Question 1

Where the new venture lies in the value chain will determine what its margins are, who its customer is, and how much it can charge for its products and services. ​

Accepted Answer

A) True 
 B)False  True

Question 2

In service businesses, the cost of goods sold (COGS)is equivalent to the time expended to ____ and ____ the service. ​

Accepted Answer

A) sell / deliver ​ 
B) produce / deliver 
C) produce / market 
D) test / produce 
E) None of these choices ​ 
A) sell / deliver ​ 
B) produce / deliver 
C) produce / market 
D) test / produce 
E) None of these choices ​ B

Question 3

____ starts with a high price to establish uniqueness; then drops the price as competitors enter the market. ​

Accepted Answer

A) Price skimming 
B) Premium pricing 
C) Product bundle pricing 
D) Captive product pricing 
E) Demand-based pricing 
A) Price skimming 
B) Premium pricing 
C) Product bundle pricing 
D) Captive product pricing 
E) Demand-based pricing A

Question 4

Which of these pricing strategies will help a new firm maximize cash flow? ​

Accepted Answer

A) Lower price to raise volume 
B) Raise price and reduce direct costs 
C) Set a higher price to raise perceived value 
D) Sell online 
E) None of these choices 
A) Lower price to raise volume 
B) Raise price and reduce direct costs 
C) Set a higher price to raise perceived value 
D) Sell online 
E) None of these choices

Question 5

The ____ is an amount of cash that is often based on the sales and collection cycle of the business. ​

Accepted Answer

A) cash flow 
B) in-process flow 
C) risk factor 
D) safety margin 
E) None of these choices 
A) cash flow 
B) in-process flow 
C) risk factor 
D) safety margin 
E) None of these choices

Question 6

Determining what resources are needed, when they are needed, and how to acquire them is a critical piece of the feasibility puzzle. ​

Accepted Answer

A) True 
 B)False

Question 7

A/an ____ statement is, essentially, a cash budget or sources and uses statement. ​

Accepted Answer

A) direct cash flow 
B) in-process flow 
C) return on investment 
D) cost of goods sold 
E) pro forma 
A) direct cash flow 
B) in-process flow 
C) return on investment 
D) cost of goods sold 
E) pro forma

Question 8

The best way, and sometimes the only way, to accurately gauge customer demand is to ____. ​

Accepted Answer

A) test a prototype ​ 
B) go into limited production 
C) do market research 
D) do a feasibility study 
E) None of these choices 
A) test a prototype ​ 
B) go into limited production 
C) do market research 
D) do a feasibility study 
E) None of these choices

Question 9

Discuss the sections of the cash flow statement. ​

Accepted Answer

Cash inflows - records all of the cash c

Question 10

One mistake that entrepreneurs make is to set their prices so that they cover ____ costs plus a margin the entrepreneur is expecting to achieve. ​

Accepted Answer

A) inventory 
B) total 
C) marginal 
D) variable 
E) All of these choices 
A) inventory 
B) total 
C) marginal 
D) variable 
E) All of these choices

Question 11

The bottom line for any new venture is to have ____. ​

Accepted Answer

A) positive inventory ​ 
B) good income statements 
C) great employees ​ 
D) a strong founding team ​ 
E) positive cash flow ​ 
A) positive inventory ​ 
B) good income statements 
C) great employees ​ 
D) a strong founding team ​ 
E) positive cash flow ​

Question 12

____ is found by subtracting variable costs from revenues and dividing the difference by revenues to yield a percentage. ​

Accepted Answer

A) Return on investment 
B) Contribution margin 
C) Profit margin 
D) Cash flow ​ 
E) None of these choices 
A) Return on investment 
B) Contribution margin 
C) Profit margin 
D) Cash flow ​ 
E) None of these choices

Question 13

How a product or service is priced is a function of a company's goals. ​

Accepted Answer

A) True 
 B)False

Question 14

Briefly discuss the elements of a process map. ​

Accepted Answer

It is important for the entrepreneur to

Question 15

Entrepreneurs need to remember that ____ costs are the biggest costs the business will bear. ​

Accepted Answer

A) production 
B) startup 
C) overhead 
D) inventory 
E) employee 
A) production 
B) startup 
C) overhead 
D) inventory 
E) employee

Question 16

Creating a ____ is the first step in calculating startup capital requirements. ​

Accepted Answer

A) process map 
B) feasibility analysis 
C) business plan ​ 
D) balance sheet 
E) timeline 
A) process map 
B) feasibility analysis 
C) business plan ​ 
D) balance sheet 
E) timeline

Question 17

Pro forma financials are a key part of the ____. ​

Accepted Answer

A) feasibility analysis 
B) business launch 
C) cash flow ​ 
D) startup capital 
E) business plan 
A) feasibility analysis 
B) business launch 
C) cash flow ​ 
D) startup capital 
E) business plan

Question 18

A new venture's health is measured by its balance sheet. ​

Accepted Answer

A) True 
 B)False

Question 19

Whenever there is competitive rivalry, prices tend to be ____. ​

Accepted Answer

A) the same 
B) slightly higher 
C) lower 
D) 50 percent higher 
E) None of these choices 
A) the same 
B) slightly higher 
C) lower 
D) 50 percent higher 
E) None of these choices

Question 20

For ____ companies, the actual delivery costs must be based initially on information gathered from other companies in the industry. ​

Accepted Answer

A) product ​ 
B) service 
C) technology 
D) All of these choices 
E) None of these choices 
A) product ​ 
B) service 
C) technology 
D) All of these choices 
E) None of these choices

Where the new venture lies in the value chain will determine what its margins are, who its customer is, and how much it can charge for its products and services.

In service businesses, the cost of goods sold (COGS)is equivalent to the time expended to and the service.

____ starts with a high price to establish uniqueness; then drops the price as competitors enter the market.

Which of these pricing strategies will help a new firm maximize cash flow?

The ____ is an amount of cash that is often based on the sales and collection cycle of the business.

Determining what resources are needed, when they are needed, and how to acquire them is a critical piece of the feasibility puzzle.

A/an ____ statement is, essentially, a cash budget or sources and uses statement.

The best way, and sometimes the only way, to accurately gauge customer demand is to ____.

Discuss the sections of the cash flow statement.

One mistake that entrepreneurs make is to set their prices so that they cover ____ costs plus a margin the entrepreneur is expecting to achieve.

The bottom line for any new venture is to have ____.

____ is found by subtracting variable costs from revenues and dividing the difference by revenues to yield a percentage.

How a product or service is priced is a function of a company's goals.

Briefly discuss the elements of a process map.

Entrepreneurs need to remember that ____ costs are the biggest costs the business will bear.

Creating a ____ is the first step in calculating startup capital requirements.

Pro forma financials are a key part of the ____.

A new venture's health is measured by its balance sheet.

Whenever there is competitive rivalry, prices tend to be ____.

For ____ companies, the actual delivery costs must be based initially on information gathered from other companies in the industry.

Understanding Entrepreneurship

Preparing for the Entrepreneurial Journey

Creating Opportunity

Analyzing the Industry and Market

Developing and Testing a Business Model

Prototyping a Solution

Protecting the Startups Assets

Calculating Startup Capital Requirements

Preparing a Business Plan

Designing an Entrepreneurial Organization

Choosing the Legal Form of Organization

Developing the Startup Marketing Plan

Creating a Startup Funding Strategy

Incorporating Ethics and Social Responsibility Into the Business

Planning for Growth and Change

Funding Growth

Filters

Exam 9: Building the Founding Team

Where the new venture lies in the value chain will determine what its margins are, who its customer is, and how much it can charge for its products and services. ​

In service businesses, the cost of goods sold (COGS)is equivalent to the time expended to ____ and ____ the service. ​

____ starts with a high price to establish uniqueness; then drops the price as competitors enter the market. ​

Which of these pricing strategies will help a new firm maximize cash flow? ​

The ____ is an amount of cash that is often based on the sales and collection cycle of the business. ​

Determining what resources are needed, when they are needed, and how to acquire them is a critical piece of the feasibility puzzle. ​

A/an ____ statement is, essentially, a cash budget or sources and uses statement. ​

The best way, and sometimes the only way, to accurately gauge customer demand is to ____. ​

Discuss the sections of the cash flow statement. ​

One mistake that entrepreneurs make is to set their prices so that they cover ____ costs plus a margin the entrepreneur is expecting to achieve. ​

The bottom line for any new venture is to have ____. ​

____ is found by subtracting variable costs from revenues and dividing the difference by revenues to yield a percentage. ​

How a product or service is priced is a function of a company's goals. ​

Briefly discuss the elements of a process map. ​

Entrepreneurs need to remember that ____ costs are the biggest costs the business will bear. ​

Creating a ____ is the first step in calculating startup capital requirements. ​

Pro forma financials are a key part of the ____. ​

A new venture's health is measured by its balance sheet. ​

Whenever there is competitive rivalry, prices tend to be ____. ​

For ____ companies, the actual delivery costs must be based initially on information gathered from other companies in the industry. ​

Understanding Entrepreneurship

Preparing for the Entrepreneurial Journey

Creating Opportunity

Analyzing the Industry and Market

Developing and Testing a Business Model

Prototyping a Solution

Protecting the Startups Assets

Calculating Startup Capital Requirements

Preparing a Business Plan

Designing an Entrepreneurial Organization

Choosing the Legal Form of Organization

Developing the Startup Marketing Plan

Creating a Startup Funding Strategy

Incorporating Ethics and Social Responsibility Into the Business

Planning for Growth and Change

Funding Growth

Filters

Where the new venture lies in the value chain will determine what its margins are, who its customer is, and how much it can charge for its products and services.

In service businesses, the cost of goods sold (COGS)is equivalent to the time expended to and the service.

____ starts with a high price to establish uniqueness; then drops the price as competitors enter the market.

Which of these pricing strategies will help a new firm maximize cash flow?

The ____ is an amount of cash that is often based on the sales and collection cycle of the business.

Determining what resources are needed, when they are needed, and how to acquire them is a critical piece of the feasibility puzzle.

A/an ____ statement is, essentially, a cash budget or sources and uses statement.

The best way, and sometimes the only way, to accurately gauge customer demand is to ____.

Discuss the sections of the cash flow statement.

One mistake that entrepreneurs make is to set their prices so that they cover ____ costs plus a margin the entrepreneur is expecting to achieve.

The bottom line for any new venture is to have ____.

____ is found by subtracting variable costs from revenues and dividing the difference by revenues to yield a percentage.

How a product or service is priced is a function of a company's goals.

Briefly discuss the elements of a process map.

Entrepreneurs need to remember that ____ costs are the biggest costs the business will bear.

Creating a ____ is the first step in calculating startup capital requirements.

Pro forma financials are a key part of the ____.

A new venture's health is measured by its balance sheet.

Whenever there is competitive rivalry, prices tend to be ____.

For ____ companies, the actual delivery costs must be based initially on information gathered from other companies in the industry.