Which of the following is not a concern for lenders when they consider an entrepreneur for a loan?

the number of strategic partners the venture has

To operate as a sole proprietor requires nothing more than a ____.

"Certificate of Doing Business Under and Assumed Name"

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A ____ depends on a feasible business model that has been market-tested and is reliable.

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The new environment for business planning makes the case for the importance of a feasibility study and ____ to prove the concept and enable the founding team to launch the venture before completing the formal business plan.

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622 Final Exam

Question	Answer
A ____ depends on a feasible business model that has been market-tested and is reliable.	business plan
The new environment for business planning makes the case for the importance of a feasibility study and ____ to prove the concept and enable the founding team to launch the venture before completing the formal business plan.	micro strategies
A good way to test a new concept in the marketplace is through a ____.	feasibility study
A ____ is simply evidence that a technology, product, business model, or idea is feasible.	proof of concept
Entrepreneurs typically face two types of POC: the technology or product POC, and the ____ POC.	business model
The ____ for POC consists of three primary elements: outcomes, assets, and actions.	micro strategy
The micro strategy process repeats itself over and over again and with each successful outcome, the new business is moved toward a complete ____.	proof of concept
To avoid ____, the team needs to change its angle of vision by looking at the situation in a new way and then testing alternative hypotheses.	pattern recognition bias
A ____ will tell the entrepreneur whether people are interested in the product/service and prove that it's worth the time and money to build out a more elaborate site.	beta site
Anyone investing in a new venture has four principal concerns: rate of growth, return on investment, ____ and ____.	degree of risk/protection
____ are primarily interested in the company's margins and cash flow projections.	Bankers/Lenders
So that entrepreneurs do not have to incur the tremendous cost of purchasing equipment for a manufacturing plant, they may ____.	form a strategic alliance
Which of the following is not a flaw that investors commonly find in business plans?	lack of enthusiasm
Today most investors want to see a well-written ____ that tells a compelling story and grabs their interest.	executive summary
An executive summary should demonstrate a clear link between the ____ and the ____.	pain/solution
____ is created when the business is adequately capitalized and has highly regarded investors, an experienced management team, customers, a unique technology, product, or service, the ability to continually innovate, and a rapidly expanding market.	value
Entrepreneurs should keep in mind that the purpose for doing a/an ____ is to sell the business.	executive summary
Once the new venture has passed the startup stage, additional value is created by ____.	significant customers
Which section of the business plan details features and benefits as well as the plan for prototyping and testing?	product/service plan
The ____ plan specifies the legal form of organization that the venture will take, whether that be sole proprietorship, partnership, LLC, or corporation.	organization
A financially healthy company will see its major source of ____ coming from operating sources, such as sales.	cash flows
The ____ plan focuses on issues related to processes the venture will own and outsource, as well as where it will get its raw materials, and what type and quantity of labor will be required.	operations
The ____ gives information about the projected profit or loss status of the business for a specified period of time.	income statement
The ____ gives information about the projected profit or loss status of the business for a specified period of time.	balance sheet
The higher the ____, the more liquid the company is and the more easily these assets can be converted to cash to pay off short-term obligations.	current ratio
Which ratio uses net income and net sales from the income statement to give the percentage of each dollar of sales remaining after all costs of normal operations are accounted for?	profit margin
The ____ plan reflects recognition that sometimes the "best laid plans" do not work the way you intended.	contingency
The section of the business plan that presents the strategy that will be used to ensure that the business is sustainable and continues to scale over its life is included in the ____.	growth plan
Which of the following is not a principal concern of investors?	market analysis
Which of the following is not a concern for lenders when they consider an entrepreneur for a loan?	the number of strategic partners the venture has
More than 76 percent of all businesses in the United States are ____.	sole propietorships
____ make(s) all partners responsible for the obligations that each incurs in the course of doing business.	ostensible authority
In a/an ____, all partners assume unlimited personal liability and responsibility for the management of the business.	general partnership
Upon the death of a partner, the insurance proceeds can be used to keep the business going or to buy out the deceased partner's interest under a/an ____.	buy/sell agreement
Only about 25 percent of all U.S. businesses are ____, but they account for 67 percent of all sales transactions.	corporations
In forming a ____, the entrepreneur gives up proprietary interest in the organization and dedicates all the assets and resources of the corporation to tax-exempt activities.	non-profit corporation
____ partners typically provide capital but do not actively participate in the management of the business.	silent partners
____ life insurance is a policy on the life of principal members of the partnership, usually the senior partners.	key-person
A ____ corporation is chartered in a state other than in the one in which it will do business.	foreign
____ pay taxes on profits and their shareholders pay taxes on dividends they receive, resulting in double taxation.	C-corporations
The owner is the only person responsible for the activities of the business in a ____.	sole propietorship
To operate as a sole proprietor requires nothing more than a ____.	"Certificate of Doing Business Under and Assumed Name"
Sole proprietorships offer several advantages, which include all of the following except ____.	dividends are paid to owners
Often small businesses such as pizza parlors and boutiques are run as ____.	sole propietorships
When two or more people share the assets, liabilities, and profits of the business, the legal structure is a ____.	partnership
Each partner owns and has use of the property acquired by the partnership, unless otherwise stated in ____.	the partnership agreement
The U.S. Supreme Court has defined the ____ as an artificial being, invisible, intangible, and existing only in contemplation of the law.	corporation
In a/an ____, corporate stock is owned privately by a few individuals and is not traded publicly on a securities exchange.	closely held corporation
A corporation that is chartered in the state in which it will do business and issue stock is a/an ____.	domestic corporation
By creating a corporation and issuing stock, the entrepreneur is giving up a measure of control to the ____.	board of directors
A financial vehicle that enjoys limited liability in that its owners are liable for its debts and obligations only to the limit of their investment is a ____.	C-corporation
Which of the following statements is not true of an S-corporation?	partnerships may be shareholders
Professionals such as lawyers, doctors, and accountants frequently employ the legal structure of a ____.	partnership
A corporate form that enjoys the pass-through tax benefits of partnerships in addition to the limited liability of a C-corporation is known as a ____.	limited liability company (LLC)
When one or more people agree to assume unlimited personal liability and responsibility for management of the business, a ____ exists.	general partnership
All of the following are types of nonprofit organizations except ____.	novelty shops
State law permits certain professionals, such as health care professionals, engineers, accountants, and lawyers, to form corporations called ____.	professional service corporations
A corporation established for charitable, public (scientific, literary, or educational), or religious purposes or for mutual benefit (trade associations, tennis clubs), as recognized by federal and state laws, is a ____.	nonprofit corporation
Income derived from for-profit activities in a nonprofit corporation is subject to ____.	income taxation
If a nonprofit corporation is ever dissolved, its assets must be distributed ____.	to another tax-exempt organization
Recent research has identified four categories of ethical decision making that entrepreneurs face on a daily basis, including individual values, organization values, external accountability, and ____.	customer satisfaction
The work of Paul Adler has determined that ____ is/are a critical first step in identifying and assessing an ethical dilemma.	awareness
In ethics theory, there are generally three broad categories of perspectives about an ethical dilemma: ____, obligations, and utility.	ideals
In ethics theory, ____ analyzes the costs and benefits of potential alternative consequences of action or inaction.	utility
____ in ethical decision making says that "Everyone needs to look out for himself."	egoism
A conflict of interest occurs when a person's private or personal interests clash with ____.	professional obligations
Aristotle, the Greek philosopher, said that ____ is the first of the human virtues because without it, the others are not possible.	courage
The process of developing a ____ begins with a company's self examination to identify values held by individuals and alert everyone to inconsistencies in how people deal with particular issues.	code of ethics
The question, "Would I be proud if my actions were announced in my local newspaper?" is part of the ____ approach to ethical decision making.	Kantian
____ means operating a business in a way that exceeds the ethical, legal, commercial, and public expectations that society has of the business.	social responsibility
____ is/are the fundamental beliefs that a company holds about what is important in business and in life in general.	core values
A ____ precisely identifies the environment in which the company operates and communicates the company's fundamental philosophy.	mission statement
Peter Drucker always asserted that a company's ____ should "fit on a t-shirt."	mission
Peter Drucker always asserted that a company's ____ should "fit on a t-shirt."	core values
An entrepreneur's personal ____ is really a function of the core values and vision that an entrepreneur has for his or her life.	definition of success
The vision that guides a company in the right direction is expressed through its ____.	a. core values b. purpose c. mission d. goals e. All of these choices
Which of the following is not an area where ethical dilemmas are typically found?	None of these choices; that is, ethical dilemmas arise in all these areas.
In order to answer the question "Why does the business exist?" you need to know its ____.	purpose
A company's ____ is/are what brings everyone together to achieve a common objective.	mission
The moral code by which we live and conduct business comes from cultural, social, political, and ethnic norms with which we were raised as children and is called ____.	ethics
____ which is/are the means to execute the strategies, should also be put in place.	some good tactics or action plan
It is important to stick to your ethical code because ____.	an entrepreneur's reputation is critical to success
Entrepreneurs who play too close to the edge of legality are in danger of ____.	pushing the limits of the law
Research has shown that the ethical behavior of employees is very much influenced by ____.	a code of ethics
To ensure that the ethical standards established for the company become part of its culture, you should do all of the following except ____.	publicly reporting ethical lapses
Through giving something back to the community or communities in which it does business, and thus to society as a whole, a business holds itself to a higher standard of ____.	social responsibility
Paul Brainerd of the Brainerd Foundation in Seattle, Washington, suggests following which socially responsible rule?	don't wait until later in life to begin giving back
Entrepreneurs are goal-oriented and tend to cite which of the following as a reason for going into business?	control
All of the following are examples of poor ethics except ____.	getting to work late
A small company can have a socially responsible impact on its community if it does a few things by way of preparation. First, the company needs to ____.	set goals
____ shape(s) the look and feel of the company and is a significant part of the company's strategy because it supports the achievement of the company's mission.	organizational design
____ come(s) out of team building, creating flexibility, increasing speed, and facilitating the management of personal issues not easily handled through policies and structure.	informal networks
____ is fundamentally the personality of the organizationthe reflection of the company's vision and goals.	culture
____ roles are trusted people who serve as brokers between groups.	liasion
____ is validation of the business by external constituencies such as suppliers, customers, distributors, and others in the value chain.	legitimacy
Companies are typically distributed in all of the following ways except ____.	locally
____ outsource everything except their core-management function.	virtual organizations
Locating a site for a new business normally begins with identifying the ____ that seems best suited to the type of business being started.	area of the country
When entrepreneurs develop job descriptions, they should focus on the duties and responsibilities of a particular job as well as the ____.	behavioral profile
The ____ is fundamentally the personality of the organization and forms the basis for all the activities that the company undertakes.	culture
Which of the following is not a component of the entrepreneurial organization?	location
A way in which virtual companies become more flexible and responsive is by forming ____, or teams of businesses to share resources and reduce costs.	strategic alliances
The three key factors for determining value in real estate are ____.	location, location, location
The region from which the entrepreneur expects to draw customers is called the ____.	trade area
Enterprise zones are common locations for ____.	manufacturing
Enterprise zones are common locations for ____.	team building
All of the following are alternatives to conventional facilities except ____.	leasing a building
People in ____ networks tend to gravitate toward each other in an effort to accomplish tasks in a more efficient and effective manner than may be dictated by the organizational chart.	informal
____ are distinct from other plans in that they are subject to the ERISA rules for employee retirement programs.	profit sharing plans
During the interview process for new hires, it is recommended that entrepreneurs ask ____.	open-ended questions
The Age Discrimination in Employment Act applies to all companies with ____ or more employees.	20
The most successful new ventures adopt a team-based approach with a/an ____ structure.	flatter
The first and best places for an entrepreneur to look for an employee include all of the following except ____.	online job search sites
The professional employer organization (PEO) is used for ____.	employee leasing
Using a/an ____ agreement is one way to make sure that only stock that has been earned will be distributed.	stock-vesting
Stock issued to the first shareholders of the corporation or assigned to key management as part of a compensation package is ____.	founder's stock
A basic ownership interest in the company whereby holders share in both the successes and the failures of the business and benefit through dividends is ____.	common stock
When an entrepreneur specifies that rewards and bonuses be linked to profits and performance of both the individual and the company, a/an ____ is in place.	deferred compensation plan
When a series of goals are set by the company with input from the employee, and the employee receives payment as each goal is reached, this is called a ____.	bonus plan
Employees have the right to participate in the profits of the company at a specified percentage, while not being full shareholders with voting rights, if they have ____.	capital appreciation rights
Production is managing the ____ of material and information from raw materials to finished goods.	flow
The virtual ownership model is similar to the Japanese keiretsu in the automobile industry with the exception of ____.	ownership
The goal in ____ is to provide the exact service the customer wants at minimal cost.	supply chain management
Any business that purchases raw materials or parts for production of goods for resale must carefully consider the quality, quantity, and ____ of those purchases.	timing
The quantity of raw materials or parts that are purchased is a function of ____, manufacturing capability, and storage capability.	customer demand
To guard against contingencies, it is wise for a startup to use one supplier for about ____ percent of its needs and one or more additional suppliers for the rest.	70 to 80
Inventory is defined as the stocks of items used to support production, associated activities, and ____.	customer service
When manufacturers use ____, lead times are reduced and employees have more involvement in the production of the entire product rather than simply one component of a product.	flexible manufacturing cells
The ____ process consists of a series of inputs, such as raw materials, labor, and machinery, which are then transformed through a series of processes into new products and services.	production
In general, manufacturing and production firms are organized as ____-focused or ____-focused organizations.	product/processes
____ organizations are common among manufacturers with capital-intensive processes and among service companies.	process-focused
____ has made it possible to error-proof processes using sensors, eliminating traditional quality checks and guaranteeing that what is being produced meets the customer's specifications.	technology
The real success or failure of the quality control effort is dependent on the ____ in the process.	human element
____ relies on statistical tools and specific processes to achieve the measureable goals of fewer defects, increased productivity, reduced waste, and superior products and processes.	six sigma
Entrepreneurs who subscribe to ____ will probably wish to provide warranties with products and services.	total quality management
Entrepreneurs who subscribe to ____ will probably wish to provide warranties with products and services.	efficiency and innovation
____ is/are used to demonstrate that a company stands behind what it produces and the work that it does.	warranties
Identifying all the tasks in the production process makes it easier to determine what equipment and ____ will be needed for completing the tasks.	supplies
Product- or project-focused organizations generally are highly ____ so that they can respond better to market demands.	decentralized
Two methods traditionally used in the scheduling process are PERT Diagrams and ____.	Gantt charts
Building a complex production system while the company is in startup or later, while it is rapidly growing, is ____.	a recipe for disaster
____ is/are a strategic issue that is designed to bring about business profitability and positive cash flow.	quality
The production schedule for simple projects that depicts the tasks to be performed and the time required for each is a/an ____.	Gantt chart
The production scheduling method wherein scheduling is more complex and subject to the interdependence of several activities going on either simultaneously or in sequence is a ____.	PERT diagram
The process of reconciling product output with the standards set for that product is ____.	quality control
In some industries, particularly labor-intensive ones, the only way to achieve competitive costs is to manufacture in a country where ____.	labor costs are low
____ is the management and control of the flow of goods and resources from the source of production to the marketplace.	logistics
Which of the following is not a decision that entrepreneurs must make regarding warranties?	customer satisfaction
One way manufacturers and producers control ____ is through a regular inspection process that takes place during several stages of the production process.	quality
Outsourced staff typically have a high turnover rate because ____________, so it is important for the entrepreneur to create a culture that encourages the staff to stay with the business long term.	the average age is 25
The ____ paradigm describes a statistical phenomenon where niche markets, when aggregated, account for a significant portion of total sales in some consumer sectors.	long tail
To the extent that entrepreneurs can predict the points of takeoff (optimism) and slowdown (pessimism) in the ____, they can better manage demand.	life cycle
Geoffrey Moore's modification of the adoption/diffusion curve shows the ____, a period when the early adopters have been exhausted and the technology stops selling.	chasm
The American Marketing Association defines ____ as a "name, term, design, symbol, or any other feature that identifies one seller's good or service as distinct" from other sellers.	brand image
____ generally employs a pull strategy, focusing on non-price benefits and targets end-users.	advertising
____ marketing is widely used to describe a marketing strategy that entices customers to pass on the marketing message to others.	viral
____ Readers provide a way to find out what others are saying about an entrepreneur's company by enabling the entrepreneur to subscribe to blogs and podcasts.	RSS
____ refers to situations where a probability of the risk occurring and its potential impact can be calculated because at least some of the variables involved in the decision can be controlled.	Risk
Traditional risk management proponents have typically adopted a/an ____ that sees risk as a physical property that has associated probabilities of occurrence.	objectivist view
The ____ takes into account the motives, trustworthiness, and process of the people involved in the risk assessment and generally gives a better result.	Bayesian view
____ plans help a growing business deal with events that regularly⎯and often without much warning⎯disrupt the equilibrium of the firm.	Contingency
Which of the following is not involved in risk assessment?	Securing a knowledgeable attorney
____ are used to protect a company against potential risk that can't be prevented.	Buffer strategies
The overall ____ is simply the product of the probability of occurrence times the cost of the impact to the business times the level of significance of that impact.	risk of loss
Smaller businesses for sale often use the services of ____.	business brokers
____ is simply a tool for increasing the level of visibility of a website when customers search for specific key words.	Both "Search engine marketing" and "Search engine optimization"
____, such as banner exchange programs, is/are strategic partnerships intended to increase website traffic.	affiliate programs
A/An ____ is one of the best places to meet and negotiate with sales representatives and to gather contact information for a mailing list.	trade show
Viewing customers as contributing members of the team rather than a series of transactions is the essence of ____.	customer relationship management
One way to stem complaints at the source is to provide ____.	satisfaction surveys
A living guide to how the company plans to build customer relationships over its life in order to fulfill the mission statement in the business plan is a ____.	marketing plan
All of the following are steps to take prior to writing a marketing plan except ____.	build brand equity
The marketing message or pitch presents the ____ of a product/service as a solution to the problem the customer is experiencing.	benefit
All of the following are part of the "5 P's" of marketing except ____.	purpose
____ marketing mimics the elaborate marketing strategies of larger companies but allows the entrepreneur to save valuable time and money.	guerrilla
Two of the most effective entrepreneurial marketing tools around, because they do not cost the company any money, are word-of-mouth and ____.	publicity
Print (such as newspapers) and broadcast (such as radio) are two categories of ____.	traditional advertsing
An effective news release should contain all of the following except ____.	a customer referral
____ combine(s) technology, training, and business strategy in a system for gathering and using information on current and prospective customers.	customer relationship managment
____ can be thought of as a bundle of ____ benefits that a company is providing to its customers, and these benefits reflect the company's core values.	marketing/intangible
About 30,000 new consumer products launch each year and ____ percent of them fail, primarily because they don't meet customer needs.	90
The book Diffusion of Innovations identifies the group of customers who tend to purchase a product only if they absolutely have to as the ____.	laggards
All of the following factors except ____ are included in the discussion of adoption/diffusion cycles and the rate at which a new product is adopted across the various customer segments.	relationship marketing
All of the following factors except ____ are included in the discussion of adoption/diffusion cycles and the rate at which a new product is adopted across the various customer segments.	15 to 20
____ benefits that customers appreciate include such things as access, saving money, saving time, convenience, and health.	intangible
The term ____ refers to a customer's perceived preference for, and evaluation of, product attributes, attribute performances, and consequences arising from use that facilitates (or blocks) achieving the customer's goals and purposes in use situations.	customer value
____ is a set of decisions about a product's position in the marketplace.	brand strategy
Even though the term ____ has negative connotations, it is widely used to describe a marketing strategy that entices customers to pass on marketing messages to others.	viral marketing
In the first stage of investment, seed funding will usually come from ____.	friends and families
By the second stage on investment, known as ____, the business is requiring capital to grow on the basis of a proven business model.	transition
Taking on outside investment capital means that the entrepreneur must plan for some type of ____ so that investors can cash out of the business and receive a return on their investment.	liquidity event
In the third stage of investment, the company will begin to experience rapid growth that calls for large sums of capital and perhaps a different type of money, termed ____, to provide the funds required for an initial public offering.	mezzanine financing
In technology ventures, early seed funding and grants support a long period of product development. Often this early-stage money comes from ____.	government grants
When major insurance companies and pension funds make equity investments and cash deposits into community banks that then lend to social ventures to help them grow, they are engaging in ____.	impact investing
The ____ of startup ventures depends heavily on the entrepreneur's personal resources.	capital structure
According to a Wells Fargo/Gallup study, most new ventures are started with ____.	less than $10,000
Which of the following is not a strategy for bootstrapping?	structuring convertible debt
Many investors suggest structuring a/an ____ deal for friends and family because this tactic avoids having to place a valuation on the company that is likely to be wrong.	convertible debt
____ normally invest between $10,000 and $500,000 and usually focus on first-stage financingthat is, startup funding or funding of firms younger than five years.	angel investors
____ are actually privately managed venture capital firms licensed by the Small Business Administration.	SBICs
Entrepreneurs can access ____ through universities that act as conduits for matching entrepreneurs with investors.	venture capital institutes
____ has/have become a popular form of cash management in smaller businesses that sell to big companies.	factoring
With an SBA-guaranteed loan, an entrepreneur applies for a loan of up to ____ from his or her bank, and the SBA guarantees that it will repay up to 90 percent of the loan to the commercial lender.	$2 million
In the R&D ____, the startup acts as a general partner to develop the technology and then structures a license agreement with the R&D partner whereby the entrepreneur can use the technology to develop other products.	limited partnership
State laws that protect investors from fraud are known by the term ____.	blue sky laws
A sophisticated ____ investor is one who has a net worth of at least $2.5 million, earns $250,000 per year, and has taken investment risk in the past.	PPM
The rules for private placement are stated in SEC Regulation ____.	D
All of the following except ____ resources are required resources at various milestones in the company's growth.	incubator
Many entrepreneurs neglect to consider one of the largest and most accessible sources of funding, which is ____.	their customers and suppliers
Companies that are not heavily regulated and that base their financial decisions on the quality of the assets of the business are ____.	commercial finance companies
The Small Business Innovation Development Act of 1982 requires that all federal agencies with research and development budgets in excess of $100 million give a portion of their budgets to technology-based small businesses in the form of ____.	grants
A type of partnership useful for entrepreneurs starting high-tech ventures that carry significant risk due to the expense of research and development is the ____.	R&D limited partnership
____ is/are a way of raising capital from private investors by selling securities in a private corporation or partnership.	private placement memorandum
Private investors, called angels, are ____.	the largest pool of risk capital in the United States
An investment in the entrepreneur's venture is normally for an ownership share in the business and is referred to as ____.	equity
Normally, the greatest single expense a business has is ____.	payroll
Most entrepreneurs start their ventures with their own financial resources, which can include all the following except ____.	accounts receivable
Startup funds typically come from ____.	the founders and other "friendly money"
____ take an equity position through ownership of stock in the company.	venture capital firms
VCs are fundamentally risk averse, so it is the entrepreneur's job to reduce risk in the three key areas: management risk, technology risk, and ____ risk.	business model
Most VCs invest in the ____ stage because it is more likely to bring them to the liquidity event they need in three to five years to make the investment worthwhile.	rapid growth
If after exhaustive due diligence the VCs are still sold on the business, they draw up the ____, which signals the start of a negotiation.	term sheet
A VC may request a ____, a penalty requiring founders to give up some of their stock to the VC if the company does not achieve its projected performance goals.	forfeiture provision
____ from lawyers, accountants, consultants, and investment bankers are essentially a promise not to charge the full fee if an IPO fails.	stop-loss statements
An underwriter draws up a/an ____, which outlines the terms and conditions of the agreement between the underwriter and the entrepreneur/selling stockholder.	letter of intent
The ____ method is probably the technique most commonly used to account for the going-concern value of a business, but it has problems as well.	real options
____ tend to favor the types of businesses where the investment required is relatively small and it's easy to determine whether the business will be a success within six months to a year.	super angels
Which of the following are not "backend" costs for an entrepreneur seeking capital by selling securities (shares of stock in the corporation)?	prospectus printing costs
Entrepreneurs considering a strategic partner should do all of the following except ____.	depend on a partner for significant revenue generation
____ is a floorless exchange that trades on the National Market System.	NASDAQ
All of the following disadvantages are associated with IPOs except ____.	pressure to perform in the long term
When searching for a venture capital firm, what should you not do?	shop around
Any investment deal includes all of the following components, except ____.	the liquidation strategy
Venture capital firms in an early-stage investment characteristically demand a higher rate of return, as much as ____ percent or more annual cash-on-cash return, whereas a later-stage investment demands a lower rate of return, perhaps ____ percent annuall	50/30
The historical peak for venture capital investment occurred in the year ____.	2000
The ____ lays out the amount of investment the VC firm is willing to consider and the conditions under which it is willing to consider making that investment.	term sheet
VC funding is usually ____.	later-stage funding
Which type of venture typically requires considerable research and development cost prior to startup?	high-tech
The ____ determines the present value of the projected cash flows and is, in reality, the expected rate of return for the investor.	discount rate
A factor affecting the final valuation of the business is the degree of ____ that the owner has over the business.	legitimate control
The value derived by assuming the sale of all assets and calculating the amount that could be recovered from doing so is the ____ value.	liquidation
The price at which a willing seller would sell and a willing buyer would buy in an arm's-length transaction is the ____ value.	fair market
A ____, or prospectus, discusses all the potential risks of investing in the initial public offering.	red herring
A ____, or prospectus, discusses all the potential risks of investing in the initial public offering.	choose an underwriter
Once a company has become a public company, returning to private status is ____.	a nearly insurmountable task
A form of startup capital managed by professionals is ____.	private venture capital
Which industries have the highest venture capital investment?	Biotechnology and software
The term ____ refers to tangible choices such asin the case of a new ventureinvesting in research and development for new technology.	real options
Rates and stages of growth in a new venture vary by ____.	industry and business type
In the four stages of growth, the ____ stage is characterized by concerns about cash flow and marketing.	initial growth
During startup, the entrepreneur's main concerns are to ensure sufficient startup capital, ____, and design a way to deliver the product or service.	seek customers
A firm entering a ____ market in an established industry with an innovative product can experience rapid rates of growth.	niche
Studies have found that among all the factors affecting growth, the most critical in a slowdown or failure appears to be inability to understand and respond to ____.	the business's environment
Involving everyone in the organization in the growth plan and rewarding achievement of interim goals are two ways to ____.	create a growth culture
Franchising and licensing are examples of ____.	intensive growth strategies
____ strategies may be synergistic or conglomerate.	diversification
A license agreement is a grant to someone else to use the company's ____ and exploit it in the marketplace by manufacturing, distributing, or using it to create a new product.	intellectual property
With a/an ____ strategy, either the company gains control of some or all of its suppliers or it becomes its own supplier by starting another business from scratch or acquiring an existing supplier that has a successful operation.	backward
Handling all aspects of delivering the product to the customer is the responsibility of the ____.	freight forwarder
____ purchase a product at a discount off list, sell it and handle collections, solving the problem of cultural differences in transactions.	agents
When an entrepreneur attempts to locate new products or businesses that are technologically complementary to the business, she or he is diversifying with a/an ____.	synergistic strategy
By focusing on what the entrepreneur does best and letting others do the rest, the ____ strategy helps the business grow more rapidly, keep unit costs down, and turn out products more quickly.	modular or network
A growth mode that may be appropriate for a company that does not wish to invest large amounts of capital in plant, equipment, and employees is ____.	licensing
Franchises generally come in all the following types except ____.	governmental agencies
What the franchisee may receive for a fee from the franchiser includes all of the following except ____.	the equity invested by the franchiser
In ____, the entrepreneur attempts to increase sales by using more effective marketing strategies within the current target market.	market penetration
Strategies that take the business into the international arena are ____ strategies.	global
Strategies that exploit opportunities outside the current market or industry are ____ strategies.	diversification
Strategies that involve growth within the industry as a whole are ____ strategies.	integrative growth
Strategies that exploit opportunity in the current market are ____ strategies.	intensive growth
Once the business has successfully passed through the rapid growth phase and is able to effectively manage the financial gains of growth, it will have reached ____.	stable growth and maintenance of market share
Failure at the rapid growth stage for an entrepreneur may be due to all of the following except ____.	public offering of the company
Problems during the rapid growth stage are often solved by ____.	delegating control and accountability
At the first stage of startup success, the main concerns for the entrepreneur include all of the following except ____.	hiring management expertise
With ____, entrepreneurs create a unique and sustainable competitive advantage by doing things differently for a different purpose.	strategic innovation
The market factors that affect a firm's ability to grow include all of the following except ____.	the entrepreneur's ability to delegate authority and responsibility
High-growth companies display all of the following characteristics except ____.	being loyal to the founding team
____ consists of taking the product or service to a broader geographic area.	market development
A/An ____ is an employee benefit plan that buys and holds company stock in special employee trust accounts that qualify as retirement accounts for tax purposes.	Employee Stock Ownership Plan
Which of the following does not describe the career path of an entrepreneur?	Transition entrepreneur
A "prepackaged bankruptcy" can take from four to nine months to complete, rather than the typical nine months to two years, and is possible under ____.	Chapter 11
Bankruptcy under ____ consists of the liquidation of the assets of the business and the discharging of most types of debt.	Chapter 7
A reorganization of the finances of the business so that it can continue to operate and begin to pay its debts is a/an ____.	Chapter 11 reorganization
It is an unfortunate fact of life that some entrepreneurs must exit their business through ____.	liquidation
In a/an ____, the entrepreneur has the ability to cash out a portion of his or her investment and still manage the business for an agreed-upon time when the business is sold at a prearranged price.	phased sale
According to Jerome Katz, women entrepreneurs who are driven by what is going on in their personal lives, such that their entrepreneurial tendencies emerge in spurts, are ____ entrepreneurs.	spiral
According to Jerome Katz, people who love to start businesses and may start and run several at once are ____ entrepreneurs.	habitual
According to Jerome Katz, entrepreneurs who measure their success by the size of their company are ____ entrepreneurs.	growth
To prepare the best defense against a cash flow crisis, the entrepreneur must be continually committed to all of the following except ____.	leveraging financing
When sales decline and positive cash flow starts looking like a memory, entrepreneurs often go ____.	into a period of denial
An integral part of a team-based approach to organizational management is ____.	cross-training
According to Pasmore and Torres, the second step in succession planning is ____.	announcement of the process
Most product liability insurance covers all of the following except ____	lost sales
The cost of hiring an employee is becoming so high that many companies are solving the problem by ____.	subcontracting work
The ____ declines for 13 months prior to the onset of a recession.	coincident-lagging index
Such items as the producer price index, the consumer confidence index, and the manufactures' orders for durable goods are contained in the ____.	leading index
By forcing entrepreneurs to consider multiple outcomes and possibilities, contingency plans help a growing business deal with all of the following except ____.	exit strategies
The immediately precipitating cause that forces a corporation into bankruptcy is ____.	failure to pay debt
Groups of hackers that act in the national interests of the country that sponsors them to provide nearly constant attacks on the national security infrastructure of countries are known as ____.	cyber militia
What skills and experience does the second generation nd to acquire?" and "What is the second generation's expectation for the future of the biz, and is it = with the company's vision?the q's that should be examined to start the process of ____ planning.	succession

Created by: sb37

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