Quiz 1-9 PDF

1. Choose the correct statement about innovation A. Creating something new, which is of some value B. Apply creative solutions to problems and opportunities to enhance or to enrich people’s lives C. Both of the above D. None of the above 2. Drivers of innovation are A. Financial Press...

1. Choose the correct statement about innovation A. Creating something new, which is of some value B. Apply creative solutions to problems and opportunities to enhance or to enrich people’s lives C. Both of the above D. None of the above 2. Drivers of innovation are A. Financial Pressure, Short life cycle and increased competition B. Pressure to earn more money, develop technology faster and high cost of living C. Both A and B D. None of the above 3. Choose the correct statement about Risk A. It is the chance or possibility of loss. This could be financial, physical or reputational B. It is the chance or possibility of financial loss, however it could not physical or reputational C. Goal of Risk management is to eliminate it D. None of the above 4. Regret is the amount of loss a person can tolerate A. TRUE B. FALSE 5. John spent his savings of $600,000, while David borrowed $500, 000 from a bank to start a new business partnership A. John's regret is 600,000 while David's regret is 0, as he didn't use his own money B. John's regret is 600,000 and David’s regret is $500,000 C. None of the above 6. John invested $800,000 in his new business which has risk adjusted constants of 4. John's upside will be A. $800,000 B. $3,200,000 C. None of the above 7. Economy of scope is based on the concept that larger quantities of units sold will result in reduced per-unit costs A. TRUE B. FALSE 8. Economies of scale is an economic concept that the unit cost to produce a product will decline as the variety of products increases. A. TRUE B. FALSE 9. The network effect is a phenomenon whereby increased numbers of people or participants improve the value of a good or service A. TRUE B. FALSE 10. For radical innovations, the risk is very high, however if it becomes successful then rewards are very high as well A. TRUE B. FALSE 11. ------------- is the process of determining whether a business idea is viable A. Feasibility analysis B. Opportunity recognition C. Viability analysis D. Achievability analysis 12. Which of the following is the main purpose for writing a business plan? A. The plan helps the company develop a "road map" to follow. B. The plan introduces potential investors and other stakeholders to the business opportunity. C. Both of the above are equally important. D. None of the above 13. A business plan is important as it forces the founding team to systematically think through every aspect of their new venture, and it ________. A. is a budget B. is a public relations document that can be used to promote the firm C. is a contract that is signed by the founders of the firm D. is a financial analysis E. communicates the details of a new venture to outsiders, such as investors and bankers 14. For most new ventures, the business plan is a dual-purpose document used both inside and outside the firm. A. TRUE B. FALSE 15. Which of the following statements is incorrect about business plans? A. Writing a business plan forces a firm's founders to systematically think through each aspect of their new venture. B. For most new ventures, the business plan is a dual-purpose document used both inside and outside the firm. C. A business plan is typically 25 to 35 pages long. D. The business plan should be written while the feasibility analysis is being completed. 16. The document that does the best job of introducing potential investors and other stakeholders with the business opportunity the firm is pursuing and how it plans to pursue it is the ________. A. business plan B. feasibility analysis C. opportunity analysis D. industry analysis E. marketing plan 17. A business plan can usually be completed in one to three days. A. TRUE B. FALSE 18. Which of the following is NOT one of the "red flags" that raises questions about one or more aspects of a company's business plan? A. Founders with none of their own money at risk B. Defining the market size too narrowly C. A poorly cited plan D. Sloppiness in any area E. Overly aggressive financials 19. The executive summary is a lengthy overview of the entire business plan A. TRUE B. FALSE 20. A competitor analysis, which is a detailed analysis of a firm's competitors, should be included in the market analysis section of its business plan A. TRUE B. FALSE 1. A limited liability company is most like a(n) ________. A. general partnership B. master partnership C. sole proprietorship D. C or S corporation 2. A disadvantage of the corporate form of ownership is when profits are taxed at the corporate rate and at the individual rate and this is referred to as ________ A. double taxation B. limited liability C. double liability D. single taxation 3. The key to choosing the right form of ownership is ________. A. envisioning where your business will be in 10 years B. understanding the characteristics of each form and knowing how they affect your business and personal circumstances C. forming either an S corporation or a limited liability company since they are the only forms that offer owners liability protection D. irrelevant since choosing a form of ownership is merely a technicality and has little impact on the business and its owner(s) 4. Which of the following issues would influence an entrepreneur's choice of a form of business ownership? A. Tax considerations B. Management succession plans C. Liability exposure D. All of the above 5. The most common form of business ownership that is also the simplest to create is the A. sole proprietorship B. partnership C. corporation D. S corporation 6. Probably the most important reason to have a partnership agreement is that ________. A. it identifies the name of the partnership and protects that name from infringement by others B. it states the location and the purpose of the business C. it determines how the partnership and the partners will pay taxes D. it resolves potential sources of conflict that, if not addressed in advance, could later result in partnership battles and dissolution of an otherwise successful business 7. A franchise is an arrangement in which semi-independent business owners pay fees and royalties to a parent company in return for the right to sell its products or services and often to use its business format and system A. TRUE B. FALSE 8. A significant advantage a franchisee has over an independent business is the participation in the franchisor's ________ largely due to the ________ the franchise offers. A. centralized buying power; buying insight B. centralized buying power; brand protection C. centralized buying power; economies of scale D. economies of scale; economy of scope 9. Which of the following issues would a typical partnership agreement address? A. The contributions of each partner to the business. B. How the partnership profits (or losses) will be distributed. C. How a partner can sell her/his ownership in the business. D. All of the above 10. A special type of partnership in which all partners, who must be professionals, are limited partners is called ________ partnership. A. general B. limited C. silent D. limited liability 1. Which of the following is an example of intellectual property? A. The computer that you use B. Nike's swoosh logo C. United's fleet of planes D. Google's headquarters in Mountain View, California 2. Which of the following is NOT an example of intellectual property? A. Proactiv's formula for acne medication B. Apple's trademark C. Internet domain name www.dripcatch.com D. Microsoft's Windows operating system E. A computer monitor 3. Which of the following are the four key forms of intellectual property protection? A. Patents, copyrights, trademarks, and trade secrets B. Discoveries, covenants, trademarks, patents C. Patents, official documents, copyrights, inventions D. Discoveries, Internet domain names, innovations, trademarks 4. Intellectual property is any product of human intellect that is intangible but has value in the marketplace. A. TRUE B. FALSE 5. A ________ is any word, name, symbol, or device used to identify the source of origin of products or services and to distinguish those products or services from others. A. copyright B. trademark C. license D. trade secret E. patent 6. A grant from the government conferring the rights to exclude others from making, selling, or using an invention for a specific period is referred to as a(n) ________. A. trademark B. patent C. idea secret D. innovation E. copyright 7. Which of the following selections correctly identifies the three types of patents? A. Manufacturing; process; plant B. Usefulness; purpose; genetic C. Explicit; implicit; plant D. Utility; design; plant E. Manufacturing; service; other 8. The term of a utility patent is ________ years from the date ________. A. 7; the patent is granted B. 15; of the initial application C. 15; the patent is granted D. 20; of the initial application E. 20; the patent is granted 9. In terms of priority in filing a patent application, the United States uses a first-to-________ system. A. file B. invent C. manufacture D. sell E. validate 10. Patent ________ takes place when one party engages in the unauthorized use of another party's patent. A. breach B. encroachment C. violation D. infraction E. infringement 1. Some of the strategic options entrepreneurs have when deciding to go global include: A. Web B. Joint ventures C. Franchising D. All of the above 2. Becoming a global entrepreneur requires ________. A. Constant innovation B. Maintaining a high level of quality and constantly improving it C. Being sensitive to foreign customers' unique requirements and adopting a more respectful attitude toward foreign habits and customs D. All of the above 3. ________ is the process of creating and delivering desired goods and services to customers and involves all of the activities associated with winning and retaining loyal customers A. Marketing B. Personal selling C. Promotion D. Customer service E. All of the above 4. The focus of a small company's marketing plan should be on ________ A. Preparing accurate financial forecasts B. The customer C. Describing how its products or services are superior to those of competitors D. The competition 5. Which of the following is not one of the objectives a marketing plan should accomplish? A. Determine customer needs and wants through market research. B. Determine how the company will be able to serve all customers. C. Analyze the firm's competitive advantages and build a marketing strategy around them. D. Create a marketing mix that meets customer needs and wants. 6. The first step in selecting a target market is to study the industry in which the firm intends to compete and determine the different potential target markets in that industry. This process is called ________ A. Market positioning B. Market splitting C. Market subdividing D. Market segmentation E. None of the above 7. Because they lack the size and financial resources of their larger competitors, small companies are powerless when it comes to developing effective marketing strategies. A. TRUE B. FALSE 8. A brand is the set of attributes, positive or negative, that people associate with a company A. TRUE B. FALSE 9. The specific group of customers at whom a company aims its good or services is referred to as a ________. A. Market segmentation B. Bootstrap marketing C. Niche marketing D. Target market E. None of the above 10. Successful marketing requires a business owner to ________. A. Understand target customers' needs, demands, and wants B. Offer customers products and services that will satisfy their needs, demands, and wants C. Provide customers with service, convenience, and value so that they will return D. All of the above 1. Terry Washington recently started a new firm in the financial services industry. Prior to starting his firm, he spent considerable time doing research on the potential of the industry. The research that Terry was doing is called ________ analysis. A) industry B) sector C) commercial D) business E) target market 2. Many firms benefit from an increasing ability to outsource manufacturing or service functions to lower-cost. This trend is referred to as a(n) ________ trend. A) business B) environmental C) commerce D) statutory E) economic 3. Kyle White owns a sporting goods store that appeals to hunters and fishers. The market that Kyle is trying to appeal to is called his ________ market. A) focal B) objective C) target D) intention 4. A ________ market is a place within a market segment that represents a narrower group of customers with similar interests. A) position B) niche C) slot D) spot E) gap 5. A niche market is a place within a market segment that represents a narrow group of customers with similar interests. A) TRUE B) False 6. A firm's "position" is concerned with how it is situated relative to its rivals. A) TRUE B) False 7. Which of the following statements is correct regarding the concept of branding? A) Brands cannot be built through advertising, public relations, sponsorships, social media, or similar techniques. B) A company doesn't normally want its customers to identify with its brand. C) Startups usually start with an established brand. D) A brand can be one of a company's most valuable assets. E) A brand can denote a negative impression of a company. 8. When Red Bull was first being introduced into the United States, the company would hand out free samples of its product at extreme sports events (e.g., skateboarding, wakeboarding and mountain biking competitions). Red Bull's objective was to create ________ surrounding its product. A) buzz B) noise C) clatter D) clamor E) ruckus 9. The 4Ps of marketing refer to a company's ________. A) tactical mix B) promotional blend C) organizational mix D) marketing mix E) selling mix 10. There are two primary rules of thumb for deciding if intellectual property protection should be pursued for a particular intellectual asset. First, a firm should determine if the intellectual property has value in the marketplace. Second, a firm should determine if its intellectual property ________. A) is directly related to its competitive advantage B) could be licensed to another company C) is more than three years old D) is something that was developed "in-house" E) rightfully belongs to the firm or the employees who developed it 1. _____ refers to the process of monitoring and evaluating the use of technology and then taking active steps to improve technology as necessary A. Managing technology B. Digital disruption C. Digital innovation D. Social technology 2. What is the purpose of developing technology? A. To increase understanding of universe B. To have fun in the developing C. To make commercial gain D. To improve human life E. All of the above 3. What are technologies used for A. Fun B. Military purposes C. Benefits for mankind D. Commercial gain E. All of the above 4. Which of the following statements is correct? A. You can make a lot of money from technology-based products like mobile phones B. You can make a lot of money from non-technology products like food business C. Both are correct D. None of the above 5. Which of the following is the most correct answer on technology-based enterprise? A. It is easy to start a technology-based business B. Huge fortune can be made from a successful technology-based product C. It is the only business worth doing D. it has the lowest rate for failure 6. What enables new models of mobile phones to be more sophisticated? A. Consumers B. Designers C. Advances in technology D. Programmers E. None of the above 7. Which of the following is NOT true about technology? A. It can improve productivity. B. It can reduce costs. C. It can create new markets. D. It's always good for everyone. 8. Technology change process involves A. Discovery, development and diffusion B. Innovation, sales and supervision C. Commercialization, sales and managing D. None of the above 9. Choose the correct statement (s) for the rate of technology development A. Early technology was mostly discovered by chance and the growth was slow B. Modern technology is rapid, and the growth is fast C. Both of the above D. None of the above 10. Which of the following statements is correct? A. First, we have science, then we develop technology B. First, we have technology, then we develop science principles C. Both are correct D. Neither is correct 11. The main purpose of technology forecasting is ____ A. To prepare to take advantage of the technology B. To provide jobs to the forecasters C. To avoid storage of outdated products D. All of the above 12. Which of the following is a good forecasting technique? A. Trend extrapolation B. Simulation C. Expert judgement D. Scenario Analysis E. None of the above 13. In a crisis, one should A. Panic B. Ask for help C. Look for opportunities D. None of the above 1. Digital watches didn't replace analogue watches because they provide A. Status symbol B. lastingness C. Both are correct D. None of the above 2. Choose the correct statement (s) for incremental innovation single A. small improvements or upgrades made to a company's existing products, services, processes or methods. B. rapid innovation so that fortune can be made from a successful technology-based product C. It is new technology-based innovation, and it is the only business worth doing D. None of the above 3. Change that occurs with a series of small steps is known as a(n) _____ A. incremental change B. quantum change C. radical change D. fundamental change E. None of the above 4. __________ produce fundamental changes that can transform a company or even revolutionize an industry, while __________ enhance existing practices and often represent evolutionary applications of fundamental breakthroughs. A. Technological breakthroughs; product-market breakthroughs B. New technologies; new paradigms C. Incremental innovations; radical innovations D. Radical innovations; incremental innovations 5. Technological progress is a three-step process of A. creation, pricing, and marketing B. invention, innovation, and diffusion C. manufacturing, venturing, and promotion D. start-ups, imitation, and creative destruction 6. Major breakthroughs, which are called ‘radical innovations’ , may or may not be disruptive, while minor, or ‘incremental’ innovations can be massively disruptive. A. TRUE B. FALSE 7. Radical innovations and disruptive innovations are the same as radical innovations will eventually disrupt the existing product, product or process A. TRUE B. FALSE 8. S curve shows the performance of technology such as --- A. grows linearly as predicted B. Grows exponentially C. Takes sometimes to take off, then grows rapidly and finally it declines D. None of the above 9. Choose the correct statement(s) about technology development A. New Technology development takes time B. A new technology may replace the current technology when its performance becomes better C. Technology’s growth follows a life cycle D. All of the above 10. Do you agree to pay royalty to someone who first developed the idea/product if you copy the idea? A. TRUE B. FALSE 11. Choose the correct statement(s) about sustaining innovation A. That maintains its market share for a long time B. A new product developed based on radical innovation which may last long time C. A new product produced through sustaining energy D. All of the above 12. Why would some customer still buy a product when its performance is below the specifications A. It is cheaper B. It can do the job C. It is worth trying out D. All of the above 13. In business world, imitators are called A. Counterfeiters B. Followers C. Copycats D. Thieves 14. What is the single most advantage of first mover? A. Capture all the market B. Recognizes as champions C. Hold the patents D. Entry in the Guinness book of world record 15. How would one obtain the necessary technology to imitate? A. Reverse engineering B. Steal the blueprint C. Employ people from the first mover company D. Engage consultants 16. What can the first mover do to prevent others from copying A. Protect the ideas by patents B. Develop better products then likely competitors C. Sell product at lower price D. All of the above 17. What imitators should specially take care of A. Demand of the market B. Brand name C. Patent infringement D. Technical capabilities 1. The price of prescription medicine is high, partly because when someone is sick there is no real alternative to buying medicine. Which of Porter's Five Forces explains how this aspect of the prescription medicine industry helps keep its profitability high? A. Rivalry among existing firms B. Threat of new entrants C. Threat of substitutes D. Bargaining power of buyers 2. What is the primary difference between imitation and forgery? A. Imitation is illegal, while forgery is legal. B. Forgery involves intent to deceive, while imitation does not. C. Imitation uses original materials, while forgery uses fake ones. D. Both terms are synonymous and interchangeable. 3. Which of the following is NOT one of the five forces in Porter’s Five Forces model? A. Threat of new entrants B. Bargaining power of buyers C. Government regulations D. Threat of substitute products 4. In Porter’s Five Forces, what can increase the threat of substitute products or services? A. High switching costs for consumers B. Technological advancements creating alternative solutions C. High brand loyalty among consumers D. A small number of competitors in the market 5. What happens when the bargaining power of suppliers is high? A. Suppliers can demand higher prices. B. Suppliers will offer discounts to maintain market share. C. Buyers can negotiate lower prices. D. Rivalry among competitors will decrease. 6. The 'Threat of New Entrants' is high in industries where: A. Capital requirements are low. B. There are significant economies of scale. C. Customers are loyal to existing brands. D. Government regulations are strict. 7. Which of the following best describes a Blue Ocean Strategy? A. Competing in an existing market by outperforming competitors. B. Creating new demand in an uncontested market space. C. Reducing costs to increase profit margins. D. Acquiring competitors to dominate the market. 8. What is the main objective of a Blue Ocean Strategy? A. To improve efficiency in a competitive market. B. To enter a highly competitive market with lower prices. C. To break away from competition and create new market space. D. To reduce costs by eliminating non-value-added activities. 9. Which of the following is a characteristic of a Red Ocean Strategy? A. Creating new demand in an uncontested market. B. Competing in an already existing and highly competitive market. C. Focusing on non-competitive market areas. D. Innovating to disrupt traditional market spaces. 10. A Red Ocean Strategy is likely to lead to which of the following outcomes? A. Increased innovation and customer satisfaction. B. Intense competition and reduced profitability. C. The creation of entirely new industries and demand. D. The expansion of new markets and customer bases. 11. Which of the following is NOT a feature of a Red Ocean Strategy? A. Competing in overcrowded markets. B. Focusing on existing demand. C. Achieving cost leadership or differentiation to outperform competitors. D. Creating uncontested market space. 12. What is the key difference between Blue Ocean and Red Ocean strategies? A. Blue Ocean focuses on competition, while Red Ocean avoids it. B. Red Ocean creates new demand, while Blue Ocean operates in existing markets. C. Blue Ocean creates new market space, while Red Ocean competes in existing markets. D. Red Ocean focuses on low cost, while Blue Ocean focuses on differentiation.