Exam 2: Developing the Business Idea

Financial bootstrapping refers to the process of minimizing resources such as the need for financial capital and finding unique sources for financing a new venture.

In the venture life cycle, moving from the development stage to the startup stage frequently begins with the preparation of a business plan. The business plan is a written document that describes the proposed venture in all of the following terms except :

A venture's value to its owners is determined by the:

Which of the following is not one of the factor categories of the VOS Indicator™?

A sound business model is a plan to generate investor interest, make profits, and grow asset investments.

When composing the financial plans and projections section of a business plan, all of the following should be included except :

The VOS Indicator™ is useful in assessing the commercial potential of a venture, but should not be used as the sole tool to determine a venture's fate.

The evaluation of entry barriers occurs under which of the factor categories of the VOS Indicator™?

Some venture investors like to draw analogies between baseball terms and venture performance. The baseball term used to reflect a total loss of an investment is:

Ideas that are said to be ahead of their time are too late to become viable business opportunities for the inventor or innovator.

Best practices of high-growth, high-performance firms applied in the management practices area include "assembling a management team that is balanced in both functional area coverage and industry/market knowledge."

The direct costs of producing a product or providing a service is called:

A typical business plan includes all of the following sections except :

An average score using the VOS Indicator™ would fall in the range:

Determine the dollar amount of revenues for a venture with the following financial information: net profit = $60,000; assets turnover = 1.5 times; and return on assets 30%.

The first component of a sound business model is the need to generate revenues.

A SWOT analysis focuses on which of the following components or areas?

The first two requirements of a sound business model are:

A well-designed entrepreneurial venture typically includes:

The process of moving from entrepreneurial opportunities to new businesses, products, or services begins with ideas, then moves to the preparation of a business plan, and finally ends with a feasibility study.