Entrepreneurial Life
The four step entrepreneurial process include all of the following EXCEPT:
a. identifying an opportunity
b. acquiring critical resources
c. defining a strategy
d. executing the plan
c. defining a strategy
Which of the following describes a business' present operations and purpose?
a. Vision statement
b. Mission statement
c. Core values
d. Strategy
b. Mission statement
Food 4 Less most likely employs which type of strategy?
a. Low cost
b. Best cost
c. Differentiation
d. Niche market
a. Low cost
What are the four P's of marketing? (NO MC choice, you should know these).
Product, place, price, promotion
What is the purpose of a balance sheet?
a. to show a firm's assets, liabilities, and owners equity over a given period of time
b. to show the amount of profits or losses from a firm's operations over a given period of time
c. to show the timing of cash inflows and outflows over a given period of time
d. to show a firm's assets, liabilities, and owner equity at a specific point in time
d. to show a firm's assets, liabilities, and owner equity at a specific point in time
In the short run, prices must be sufficient to cover ___________ plus a margin of profit for business longevity.
a. total cost
b. fixed cost
c. business cost
d. variable cost
d. variable cost
Which of the following is an strength as opposed to an opportunity?
a. Greg has extensive veterinary experience
b. The chance to direct sell beef in a farmers market large city located near the farm
c. A nearby farm with good pasture, water, and facilities available for purchase
d. The option to buy the family feedyard from his wife's aging parents
a. Greg has extensive veterinary experience
An entrepreurer may choose to start a business because they find the process intellectually challenging. This would fall into which category as a motitivation for founding a company?
A. Financial rewards
B. Independence
C. Personal Satisfaction
D. Personal Fulfillment
C. Personal Satisfaction
Why is a vision statement important?
a. winning support of organizational members
b. defining strategy
c. setting SMART goals
d. setting culture and norms all employees are expected to adopt
a. winning support of organizational members
A competitive advantage is defined as meeting customer needs more _________________, with producers or services that customers value more greatly, or more ______________________, at a lower cost relative to competitors.
a. effectively; efficiently
b. efficiently; effectively
c. effectively; optimally
d. optimally; efficiently
a. effectively; efficiently
Boot barn marketing and selling both men and women's jeans is an example of a ___________________ marketing strategy.
a. unsegmented
b. multisegment
c.single-segment
d. all -segment
b. multisegment
___________________ is subtracted from sales to calculate gross profits.
a. operating expenses
b. all expenses
c. cost of goods sold
d. interest expense
c. cost of goods sold
Kemin Industries is evaluating market entry into the cattle ear implant segment—a market currently dominated by two established incumbents, Zoetis and Merck Animal Health. Cattle producers and feedlot managers are historically risk-averse, as implant efficacy directly impacts Average Daily Gain (ADG) and feed conversion ratios.
Which pricing strategy should a business consultant recommend Kemin adopt upon entry, and why?
A) Price Skimming: Charge a high initial price above Zoetis and Merck to maximize short-term profit margins from early adopters before lower-cost competitors enter.
B) Penetration Pricing: Price significantly below Zoetis and Merck to rapidly build market share, as feedlot managers prioritize low input costs over product reputation.
C) Follow-the-Leader Pricing: Match the prevailing benchmark prices set by Zoetis and Merck to establish perceived performance parity, avoid triggering a price war, and compete on non-price value drivers.
D) Average Cost Pricing: Set price equal to average total manufacturing cost plus a fixed percentage markup to guarantee a stable return on investment regardless of competitor pricing.
C) Follow-the-Leader Pricing: Match the prevailing benchmark prices set by Zoetis and Merck to establish perceived performance parity, avoid triggering a price war, and compete on non-price value drivers.
Whenever building a forecast, being able to back up the numbers you calculate with valid ______________________ is critical.
a. history
b. assumptions
c. SWAG
d. positive thinking
b. assumptions
We can classify small companies based on their ______________________.
a. number of employees
b. growth potential
c. profitability
d. legal structure
b. growth potential
Ideally, a mission statement includes all of the following EXCEPT:
a. company product/services
b. specifies buyer needs that the company seeks to satisfy
c. company identity
d. statement of long term vision
d. statement of long term vision
What is the purpose of a competitive strength assessment process?
a. to evaluate the competitive strength of company's assets relative to competitors
b. to quantify all critically important resources and capabilities a firm has
c. evaluate the threat of substitues
d. evaluate the threat of rivals
a. to evaluate the competitive strength of company's assets relative to competitors
The tax obligation between a C-corp and S-corp differs in what way?
a. C corp is taxed twice while S corp is taxed once
b. S corp is taxed twice while C corp is taxed once
c. S corp only pays state taxes while C corp pays federal taxes
d. There is no difference in the tax obligation between C and S corps.
a. C corp is taxed twice while S corp is taxed once
An established farm machinery manufacturer reports positive Net Income of $5 million on its income statement for Year 2, yet its Retained Earnings balance on the balance sheet decreased by $2 million from Year 1 to Year 2. What transaction accounts for this change?
A) The company paid $7 million in total dividends to shareholders during Year 2.
B) The company purchased $2 million in new inventory using short-term lines of credit.
C) The company recorded $2 million in equipment depreciation expense.
D) The company issued $5 million in new common stock shares.
A) The company paid $7 million in total dividends to shareholders during Year 2.
Suppose Doc's Prime Cuts experiences $300,000 in fixed costs. Also assume they only sell ground beef. Suppose they sell their ground beef at $9/lb and they incur $6.50 in variable cost per lb. How many pounds of ground beef would Doc's Prime Cuts need to sell in order to break even?
a. 19,355 lbs
b. 110,400 lbs
c. 120,000 lbs
d. Over 500,000 lbs
c. 120,000 lbs
When a lender is evaluating a loan request, they are most concerned with
a. The long term vision of the company
b. The company's ability to repay the loan
c. The operational efficiency of the firm
d. The marketing strategy of the firm
b. The company's ability to repay the loan
Most new business ideas come from _________________.
a. Education/courses
b. Chance happening
c. Prior work experience
d. Personal interest/hobbies
c. Prior work experience
"Our company mission is “Feeding A Hungry World: Family, Friends, and Neighbors”. We dedicate our most critical resources to the animals in our care and the employees that care for them, with the goal of a finished product of high quality animal protein to feed hungry people. Our families are also consumers of our products. We want the best for our families and work hard each day to make sure the products we produce are safe and nutritious. Being able to share our story with our friends, neighbors, and the community is an important part of what Cactus Feeders is all about. " What is the biggest issue with the Cactus Feeders Mission Statement?
a. Not specific enough
b. Doesn't make good business sense
c. Relies of superlatives
d. Too long
d. Too long
A firm has a resource that is valuable to the production process, but is also possessed by every major competitor. How should management interpret the value of this resource?
a. The resource will automatically lead to a sustainable competitive advantage because of it is value in the production process.
b. There is no value to the resource since every major firm also possess it
c. The value of the resource depends on the other inputs in production
d. The resource may be necessary to compete but unlikely to provide a unique competitive advantage because all firms possess it
d. The resource may be necessary to compete but unlikely to provide a unique competitive advantage because all firms possess it
The major difference between the information-based model and the transaction-based model is the
a. Presence of ads in the transaction-based model
b. Ability to contact the site developer in the information-based model
c. Presence of an order-processing feature in the transaction-based model
d. The ability for the visitor to post comments on the information-based model
c. Presence of an order-processing feature in the transaction-based model
A fertilizer distributor's balance sheet reveals a doubling of inventory values year-over-year, while the income statement shows flat sales and a declining Inventory Turnover Ratio. Management should be concerned primarily about:
A) Impending inventory obsolescence and holding/carrying costs
B) Excessive interest expenses reducing gross margin efficiency.
C) An artificial deflation of total current assets on the balance sheet.
D) Overstated sales revenue due to prematurely recognized cash collections.
A) Impending inventory obsolescence and holding/carrying costs
Suppose the historical contribution margin for Doc's Prime Cuts is 60%. They plan to start cutting Denver steaks and selling them in the store. It costs the store $4 in variable cost for each Denver steak cut. Using the contribution margin approach, what should Doc's Prime Cuts price the Denver Steaks for?
a. $15
b. $6.67
c. $10
d. $8
c. $10
Because partial budget analysis assumes prices and output are fixed, it is important to do a ________________ analysis.
a. What if
b. Optimization
c. Profit
d. Accounting
a. What if
Which of the following was NOT one of the screening questions discussed when screening new business ideas?
a. Does the idea meet a definitive market need?
b. Does the idea have a clear target market and consumers?
c. Is the industry favorable for startups, or will it be difficult to compete?
d. What capabilities doe the founders need to have?
e. Do the founders have sufficient time to pursue this opportunity?
e. Do the founders have sufficient time to pursue this opportunity?
The most important thing to keep in mind when it comes to a company's core values is....
a. Make sure they are included in the onboarding process for new employees
b. Provide financial rewards for employees who embody core values
c. Practice what you preach
d. They are realistic
c. Practice what you preach
The advent of AI and its utilization in automating workflows for a business would fall under the _________________ environment's _______________ factor.
a. macro; new entrants
b. competitive; technological
c. macro; technological
d. competitive; regualtory/legal
c. macro; technological
There are many advantages to running a home based business. Which of the following is NOT one of the advantages?
a. Tax advantages
b. Flexibility to spend time with family
c. Up and running quickly
d. Keep overhead low
e. Zoning ordinances
e. Zoning ordinances
A farm equipment dealer shows steady net income growth on the income statement, but operating cash flow is negative and Accounts Receivable (A/R) days outstanding increased from 35 to 75 days. What is the most likely underlying financial issue?
A) The dealer is under-depreciating its shop equipment assets.
B) Revenue is being recognized on credit sales, but actual cash collection is lagging, increasing bad debt and liquidity risk.
C) The firm paid off its short-term operating lines of credit ahead of schedule.
D) Inventory turnover has accelerated dramatically over the fiscal year.
B) Revenue is being recognized on credit sales, but actual cash collection is lagging, increasing bad debt and liquidity risk.
Young Cattle Feeders is working on their FY27 financial projections. They expect to incur $30,000 in fixed cost, and plan to sell fed steers at 1,500lb at $245/cwt. They budget to buy 700lb feeder steers at $310/cwt. Based on their historical data, their feed cost of gain is $0.95/lb. Based on the data above, how many steers do Young Cattle Feeders need to sell in order to break even?
a. 56 head
b. 29 head
c. 41 head
d. They cannot break even given the data above
c. 41 head
A cattle rancher is considering backgrounding 180 steers for 120 days. He estimates the following economic factors on a per head basis:
Added revenue: Steers sell for an additional $160/hd due to added weight
Added variable cost: $90/hd in feed, $10/hd in veterinary care, and $15/hd additional labor
Reduced revenue: $0
What is the expected TOTAL net change in farm profit for the entire 180 head lot?
a. $8,100
b. $13,500
c. $45
d. $55
a. $8,100