________ depict relationships between items on a firm's financial statements.73) ______A) Fiscal projectionsB) Fiscal relationsC) Monetary balancesD) Financial proportionsE) Financial ratiosPage Ref: 25774) ________ are projections for future periods based on forecasts and are typically completed for two to three years into the future.74) ______A) Ad-hoc financial statementsB) Pro forma financial statementsC) Historical financial statementsD) Concurrent financial statementsE) Chronological financial statementsPage Ref: 25975) Which of the following selections correctly matches the financial statement with its description?75) ______A) income statement/tells how much a firm is making or losingB) balance sheet/shows where a firm's cash is coming fromC) balance sheet/tells how much a firm is making or losingD) income statement/depicts the structure of a firm's assets and liabilitiesE) statement of cash flows/depicts the structure of a firm's assets and liabilitiesPage Ref: 26076) A(n) ________ is a snapshot of a company's assets, liabilities, and owners' equity at a specific point in time.76) ______A) balance sheetB) statement of cash flowsC) efficiency statementD) income statementE) effectiveness statementPage Ref: 26177) 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. 77) ______A) intermediate term assetsB) fixed assetsC) current assetsD) temporary assetsE) other assetsPage Ref: 26378) A firm's ________ is its current assets divided by its current debt.78) ______A) owners' equityB) present shareC) working capitalD) working shareE) current ratioPage Ref: 26379) Which of the financial statements used by businesses to keep track of their financial affairs is the most similar to an ordinary person's end-of-the month bank statement?79) ______A) statement of cash flowsB) statement of ratio analysisC) statement of owners' equityD) income statementE) balance sheetPage Ref: 26580) A firm's pro forma financial statements are similar to its historical financial statements except that:80) ______A) they are required by the SEC in all casesB) they do not include the income statementC) they look back rather than forwardD) they do not include the statement of cash flowsE) they look forward rather than backPage Ref: 271 ................
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