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Entrepreneurship
Q:
Which of the following statements about business models is incorrect?
A) There are two general types of business models.
B) There is no perfect business model.
C) Most of the standard business models have been in place for some time.
D) A firm's business model is confined to its own boundaries.
E) Firms should guard themselves against thinking that one particular business model is a "home run" regardless of circumstances.
Q:
Brandon Jones has crafted a business model for his firm that is based on an existing plan or template for how firms in his industry create, deliver and capture value for their shareholders. Brandon has crafted a ________ business model.
A) standard
B) disruptive
C) customary
D) normal
E) temporary
Q:
________ business models depict existing plans or recipes firms can use to determine how they will create, deliver, and capture value for their stakeholders.
A) Revolutionary
B) Normal
C) Customary
D) Disruptive
E) Standard
Q:
The two general categories of business models are ________ and ________.
A) normal; unique
B) standard; disruptive
C) ordinary; revolutionary
D) customary; unique
E) ordinary; disruptive
Q:
What is a business model? Why is it important? Provide an example to illustrate your answer.
Q:
A business model is a firm's plan or recipe for how it creates, delivers, and captures value for its stakeholders.
Q:
The Partnering for Success feature in Chapter 4 focused on Web-based platforms, including Odesk, Elance, and Guru, that make it easy to identify and hire experienced ________.
A) part time employees
B) freelancers
C) interns
D) virtual assistants
E) full-time employees
Q:
In regard to business models, which of the following statements is incorrect?
A) There is a standard business model that most firms follow.
B) A firm's business model is inherently dependent on the collection of resources it controls and the capabilities it possesses.
C) It is dangerous for a company to assume that it can be successful by simply copying the business model of another firm.
D) A firm's business model is its plan or diagram for how it competes.
E) It is often difficult to determine what another firm's business model is.
Q:
Which of the following is the proper sequence for when a firm should develop a business model?
A) Preparation of the business model, initial validation of the business idea, opportunity recognition
B) Initial validation of the business idea, establishing a growth plan, preparation of the business model
C) Initial validation of the business idea, preparation of the business model, fleshing out the operational details of the firm
D) Opportunity recognition, fleshing out the operational details of the firm, preparation of the business model
E) Opportunity recognition, preparation of the business model, establishing a growth plan for the firm
Q:
The Savvy Entrepreneurial Firm feature in Chapter 4 focuses on the ways in which Quirky creates, delivers and captures value for its stakeholders. According to the feature, Quirky would be a business that would be difficult to copy. According to the feature, it would be difficult to copy because ________.
A) it has raised over $91 million and has over 550,000 people in its network
B) it has a highly-functional Web site and has a talented management team
C) it has a savvy marketing plan and has over 550,000 people in its network
D) it has raised over $91 million and has a talented management team
E) it has an excellent Internet domain name and has a first-mover advantage
Q:
A ________ is a firm's plan or recipe for how it creates, delivers, and captures value for its stakeholders.
A) commercialization plan
B) business model
C) business plan
D) launch plan
E) tactical model
Q:
Her Campus Media, the focus of the opening feature of Chapter 4, features a vibrant online magazine, with feature articles targeted toward all aspects of college life and survival. According to the feature, Her Campus's business model focuses on connecting companies with college females. The key to making this work is ________.
A) the strength of Her Campus Media's management team
B) the strength of Her Campus Media's brand
C) the quality of the online content that Her Campus Media produces
D) the functionality and vibrancy of the company's Web site
E) Her Campus's unparalleled access to college females
Q:
What are core competencies? Provide an example of the core competencies that are utilized by an entrepreneurial firm.
Q:
Briefly describe the four main components of the Barringer/Ireland Business Model Template. Identify the subcomponents of each the four main components of a business model.
Q:
Describe the Barringer/Ireland Business Model Template and discuss its purpose.
Q:
A strategic alliance is an entity created by two or more firms pooling a portion of their resources to create a separate, jointly-owned organization.
Q:
A company's channels describe how it delivers its product or service to its customers.
Q:
The operations section of the Barringer/Ireland Business Model Template includes three sections: product (or service) production, channels, and key partners.
Q:
In the financing/funding section of the Barringer/Ireland Business Model Template, there are three categories of costs to consider: capital costs, one-time expenses, and provisions for ramp-up expenses.
Q:
Value-driven businesses focus on minimizing costs wherever possible.
Q:
A firm's revenue streams describe the ways in which it makes money.
Q:
In the terminology of the Barringer/Ireland Business Model Template, a key asset is a specific factor or capability that support a firm's business model and sets it apart from its rivals.
Q:
The resources section of the Barringer/Ireland Business Model Template includes three parts: core competency, key assets, and revenue streams.
Q:
A company's product/market scope defines the products and markets on which it will concentrate.
Q:
A company's target market is a place within a larger market segment that represents a narrower group of customers with similar interests.
Q:
When competing the basis for differentiation portion of the Barringer/Ireland Business Model template, it is important to emphasize as many points of differentiation as possible.
Q:
A business's mission or mission statement describes why it exists and what its business model is supposed to accomplish.
Q:
Core strategy describes what causes consumers to pick one company's products over another.
Q:
The four major categories in the Barringer/Ireland Business Model Template are: core strategy, resources, financials, and operations.
Q:
An entity created by two or more firms pooling a portion of their resources to create a separate, jointly-owned organization is called a ________.
A) trade association
B) network
C) joint venture
D) consortia
E) strategic alliance
Q:
Cynthia Hamilton is launching a chain of smoothie restaurants. Among Cynthia's key partners will be firms that provide her the ingredients needed to make her smoothies. In the terminology of the Barringer/Ireland Business Model Template, these partners are called ________.
A) dealers
B) suppliers
C) merchants
D) traders
E) brokers
Q:
Brad Jones is in the process of opening an electronics supply company and is working on the portion of his business plan template that describes how he will deliver his products and services to his customers. The portion of the business plan template that Brad is working on is referred to as ________.
A) channels
B) network
C) linkages
D) grids
E) conduits
Q:
Sarah Green, who plans to open a garden and lawn business, is working on the portion of the Barringer/Ireland Business Model template that focuses on how her products and services will be produced. Sarah is working on the ________ section of the template.
A) basis of differentiation
B) product/or service production
C) product/market scope
D) core competency
E) channels
Q:
The operations quadrant in the Barringer/Ireland Business Model Template includes three sections. These are ________.
A) product (or service) production, channels, and key partners
B) product/market scope, cost structure, and key partners
C) key assets, cost structure, and channels
D) key partners, financing/funding, and target market
E) channels, core competency, and key partners
Q:
According to the textbook, there are three categories of costs to consider when completing the "financing/funding" section of the Barringer/Ireland Business Model Template. These are ________.
A) setup costs, one-time expenses, and costs associated with incorporating the firm
B) capital costs, marketing costs, and provisions for ramp-up expenses
C) setup costs, marketing costs, and operating costs
D) capital costs, one-time expenses, and provisions for ramp-up expenses
E) operating costs, capital costs, and costs associated with setting up the firm
Q:
________ costs are costs that remain the same despite the volume of goods or services produced. ________ costs vary proportionally with the volume of goods or services provided.
A) Expense; Non-standard
B) Standard; Non-Standard
C) Fixed; Variable
D) Non-Standard; Standard
E) Variable; Fixed
Q:
Jenna Franklin is completing the portion of the Barringer/Ireland Business Model Template that describes the most important costs that will be incurred to support her business model. Jenna is completing the ________ structure box in the business model template.
A) expense
B) outlay
C) payment
D) overhead
E) cost
Q:
In the terminology of the Barringer/Ireland Business Model Template, a firm's ________ structure describes the most important costs incurred to support its business model.
A) expense
B) cost
C) budget
D) overhead
E) outflow
Q:
Advertising, commissions, download fees, licensing, and product sale are examples of ________.
A) revenue streams
B) basis of differentiation
C) key assets
D) channels
E) cost structure
Q:
A firm's ________ describe(s) the ways in which it makes money.
A) proceeds account
B) break-even analysis
C) revenue streams
D) cash flow
E) income statement
Q:
Which section of the Barringer/Ireland Business Model Template is the only section that describes how it makes money?
A) Core strategy
B) Resources
C) Financials
D) Operations
E) Value proposition
Q:
The Financials section of the Barringer/Ireland Business Model Template consists of three boxes. The boxes are titled ________.
A) economics of the business, startup-costs, and break-even
B) revenue streams, cost structure, and financing/funding
C) profit margins, revenue streams, and break-even
D) startup-costs, operating leverage, and financing/funding
E) fixed vs variables costs, financing/funding, and break-even
Q:
In the Barringer/Ireland Business Model Template, key assets can be ________.
A) fixed, situational, variable, and permanent
B) tactical, strategic, fixed, and variable
C) tangible, intangible, variable, and fixed
D) temporary, permanent, fixed, and variable
E) physical, financial, intellectual, or human
Q:
In the terminology of the Barringer/Ireland Business Model Template, ________ assets are the assets that a firms owns that enable its business model to work.
A) key
B) tactical
C) fundamental
D) primary
E) strategic
Q:
Mark White is the founder of a firm that builds iPhone apps. Mark is very technically savvy, which allows him to build apps quickly and with minimal bugs or problems. In the terminology of the Barringer/Ireland Business Model Template, Mark's technical savvy is a(n) ________ of his firm.
A) primary capability
B) core competency
C) essential asset
D) staple proficiency
E) key aptitude
Q:
In the Barringer/Ireland Business Model Template, a(n) ________ is a specific factor or capability that supports a firm's business model and sets it apart from its rivals.
A) primary capability
B) core competency
C) essential asset
D) staple proficiency
E) key aptitude
Q:
The Resources section of the Barringer/Ireland Business Model Template consists of the ________ and ________ boxes.
A) business mission; core competency
B) core competency; product/market scope
C) channels; key partners
D) core competency; key assets
E) revenue streams; key assets
Q:
Erin Hill is working on the box in the Barringer/Ireland Business Model Template that defines the products and markets on which her firm will concentrate. Erin is working on the ________ scope portion of the business model template.
A) offering/market
B) offering/industry
C) business/market
D) business/industry
E) product/market
Q:
A company's ________ scope defines the products and markets on which it will concentrate.
A) product/market
B) offering/industry
C) business/market
D) business/industry
E) offering/market
Q:
Kaitlyn Harris is opening up a women's fashion boutique that will focus on professional women that are 18-30 years old. The age range of women that Kaitlyn plans to focus on is referred to as her ________ market.
A) controlled
B) ambitious
C) identifiable
D) target
E) aspirational
Q:
A firm's ________ market is a place within a larger market segment that represents a narrower group of customers with similar interests.
A) aspirational
B) ambitious
C) constrained
D) target
E) objective
Q:
When completing the basis of differentiation box in the Barringer/Ireland Business Model Template, it is best to limit the description to ________.
A) two to three points
B) one point
C) five to10 points
D) two to three points for manufacturing firms and five to 10 points for service firms
E) five to 10 points for manufacturing firms and two to three points for service firms
Q:
The first box in the Barringer/Ireland Business Model Template is ________.
A) product/market scope
B) revenue streams
C) business mission
D) target market
E) channels
Q:
Nathan Green is starting a firm in the organic produce industry. Nathan has developed a statement"Helping Make Your Life Better, Healthier, and Fuller"that describes the reason his company exists and what his business model is supposed to accomplish. In the terminology used in the Barringer/Ireland Business Model Template, Nathan's statement is referred to as his ________ statement.
A) values
B) uniqueness
C) differentiation
D) mission
E) task
Q:
A business's ________ describes why it exists and what its business model is supposed to accomplish.
A) values statement
B) importance statement
C) differentiation statement
D) mission statement
E) significance statement
Q:
Which of the following is not one of the four elements of the core strategy section of the Barringer/Ireland Business Model Template?
A) Business mission
B) Key assets
C) Basis of differentiation
D) Target market
E) Product/market scope
Q:
Jamie Finch is crafting the business model for her fashion design firm. She just completed the section that describes how her firm plans to compete relative to her rivals. Jamie just completed the ________ portion of her business model template.
A) operations
B) core strategy
C) resources
D) strategic plan
E) tactical strategy
Q:
Briefly describe the purpose of the First Screen and how it's used.
Q:
First Screen is a template for completing industry analysis
Q:
The mechanics for filling out a First Screen worksheet are complicated.
Q:
The First Screen feasibility analysis template included in Chapter 3 is called "First Screen" because ________.
A) it is the first feasibility analysis template created
B) it is the first and most important step in the opportunity recognition process
C) it is the first step in a sequence of several steps that must be completed before a business idea is deemed to be feasible
D) feasibility analysis is an entrepreneur's initial or first pass at determining the feasibility of a business idea
E) it is the first of several "screens" that a business idea must pass through before it is considered to be feasible
Q:
The template for completing a feasibility analysis included in Appendix 3.1 of the book is called the ________ analysis.
A) First Evaluation
B) Initial Screen
C) First Pass
D) First Screen
E) Flash Screen
Q:
The most important issues to consider in financial feasibility analysis are total startup cash needed, financial performance of similar businesses, and overall financial attractiveness of the proposed venture.
Q:
For financial feasibility analysis, a very detailed and comprehensive financial analysis is required.
Q:
Which of the following factors is a positive as it pertains to the financial feasibility of a business venture?
A) Inconsistent and slow growth in sales during the first five to seven years in a clearly defined market niche
B) High percentage of recurring revenue
C) Inability to forecast income and expenses with a reasonable degree of accuracy
D) Reliance on externally generated funds to finance and sustain growth
E) Absence of an existing opportunity for investors to convert equity into cash
Q:
Which of the following factors is a negative as it pertains to the financial feasibility of a business venture?
A) Steady and rapid growth in sales during the first five to seven years in a clearly defined market niche
B) High percentage of recurring revenuemeaning that once a firm wins a client, the client will provide recurring sources of revenue
C) Inability to forecast income and expenses with a reasonable degree of accuracy
D) Internally generated funds to finance and sustain growth
E) Availability of an exit opportunity for investors to convert equity into cash
Q:
Which of the following is incorrect regarding the "total startup cash needed" component of financial feasibility analysis?
A) It's not necessary to complete an actual budget of startup expenses.
B) When explaining where the startup funds will come from, avoid cursory explanations such as "I plan to bring investors on board" or "I'll borrow the money."
C) There are worksheets posted online that help entrepreneurs determine the startup costs to launch their venture.
D) An explanation of where the startup funds will come from should be included.
E) If the money will come from friends and family or is raised through other means, a reasonable plan should be stipulated to repay the money.
Q:
The most important issues to consider in financial feasibility analysis are: financial performance of similar businesses, total cash needed, and ________.
A) the projected internal rate of return of the proposed venture
B) the projected years to an IPO or an acquisition for the proposed venture
C) management prowess
D) overall attractiveness of the proposed venture
E) the projected borrowing power of the proposed business
Q:
The most important issues to consider in financial feasibility analysis are ________.
A) resource sufficiency, industry attractiveness, and total startup cash needed
B) total startup cash needed, financial performance of similar businesses, and the overall financial attractiveness of the proposed venture
C) target market attractiveness, resource sufficiency, and product/service demand
D) total startup cash needed, management prowess, and product/service demand
E) concept testing, total startup cash needed, and financial performance of similar businesses
Q:
________ feasibility analysis is a quick financial assessment of the viability of a business idea.
A) Organizational
B) Institutional
C) Product/service
D) Financial
E) Industry/market
Q:
In regard to management prowess, two of the most important factors in this area are the passion that the solo entrepreneur or the management team has for the business idea and the extent to which the management team or solo entrepreneur understands the markets in which the firm will participate.
Q:
A new venture team is the group of founders, key employees, and advisers that either manage or help manage a new business in its startup years.
Q:
The two primary areas to consider in organizational feasibility analysis are management prowess and resource sufficiency.
Q:
The focus in organizational feasibility analysis is on financial resources.
Q:
Organizational feasibility analysis is conducted to determine whether a proposed business venture has sufficient management expertise, organizational competence, and resources to successfully launch its business.
Q:
To test resource sufficiency, a firm should list the ________ most critical non-financial resources that it will need to move its business idea forward and determine if those resources are available.
A) 1 to 2
B) 3 to 5
C) 6 to 12
D) 10 to 16
E) 15 to 25
Q:
Which of the following is an example of a resource that normally would not be evaluated as part of the "resource sufficiency" stage of organizational feasibility analysis?
A) Ability to form favorable business partnerships
B) Financial resources
C) Affordable office space
D) Key equipment needed to operate the business
E) Key support personnel
Q:
The Partnering for Success feature in Chapter 3 focuses on the task of finding the right business partner. According to the feature, which of the following is an incorrect rule-of-thumb in finding a business partner?
A) Know the skills and experiences you need in a partner.
B) Make sure you and your partner's work habits are compatible.
C) Make sure you and your partner have common goals and aspirations.
D) Pick a partner that is similar rather than different from you in terms of skills, abilities, and functional background.
E) Hire a lawyer to negotiate the partnership agreement.
Q:
The What Went Wrong? Feature in Chapter 3 focuses on Standout Jobs. Although the company was acquired by a larger firm in 2010, it was not considered to be a financial success. According to the case, Standout Jobs failed to meet expectations for the following three reasons: ________.
A) First, the company's timing was bad; second, prior to launch, the company's management team didn't have a strong enough understanding of the HR/recruitment market; and third, the company's leaders found that you can't shove a solution down your customer's throats
B) First, the company's product had flaws; second, the company's management team didn't have a strong enough understanding of the HR/recruitment market; and third, the company's marketing plan was ineffective
C) First, the company's management team was inexperienced; second, the company's timing was bad; and third, the company was poorly financed
D) First, the company's product had flaws; second, the company management team was inexperienced; and third, the company found that you can't shove a solution down your customer's throats
E) First, the company's feasibility analysis was poor; second, the company's management team didn't have a strong enough understanding of the HR/recruitment market; and third, the company was poorly financed
Q:
The focus in organizational feasibility analysis is on ________.
A) financial resources for manufacturing firms and nonfinancial resources for service firms
B) financial resources for service firms and nonfinancial resources for manufacturing firms
C) nonfinancial and financial resources equally
D) nonfinancial resources
E) financial resources