Question 1

The _____ represents how a startup uses its cash to cover its overhead before it generates a positive cash flow from operations.

Accepted Answer

A)  m onthly burn rate 
B)  c ontribution margin 
C)  gross margin 
D)  bootstrap process 
E)  product resource guide 
A)  m onthly burn rate 
B)  c ontribution margin 
C)  gross margin 
D)  bootstrap process 
E)  product resource guide A

Question 2

Explain the importance of creating a process map.

Accepted Answer

To identify accurately the resources required to start a venture, it's important to understand all the activities and processes in  the business-in other words, to know exactly how the business works. This  is best accomplished by creating a process map that details how information  flows through the business. Having such a map on hand makes it much easier  to define the operations, information flow, and resource requirements of the  business.

Question 3

Once an entrepreneur determines where a new venture lies in the value chain, he or she must create a

Accepted Answer

A)  process map. 
B)  feasibility study. 
C)  business activity flow chart . 
D)  timeline. 
E)  cash flow statement. 
A)  process map. 
B)  feasibility study. 
C)  business activity flow chart . 
D)  timeline. 
E)  cash flow statement. D

Question 4

List some various financial metrics, both common and unique, employed by startups.

Accepted Answer

Some of the common metrics that all type

Question 5

In service businesses, the cost of goods sold 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)  test; sell 
A)  sell; deliver 
B)  produce; deliver 
C)  produce; market 
D)  test; produce 
E)  test; sell

Question 6

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

Accepted Answer

A)  test a prototype . 
B)  go into business in a limited way. 
C)  perform a profit/loss estimate. 
D)  conduct a market study of competitors. 
E)  N one of these are correct. 
A)  test a prototype . 
B)  go into business in a limited way. 
C)  perform a profit/loss estimate. 
D)  conduct a market study of competitors. 
E)  N one of these are correct.

Question 7

At startup the goal is to create a mix of resources that will enable the new venture to start and operate until sales of the business's product or service produce a positive cash flow.

Accepted Answer

A) True 
 B)False

Question 8

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 are correct. 
E)  N one of these are correct. 
A)  product 
B)  service 
C)  technology 
D)  All of these are correct. 
E)  N one of these are correct.

Question 9

The _____ of a product/service is the price as compared to competing products-the expected price.

Accepted Answer

A)  differentiation value 
B)  sale price 
C)  reference value 
D)  monthly burn rate 
E)  contribution margin 
A)  differentiation value 
B)  sale price 
C)  reference value 
D)  monthly burn rate 
E)  contribution margin

Question 10

_____ is a strategy in which a company starts with a high price to capture uniqueness and competitive advantage, and then drops the price as competitors enter the market in order to stay ahead of competition.

Accepted Answer

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

Question 11

Which of the following common pricing strategies is a company using when it creates a complex pricing structure by combining multiple products and services into one package?

Accepted Answer

A)  P remium pricing 
B)  Psychological pricing 
C)  Product bundle pricing 
D)  Captive product pricing 
E)  Demand-based pricing 
A)  P remium pricing 
B)  Psychological pricing 
C)  Product bundle pricing 
D)  Captive product pricing 
E)  Demand-based pricing

Question 12

Internet ventures have unique metrics because they typically start with three types of "customers": visitors, contributors, and

Accepted Answer

A)  investors . 
B)  testers. 
C)  distributors. 
D)  partners. 
E)  developers. 
A)  investors . 
B)  testers. 
C)  distributors. 
D)  partners. 
E)  developers.

Question 13

With regard to calculating a business's sales forecast, briefly identify the factors that can influence an increase in sales.

Accepted Answer

Any increase in sales will be influenced

Question 14

Price skimming is finding out what customers are willing to pay for a product and pricing it accordingly.

Accepted Answer

A) True 
 B)False

Question 15

_____ 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)  Resource utilization 
D)  Product expenditure 
E)  The monthly burn rate 
A)  Return on investment 
B)  Contribution margin 
C)  Resource utilization 
D)  Product expenditure 
E)  The monthly burn rate

Question 16

List the goals that a launch strategy should have.

Accepted Answer

A business's launch strategy should have

Question 17

If DLT Company's goal is to maximize cash flow, which of the following pricing strategies should it adapt?

Accepted Answer

A)  Lower prices to raise the sales volume. 
B)  Reduce  direct costs and overhead. 
C)  Set a higher price to raise perceived quality. 
D)  Set prices at a level that minimizes sales. 
E)  None of these are correct. 
A)  Lower prices to raise the sales volume. 
B)  Reduce  direct costs and overhead. 
C)  Set a higher price to raise perceived quality. 
D)  Set prices at a level that minimizes sales. 
E)  None of these are correct.

Question 18

In figuring _____, entrepreneurs must convert time to dollars and consider the opportunity cost.

Accepted Answer

A)  customer acquisition costs 
B)  revenue for direct sales 
C)  revenue per salesperson 
D)  lifetime value per customer 
E)  customer retention costs 
A)  customer acquisition costs 
B)  revenue for direct sales 
C)  revenue per salesperson 
D)  lifetime value per customer 
E)  customer retention costs

Question 19

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

Accepted Answer

A)  resources. 
B)  compensation policy. 
C)  process map. 
D)  goals. 
E)  job design. 
A)  resources. 
B)  compensation policy. 
C)  process map. 
D)  goals. 
E)  job design.

Question 20

Entrepreneurs need to remember that _____ costs are the biggest costs a business will bear because of all the associated taxes and any benefits offered.

Accepted Answer

A)  production 
B)  startup 
C)  product delivery 
D)  inventory setup 
E)  employee 
A)  production 
B)  startup 
C)  product delivery 
D)  inventory setup 
E)  employee

The _____ represents how a startup uses its cash to cover its overhead before it generates a positive cash flow from operations.

Explain the importance of creating a process map.

Once an entrepreneur determines where a new venture lies in the value chain, he or she must create a

List some various financial metrics, both common and unique, employed by startups.

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

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

At startup the goal is to create a mix of resources that will enable the new venture to start and operate until sales of the business's product or service produce a positive cash flow.

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

The _____ of a product/service is the price as compared to competing products-the expected price.

_____ is a strategy in which a company starts with a high price to capture uniqueness and competitive advantage, and then drops the price as competitors enter the market in order to stay ahead of competition.

Which of the following common pricing strategies is a company using when it creates a complex pricing structure by combining multiple products and services into one package?

Internet ventures have unique metrics because they typically start with three types of "customers": visitors, contributors, and

With regard to calculating a business's sales forecast, briefly identify the factors that can influence an increase in sales.

Price skimming is finding out what customers are willing to pay for a product and pricing it accordingly.

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

List the goals that a launch strategy should have.

If DLT Company's goal is to maximize cash flow, which of the following pricing strategies should it adapt?

In figuring _____, entrepreneurs must convert time to dollars and consider the opportunity cost.

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

Entrepreneurs need to remember that _____ costs are the biggest costs a business will bear because of all the associated taxes and any benefits offered.

Understanding Entrepreneurship

Preparing for the Entrepreneurial Journey

Creating Opportunity

Analyzing the Industry and Market

Developing and Testing a Business Model

Prototyping and Validating a Solution

Protecting the Startups Assets

Building the Founding Team

Preparing a Business Plan

Designing an Entrepreneurial Organization

Planning Startup Operations

Choosing the Legal Form of Organization

Developing a Startup Marketing Plan

Incorporating Ethics and Social Responsibility Into the Business

Funding Startup and Growth

Planning for Growth and Change

Filters

Exam 9: Calculating Startup Capital Requirements

The _____ represents how a startup uses its cash to cover its overhead before it generates a positive cash flow from operations.

Explain the importance of creating a process map.

Once an entrepreneur determines where a new venture lies in the value chain, he or she must create a

List some various financial metrics, both common and unique, employed by startups.

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

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

At startup the goal is to create a mix of resources that will enable the new venture to start and operate until sales of the business's product or service produce a positive cash flow.

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

The _____ of a product/service is the price as compared to competing products-the expected price.

_____ is a strategy in which a company starts with a high price to capture uniqueness and competitive advantage, and then drops the price as competitors enter the market in order to stay ahead of competition.

Which of the following common pricing strategies is a company using when it creates a complex pricing structure by combining multiple products and services into one package?

Internet ventures have unique metrics because they typically start with three types of "customers": visitors, contributors, and

With regard to calculating a business's sales forecast, briefly identify the factors that can influence an increase in sales.

Price skimming is finding out what customers are willing to pay for a product and pricing it accordingly.

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

List the goals that a launch strategy should have.

If DLT Company's goal is to maximize cash flow, which of the following pricing strategies should it adapt?

In figuring _____, entrepreneurs must convert time to dollars and consider the opportunity cost.

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

Entrepreneurs need to remember that _____ costs are the biggest costs a business will bear because of all the associated taxes and any benefits offered.

Understanding Entrepreneurship

Preparing for the Entrepreneurial Journey

Creating Opportunity

Analyzing the Industry and Market

Developing and Testing a Business Model

Prototyping and Validating a Solution

Protecting the Startups Assets

Building the Founding Team

Preparing a Business Plan

Designing an Entrepreneurial Organization

Planning Startup Operations

Choosing the Legal Form of Organization

Developing a Startup Marketing Plan

Incorporating Ethics and Social Responsibility Into the Business

Funding Startup and Growth

Planning for Growth and Change

Filters

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