Exam 2: Developing the Business Idea

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Business opportunities,because they exist in real time,have a relatively narrow window of opportunity to become a successful business venture.However being the first to market does not guarantee success.

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Revenues minus the cost of goods sold is called

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Mark Twain said:"Like I tell anybody,if you fail to plan,you're planning to fail."

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Free cash flow to equity is the cash flow from producing and selling a product or providing a service.

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Firms that allow owners to pursue specific lifestyles while being paid for doing what they like to do are referred to as:

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The return on assets (ROA)model measures:

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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%.

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Developing new and delivering high-quality products or services that command higher prices and margins best describes strong

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

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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.

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

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The evaluation of "entry barriers" occurs under which one of the following parts of the VOS indicator?

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The non-financial option available to managers as the venture progresses through its lifecycle is known as real options.

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Direct costs of producing a product or providing a service is called

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A venture opportunity-screening guide,called the VOS Indicator,is used to determine potential attractiveness of venture opportunities as business opportunities.

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Entrepreneurial ventures emphasize survival and providing an acceptable living for their owners with growth being a secondary goal.

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Asset intensity is the net after-tax profit divided by total assets.

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In a typical business plan,the section covering the management team does not need to disclose the expertise and experience of the management.

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A sound business model includes a plan to:

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When moving from entrepreneurial opportunities to new businesses,products,or services,which one of the following is not considered a component?

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