sáng tạo khởi nghiệp sau đại học BK.HCM

KÍ TỰ ĐẦU VÀ ĐẶC BIỆT:
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"Organize all the world's information and make it universally accessible and useful" is Google's:
=> mission statement

________ are anything rare and valuable that a firm owns. => Strategic assets
________ are individuals who invest their personal capital directly in start-ups. => Business
angels
________ are(is) generated when increasing production lowers the average cost of each unit
produced. => Economies of scale
________ business models are ones that do not fit the profile of standard business models, and
are impactful enough that they disrupt or change the way business is conducted in an industry or
an important niche within an industry. => Disruptive
________ business models depict existing plans or recipes firms can use to determine how they
will create, deliver, and capture value for their stakeholders. => Standard
________ costs are costs that a company incurs whether it sells something or not. ________ costs
are the costs a company incurs as it generates sales. => Fixed; Variable
________ costs are costs that a company incurs whether it sells something or not. => Fixed
________ costs are costs that remain the same despite the volume of goods or services
produced.________ costs vary proportionally with the volume of goods or services provided. =>
Fixed; Variable
________ costs are the costs a company incurs as it makes sales. => Variable
________ feasibility analysis is an assessment of the overall appeal of the industry and market
for the product or service being proposed. => Industry/target market
________ feasibility is an assessment of the overall appeal of the product or service being
proposed. => Product/service
________ involves a firm's relationship with its suppliers and involves all the activities of
receiving, storing, and shipping component parts to the place where they will be added to the
final product. => Inbound logistics
________ involves all the activities required to manufacture a product. => Operations
________ is (are) used to generate a number of ideas quickly. => Brainstorming
________ is a financial transaction whereby a business sells its accounts receivable to a third
party at a discount in exchange for cash. => Factoring
________ is a quick financial assessment of the viability of a business idea. => Financial
feasibility analysis

________ is conducted to determine whether a proposed business has sufficient management
expertise, organizational competence, and resources to successfully launch its business. =>
Organizational feasibility analysis
________ is the process of adapting a firm's core competencies to exploit new opportunities. =>
Resource leverage

________ is the process of creating something new, which is central to the entrepreneurial
process. => Innovation
________ is the process of determining whether a business idea is viable. => Feasibility analysis
________ is the process of generating a novel or useful idea. => Creativity
________ marks are similar to ordinary trademarks, but they are used to identify the services or
intangible activities of a business rather than a business's physical product. => Service


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________ marks are trademarks or service marks used by the members of a cooperative,

association, or other collective group, including marks indicating membership in a union or
similar organization. => Collective
________ means that as a firm grows and adds personnel, the new hires typically do not have the
same ownership incentives as the original founders, so the new hires may not be as motivated as
the founders to put in long hours or may even try to avoid hard work. => Moral hazard
________ means that as the number of employees a firm needs increases, it becomes increasingly
difficult for it to find the right employees, place them in appropriate positions, and provide
adequate supervision. => Adverse selection
________ means that as the number of employees a firm needs increases, it becomes increasingly
difficult for it to find the right employees, place them in appropriate positions, and provide
adequate supervision. => Adverse selection
________ patents are the most common type of patent and cover what we generally think of as
new inventions. => Utility
________ patents are the second most common type of patent and cover the invention of new,
original, and ornamental designs for manufactured products. => Design
________ refers to the number of subscribers that a subscription-based business loses each
month. => Churn
________ relationships are characterized by frequent interactions that form between coworkers,
friends, and spouses. => Strong-tie
________, a relatively new approach to partnering, takes place when a service provided comes
inside a partner's facilities and helps the partner design and manage its supply chain. =>
Insourcing
________are limited partnerships of money managers who raise money in "funds" to invest in
startups and growing firms. => Venture capital firms

A
1. A ________ survey is an instrument that is used to gauge customer interest in a product or service.
=> Buying intentions
2. A ________ involves showing a preliminary description of a product or service idea to prospective
customers to gauge customer interest, desirability, and purchase intent. => concept test

3. A ________ is a firm's plan or recipe for how it creates, delivers, and captures value for its
stakeholders. => business model
4. A ________ is a group of organizations with similar needs that band together to create a new entity
to address those needs. => consortia
5. A ________ is a resource or capability that serves as a source of a firm's competitive advantage
over its rivals. => core competency
6. A ________ is any formula, pattern, physical device, idea, process, or other information that
provides the owner of the information with a competitive advantage in the marketplace. => trade
secret
7. A ________ is any word, name, symbol, or device used to identify the source of origin of products
or services and to distinguish those products or services from others. => trademark
8. A ________ market is a place within a larger market segment that represents a narrower group of


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customers with similar needs. => target
A brief, carefully constructed statement that outlines the merits of a business opportunity is called
a(n) ________ speech. => elevator
A business model is a firm's plan or recipe for how it creates, delivers, and captures value for its
stakeholders. => TRUE
A business plan can usually be completed in one to three days. => FALSE
A business plan is a firm's plan or diagram for how it competes, uses its resources, structures its
relationships, interfaces with customers, and creates value to sustain itself on the basis of the profits
it earns. => FALSE
A business plan is important as it forces the founding team to systematically think through every
aspect of their new venture and ________. => it communicates the merits of a new venture to
outsiders, such as investors and bankers
A business's early growth stage is generally characterized by increasing sales and heightened
complexity. => TRUE
A business's mission or mission statement describes why it exists and what its business model is
supposed to accomplish. => TRUE
A business's________ describes why it exists and what its business model is supposed to
accomplish. => mission statement
A buying intentions survey is typically administered as part of ________ feasibility analysis. =>
Product/service

A buying intentions survey is used to gauge customer interest in a product or service. => TRUE
A clearly articulated business model articulates a company's core logic to all stakeholders,
including the firm's employees. => TRUE
A commercialization plan is a written narrative that describes what a new business plans to
accomplish and how it plans to accomplish it. => FALSE
A common way that gaps in the marketplace are recognized is ________. => when people become
frustrated because they can't find a product or service that they need and recognize that
other people feel the same way
A company's ________ defines the products and markets on which it will concentrate. =>
product/market scope
A company's channels describe how it delivers its product or service to its customers. => TRUE
A company's customer list is most commonly protected under ________ regulations. => trade
secret
A company's industry analysis and target market analysis are usually included in the same section
of its business plan. => FALSE
A company's mission statement should be placed in the ________ section of its business plan. =>
company description
A company's product/market scope defines the products and markets on which it will concentrate.
=> TRUE
A company's target market is a place within a larger market segment that represents a narrower
group of customers with similar interests. => TRUE
A company's________ scope defines the products and markets on which it will concentrate. =>
product/market
A competitor analysis should be included in the ________ section of a business plan. => market
analysis


31. A competitor analysis, which is a detailed analysis of a firm's competitors, should be included in
the market analysis section of its business plan. => TRUE
32. A computer-generated image of an invention that displays the invention as a 3D model that can be

viewed from all sides and rotated 360 degrees is called a(n): => virtual prototype
33. A concept statement should be two-three pages long. => FALSE
34. A core competency is a resource or capability that serves as a source of a firm's competitive
advantage over its rivals. => TRUE
35. A firm's ________ describes why it exists and what its business model is supposed to accomplish.
=> mission statement
36. A firm's ________ is a plan for how it competes, uses its resources, structures its relationships,
interfaces with customers, and creates value to sustain itself on the basis of the value it creates. =>
business model
37. A firm's ________ is the limited group of individuals or businesses that it goes after or tries to
appeal to. => target market
38. A firm's business model is inherently dependent on the collection of resources it controls and the
capabilities it possesses. => It is dangerous for a company to assume that it can be successful
by simply copying the business model of another firm.
39. A firm's business model resides within its own boundaries. => FALSE
40. A firm's core strategy is largely determined by its core competencies, or what it does particularly
well. => TRUE
41. A firm's operating leverage is an analysis of its debt versus its equity. => FALSE
42. A firm's pace of growth is the rate at which it is growing compared to its main competitors. =>
FALSE
43. A firm's pace of growth is the rate it is growing ________. => on an annual basis
44. A firm's revenue streams describe the ways in which it makes money. => FALSE
45. A firm's target market is the limited group of individuals or businesses that it goes after or tries to
appeal to. => TRUE
46. A firm's________ describe(s) the ways in which it makes money. => revenue streams
47. A firm's________ market is a place within a larger market segment that represents a narrower
group of customers with similar interests. => target
48. A form of intellectual property protection that grants to the owner of a work of authorship the legal
right to determine how the work is used and to obtain the economic benefits from the work is
referred to as a(n) ________. => copyright

49. A grant from the federal government conferring the rights to exclude others from making, selling,
or using an invention for a specific period of time is referred to as a(n) ________. => patent
50. A hub and wheel configuration with a local firm at the hub organizing the interdependencies of a
complex array of firms is referred to as a: => network
51. A liquidity event accomplishes which of the following purposes? => Converts some or all of a
company's stock to cash.
52. A network entrepreneur is an individual who identifies his or her business idea ________. =>
through social contacts
53. A network is a hub-and-wheel configuration with a local firm at the hub organizing the
interdependencies of a complex array of firms. => TRUE
54. A new venture team is the group of founders, key employees, and advisers that either manageor
help manage a new business in its start-up years. => TRUE


55. A patent is a grant from the federal government conferring the rights to exclude others from
making, selling, or using an invention for the term of the trademark. => TRUE
56. A prototype is ________. => the first physical depiction of a new product
57. A resource chain is the network of all the companies that participate in the production of a product,
from the acquisition of raw materials to the final sale. => FALSE
58. A solo entrepreneur is an individual who identified his or her business idea ________. A network
entrepreneur is an individual who identified his or her business idea ________.
=> on their own;
through social contacts
59. A sources and uses of funds statement is a document that lays out specifically how much money a
firm needs, where the money will come from, and what the money will be used for. => TRUE
60. A strategic alliance is an entity created by two or more firms pooling a portion of their resources
to create a separate, jointly-owned organization. => TRUE
61. A supplier is a company that: => provides parts or services to another company
62. A tagline is a phrase that a business uses to reinforce its position in the marketplace. => TRUE
63. A trade secret is any formula, pattern, physical device, idea, process, or other information that
provides the owner of the information with a competitive advantage in the marketplace. => TRUE

64. A trademark is a form of intellectual property protection that grants to the owner of a work of
authorship the legal right to determine how the work is used and to obtain the economic benefits
from the work. => FALSE
65. A trademark is a word, name, symbol, or device used to identify the source or origin of products
or services and to distinguish those products or services from others. => TRUE
66. A trademark is registered with the ________. => U.S. Patent and Trademark Office
67. A utility patent can be obtained for a new product or process or the "idea" for a new product or
process. => FALSE
68. A utility patent is good for ________ years from the date of the original application, a design patent
is good for ________ years from the date the patent is granted, and a plant patent is good for
________ years from the date of the original application. => 20; 14; 20
69. A(n) ________ bank is an institution, such as Credit Suisse First Boston, that acts as an underwriter
or agent for a firm engaged in an initial public offering. => investment
70. A(n) ________ business plan, which is intended to be a blueprint for a company’s operations, is
40-100 pages long and is meant primarily for an internal audience. => operational
71. A(n) ________ business plan, which is typically 25 to 35 pages long, works best for new ventures
who are at the point where they need funding or financing. => full
72. A(n) ________ describes why a company exists and what it aspires to become. => mission
statement
73. A(n) ________ industry is an industry that is experiencing significant international sales. => global
74. A(n) ________ industry is an industry that is experiencing slow or no increase in demand. =>
mature
75. A(n) ________ industry is one that is characterized by a large number of firms of approximately
equal size. => fragmented
76. A(n) ________ involves showing a preliminary description of a product or service idea to
prospective customers to gauge customer interest, desirability, and purchase intent. => Concept
test
77. A(n) ________ is a favorable set of circumstances that creates a need for a new product, service,
or business. => opportunity

78. A(n) ________ is a favorable set of circumstances that creates the need for a new product, service,
or business. A(n) ________ is a thought, an impression or a notion. => opportunity, idea
79. A(n) ________ is a graphic representation of how authority and responsibility are distributed
within a company. => organizational chart
80. A(n) ________ is a group of firms producing a similar product or service. A firm's ________is the
limited portion of the industry that it goes after or to which it wants to appeal. => industry, target
market
81. A(n) ________ is a group of firms producing a similar product or service, such as computers, cars,
or airplanes. => industry
82. A(n) ________ is a group of firms producing a similar product or service, such as electronic games,
smartphones, or computers. => Industry
83. A(n) ________ is a group of firms producing a similar product or service. A firm's ________ is
the limited portion of the industry that it goes after or to which it wants to appeal. => Industry,
target market
84. A(n) ________ is a group of firms producing a similar product or service, such as soft drinks,
airlines, or smartphone apps. => industry
85. A(n) ________ is a written agreement in which the owner of a piece of property allows an
individual or business to use the property for a specified period of time in exchange for payments.
=> lease
86. A(n) ________ is a written document that describes all the aspects of a business venture in a concise
manner. => business plan
87. A(n) ________ is the group of founders, key employees, and advisers that either manage or help
manage a new business in its startup years. => New venture team
88. A(n) ________ statement describes why a company exists and what it aspires to become. =>
mission
89. A(n) ________, in a business plan context, is a noteworthy event in the past or future development
of a business. => milestone
90. A(n) ________, which is intended to be a blueprint for a company's operations, is 40-100 pages
long and is meant primarily for an internal audience. => operational business plan

91. A(n) ________, which is typically 25 to 35 pages long, works best for new ventures who are at the
point where they need funding or financing. => full business plan
92. According to a recent Gallop survey, about ________ percent of kids in grades 5-12 say they plan
to start their own business. => 40
93. According to a Wells Fargo/Gallup Small Business Study cited in the book, a large percentage of
entrepreneurs write business plans for their ventures. => FALSE
94. According to Chapter 1, a sentiment that venture capitalists often express is that ________. =>
they would rather fund a strong entrepreneur with a mediocre business idea than fund a
strong business idea with a mediocre entrepreneur
95. According to Chapter 1, investors often cite the ________ as their most important criterion in the
decision to fund new ventures. => strength of the entrepreneur
96. According to current regulations, any copyrightable work created on or after January 1, 1978, is
protected by copyright law for the life of the author plus ________ years. => 70
97. According to our textbook, the seed money that gets a company off the ground typically comes
from ________. => the founders of the firm
98. According to Penrose, ________ services generate new market, product and service ideas, while


________ services administer the routine functions of the firm and facilitate the profitable
execution of new opportunities. => entrepreneurial; managerial
99. According to Penrose, entrepreneurial services generate new market, product, and service ideas.
=> TRUE
100.
According to Penrose, managerial services generate new market, product, and service ideas,
while entrepreneurial services administer the routine functions of the firm and facilitate the proper
execution of new opportunities. => FALSE
101.
According to reliable statistics, 9 out of 10 businesses fail in their first few years of existence.
=> FALSE
102.

According to research in this area, it is more likely that an entrepreneur will get a new business
idea through a ________ -tie relationship than the alternatives.
=> weak
103.
According to studies citied in the book, a large percentage of entrepreneurs write business
plans for their ventures. => FALSE
104.
According to the basic model of firm growth articulated in Chapter 13, the ability to increase
managerial services to facilitate growth is not friction free but is constrained and limited. Which of
the following selections is not one of the factors that constrains or limits a firm's ability to increase
its managerial services? => Benchmarking
105.
According to the consensus of the research, some people are genetically predisposed to be
entrepreneurs. => FALSE
106.
According to the example provided in Chapter 5, www.1800contacts.com possesses a
nontraditional barrier to entry referred to as ________. => Internet domain name
107.
According to the feature, Joost's most critical mistake dealt with subtle aspects of its business
model. In particular, its: => core strategy wasn't focused

108.
According to the Global Entrepreneurship Monitor (GEM) 2013 study, the majority of people
in high-income countries are drawn to entrepreneurship ________. => to take advantage of an
attractive opportunity
109.
According to the Global Entrepreneurship Monitor (GEM) 2013 survey, about ________
percent of adults in the United States are either starting a business or are running a business that
has been in existence for less than 3 1/2 years. => 12.7
110.
According to the opening feature on Pure Fix Cycles, one of the biggest challenges the startup
now faces is an increasingly competitive marketplace. => TRUE

111.
According to the results of the GEM 2013 survey, about 1 out of every 8 American adults is
actively engaged in starting a business or is the owner/manager of a business that is less than 3 1/2
years old. => TRUE
112.
According to the textbook, a 2010-2012 study of 350 entrepreneurs found that of those that
had successful exist, only about ________ started with a business plan => 30 percent
113.
According to the textbook, a business plan is best described as a(n) ________. => narrative
description of a new business
114.
According to the textbook, a focus group is a gathering of 5 to 10 people who are selected
because ________.
=> of their relationship to the issue being discussed

115.
According to the textbook, a well-managed business that finds its products and services are
mature often ________. => looks for partnering or acquisition opportunities to breathe new
life into the firm
116.
According to the textbook, beyond their own funds, the second source of funds for many new
ventures is ________. => friends and family


117.
According to the textbook, by studying a product's or service's value chain an organization
can: => identify ways to create additional value and assess whether it has the means to do
so

118.
According to the textbook, Chipotle Mexican Grill in fast−casual restaurants and
1−800−GOT_JUNK? in junk removal are examples of entrepreneurial firms who are exploiting
opportunities in ________ industries. => fragmented

119.
According to the textbook, Dropbox, Facebook, and LinkedIn are examples of ________
firms. => entrepreneurial
120.
According to the textbook, entrepreneurs are ________. => moderate risk takers
121.
According to the textbook, entrepreneurship has historically had ________. => a major
impact on both the economy and society
122.
According to the textbook, how do well−managed firms respond to the five forces that
determine industry profitability? => They try to position their firms in a way that avoids or
diminishes the forces.
123.
According to the textbook, in many instances an investor will first ask for a copy of a firm's
________ and will request a copy of the full business plan only if that portion of the plan is
sufficiently convincing. => executive summary
124.
According to the textbook, it is ________. => not inevitable that a business enter the decline
stage of the organizational life cycle
125.
According to the textbook, Justin's in peanut butter, Pure Fix Cycles in bicycles, and Flings
Bins in trash bags are examples of entrepreneurial firms who are exploiting opportunities in
________ industries. => mature
126.
According to the textbook, many entrepreneurs go about the task of raising capital haphazardly
because they ________. => lack experience in this area and because they don't know much
about their choices
127.
According to the textbook, many investors and others who read business plans look first at the
executive summary and then go directly to the ________ section of the business plan to make their

preliminary assessment. => management team and company structure
128.
According to the textbook, most entrepreneurial firms ________. => want to grow
129.
According to the textbook, Nucor in steel, JetBlue in airlines, and Cirque du Soleil in circuses
are examples of entrepreneurial firms who are exploiting opportunities in ________ industries. =>
declining
130.
According to the textbook, only ________ of the 600 entrepreneurs that participated in a recent
Wells Fargo/Gallup Small Business Study indicated that they had started their venture with a
business plan. => 31 percent
131.
According to the textbook, opportunities are ________.
=> tough to spot
132.
According to the textbook, research results over time consistently suggest that somewhere
between ________ percent of those who start businesses got their ideas through social contacts. =>
40 and 50
133.
According to the textbook, Southwest Airlines introduced a new market disruption type of
disruptive business model. => FALSE
134.
According to the textbook, the ________ are the heart of the financial section of a business
plan. => pro forma financial statements
135.
According to the textbook, the best approach to utilizing a library for entrepreneurship- related
research is to ________.
=> discuss your general area of interest with a reference librarian


136.
According to the textbook, the businesses that have the potential to grow the fastest over a

sustained period of time are ones that ________ . => solve a significant problem or have a major
impact on their customers' productivity or lives
137.
According to the textbook, the executive summary is arguably the most important section of
the business plan. => TRUE
138.
According to the textbook, the first rule in making an oral presentation is to________ . =>
follow instructions
139.
According to the textbook, the first step in a competitor analysis is to ________. => determine
who the competition is
140.
According to the textbook, the five competitive forces included in the Five Forces model
determine the average ________. => rate of return for the firms in an industry
141.
According to the textbook, the four characteristics of successful entrepreneurs are ________.
=> passion for the business, tenacity despite failure, product/customer focus, and execution
intelligence
142.
According to the textbook, the number one reason that people become entrepreneurs is to
________. => be their own boss
143.
According to the textbook, the passion that motivates people to launch entrepreneurial firms
typically stems from the entrepreneur's belief that the business will ________. => positively
influence people's lives
144.
According to the textbook, the three different types of competitors a business will face are
________. => direct, indirect, and future
145.
According to the textbook, the three important things that a business can do to prepare for

growth are ________. => appreciate the nature of business growth, stay committed to a core
strategy, and plan for growth
146.
According to the textbook, the toughest decisions regarding business growth are made in the
________ stage of the organizational life cycle. => continuous growth
147.
According to the textbook, the unique value provided by business angels is they ________. =>
are willing to make relatively small investments
148.
According to the textbook, there are three categories of costs to consider when completing the
"financing/funding" section of the Barringer/Ireland Business Model Template. These are
________ . => operating costs, capital costs, and costs associated with setting up the firm
149.
According to the textbook, there are three issues about business growth that entrepreneurs
should appreciate. These issues are ________. => not all businesses have the potential to be
aggressive growth firms, a business can grow too fast, and business success doesn't always
scale
150.
According to the textbook, there are three types of startup firms: ________. => lifestyle firms,
salary-substitute firms, and entrepreneurial firms
151.
According to the textbook, trade secret disputes arise most frequently when ________. => an
employee leaves a firm to join a competitor and is accused of taking confidential information
with him or her
152.
According to the textbook, two of the most important factors to consider regarding
"management prowess" are: => The passion the sole entrepreneur or the management team has
for the business idea and the extent to which the management team or sole entrepreneur
understands the markets in which the firm will participate
153.

According to the textbook, which is the proper sequence of events in developing successful


business ideas? => Opportunity recognition, feasibility analysis, development of a business
plan
154.
Adverse selection means that as a firm grows and adds personnel, the new hires typically do
not have the same ownership incentives as the original founders, so the new hires may not be as
motivated as the founders to put in long hours or may even try to avoid hard work. => FALSE
155.
Advertising, commissions, download fees, licensing, and product sale are examples of
________. => revenue streams
156.
Aging of the population, the increasing diversity of the workplace, and the continual migration
of people from small towns and rural areas to cities are important economic trends. => FALSE

157.
Al Jenkins is in the process of developing an exciting new product in the smartphone industry.
He'd like to show a preliminary description of the product to industry experts and prospective
customers to solicit their feedback. Al should complete and distribute a(n): => Concept statement
158.
Alex and Patty Webb launched a firm several years ago and have been particularly successful
in introducing new products to the marketplace. One thing that Alex and Patty are particularly good
at is translating their thoughts, creativity, and imaginations into products that reach the
marketplace. The ability to make this happen is most closely related to which of the following
characteristics of successful entrepreneurs? => Execution intelligence
159.
Alex has a number of casual acquaintances that he interacts with infrequently. The
relationships that Alex has with these people are referred to as ________ -tie relationships.
=>
weak
160.

All businesses have the potential to be aggressive growth firms. => FALSE
161.
Almost all firms partner with others to make their business models work. => TRUE
162.
Although interest in entrepreneurship remains high nationwide, the number of women-owned
businesses is decreasing. => FALSE
163.
Amazon.com's one-click ordering system and Priceline.com's "name-your-price" business
model are examples of________ patents. => business method
164.
Amy Clark just opened a soup and salad restaurant near Golden Gate Park in San Francisco,
CA. Rather than borrow money or raise funds from investors, Amy used her creativity and
ingenuity and figured out how to get her business up and running without the need for external
funding. Amy is utilizing a technique referred to as ________. => bootstrapping
165.
Amy has just launched a firm in the sports drink industry. She has decided to complete a grid
to see how she stacks up against her competitors. Along the horizontal axis of the grid she lists her
firm along with her major competitors. Along the vertical axis of the grid she lists the main
competitive factors in her industry. Amy is completing a ________. => competitive analysis grid
166.
An arrangement between two or more firms that establishes an exchange relationship but has
no joint ownership involved is called a: => strategic alliance
167.
An entity created by two or more firms pooling a portion of their resources to create a separate,
jointly-owned organization is called a ________. => joint venture
168.
An event that prompts an individual to become an entrepreneur, such as losing a job, inheriting
money, or accommodating a certain lifestyle, is referred to as a(n) ________. => triggering event
169.
An example of a valuable library resource is IBISWorld, which is a(n) ________. => database

of industry-related information
170.
An idea is a favorable set of circumstances that creates a need for a new product, service, or
business. => FALSE
171.
An idea is a thought, impression, or notion. It may or may not meet the criteria of an


opportunity. => TRUE
172.
An important part of obtaining venture capital funding is going through ________ diligence,
which refers to the process of investigating the merits of a potential venture and verifying the key
claims made by the => due
173.
An increased focus on health and wellness has resulted in a number of new business ideas
including healthier foods and beverages, yoga instruction and training centers, and nutrition
consulting. An increased focus on health and wellness is an important ________ that is creating
opportunities in many areas for entrepreneurial firms. => social force
174.
An individual who identifies a business idea on his or her own is referred to as a(n) ________
entrepreneur.=> solo
175.
An intellectual property audit is conducted to determine the intellectual property a company
owns. => TRUE
176.
An opportunity has four essential qualities. It is (1) rare, (2) attractive, (3) timely, and (4)
anchored in a product, service, or business that creates or adds value for its buyer or end user. =>
TRUE
177.
An opportunity has the following four essential qualities: ________. => attractive; timely;

durable; and anchored in a product, service, or business that creates or adds value for its
buyer or end user
178.
An organizational chart is a graphic representation of how authority and responsibility are
distributed within a company. => TRUE
179.
An________ is conducted to determine the intellectual property a company owns. =>
intellectual property audit
180.
Apple is an established firm that encourages and emphasizes entrepreneurial behavior
throughout its various divisions. According to the textbook, Apple practices ________
entrepreneurship. => corporate
181.
Aquafina operates in the bottled water industry. The companies that offer identical or similar
products and go after the same customers that Aquafina does are Dasani and Zephyrhills. Dasani
and Zephyrhills are Aquafina's ________ competitors. => direct
182.
As a business moves beyond its early growth stage and its pace of growth accelerates, the need
for structure and formalization decreases. => FALSE
183.
As new products that are better than the existing generation of products are introduced, sales
normally increase because the new products provide consumers increased value or worth. This
process, which is called ________, stimulates economic activity, which is a good thing for the
economy. => creative destruction


B
1. Big Fish Presentations, the company profiled in the opening feature of Chapter 13, prepares
presentations that help clients present themselves in new and innovative ways. In regard to growth,
Big Fish Presentations has opted to ________. => pursue a conservative and patient approach to

growth based primarily on expanding their product lines
2. Brad Johnson is starting an upscale men's clothing store in a mall near Seattle. He wants to open his
store during the time period in which a business like his can realistically enter the new market. Brad
is trying to open his business while the ________ is open. => window of opportunity
3. Brad Jones is in the process of opening an electronics supply company and is working on the portion
of his business plan template that describes how he will deliver his products and services to his
customers. The portion of the business plan template that Brad is working on is referred to
as________. => channels
4. Brain Sentry is starting a firm in the small industry that helps football teams discern whether a player
has suffered a concussion. This industry is still so new that no standard operating procedures have
been developed. The industry Brain Sentry is entering is an example of a(n) ________ industry. =>
emerging
5. Brainstorming is used to generate a number of ideas quickly.
=> TRUE
6. Brainstorming sessions are designed to move slowly, so ideas can be presented and evaluated.
=>
FALSE
7. Brandon Jones has crafted a business model for his firm that is based on an existing plan or template
for how firms in his industry create, deliver and capture value for their shareholders. Brandon has
crafted a ________ business model. => standard
8. Brian James is in the process of developing an exciting new product in the electronic games industry.
He'd like show a preliminary description of the product to industry experts and prospective customers
to solicit their feedback. Brian should complete and distribute a: => concept statement
9. Business success doesn’t always scale. => TRUE
10. By studying a product's value chain, an organization can identify ways to create additional value and
assess whether it has the means to do so. => TRUE


C
1. Cameron Smith recently surveyed 200 of his classmates to get a sense of the demand for a new
software product he is working on. Collecting data via a survey you administer yourself is referred
to as: => Primary research

2. Casey Griggs is a very capable computer engineer. Recently, he noticed a problem that computer
engineers have, and thought of a solution to the problem that might represent an opportunity for a
new software product. Casey's idea for a new software product is an example of a(n) ________
discovery. => serendipitous
3. Catherine Smith has just finished writing a business plan for a startup in the medical products
industry. She has now reached the point where she needs to develop a plan for how her firm will
compete, use its resources, structure its relationships, interface with customers, and create value to
sustain itself on the basis of the profits it earns. Jennifer needs to establish her firm's: => business
model
4. Census Bureau data, analyst forecasts, and other pertinent information gleaned through library and
Internet research are examples of primary research. => FALSE
5. Certification marks are similar to ordinary trademarks, but they are used to identify the services or
intangible activities of a business rather than a business's physical product. => FALSE
6. Clothing boutiques and specialty shops often start because there is a need for a particular product, but
large retailers like Wal-Mart and Costco can't sell enough of the item to stock it on their shelves. If a
clothing boutique started to sell designer clothes or clothing for hard-to-fit people because the
clothing wasn't being offered by a larger retailer, the best way to describe how that idea was
recognized is ________. => finding a gap in the marketplace
7. Cody Rodgers is the founder of a company named Extreme Sports Apparel. The company makes
apparel products for extreme sports enthusiasts such as rock climbers, triathletes, skateboarders, and
BMX bikers. Cody wants his company to pursue a high level of corporate entrepreneurship. To
achieve that goal, Cody's firm should be ________. => proactive, innovative, and risk taking
8. Colorado Sandwich, Soup and Salad is a casual dining restaurant that has been owned by Stephanie
Peterson for the past 14 years. The restaurant offers a menu that is typical for casual dining restaurants
and affords Stephanie a level of income that is similar to what she would earn in a conventional job.
According to the textbook, Colorado Sandwich, Soup and Salad is an example of a(n) ________ firm.
=> salary-substitute
9. Combinations of numbers and letters, such as 3M and 1-800-CONTACTS, can be trademarked. =>
TRUE
10. Companies ultimately try to combine their core competencies and strategic assets to create a

sustainable competitive advantage. => TRUE
11. Computer software is not covered by copyright law. => FALSE
12. Consider the following questions: Are products under development that require patent protection?
Are we in compliance with the copyright license agreements into which we have entered? Is anyone
infringing on our trademarks? Are company trade secrets leaking out to competitors? These are the
types of questions that would be asked when conducting a(n) ________. => intellectual property
audit
13. Copyright infringement occurs when one work derives from another or is an exact copy. => TRUE
14. Copyright law is governed by the ________. => Copyright Revision Act of 1976
15. Copyright law protects any work of authorship ________. => the moment it assumes a tangible


16.
17.
18.

19.

20.

form
Copyright________ occurs when one work derives from another or is an exact copy or shows
substantial similarity to the original work. => infringement
Core strategy describes what causes consumers to pick one company's products over another. =>
FALSE
Corry Pierce is investigating the feasibility of a new type of electronic game targeting middle school
and high school-age boys. Which of the following is an example of "gumshoe research" that Corry
could conduct to get a sense of the likely demand for his game? => Spend several days in electronic
games arcades and stores to observe the types of games that attract the interest of middle school
age and high school age boys.

Courtney Young is the founder of a company in the semiconductor industry. Courtney's firm is still
in the feasibility analysis stage and doesn't have a product that is ready to sell. The company is
spending about $25,000 per month and expects to maintain that level of spending until it reaches
profitability. The $25,000 a month is Courtney's ________rate. => burn
Cynthia Hamilton is launching a chain of smoothie restaurants. Among Cynthia's key partners will
be firms that provide her the ingredients needed to make her smoothies. In the terminology of the
Barringer/Ireland Business Model Template, these partners are called ________. => suppliers


D
1.
2.
3.
4.
5.
6.
7.
8.

Day-in-the-life research is a form of anthropological research.
=> TRUE
Day-in-the-life research is a type of ________ research. => anthropological
Debt financing involves ________. => getting a loan or selling corporate bonds
Dell for computers, Modcloth for vintage and vintage-inspired women's clothing, and Proactiv for
acne medication are examples of ________. => trademarks
Describe the three primary reasons that people become entrepreneurs and start their own firms. =>
(1) be their own boss, (2) pursue their own ideas, and (3) realize financial rewards.
Design patents are the most common type of patent and cover what we generally think of as new
inventions. => FALSE
Disruptive business models are impactful enough that they disrupt or change the way business is
conducted in an industry or an important niche within an industry. => TRUE

Does it make sense? Is it reasonable? Is it something consumers will get excited about? Does it
take advantage of an environmental trend, solve a problem, or fill a gap in the marketplace? These
are the types of questions asked during the ________ component of a complete feasibility analysis.
=> Product/service feasibility

E
1. Each quarter, Craig Anderson, who owns a chain of auto repair shops, does a detailed analysis of his
firm's competitors. This analysis is called ________ analysis. => competitor
2. Economic factors, social factors, technological advances, and political action and regulatory changes
are the most important trends to follow in trying to identify opportunities.
=> TRUE
3. Economic forces impact the opportunities available to entrepreneurs. Which of the following
alternatives reflects a set of economic forces that would be of interest to entrepreneurs? => Housing
starts, consumer spending patterns, and stability of interest rates
4. Economies of scale occur when ________. => increasing production lowers the average cost of
each unit produced
5. Edward Andrews has decided to write a business plan that is intended to be read primarily by his
staff, which will present a blueprint for his company's entire operation and will provide guidance to
operational managers. Edward should write a(n): => operational business plan
6. Entrepreneurial firms ________. => bring new products and services to market by creating and
seizing opportunities
7. Entrepreneurs are motivated primarily by money. => FALSE
8. Entrepreneurs are usually moderate, rather than high, risk-takers. => TRUE
9. Entrepreneurship is the process by which individuals pursue opportunities within the constraints of
the resources they control. => FALSE
10. Equity financing (or funding) means ________. => exchanging partial ownership in a firm,
usually in the form of stock, for funding
11. Equity investors typically have a ________ year investment horizon. => 3 to 5
12. Erin Hill is working on the box in the Barringer/Ireland Business Model Template that defines the
products and markets on which her firm will concentrate. Erin is working on the ________ scope

portion of the business model template. => product/market
13. Established firms with an entrepreneurial emphasis are proactive, innovative, and risk-taking. =>
TRUE
14. Evaluation is the stage of the creative process during which the idea is put into its final form. =>
FALSE

F
1. Feasibility analysis is the process of determining if a business idea is viable. => TRUE
2. Few businesses need access to capital to fuel their growth. => FALSE
3. Firms that have a ________ strategy strive to have the lowest costs in the industry, relative to
competitors' costs, and typically attract customers on that basis. In contrast, firms using a ________
strategy compete on the basis of providing unique or different products and typically compete on
the basis of quality, service, timeliness, or some other important dimension. => cost leadership,
differentiation
4. Firms that pursue a(n) ________ strategy compete for market share on a country−by−country basis
and vary their product or service offerings to meet the demands of the local market. =>
multidomestic
5. First Screen is a template for completing industry analysis => FALSE
6. Fixed costs are the costs a company incurs as it generates sales. => FALSE
7. Focus groups typically involve a group of people who are unfamiliar with a topic and are brought
together to respond to questions.
=> FALSE
8. For a business to be successful in the early growth stage of the organizational life cycle, the two
important things that must happen are ________. => the founder or owner of the business must
start transitioning from his or her role as the hands- on supervisor to a more managerial role,
and increased formalization must take place
9. For financial feasibility analysis, a very detailed and comprehensive financial analysis is required.
=> FALSE
10. For its major products, Intuit (maker of TurboTax, Mint and other products) uses secondary
research.
=> FALSE

11. For most business plans ________ pages are sufficient. => 25 to 35
12. For most business plans, 25 to 35 pages are sufficient. => TRUE
13. For most new ventures, the business plan is a dual-purpose document used both inside and outside
the firm. => TRUE
14. For startup firms, some products are under development for years before they generate earnings.
The upfront costs often exceed a firm's ability to fund these activities on its own. Which of the
following reasons that motivate firms to seek funding or financing is illustrated in this example? =>
Lengthy product development cycles
15. For startup firms, the cost of buying real estate, building facilities, and purchasing equipment often
exceeds the firm's ability to provide funds for those needs on its own. Which of the following
reasons that motivate firms to seek funding or financing is illustrated in this example? => Capital
investments
16. Fortunately, if three of the four components of a firm's business model are in place, the firm has a
high probability of success. => FALSE


17. Fragmented industries are more receptive to new entrants than industries that are dominated by a
handful of large firms. => TRUE
18. From a broad perspective, firms choose one of two generic strategies to position themselves in the
marketplace. These are: => cost leadership and differentiation
19. Fulfillment and support describes the way a firm's product or service "goes to market" or how it
reaches its customers. =>TRUE
20. Fulfillment and support describes: => the way a firm's product or service "goes to market" or
how it reaches its customers
21. FundersClub and Crowdfunder.com are examples of ________−based crowdfunding sites. =>
equity

G
1. Gary Smith just launched a firm in the sports drink industry. He has decided to focus his efforts on
appealing to extreme sports enthusiasts (examples include hang gliders, rock climbers, and

parachutists). In Gary's case, extreme sports enthusiasts represent his firm's: => target market
2. GasBuddy is a company started to help consumers save money on gas. Which environmental trend
is most likely to have provided the impetus for the creation of this company? => Economic forces
3. Generally, industries are more attractive when the threat of substitutes is ________. => low
4. Google and its AdWords program is an example of a________ disruptive business model. => newmarket
5. Google is a firm that is proactive, innovative and risk-taking. From this description, we can most
accurately conclude that Google has a high level of ________. => entrepreneurial intensity
6. Growth usually increases rather than decreases the challenges involved with cash flow management.
=> TRUE

H
1. Her Campus Media, the focus of the opening feature of Chapter 4, features a vibrant online magazine,
with feature articles targeted toward all aspects of college life and survival. According to the feature,
Her Campus's business model focuses on connecting companies with college females. The key to
making this work is ________. => Her Campus's unparalleled access to college females
2. Historically, commercial banks ________. => have not been a good source of funds for startup
firms
3. Historically, it has been difficult for a new venture to use a differentiation strategy. => FALSE
4. Hulu.com allows people to watch television shows and movies on the Internet. Hulu.com's business
opportunity was made possible by ________ that enhanced the ability of television shows and
movies to be uploaded to the Internet and played by anyone with a suitable computer and an Internet
connection. => technological advances


I
1. If a local band wrote their own rendition of a Katy Perry song, the band could try to copyright their
rendition of the song as a(n) ________ work. => derivative
2. If a new firm was launched to help businesses comply with The Affordable Care Act, that opportunity
was created by ________.
=> political actions and regulatory changes
3. If a startup pioneers an industry or a new concept within an industry, the name recognition the startup

establishes may create a formidable nontraditional barrier to entry referred to as a(n) ________. =>
first−mover advantage
4. In 2013, venture capital firms funded just over ________ deals. => 4,000
5. In a business model context, the three components of a firm's customer interface are target customer,
fulfillment and support, and: => pricing structure
6. In a business model context, the three components of a firm's partnership network are: => suppliers,
partners, and other key relationships
7. In general, industries are more attractive when the ________. => threat of each of the five forces is
low
8. In regard to business models, which of the following statements is incorrect? => There is a standard
business model that most firms follow.
9. In regard to firm growth, evidence shows that ________. => relatively few firms generate
sustained growth
10. In regard to management prowess, two of the most important factors in this area are the passion that
the solo entrepreneur or the management team has for the business idea and the extent to which the
management team or solo entrepreneur understands the markets in which the firm will participate.
=> TRUE
11. In regard to patent activity (issuance), which of the following statements is correct? => Small
businesses outperform their larger counterparts.
12. In regard to the stages (or rounds) of venture capital funding, the stage of funding that occurs when
an investment is made very early in a venture's life to fund the development of a prototype and
feasibility analysis is referred to as ________ funding. => seed
13. In startup firms, inventory must be purchased, employees must be trained and paid, and advertising
must be paid for before cash is generated from sales. Which of the following reasons that motivate
firms to seek funding or financing is illustrated in this example? => Cash flow challenges
14. In terms of priority in filing a patent application, the United States uses a first-to- ________ system.
=> file
15. In terms of the "types" of startup firms, entrepreneurial firms bring new products and services to
market. => TRUE
16. In the Barringer/Ireland Business Model Template, a(n) ________ is a specific factor or capability

that supports a firm's business model and sets it apart from its rivals. => core competency
17. In the Barringer/Ireland Business Model Template, key assets can be________. => physical,
financial, intellectual, or human
18. In the Barringer/Ireland Business Model Template,________ describes how the firm plans to
compete relative to its competitors. => core strategy
19. In the beverage industry, soda, fruit juice, and sports drinks are ________ competitors of bottled
water. => indirect


20. In the book The Theory of Economic Development, ________ argued that entrepreneurs develop new
products and technologies that, over time, make current products and technologies obsolete. This
process is called creative destruction. => Joseph Schumpeter
21. In the context of competitor analysis, ________ competitors are companies that are not yet direct or
indirect competitors but could move into one of these roles at any time. => future
22. In the context of competitor analysis, ________ competitors offer close substitutes to the product
sold by the firm completing the analysis. => indirect
23. In the context of competitor analysis, businesses that offer identical or similar products are referred
to as ________ competitors. => direct
24. In the financing/funding section of the Barringer/Ireland Business Model Template, there are three
categories of costs to consider: capital costs, one-time expenses, and provisions for ramp- up
expenses. => TRUE
25. In the five-stage creative process, the flash of recognition, or what is sometimes referred to as the
"eureka" experience, occurs in the ________ stage.
=> insight
26. In the five-stage creative process, the stage in which the creative idea is put into final form is referred
to as the ________ stage.
=> elaboration
27. In the terminology of the Barringer/Ireland Business Model Template, ________ assets are the assets
that a firms owns that enable its business model to work. => key
28. In the terminology of the Barringer/Ireland Business Model Template, a firm's ________ structure
describes the most important costs incurred to support its business model. => cost
29. In the terminology of the Barringer/Ireland Business Model Template, a key asset is a specific factor

or capability that support a firm's business model and sets it apart from its rivals. => FALSE
30. In the WebHouse example included in Chapter 6, WebHouse failed because: => it couldn't motivate
its suppliers or customers to participate at a sufficient scale to support the overhead of the
business
31. In various studies, researchers have found that from ________ percent of the variation in firm
profitability is directly attributable to the industry in which a firm competes. => 8 to 30
32. Incubation is the stage of the creative process during which an idea is subjected to scrutiny and
analyzed for its viability.
=> FALSE
33. Industries that sell products to seniors, such as the eyeglass industry
34. Industries that sell products to seniors, such as the eyeglass industry and the hearing aid industry, are
benefiting from the aging of the population, which is an important ________ => environmental
35. Industry structure refers to how: => concentrated or fragmented an industry is
36. Industry/target market feasibility is an assessment of the overall appeal of the industry and the target
market for the product or service being proposed. => TRUE
37. Innovation is the process of creating something new, which is central to the entrepreneurial process.
=> TRUE
38. Intellectual property is any product of human intellect that is intangible but has value in the
marketplace. => TRUE
39. It is important to understand that there are several perfect business models. => FALSE
40. It is more likely that an entrepreneur will get a new business idea through a strong-tie than a weaktie relationship.
=> FALSE


J
1. Jack Wills owns a commercial nursery. Jack has more business than he wants, in fact, he is presently
turning away exciting new business opportunities because it is expensive to hire new employees,
and he knows that if he did hire new employees it would take time for the new employees to be
trained and to be socialized into the culture of his firm. Jack's inability to take advantage of the new
business opportunities that are coming his way is due largely to the ________ problem. =>
managerial capacity
2. Jamie Finch is crafting the business model for her fashion design firm. She just completed the

section that describes how her firm plans to compete relative to her rivals. Jamie just completed
the________ portion of her business model template. => core strategy
3. Jan Berry recently received a $500,000 inheritance from her maternal grandmother. Jan decided to
use the money to start a business. According to the textbook, the inheritance that Jan received was
the ________ that prompted her to start a business. => triggering event
4. Janice McDaniel recently surveyed 200 of her classmates to get a sense of the demand for a new
software product she is working on. Collecting data via a survey you administer yourself is referred
to as: => primary research
5. Jared King is starting a firm in the electronic games industry. The firm will produce games similar
to popular games on the market, but they won't be as sophisticated and will be priced at the low end
of the market. Jared has chosen the generic strategy referred to as: => cost leadership

6. Jeff Mommer is starting an environmentally friendly lawn and garden service. One thing that Jeff
has worked hard on is determining how his company will compete in the marketplace. This element
of Jeff's business model is referred to as: => core strategy
7. Jenna Franklin is completing the portion of the Barringer/Ireland Business Model Template that
describes the most important costs that will be incurred to support her business model. Jenna is
completing the ________ structure box in the business model template. => cost
8. Jennifer Burroughs is thinking about starting a firm in the upscale women's fashion industry. To get
a full appreciation of the competitive nature of the industry, and how she might position her
products, Jennifer has spent considerable time looking at industry-related publications, Hoover's
Online, and ABI-Inform, which is a database that provides access to articles covering a wide-variety
of business and industry related issues. Jennifer is conducting: => Secondary research
9. Jeremy Westbrook owns an organic food company which has increased both its profits and revenues
over an extended period of time. Jeremy's firm is experiencing ________ growth. => sustained
10. Jessica Smith is thinking about starting a chain of fitness centers for young adults ages 18-30. Which
of the following is NOT an appropriate criterion for Jessica to test her idea against? => Determine
whether a fitness center for young adults ages 18-30 meets the threshold of being a good idea.
11. John Kite is investigating the feasibility of a new type of electronic game targeting middle school
and high school-age boys. Which of the following is an example of "gumshoe research" that John
could conduct to get a sense of the likely demand for his game? => Spend several days in

electronic games arcades and stores to observe the types of games that attract the interest of
middle school age and high school age boys.
12. Joseph Schumpeter argued that entrepreneurs develop new products and technologies that over time
make current products and technologies obsolete, and this process, which he called creative


destruction, is good because it stimulates economic activity. => TRUE
Kaitlyn Harris is opening up a women's fashion boutique that will focus on professional women
that are 18-30 years old. The age range of women that Kaitlyn plans to focus on is referred to as
her________ market. => target

K
1. Karen West owns a barbecue restaurant. One expense that Karen watches closely is the cost of
propane, which she uses to heat her ovens. The more barbecue food Karen sells, the more it costs her
for propane on a monthly basis. For Karen, the cost of propane is a(n) ________ cost. => variable
2. Kasey Stevenson is starting a firm in the women's clothing industry primarily to pursue financial
rewards. According to the textbook, starting a business to make a lot of money ________. => often
fails to live up to its hype
3. Kate Payne was reading the business plan for New Venture Fitness Drinks, and noticed that prior to
its financial statements, New Venture Fitness Drinks placed an explanation of the sources of the
numbers for the statements and the assumptions used to generate them. This explanation is called
a(n): => assumptions sheet
4. Katherine Chapman recently launched a firm in the clothing industry, targeting 13−17 year olds. One
thing Katherine thinks she has accomplished is producing products that have universal appeal, so she
will not vary her approach from country to country. Katherine is pursuing a ________ strategy. =>
global
5. Katlin Smith is investigating the feasibility of developing an iPhone app to help high school students
with math. To get a good handle on the potential demand for her service, Katlin is scrounging around
for information wherever she can find it. She even spent two weeks volunteering as a math tutor at a
local high school to see how students responded to her methods. Katlin is conducting ________

research. => Gumshoe
6. Katlyn Williams owns a company that makes specialized components for the aerospace industry.
Her most important customer is a company that is growing at a rate of 33% per year. Katlyn is
working hard to grow her firm, because she knows that unless her company continually grows it will
not be able to keep pace with the growth of its most important customer. This example illustrates the
reason for growth referred to as ________. => need to accommodate the growth of a key customer
7. Katy Anderson's startup, which is in the organic fruit and vegetables industry, was launched on
January 1, 2015. However, prior to its formal launch, Katy spent many hours working on her
business, particularly during the feasibility analysis stage. The time and effort that entrepreneurs put
into their venture, that can't be easily measured from a financial point of view, is referred to as
________ equity. => sweat
8. Kellen West recently launched a firm in the fruit drink industry, and has already exported his fruit
drinks to 11 different countries. One thing that Kellen's firm is doing is that it is varying the tastes of
the fruit drinks it sells on a country−by−country basis to meet the demands of the local markets.
Kellen's firm is pursuing a ________ strategy. => multidomestic
9. Kelly Andrews owns a company that makes office furniture. Recently, a favorable article was written
about Kelly's company in a business magazine, and as a result, Kelly has seen a spike in his orders.
Although Kelly is grateful for the additional orders, he is worried about one thing. An increase in


10.

11.

12.

13.

14.

activity means that his firm must handle more service requests and paperwork and contend with more
customers, stakeholders, and vendors. Kelly knows that if he doesn't handle this increased activity
properly, the workmanship of his products could decline. The day-to-day challenge of firm growth
that this example illustrates is ________. => quality control
Kelly Pryor, who has launched several successful entrepreneurial firms, seems to have a "sixth sense"
that allows him to see opportunities that others miss. Kelly's ability is referred to as _________.
=>
entrepreneurial alertness
Kendell Adams owns a software development company. When he first launched his firm, he was
careful to hire employees who had the experience he was looking for, were good matches for the
positions he had available, and could be properly supervised. As Kendell's firm has grown, and his
need for employees has increased, he is finding that it is increasingly difficult to find employees who
have the qualifications he is looking for, are good matches for the positions he has available, and fit
within the supervisory framework he has developed. Kendell is dealing with an issue referred to as
________. => adverse selection
Kendra Johnson is starting a firm in the shoe industry. Her shoes will be very high quality and will
be priced at the top end of the market. Kendra has chosen the generic strategy referred to as: =>
differentiation
Kevin Andrews has decided to write a business plan that is intended to be read primarily by his staff,
which will present a blueprint for his company’s entire operation and will provide guidance to
operational managers. Kevin should write a(n)________ business plan. => operational
Kickstarter and Indiegogo are examples of ________ crowdfunding sites. => reward-based

L
1. Lincoln & Lexi, the company profiled in the opening feature for Chapter 4, was founded to: => sell
children's clothing through home parties and baby showers
2. London Simpson owns a company that makes smartphone accessories. She is trying to increase her
sales, primarily because she knows that increasing production lowers the average cost of each unit
produced. The reason for growth illustrated in this example is ________. => economies of scale

M

1. Macy is a very creative person. Often, when trying to generate a novel or useful idea, she spends
several days "mulling over" the idea, which is her way of thinking it through, at both the conscious
and unconscious level. The stage of the creative process that Macy is in while she is mulling over an
idea is referred to as ________. => incubation
2. Many firms benefit from an increasing ability to outsource manufacturing or service functions to
lower−cost foreign countries. This trend is referred to in the textbook as a(n) ________ trend. =>
business
3. Many new businesses are successful by taking advantage of fads. => FALSE
4. Mark White is the founder of a firm that builds iPhone apps. Mark is very technically savvy, which
allows him to build apps quickly and with minimal bugs or problems. In the terminology of the
Barringer/Ireland Business Model Template, Mark's technical savvy is a(n) ________ of his firm.
=> core competency


5. Market leadership occurs when a firm ________. => is the number one or the number two firm
in an industry or niche market in terms of sales volume
6. Market leadership occurs when a firm holds the number one or number two position in an industry
or niche market in terms of sales volume. => TRUE
7. Marks that are merely descriptive of a product or service can be trademarked. => FALSE
8. Martin Nelson is thinking about launching a small business consulting company. To get advice on
how to proceed, he stopped by his local Small Business Administration (SBA) office. The SBA
advisor told Martin that one of the first things he needs to do is to sit down and write a 25 to 35 page
narrative that describes what his new business plans to accomplish and how it plans to accomplish
it. The SBA advisor is telling Martin to write a(n): => business plan
9. Match the business model component with its explanation: => strategic resources/how a firm
acquires and uses its resources
10. Match the business plan with its appropriate emphasis: => summary business plan, works best for
companies in the early stages of development that want to "test the waters" to see if investors
are interested in their idea
11. Match the business plan with its appropriate length: => full business plan, 25-35 pages

12. Megan Johnson owns a kitchen and bathroom cabinet company. Her market research is telling her
that she is taking business away from the large home improvement stores in her trade area. One thing
that Megan is worried about is that the large stores might fight back by lowering their prices, which
hurts everyone except the consumer. The day-to-day challenge of firm growth that this example is
referring to is ________. => price stability
13. Melanie Summer spoke to an investor who is interested in her business idea. Melanie offered to send
the investor a copy of her full business plan, but the investor asked for a short overview of the
business plan instead. What portion of her business plan should Melanie send the investor? =>
Executive summary
14. Mintel, IBISWorld, and BizMiner are databases most likely to be used during the ________
feasibility stage of the feasibility analysis process. => Industry/target market
15. Mintel, IBISWorld, and Standard & Poor's Net Advantage are databases most likely to be used during
the ________ feasibility stage of the full feasibility analysis process. => industry/target market
16. Montana Sky Trails leads multiday outdoor adventure trips for private groups and corporate clients
to various locations across Montana. The company was started by Justin Smith, an individual that
gave up a prestigious job in banking because Montana Sky Trails better accommodates his personal
lifestyle. Montana Sky Trails is an example of a(n) ________ firm. => lifestyle
17. Moral hazard means that as the number of employees a firm needs increases, it becomes increasingly
difficult for it to find the right employees, place them in appropriate positions, and provide adequate
supervision. => FALSE
18. Morphology, the company profiled in the opening feature for Chapter 3, was started to produce a
board game. The feature describes how Morphology sought to validate its business idea. According
to the feature: => Morphology did an exemplary job validating its business idea, and its board
game is now being sold in more than 40 stores across the United States, with some distribution
in Canada
19. Most business plan writers interpret or make sense of a firm's historical and/or pro forma financial
statements through: => ratio analysis
20. Most entrepreneurial firms are reluctant to try to grow. => FALSE
21. Most of Sarah's ideas come from interacting with coworkers, friends, her spouse, her parents, and

other people that share the same beliefs that she does. Sarah is getting most of her ideas through
________ -tie relationships.
=> strong

N
1. Nathan Green is starting a firm in the organic produce industry. Nathan has developed a statement—
"Helping Make Your Life Better, Healthier, and Fuller"—that describes the reason his company
exists and what his business model is supposed to accomplish. In the terminology used in the
Barringer/Ireland Business Model Template, Nathan's statement is referred to as his ________
statement. => mission

O
2. Once a firm decides to enter an industry and chooses a market in which to compete, it must gain an
understanding of its competitive environment. This challenge can be undertaken by completing a(n)
________ analysis. => competitor
3. Once a venture capitalist makes an investment in a firm, subsequent investments are made in rounds
and are referred to as ________. => follow−on funding
4. One of the most difficult challenges that businesses encounter as they grow is maintaining high levels
of quality and customer service. => TRUE
5. Operating leverage is highest in companies that have ________. => a high proportion of fixed costs
relative to their variable costs
6. Opportunities for leadership, niche, harvest and divestment are associated with ________ industries.
=> declining
7. Opportunity recognition may be an innate skill or cognitive process.
=> TRUE
8. Organizational feasibility analysis is conducted to determine whether a proposed business venture has
sufficient management expertise, organizational competence, and resources to successfully launch its
business. => TRUE
9. Organizations (typically nonprofit) that are formed by firms in the same industry to collect and
disseminate trade information, offer legal and technical advice, furnish industry-related training, and
provide a platform for collective lobbying are called: => trade associations

10. Over the past 10 years, the demographic makeup of entrepreneurial firms has remained fairly stable
in the United States and around the world. => FALSE

P
1. Pacific Fishing LLC is a startup that is working on a new technology for the fishing industry. Because
the technology it's working on is highly proprietary, the company is located in the warehouse district
of a large western city. Pacific's founder, Ray Sims, rarely gives interviews and is careful to not
divulge much about what the company is doing. Which of the following common myths about
entrepreneurs does the behavior of its founder, Ray Sims, dispel? => Entrepreneurs love the
spotlight.
2. Patent ________ takes place when one party engages in the unauthorized use of another party's patent.


=> infringement
3. Patents, trademarks, copyrights, and licenses are the four key forms of intellectual property. =>
FALSE
4. Paul Hempken just spoke to an investor, who is interested in his business idea. Paul offered to send
the investor a copy of his full business plan, but the investor asked for a short overview of the business
plan instead. What portion of his business plan should Paul send the investor? => executive summary
5. Paul Mason's firm sells medical equipment to heart surgeons. The company fields a direct sales force
that travels the country demonstrating its equipment to heart surgeons and hospital administrators.
Recently, Paul's company started producing equipment for eye surgeons, partly to maximize the value
of his sales force, which can now call on both heart surgeons and eye surgeons when it makes hospital
visits. Paul's firm is attempting to capture economies of ________ through this strategy. => scope
6. Peter Simmons owns a specialized computer software company. Although Peter's software designers
and programmers are very good, it takes 2−3 years to develop a good software product. This example
illustrates the need for funding or financing referred to as ________. => lengthy product
development cycles
7. Peter Watson is thinking about launching a small business consulting company. To get advice on how
to proceed, he stopped by his local Small Business Administration (SBA) office. The SBA advisor

told Peter that one of the first things he needs to do is to sit down and write a 25 to 35 page narrative
that describes what his new business plans to accomplish and how it plans to accomplish it. The SBA
advisor is telling Peter to write a(n)________ . => business plan
8. Pictorial, graphic, and sculptural works can be protected via copyrights. => TRUE
9. Primary research is research that is collected by the person or persons completing the analysis. =>
TRUE
10. Primary research is: => original research and is collected by the entrepreneur
11. Product/service feasibility analysis is an assessment of the overall appeal of the product or service
being proposed. => TRUE
12. Pure Fix Cycles, the company profiled in the opening feature of Chapter 1, was launched by four cofounders and sells ________. => fixed gear, single speed bikes

S
1. SafetyWeb is a Web-based service that helps parents protect their children's online reputation,
privacy, and safety. Which of the following approaches to identifying an opportunity was most likely
the impetus for SafetyWeb?
=> Solving a problem

2. Sam Willis is distributing an instrument, which includes a concept statement with a short survey
attached, to try to gauge customer interest in a product he is developing. Sam is distributing a: =>
Buying intentions survey
3. Sarah Green, who plans to open a garden and lawn business, is working on the portion of the
Barringer/Ireland Business Model template that focuses on how her products and services will be
produced. Sarah is working on the________ section of the template. => product/or service
production
4. Sarah Parks is in the very early stages of putting together a business startup, and is thinking about
writing a business plan to request funds to conduct a feasibility analysis and write a more complete