One of the most important things a firm founder can do is
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|plan for the end of the firm|
|establish a strong ethical culture|
|look for tax loopholes|
|constantly monitor the competition|
Which types of unethical behavior are common in the workplace?
|all are common|
This is the formal statement that organizations use to demonstrate their values on ethical and social issues.
|code of conduct|
This situation involves doing something that is beneficial to oneself or the organization, but it may be unethical.
Which item is not a potential payoff for firms that establish a strong ethical culture?
This advice is the key piece of information to know in order to avoid legal disputes.
This document includes information regarding how the founders will be compensated for their sweat equity, how long the founders must remain in order for their shares to fully vest, and the relative split of equity among the firm founders.
|articles of incorporation|
|owners disclosure document|
This form of business ownership is the most simple and the easiest to create.
|limited liability company|
Financial management does not deal with which topic?
|managing company finances|
|achieving a high rate of return|
This term refers to how easily the firm can meet its cash obligations.
When looking at the overall financial health of a firm for stability, this ratio is key.
Financial ratios can be used to compare the firm to:
|all the above|
Assets, liabilities and owners equity are included in the:
|statement of cash flows|
The statement of cash flows includes all of the following categories except:
This point for a firm is where it turns from a loss situation to a profit situation.
|break even point|
|point of no return|
This type of financial statement looks forward with forecasts for the future.
Which reason is not a typical one for new venture funding?
|lengthy product development cycles|
|cash flow challenges|
Which statement is true?
|Most entrepreneurs deal with the process of raising capital in a well planned way.|
|Most entrepreneurs deal with the process of raising capital haphazardly.|
|Most entrepreneurs have much experience raising capital.|
|Most entrepreneurs study how to raise capital before they start their business.|
Sources of personal financing for a business do not include:
|friends and family funding|
Which step is last in the process to prepare for debt or equity financing?
|determine how much money is needed|
|determine the most appropriate type of financing or funding|
|develop a strategy for engaging potential investors or bankers|
People who invest their personal capital directly in start-ups are called:
|wealth management experts|
This process is necessary for business owners in order to investigate the merits of a potential venture and verify the claims made in the business plan.
Raising money for a business from large numbers of people, often online, is referred to as:
Businesses can apply for this type of funding if they meet certain criteria and use the money in a way that is required by the funder. Follow up reports are sometimes required after the funding is secured.
This part of marketing requires the business owner to break the market down into customer groups and decide which one is most important for the business.
This is the label for the group of customers that the business owner has decided to focus on.
Small businesses especially need to create this in order to stand out from the competition.
|unique market position|
Which P did we add in class to the original 4 Ps of Marketing?
This is the most common form of promotion for a product or service.
|point of sale displays|
This type of marketing encourages people to pass along a marketing message about a particular product.
A low budget approach to marketing with unusual tactics is called:
At which step of the sales process does the sales person ask a question to try and get the potential customer to commit to buying the product or service?
|qualify the lead|
|prospect for sales leads|
|close the sale|
Growth in revenues and profits over a period of time is called:
Which statement is true?
|Only large businesses can handle fast growth.|
|A business should aim for fast growth.|
|A business cannot grow too fast.|
|A business can grow too fast.|
We can say that business success:
|always creates more business success|
|does not always scale well|
|indicates that prices should be raised|
|should always be followed by more business growth|
Which is not a warning sign that a business is growing too fast?
|productivity is increasing|
|over stretched staff|
|declining product quality|
|borrowing money to pay for routine operating expenses|
Good reasons to grow a business include all of the following except:
|capturing economies of scale|
|capturing economies of scope|
|to compensate for declining sales|
In this chapter we added a segment to the Product Life Cycle in the middle. This stage is called:
|advanced sales period|
Adverse selection is when:
|it is difficult to find employees with the right skills with the right management|
|it is difficult to perform background checks on all employees|
|it is hard to keep employees from being hired by competitors|
|is it hard to keep employees from leaving the firm|
Moral hazard refers to:
|not all employees follow the code of conduct|
|it is difficult to determine if employees will fit in to the company culture|
|it is hard to assess employees’ morals and ethics|
|as a firm grows new hires may not share the same values as the firm’s founders|