One of the most important things a firm founder can do is

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Question 1

		plan for the end of the firm
		establish a strong ethical culture
		look for tax loopholes
		constantly monitor the competition

Question 2

Which types of unethical behavior are common in the workplace?

		lying
		cheating
		stealing
		all are common

Question 3

This is the formal statement that organizations use to demonstrate their values on ethical and social issues.

		moral code
		vision
		code of conduct
		mission

Question 4

This situation involves doing something that is beneficial to oneself or the organization, but it may be unethical.

		ethical dilemma
		oxymoron
		bottleneck
		significant moment

Question 5

Which item is not a potential payoff for firms that establish a strong ethical culture?

		potential avoidance of fines
		improved employee commitment
		improved customer loyalty
		higher profits

Question 6

This advice is the key piece of information to know in order to avoid legal disputes.

		get it in writing
		meet all obligations
		hire an attorney
		keep business licenses current

Question 7

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.

		initial contract
		founders’ agreement
		articles of incorporation
		owners disclosure document

Question 8

This form of business ownership is the most simple and the easiest to create.

		corporation
		limited liability company
		partnership
		sole proprietorship

Question 9

Financial management does not deal with which topic?

		raising money
		managing company finances
		pricing
		achieving a high rate of return

Question 10

This term refers to how easily the firm can meet its cash obligations.

		profitability
		liquidity
		accounts receivable
		efficiency

Question 11

When looking at the overall financial health of a firm for stability, this ratio is key.

		itemized analysis
		trends
		debt-to-equity
		margins

Question 12

Financial ratios can be used to compare the firm to:

		past performance
		forecasts
		industry norms
		all the above

Question 13

Assets, liabilities and owners equity are included in the:

		income statement
		balance sheet
		statement of cash flows
		annual reports

Question 14

The statement of cash flows includes all of the following categories except:

		operating activities
		investing activities
		financing activities
		equity activities

Question 15

This point for a firm is where it turns from a loss situation to a profit situation.

		inflection point
		break even point
		point of no return
		regression point

Question 16

This type of financial statement looks forward with forecasts for the future.

		extrapolated
		future form
		pro forma
		10-K

Question 17

Which reason is not a typical one for new venture funding?

		lengthy product development cycles
		capital investments
		cash flow challenges
		overborrowing

Question 18

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.

Question 19

Sources of personal financing for a business do not include:

		friends and family funding
		personal funds
		bank funding
		bootstrapping

Question 20

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
		internet research

Question 21

People who invest their personal capital directly in start-ups are called:

		business angels
		venture capitalists
		wealth management experts
		commercial investors

Question 22

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.

		legal confirmation
		background research
		due diligence
		fact checking

Question 23

Raising money for a business from large numbers of people, often online, is referred to as:

		alternative financing
		business roundtable
		net investing
		crowdfunding

Question 24

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.

		loans
		grants
		scholarships
		gifts

Question 25

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.

		division
		segmentation
		stratification
		clustering

Question 26

This is the label for the group of customers that the business owner has decided to focus on.

		primary market
		focal market
		target market
		after market

Question 27

Small businesses especially need to create this in order to stand out from the competition.

		customer service
		innovative products
		fresh advertising
		unique market position

Question 28

Which P did we add in class to the original 4 Ps of Marketing?

		path
		people
		packaging
		position

Question 29

This is the most common form of promotion for a product or service.

		coupons
		advertising
		samples
		point of sale displays

Question 30

This type of marketing encourages people to pass along a marketing message about a particular product.

		website hopping
		blogs
		viral marketing
		virtual marketing

Question 31

A low budget approach to marketing with unusual tactics is called:

		guerilla marketing
		fast marketing
		extreme marketing
		nontraditional marketng

Question 32

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
		follow up

Question 33

Growth in revenues and profits over a period of time is called:

		initial growth
		sustained growth
		market growth
		financial growth

Question 34

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.

Question 35

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

Question 36

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

Question 37

Good reasons to grow a business include all of the following except:

		capturing economies of scale
		capturing economies of scope
		market leadership
		to compensate for declining sales

Question 38

In this chapter we added a segment to the Product Life Cycle in the middle. This stage is called:

		innovation period
		advanced growth
		continuous growth
		advanced sales period

Question 39

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

Question 40

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

One of the most important things a firm founder can do is

Question 4

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