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What are the three primary reasons people become entrepreneurs and start their own firms? (Select all that apply)
What are the three primary reasons people become entrepreneurs and start their own firms? (Select all that apply)
What is the number one characteristic shared by successful entrepreneurs?
What is the number one characteristic shared by successful entrepreneurs?
Passion for the business
What is the consensus of many studies about being "born" an entrepreneur?
What is the consensus of many studies about being "born" an entrepreneur?
What are the four primary characteristics of successful entrepreneurs? (Select all that apply)
What are the four primary characteristics of successful entrepreneurs? (Select all that apply)
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How many common myths about entrepreneurship are discussed in the text?
How many common myths about entrepreneurship are discussed in the text?
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The ______ is the process of creating something new, which is central to the entrepreneurial process.
The ______ is the process of creating something new, which is central to the entrepreneurial process.
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What are the three types of start-up firms? (Select all that apply)
What are the three types of start-up firms? (Select all that apply)
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Entrepreneurial activity is fairly easily spread out over age ranges.
Entrepreneurial activity is fairly easily spread out over age ranges.
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What is the best approach to finding useful resources in a library?
What is the best approach to finding useful resources in a library?
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The idea behind blogs is that they familiarize people with a business and help build an emotional bond between a business and its customers.
The idea behind blogs is that they familiarize people with a business and help build an emotional bond between a business and its customers.
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What is a feasibility analysis?
What is a feasibility analysis?
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What are the two primary issues that a proposed business should consider in product/service feasibility analysis? (Select all that apply)
What are the two primary issues that a proposed business should consider in product/service feasibility analysis? (Select all that apply)
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A preliminary financial assessment is sufficient for a financial feasibility analysis.
A preliminary financial assessment is sufficient for a financial feasibility analysis.
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What are the two primary issues to consider when completing an industry/market feasibility analysis? (Select all that apply)
What are the two primary issues to consider when completing an industry/market feasibility analysis? (Select all that apply)
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What are the two primary issues to consider when completing an organizational feasibility analysis? (Select all that apply)
What are the two primary issues to consider when completing an organizational feasibility analysis? (Select all that apply)
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What are the three key questions an entrepreneur should ask when studying an industry before pursuing a venture?
What are the three key questions an entrepreneur should ask when studying an industry before pursuing a venture?
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What are the five competitive forces that determine industry profitability? (Select all that apply)
What are the five competitive forces that determine industry profitability? (Select all that apply)
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What are the five primary industry types? (Select all that apply)
What are the five primary industry types? (Select all that apply)
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What is the main purpose of a competitor analysis?
What is the main purpose of a competitor analysis?
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What is the overarching concept that refers to the fact that new companies often struggle to adapt due to a lack of experience and a track record of success?
What is the overarching concept that refers to the fact that new companies often struggle to adapt due to a lack of experience and a track record of success?
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What type of professional advisor does a firm need who specializes in patents, trademarks, copyrights, and trade secrets?
What type of professional advisor does a firm need who specializes in patents, trademarks, copyrights, and trade secrets?
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What are several of the potential payoffs for establishing a strong ethical culture? (Select all that apply)
What are several of the potential payoffs for establishing a strong ethical culture? (Select all that apply)
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What is the simplest form of business entity?
What is the simplest form of business entity?
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What are the two main types of partnerships that new ventures are organized as?
What are the two main types of partnerships that new ventures are organized as?
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Which form of business ownership is usually preferred by business startups due to its combination of limited liability and favorable tax advantages?
Which form of business ownership is usually preferred by business startups due to its combination of limited liability and favorable tax advantages?
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Subchapter S corporations pay taxes, but profits and losses are passed to the owners' tax returns.
Subchapter S corporations pay taxes, but profits and losses are passed to the owners' tax returns.
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What are the four main financial objectives of entrepreneurial firms?
What are the four main financial objectives of entrepreneurial firms?
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The most important step toward prudent financial management is keeping good records.
The most important step toward prudent financial management is keeping good records.
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What are the three types of historical financial statements discussed in the text?
What are the three types of historical financial statements discussed in the text?
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Which of these methods is most often used to express each expense as a percentage of sales for forecasting costs?
Which of these methods is most often used to express each expense as a percentage of sales for forecasting costs?
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What are pro forma financial statements?
What are pro forma financial statements?
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The same financial ratios used for historical financial statements should be used to evaluate pro forma financial statements.
The same financial ratios used for historical financial statements should be used to evaluate pro forma financial statements.
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What is the key element that connects all the four elements of a new venture team together?
What is the key element that connects all the four elements of a new venture team together?
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What are the three essential functions of a board of directors in a corporation?
What are the three essential functions of a board of directors in a corporation?
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What is the most cost effective way to increase the awareness of the company's products?
What is the most cost effective way to increase the awareness of the company's products?
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The key difference between public relations and advertising is that public relations is not paid for — directly.
The key difference between public relations and advertising is that public relations is not paid for — directly.
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What are the four Ps of marketing activities? (Select all that apply)
What are the four Ps of marketing activities? (Select all that apply)
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What are the two commonly used methods for setting the price for a product?
What are the two commonly used methods for setting the price for a product?
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Advertising has several advantages, including the ability to raise customer awareness, explain a product's benefits, and create associations with a lifestyle.
Advertising has several advantages, including the ability to raise customer awareness, explain a product's benefits, and create associations with a lifestyle.
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What are the seven steps involved in a sales process? (Select all that apply)
What are the seven steps involved in a sales process? (Select all that apply)
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Study Notes
Chapter 1: Introduction to Entrepreneurship
- Entrepreneurship is a process involving individuals pursuing opportunities without regard to resources currently controlled.
- Entrepreneurial firms are proactive, innovative, and risk-takers, while conservative firms are more risk-averse.
- Key reasons people become entrepreneurs are the desire to be their own boss, pursue their ideas, and earn financial rewards.
- Common characteristics of successful entrepreneurs include passion for the business, tenacity despite failure, product/customer focus, and execution intelligence.
- Common myths about entrepreneurs include the belief that entrepreneurs are born, not made, that entrepreneurs are gamblers, and that entrepreneurs are primarily motivated by money.
- There are three main types of start-up firms: salary-substitute, lifestyle, and entrepreneurial.
- Changing demographics of entrepreneurs include women, minorities, and senior entrepreneurs.
- Entrepreneurial firms have a significant economic impact, fostering innovation and job creation.
- The entrepreneurial process involves four steps: deciding to be an entrepreneur, developing successful business ideas, moving from an idea to a firm, and managing and growing the firm.
Chapter 2: Recognizing Opportunities and Generating Ideas
- An opportunity is a favorable set of circumstances that creates a need for a new product, service, or business. Opportunities have three key qualities: attractive, timely, and durable.
- Three approaches to identify opportunities include observing trends, solving a problem, and finding gaps in the marketplace.
- Key elements in recognizing opportunities include prior experience, cognitive factors (such as entrepreneurial alertness), and social networks.
- Techniques for idea generation include brainstorming, focus groups, library and internet research, customer advisory boards, and day-in-the-life research.
- Strategies for encouraging new ideas include establishing a focal point for ideas and encouraging creativity at the firm level.
Chapter 3: Feasibility Analysis
- Feasibility analysis is a preliminary evaluation of a business idea to determine its viability.
- Four types of feasibility analysis include product/service, industry/market, organizational, and financial.
- Key questions in product/service feasibility analysis include if it makes sense, if it takes advantage of trends or gaps, if it is a good time for introduction, and if there are fatal flaws.
- Components of a product/service desirability analysis include assessing its desirability and demand.
- Gathering customer feedback through surveys or other methods helps to assess demand effectively.
- Industry/market analysis involves assessing industry attractiveness and target market attractiveness, focusing on elements like growth, competitors, position within the industry, and market segmentation.
- Organizational feasibility analysis explores the firm's ability to handle the venture, including management prowess and sufficiency of resources.
- Financial feasibility analysis assesses factors such as startup capital requirements, financial performance of industry peers, and financial attractiveness of the venture.
- A comprehensive feasibility analysis is a detailed plan used to determine how to proceed with a new business idea.
Chapter 5: Industry and Competitor Analysis
- Industry analysis examines the potential of an industry, focusing on profitability, challenges, and opportunities.
- The five competitive forces that determine industry profitability include the threat of substitutes, the threat of new entrants, rivalry among existing firms, bargaining power of suppliers, and bargaining power of buyers.
- Techniques to assess industry attractiveness include studying environmental trends and using the five competitive forces model.
- Industry types and opportunities include emerging, fragmented, mature, declining, and global industries.
- Competitor analysis involves understanding competitors' positions and identifying available opportunities.
- Competitive intelligence is used to organize collected information.
Chapter 7: Preparing and Legal Foundation
- A strong ethical culture in a new business can prevent legal disputes and attract investors.
- Legal disputes arise from misunderstandings, lack of knowledge of the law, or sloppiness.
- Founders deal with legal issues by establishing ethical culture, using attorneys, crafting founder/shareholder agreements, obtaining licenses and permits, and choosing a business organization form (sole proprietorship, partnership, corporation, or LLC).
Chapter 8: Assessing a Firm's Financial Strength
- Financial management involves raising funds and managing finances to maximize return.
- Key financial objectives include profitability, liquidity, efficiency, and stability.
- Forecasts, budgets, and financial ratios are essential tools for financial management.
- Historical financial statements (income statement, balance sheet, statement of cash flow), pro forma statements, and ratio analysis help assess financial strength.
Chapter 9: Building a New-Venture Team
- Liabilities of newness refer to the high failure rate of new ventures due to factors like personnel struggles and lack of experience.
- A new-venture team includes founders, key employees, and professional advisors like attorneys, accountants, and business consultants or board of advisors.
- Preferred attributes of founders and team members include higher education, prior entrepreneurial experience, relevant industry experience, and a broad social and professional network.
Chapter 11: Unique Marketing Issues
- Market selection and positioning strategy involves segmenting the market, selecting a target market, and establishing a unique position within the market.
- Brand management is essential for maintaining brand integrity.
- Techniques for promotion include advertising.
- Tools for distribution include selling direct or through intermediaries to consumers.
- The sales process includes identifying prospects, making the initial contact, qualifying the lead, handling concerns, presenting the product, closing the sale, and following up.
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Description
This quiz covers the fundamental concepts of entrepreneurship as introduced in Chapter 1. Explore key definitions, characteristics of successful entrepreneurs, and the various types of start-up firms. Understand the myths surrounding entrepreneurship and the changing demographics in the field.
