Question 1

Explain how a company that lowers its net income margins can generate more profit.

Accepted Answer

$\bullet$First, the lower net income margin may be due to a decrease in price.This should increase the quantity of the product demanded.The increase in volume sold may compensate for the decreased margins.
$\bullet$Expansion can lead to additional costs, but, if the expansion leads to increased revenues, the company may generate more total profit, even with smaller margins.

Question 2

Which of the following is the main component of a business model?

Accepted Answer

A) The revenue model 
B) The net income model 
C) The cost model 
D) The cash flow mode 
E) Both A and C 
A) The revenue model 
B) The net income model 
C) The cost model 
D) The cash flow mode 
E) Both A and C E

Question 3

What opportunity do you lose when choosing to use Technology Licensing as a means to grow?

Accepted Answer

A) Generate more revenue 
B) Conserve resources 
C) Increase your brand name recognition 
D) None of the above 
E) All of the above 
A) Generate more revenue 
B) Conserve resources 
C) Increase your brand name recognition 
D) None of the above 
E) All of the above C

Question 4

Why is it so important to create the organization's culture in the beginning of a startup?

Accepted Answer

@#LAT-DLM&As the founder, you need to identify wha

Question 5

Before raising capital, the company should identify which of the following?

Accepted Answer

A) Its strategy 
B) Its core customers 
C) Its major cost categories 
D) Its sources of competitive advantage 
E) All of the above 
A) Its strategy 
B) Its core customers 
C) Its major cost categories 
D) Its sources of competitive advantage 
E) All of the above

Question 6

Some advantages to going global through merger and acquisition are

Accepted Answer

A) Instant presence 
B) Rapid growth and expansion 
C) Low capital requirements 
D) A and B 
E) B and C 
A) Instant presence 
B) Rapid growth and expansion 
C) Low capital requirements 
D) A and B 
E) B and C

Question 7

Which of the following is the cheapest and easiest way to enter new markets?

Accepted Answer

A) Venture financing 
B) Technology Transfer 
C) Exporting 
D) Outsourcing 
E) Foreign Direct Investment 
A) Venture financing 
B) Technology Transfer 
C) Exporting 
D) Outsourcing 
E) Foreign Direct Investment

Question 8

Markets that truly do not have competition are the most profitable, though such markets are nearly impossible to find.

Accepted Answer

A) True 
 B)False

Question 9

Franchising requires you to finds extensive capital to support growth

Accepted Answer

A) True 
 B)False

Question 10

Why do venture capitalists avoid dealing with entrepreneurs who claim that they don't have any competition?

Accepted Answer

@#LAT-DLM&If an entrepreneur claims there is no co

Question 11

Which of the following is not mentioned in the chapter as a factor you need to weigh when planning geographic expansion?

Accepted Answer

A) Do the customers differ between the existing and the new location? 
B) Can you continue to use the same vendors? 
C) Can you use the same distribution channels? 
D) Is your brand name well-known in the new location? 
E) None of the above 
A) Do the customers differ between the existing and the new location? 
B) Can you continue to use the same vendors? 
C) Can you use the same distribution channels? 
D) Is your brand name well-known in the new location? 
E) None of the above

Question 12

The more products you sell through your distribution channels, the greater your negotiating power.

Accepted Answer

A) True 
 B)False

Question 13

Discuss some check points an entrepreneur should confirm before expanding a product mix
$\bullet$Is the expanded product line delivering more value to existing customers or to new customers?

Accepted Answer

@#LAT-DLM&Do the new products share port

Question 14

Discuss some considerations of executing a Freemium business model

Accepted Answer

@#LAT-DLM&Distribution costs must be essentially z

Question 15

What is the goal of outsourcing?

Accepted Answer

A) To lower production costs 
B) To increase gross margins 
C) To increase revenue 
D) To decrease labor costs 
E) All of the above 
A) To lower production costs 
B) To increase gross margins 
C) To increase revenue 
D) To decrease labor costs 
E) All of the above

Question 16

Provide an example of Amazon.com's "drivers" that can influence the company's revenue.

Accepted Answer

@#LAT-DLM&Number of customers buying products from

Question 17

Approximately what share of all new products are failures?

Accepted Answer

A) Less than 30% 
B) 40 % 
C) 50-60% 
D) 80% 
E) Over 90% 
A) Less than 30% 
B) 40 % 
C) 50-60% 
D) 80% 
E) Over 90%

Question 18

Maintaining trade secrets is one way to protect a company's competitive advantage.

Accepted Answer

A) True 
 B)False

Question 19

Lowering COGS allows companies to reach their break even date earlier.

Accepted Answer

A) True 
 B)False

Question 20

Technology licensing is a good opportunity to extend your brand image into new markets.

Accepted Answer

A) True 
 B)False

Explain how a company that lowers its net income margins can generate more profit.

Which of the following is the main component of a business model?

What opportunity do you lose when choosing to use Technology Licensing as a means to grow?

Why is it so important to create the organization's culture in the beginning of a startup?

Before raising capital, the company should identify which of the following?

Some advantages to going global through merger and acquisition are

Which of the following is the cheapest and easiest way to enter new markets?

Markets that truly do not have competition are the most profitable, though such markets are nearly impossible to find.

Franchising requires you to finds extensive capital to support growth

Why do venture capitalists avoid dealing with entrepreneurs who claim that they don't have any competition?

Which of the following is not mentioned in the chapter as a factor you need to weigh when planning geographic expansion?

The more products you sell through your distribution channels, the greater your negotiating power.

Discuss some check points an entrepreneur should confirm before expanding a product mix $\bullet$ Is the expanded product line delivering more value to existing customers or to new customers?

Discuss some considerations of executing a Freemium business model

What is the goal of outsourcing?

Provide an example of Amazon.com's "drivers" that can influence the company's revenue.

Approximately what share of all new products are failures?

Maintaining trade secrets is one way to protect a company's competitive advantage.

Lowering COGS allows companies to reach their break even date earlier.

Technology licensing is a good opportunity to extend your brand image into new markets.

The Power of Entrepreneurship

The Entrepreneurial Process

Opportunity Recognition, Shaping, and Reshaping

Entrepreneurial Marketing

Building the Founding Team

The Business Planning Process

Building Your Pro Forma Financial Statements

Facing Entrepreneurial Ventures Worldwide

Raising Money for Starting and Growing Businesses

Debt and Other Forms of Financing

Legal and Tax Issues, Including Intellectual Property

Entrepreneurial Growth

Social Entrepreneurship: an Overview

Filters

Exam 4: Understanding Your Business Model and Developing Your Strategy

Explain how a company that lowers its net income margins can generate more profit.

Which of the following is the main component of a business model?

What opportunity do you lose when choosing to use Technology Licensing as a means to grow?

Why is it so important to create the organization's culture in the beginning of a startup?

Before raising capital, the company should identify which of the following?

Some advantages to going global through merger and acquisition are

Which of the following is the cheapest and easiest way to enter new markets?

Markets that truly do not have competition are the most profitable, though such markets are nearly impossible to find.

Franchising requires you to finds extensive capital to support growth

Why do venture capitalists avoid dealing with entrepreneurs who claim that they don't have any competition?

Which of the following is not mentioned in the chapter as a factor you need to weigh when planning geographic expansion?

The more products you sell through your distribution channels, the greater your negotiating power.

Discuss some check points an entrepreneur should confirm before expanding a product mix ∙\bullet∙ Is the expanded product line delivering more value to existing customers or to new customers?

Discuss some considerations of executing a Freemium business model

What is the goal of outsourcing?

Provide an example of Amazon.com's "drivers" that can influence the company's revenue.

Approximately what share of all new products are failures?

Maintaining trade secrets is one way to protect a company's competitive advantage.

Lowering COGS allows companies to reach their break even date earlier.

Technology licensing is a good opportunity to extend your brand image into new markets.

The Power of Entrepreneurship

The Entrepreneurial Process

Opportunity Recognition, Shaping, and Reshaping

Entrepreneurial Marketing

Building the Founding Team

The Business Planning Process

Building Your Pro Forma Financial Statements

Facing Entrepreneurial Ventures Worldwide

Raising Money for Starting and Growing Businesses

Debt and Other Forms of Financing

Legal and Tax Issues, Including Intellectual Property

Entrepreneurial Growth

Social Entrepreneurship: an Overview

Filters

Discuss some check points an entrepreneur should confirm before expanding a product mix $\bullet$ Is the expanded product line delivering more value to existing customers or to new customers?