Accounting
Anthropology
Archaeology
Art History
Banking
Biology & Life Science
Business
Business Communication
Business Development
Business Ethics
Business Law
Chemistry
Communication
Computer Science
Counseling
Criminal Law
Curriculum & Instruction
Design
Earth Science
Economic
Education
Engineering
Finance
History & Theory
Humanities
Human Resource
International Business
Investments & Securities
Journalism
Law
Management
Marketing
Medicine
Medicine & Health Science
Nursing
Philosophy
Physic
Psychology
Real Estate
Science
Social Science
Sociology
Special Education
Speech
Visual Arts
Economic
Q:
According to Penrose, ________ generate new market, product and service ideas, while ________ administer the routine functions of the firm and facilitate the profitable execution of new opportunities.
A) managerial services, entrepreneurial services
B) administrative services, business services
C) entrepreneurial services, managerial services
D) business services, commercial services
E) commercial services, administrative services
Q:
Maureen Kimble owns a firm that sells products to the auto, aerospace, and defense industries. Maureen is currently evaluating a set of opportunities that she feels her firm is capable of pursuing. According to the textbook, Maureen is evaluating her firm's:
A) prolific potential
B) dynamic opportunity options
C) productive opportunity set
D) passionate opportunity set
E) creative field of potential
Q:
According to Penrose, the set of opportunities a firm feels it is capable of pursuing is referred to as the:
A) creative field of potential
B) productive opportunity set
C) prolific potential
D) passionate opportunity set
E) dynamic opportunity options
Q:
The author of the book titled The Theory of the Growth of the Firm, which is referred to in Chapter 13, is:A) Gary HammelB) Joseph SchumpeterC) Edith PenroseD) Michael PorterE) Tom Peters
Q:
According to the textbook, it is:
A) not inevitable that a business enter the decline stage of the organizational life cycle
B) inevitable that a business enter the decline stage of the organizational life cycle
C) not inevitable that service firms enter the decline stage of the organizational life cycle but is inevitable for manufacturing firms
D) not inevitable that manufacturing firms enter the decline stage of the organizational life cycle but is inevitable for service firms
E) not inevitable that international firms enter the decline stage of the organizational life cycle but is inevitable for strictly domestic firms
Q:
According to the textbook, a well-managed business that finds its products and services are mature often:
A) replaces its board of directors to breathe new life into the firm
B) looks for licensing opportunities
C) looks for partnering or acquisition opportunities to breathe new life into the firm
D) looks for new managerial talent to breathe new life into the firm
E) looks for international business opportunities
Q:
According to the textbook, the toughest decisions regarding business growth are made in the ________ stage of the organizational life cycle.
A) introduction
B) early growth
C) continuous growth
D) maturity
E) decline
Q:
For a business to be successful in the early growth stage of the organizational life cycle, two important things must happen:
A) the founder or owner of the business must start transitioning from his or her role as the hands-on supervisor to a more managerial role and increased formalization must take place
B) a decision must be made whether the owner-manager and the current management team is capable of taking the business further and the organization must start laying the groundwork for future growth
C) increased formalization must take place and the business must achieve price stability
D) a decision must be made whether the owner-manager or the current management team is capable of taking the business further and business partnerships must be established
E) the founder or owner of the business must start transitioning from his or her role as the hands-on supervisor to a more managerial role and the business must be cash flow positive
Q:
The main challenges for a business in the introduction stage of the organizational life cycle is:
A) beginning the process of transitioning the owner from a hands-on supervisor to a more managerial role and developing business partnerships
B) developing business partnerships and making sure the initial product or service is right
C) determining whether the owner of the business and the current management team is capable of taking the business further and developing systems and procedures
D) developing systems and procedures and beginning the process of transitioning the owner from a hands-on supervisor to a more managerial role
E) making sure the initial product or service is right and starting to lay the groundwork for building a larger organization
Q:
The ________ stage of the organizational life cycle is the startup phase, where a business determines what its core strengths and capabilities are and starts selling its initial product or service.
A) introduction
B) launch
C) ramp-up
D) early growth
E) continuous growth
Q:
Which of the following is not one of the five stages in the organizational life cycle?
A) maturity
B) scale
C) decline
D) early growth
E) introduction
Q:
The majority of businesses go through a discernable set of stages of growth referred to as the:
A) business rotation cycle
B) business existence cycle
C) organizational sequence
D) business life cycle
E) organizational life cycle
Q:
Valarie owns a company that makes specialized components for the auto industry. Her most important customer is a company that is growing at a rate of 25% per year. Valarie is working hard to grow her firm, because she knows that unless her company continually grows it will not be able to keep pace with the growth of its most important customer. This examples illustrates the reason for growth referred to as:
A) capturing economies of scope
B) executing a scalable business model
C) market leadership
D) influence, power, and survivability
E) need to accommodate the growth of key customer
Q:
Some firms feel that they can better appeal to their customers if they can advertise that they are "the Number 1 firm" in their industry. This sentiment is motivated by the reason for growth labeled:
A) economies of scope
B) need to accommodate the growth of key customer
C) economies of scale
D) market leadership
E) influence, power, and survivability
Q:
Market leadership occurs when:
A) a firm is the number one or the number two firm in an industry or niche market in terms of net profits
B) a firm is one of the top five firms in an industry or market niche in terms of sales volume
C) a firm earns twice as much as its closest competitor
D) a firm sells twice as much as its closest competitor
E) a firm is the number one or the number two firm in an industry or niche market in terms of sales volume
Q:
________ are similar to economies of scale, except the advantage comes through the scope (or range) of a firm's operations rather than from its scale of production.
A) Economies of reach
B) Economies of span
C) Economies of capacity
D) Economies of range
E) Economies of scope
Q:
Tiffany Smith owns a barbecue restaurant. One expense that Tiffany watches closely is the cost of propane, which she uses to heat her ovens. The more barbecue food Tiffany sells, the more it costs her for propane on a monthly basis. For Tiffany, the cost of propane is a(n):
A) variable cost
B) secondary cost
C) resultant cost
D) fixed cost
E) irregular cost
Q:
Jeremy Rhodes leases a manufacturing facility that produces computer keyboards. Jeremy tries to keep production high, because his lease payments are $6,200 a month, regardless of whether he produces one computer keyboard a month or 10,000. Jeremy's lease payment is a:
A) variable cost
B) secondary cost
C) fixed cost
D) marginal cost
E) tangible cost
Q:
________ costs are the costs a company incurs as it makes sales.
A) Static
B) Irregular
C) Balanced
D) Variable
E) Flexible
Q:
________ costs are costs that a company incurs whether it sells something or not.
A) Fixed
B) Consistent
C) Steady
D) Variable
E) Regular
Q:
________ are costs that a company incurs whether it sells something or not. ________ are the costs a company incurs as it generates sales.
A) Preset costs, Marginal costs
B) Variable costs, Fixed costs
C) Set costs, Marginal costs
D) Fixed costs, Variable costs
E) Marginal costs, Set costs
Q:
Andy Dungy owns a company that makes Apple iPod, iPhone, and iPad accessories. He is trying to increase his sales, primarily because he knows that increasing production lowers the average cost of each unit produced. The reason for growth illustrated in this example is:
A) economies of scope
B) market leadership
C) influence, power, and survivability
D) need to accommodate the growth of key customers
E) economies of scale
Q:
Economies of scale occur when:
A) increasing production lowers the average cost of each unit produced
B) increasing production increases the average cost of each unit produced
C) decreasing production lowers the average cost of each unit produced
D) decreasing production increases the average cost of each unit
E) increasing production increases the fixed cost of doing business
Q:
________ are(is) generated when increasing production lowers the average cost of each unit produced.
A) Business scalability
B) Economies of scale
C) Reaching for scale
D) Market leadership
E) Economies of scope
Q:
The Savvy Entrepreneurial Firm feature in Chapter 13 focuses on Dogfish Head Brewery, a microbrewery located in Milton, Delaware. During the first few years of the firm's existence, one tactic the founder employed during the winter months, to gain the loyalty of local businesses and their customers, was to:A) distribute fliers via local businesses offering off-season discounts with coupons that could be redeemed at the company's restaurant and breweryB) offer free delivery from the company's brewery and restaurantC) offer free tours of the company's breweryD) offer 10% discounts to Delaware residents and 30% discounts to Milton residentsE) hold contests to name the company's different varieties of beer after local landmarks and citizens
Q:
Which of the following options was not identified in the textbook as an appropriate reason for growth?
A) need to accommodate the growth of key customers
B) influence, power, and survivability
C) economies of scale
D) market leadership
E) maintain the appearance that the firm is successful
Q:
The Partnering for Success feature in Chapter 13 focuses on Threadless, the popular community-centered T-shirt design site. According to the feature, at one point during its early growth, Threadless almost collapsed under the weight of operational problems. Threadless solved the problem by:A) hiring professional managersB) replacing the founder CEO with a seasoned CEO from an established companyC) hiring a consulting firmD) selling a minority interest to a venture capital firm, which provided Threadless operational assistanceE) merging with Zappos and folding its operations into Zappos' operations
Q:
Which of the following is not one of the 10 warning signs that a business is growing too fast?
A) those working with the business's financial structure are starting to worry
B) productivity is falling
C) e-mail starts going unanswered
D) borrowing money to pay for routine operating expenses
E) comfortable profit margins
Q:
According to the textbook, there are three issues about business growth that entrepreneurs should appreciate. These issues are:
A) not all businesses have the potential to be aggressive growth firms, business success scales, and business growth is a top priority of most entrepreneurial firms
B) business growth is a top priority of most entrepreneurial firms, a business can't grow too fast, and businesses that price their products aggressively grow the fastest
C) a business's valuation increases with its growth, a business can grow too fast, and business growth is a top priority of most entrepreneurial firms
D) the majority of businesses have the potential to be aggressive growth firms, a business can't grow too fast, and business success scales
E) not all businesses have the potential to be aggressive growth firms, a business can grow too fast, and business success doesn't always scale
Q:
According to the textbook, the businesses that have the potential to grow the fastest over a sustained period of time are ones that:
A) solve a significant problem or have a major impact on their customers' productivity or lives
B) are cost leaders and promote themselves aggressively
C) have a major impact on their customers' lives and sell high quality products
D) take advantage of environmental trends and are cost leaders
E) solve a significant problem or sell high quality products
Q:
According to the textbook, most entrepreneurial firms:
A) are ambivalent about growth
B) want to grow
C) do not want to grow
D) want to grow if the economy is strong but do not want to grow if the economy is weak
E) want to grow if they are a service firm but do not want to grow if they are a manufacturing firm
Q:
According to the textbook, there are three important things that a business can do to prepare for growth:
A) plan for growth, adopt a growth-oriented business model, and stay committed to a core strategy
B) appreciate the nature of business growth, stay committed to a core strategy, and plan for growth
C) develop a viral marketing campaign, stay committed to a core strategy, and adopt a growth-oriented business model
D) develop business partnerships, diversify beyond the company's core strategy, and appreciate the nature of business growth
E) retain or hire one or more business growth consultants, diversify beyond the company's core strategy, and plan for growth
Q:
In the context of firm growth, gazelles are:
A) firms that grow at a rate of 100% per year or more
B) firms that grow at a rate of 25% per year or more
C) rapid growth firms
D) slow growth firms
E) moderate growth firms
Q:
In regard to firm growth, evidence shows that:
A) relatively few firms generate sustained and profitable growth
B) the majority of firms generate sustained and profitable growth
C) an equal number of firms generate sustained and profitable growth than firms that don't
D) firms in the manufacturing sector are more likely to achieve sustained and profitable growth than firms in the service sector
E) firms in the service sector are more likely to achieve sustained and profitable growth than firms in the manufacturing sector
Q:
According to a study sponsored by the SBA Office of Advocacy, only ________ of all firms are "gazelles" or rapid growth firms at any given time.
A) 3%
B) 7%
C) 12%
D) 19%
E) 27%
Q:
Barb Campbell owns an entertainment company which has increased both its profits and revenues over an extended period of time. Barb's firm is experiencing:
A) resolute growth
B) unrelenting growth
C) sustained growth
D) unbroken growth
E) moderate growth
Q:
PurBlue Beverages, the company profiled in the opening feature for Chapter 13, sells bottled water, under the GIVE brand. GIVE bottled water has not one but two unusual twists. First, 10 cents of every bottle sold is donated to charity. And second:A) the bottles come in four colors (each color representing a charity), allowing the buyer to choose which charity his or her donation would go toB) the bottles come in four sizes, allowing the buyer to determine which size to buyC) the bottles come in four shapes, each shape representing a different environmental causeD) the bottles are biodegradable and break down within six months of being usedE) the bottles come with seven different labels, each label providing information about a local charity
Q:
What is a copyright? What is protected by a copyright?
Q:
What is a trademark? Why are trademarks important?
Q:
Identify and briefly describe the three types of patents.
Q:
What are the two primary rules of thumb for determining whether intellectual property protection should be pursued for a particular intellectual asset?
Q:
What is intellectual property? Why is it called "intellectual" property? Why is intellectual property such an important issue for entrepreneurial firms?
Q:
An intellectual property audit is conducted to determine the intellectual property a company owns.
Q:
Trade secret disputes arise most frequently when one firm alleges that a trade secret claimed by another firm is common knowledge, and can therefore be used by anyone.
Q:
The federal Economic Espionage Act, passed in 1996, criminalizes the theft of trade secrets.
Q:
A trade secret is any formula, pattern, physical device, idea, process, or other information that provides the owner of the information with a competitive advantage in the marketplace.
Q:
Copyright infringement occurs when one work derives from another or is an exact copy.
Q:
Computer software is not covered by copyright law.
Q:
The 1976 Copyright Revision Act governs copyright law in the United States.
Q:
A copyright is a form of intellectual property protection that grants to the owner of a work of authorship the legal right to determine how the work is used and to obtain the economic benefits from the work.
Q:
A trademark consisting primarily of a surname, such as Jones or Smith, is typically not protectable.
Q:
Trademark law falls under the Lanham Act, which passed in 1946.
Q:
Combinations of numbers and letters, such as 3M and 1-800-FREE-411, cannot be trademarked.
Q:
Certification marks are similar to ordinary trademarks, but they are used to identify the services or intangible activities of a business rather than a business's physical product.
Q:
A trademark is a word, name, symbol, or device used to identify the source or origin of products or services and to distinguish those products or services from others.
Q:
Utility patents are the most common type of patent and cover what we generally think of as new inventions.
Q:
A utility patent can be obtained for a new product or process or the "idea" for a new product or process.
Q:
The owner of a patent is granted a legal monopoly for an unlimited period of time.
Q:
The average time for the approval of a patent is 19 months.
Q:
A patent is a grant from the federal government conferring the rights to exclude others from making, selling, or using an invention for the term of the trademark.
Q:
Patents, trademarks, copyrights, and licenses are the four key forms of intellectual property.
Q:
Intellectual property is any product of human intellect that is intangible but has value in the marketplace.
Q:
There are two primary reasons to conduct an intellectual property audit. First, it is prudent for a company to periodically determine whether its intellectual property is being properly protected. The second reason for a company to conduct an intellectual property audit is to:
A) remain prepared for a Security & Exchange Commission spot inspection
B) remain prepared to justify its value in the event of a merger or acquisition
C) remain prepared for an initial public offering
D) update the value of its intellectual property on its balance sheet
E) make sure no intellectual property has been stolen
Q:
Consider the following questions: Are products under development that require patent protection? Are we in compliance with the copyright license agreements into which we have entered? Is anyone infringing on our trademarks? Are company trade secrets leaking out to competitors? These are the types of questions that would be asked when conducting a(n):A) intangible material examinationB) intellectual property inventoryC) intangible material inspectionD) patent, trademark, copyright, and trade secret reviewE) intellectual property audit
Q:
An ________ is conducted to determine the intellectual property a company owns.
A) intellectual property audit
B) intangible materials audit
C) academic property inventory
D) intellectual materials inventory
E) intangible property inventory
Q:
According to the textbook, trade secret disputes arise most frequently when:
A) one firm alleges that it can legally use another firm's trade secrets because they were "voluntarily" disclosed
B) an employee leaves a firm to join a competitor and is accused of taking confidential information with him or her
C) one firm claims that another firm outright stole its trade secrets
D) one firms claims that what another firm is claiming as a trade secret is common knowledge
E) one firm claims that it obtained another firm's trade secrets through legal means
Q:
The ________, which was drafted in 1979 by a special commission, attempted to set nationwide standards for trade secret legislation.
A) Intangible Assets Protection Act
B) Fairness in Intellectual Property Act
C) Uniform Trade Secrets Act
D) Trademark & Copyright Act
E) Economic Espionage Act
Q:
The federal Economic Espionage Act, passed in 1996, criminalizes:A) copyright infringementB) utility patent violationsC) trademark violationsD) design patent violationsE) the theft of trade secrets
Q:
Which of the following items would typically be protected by a form of intellectual property protection other than trade secret statutes?
A) financial forecast
B) product formula
C) a company's tagline
D) logs of sales calls
E) employee roster
Q:
________ include marketing plans, product formulas, financial forecasts, employee rosters, logs of sales calls, and laboratory notebooks.
A) Trade secrets
B) Trademarks
C) Collective marks
D) Patents
E) Copyrights
Q:
A company's customer list is most commonly protected under ________ regulations.A) patentB) copyrightC) trade secretD) trademarkE) collective mark
Q:
________ occurs when one work derives from another or is an exact copy or shows substantial similarity to the original work.
A) Copyright infringement
B) Copyright violation
C) Copyright intrusion
D) Copyright breach
E) Copyright duplication
Q:
The main exclusion from copyright laws is that copyright laws cannot protect:A) ideasB) dramatic worksC) computer softwareD) musical compositionsE) literary works
Q:
According to current regulations, any copyrightable work created on or after January 1, 1978, is protected by copyright law for the life of the author plus:A) 28.5 yearsB) 101 yearsC) 40 yearsD) 55 yearsE) 70 years
Q:
Which of the following symbols is the copyright bug?A)B)C)D)E)
Q:
Copyright law protects any work of authorship:
A) 90 days after it is approved by the U.S. Copyright Office
B) one year after it assumes a tangible form
C) the moment it assumes a tangible form
D) as soon as it is approved by the U.S. Copyright Office
E) 30 days after it assumes a tangible form
Q:
If a local band wrote their own rendition of a Celine Dion song, the band could try to copyright their rendition of the song as a(n):A) imitative workB) offshoot workC) derivative workD) subsequent workE) supplemental work
Q:
Copyright law is governed by the:
A) U.S. Constitution
B) the 1946 Intellectual Property Act
C) the 1966 Trademark and Copyright Act
D) the 1955 Inventors and Writer's Protection Act
E) Copyright Revision Act of 1976
Q:
Which of the following statements about copyrights is incorrect?A) Businesses typically possess a treasure trove of copyrightable material.B) A musical composition that is written down is copyrightable.C) Copyrightable material may be in tangible or intangible form.D) The 1976 Copyright Act governs copyright law in the United States.E) A copyright is a form of intellectual property protection.
Q:
A trademark is registered with the:
A) U.S. Commerce Department
B) Federal Trade Commission
C) Securities and Exchange Commission
D) Federal Patent, Copyright, and Trademark Office
E) U.S. Patent and Trademark Office