Entrepreneurship
T/F. There is no universal definition of a small business.
True.
Outside - In analysis involves first evaluating the marketplace and then determining how to use ability to pursue an opportunity.
True or False?
True
A strategy that recognized the existence of several segments but focuses only on one segment is a _____________ marketing strategy.
a. multi-segment
b. single-segment
c. unsegmented.
d. unilateral-segmented
b. single segment
A sole proprietorship provides the business owner limited liability.
a. True
b. False
b. False
Marketable securities would show up in the _________ section of a balance sheet.
a. owners equity
b. current liabilities
c. current assets
d. non current assets
e. non current liabilities
c. current assets
Using realistic assumptions is of critical importance when developing pro forma financial statements.
a. True
b. False
A. True
John is a loan underwriter who has grown tired of his daily routine. He feels his work no longer challenges him and doesn’t allow him to make a positive impact in his community. He decides to start a small business that supports local farmers and creates local jobs. John's motivation to start his own business is ___________________.
a. personal fulfillment
b. personal satisfaction
c. independence
d. wealth
a. personal fulfillment.
Business idea feasibility is improved when an idea as _____________ capital requirements.
a. High
b. Low
b. Low
Define the 4 Ps of marketing
Product, Place, Promotion, Pricing
The ability to leverage resources is the key drawback to strategic alliances.
a. True
b. False
b. False
What is the formula to calculate net profits?
Profit before taxes - income tax expense
The most common source of funding for a start up company is...
a. commercial banks
b. personal savings
c. credit cards
d. angel investors
b. personal savings
A business that provides substantial profits to the owner, but lacks scaleability would be classified as a _______________ business.
a. Microbusiness.
b. Attractive small firm
c. High potential venture
b. Attractive small firm
What are the two main types of competitive strategy?
Cost-based and differentiation based
The value a customer receives from superior customer service would be defined as the _______________ benefit from a good or service.
a. core
b. actual
c. augmented
d. hypothetical
c. augmented.
The general partner in a limited partnership as __________ liability, whereas the limited partner in a limited partnership as ____________ liability.
a. limited; limited
b. unlimited; unlimited
c. unlimited; limited
d. limited; unlimited
c. unlimited; limited
A. True
F. False
False. Interest expense is included in Profit before taxes. (Profit before taxes = operating profit - interest expense)
My business has $250,000 in total assets. I currently hold $100,000 in owner's equity. My debt financing requirement must be __________________.
$150,000
Assets = Liabilities + OE
material assets and intangible qualities passed on to both heirs and society
It is better to write an extensive business plan when _________________.
a. the opportunity is fleeting
b. the business does not need much funding to become operational.
c. the business needs substantial funding to become operational.
d. the business is operating in a turbulent market environment.
c. the business needs substantial funding to become operational.
"The amount of sales a single firm can expect to generate in 1 year" is the definition of a __________________.
a. sales forecast
b. marketing potential
c. sales potential
d. marketing forecast
a. sales forecast
Facebook would be considered a ......
a. B2C model
c. Content based model
c. Information based model
d. C2C model
c. Content based model
a. total assets increased relative to total liabilities
b. total assets decreased relative to total liabilities
c. current assets increased relative to current liabilities
d. current assets decreased relative to current liabilities.
d. current assets decreased relative to current liabilities
A loan agreement states the interest rate will be Prime + 50 basis points. If the current Prime
rate is 5.25%, what is the loan’s interest rate?
a. 5.75%
b. 6.25%
c. 4.75%
d. 8.00%
a. 5.75%
What are the four motivations for starting a small business?
1. Personal fulfillment
2. Personal satisfaction
3. Independence
4. Financial rewards
What are the 5 Forces in the Michael Porter's 5 Forces Model?
(1) Threat from New Competition
(2) Threat of Substitute Products
(3) Threat of Rivalry Among Existing Firms
(4) Bargaining Power from Suppliers
(5) Bargaining Power from Buyers
I provided customers at United a survey as they exited the store asking them how much beef they bought and what their perception is of the importance of beef to the High plains economy. I am collecting collecting ____________ data using a ___________ method.
a. primary; observational
b. primary; questioning
c. secondary; observational
d. secondary; questioning
Which of the following agricultural businesses would most likely locate near its source of raw materials rather than near its customers?
A. A grocery store selling fresh produce
B. A cotton gin that removes seeds and cleans cotton fibers
C. A farmers market in a large city
D. A restaurant specializing in farm-to-table meals
B. a cotton gin
Provide (IN ORDER) the 4 types of profit provided on an income statement.
In order, what are the steps in forecasting a pro forma financial statement? (In other words, in what order to we forecast elements of the income statement?)
a) Amount of sales
b) Cost of goods sold
c) Operating expenses
d) Interest expense
e) Tax