Chapter 10

1-     Individuals that are predisposed to take intentional actions to influence their situation or environment are said to have a(n) ________.

•      dispositional advantage

• autocratic management style

• mastery complex

• proactive personality

Which one of the following items is found in the financial data section of the business plan?

• Pricing

• Sales tactics

• Pro forma cash flow analysis

• Economic analysis

Rob is a CPA who works out of an office in his home. His business is named "Friendly Accounting Services." Eventually, Rob would like to grow his business to include partners and bookkeepers. We would classify Rob as ________.

• self-employed

• an entrepreneur

• An employee

• a franchisee

Brandon is examining the state of the economy, the regulatory situation, social trends, and the local labor supply. This would indicate Brandon is ________.

• a small business owner

• self-employed

• performing a SWOT analysis

• exploring the entrepreneurial context

The purpose of examining the state of the economy, the regulatory situation, social trends, and the local labor supply is to

• determine who are the major players in the market

• identify opportunities and possible competitive advantages

• identify possible customers and employees

• locate resources for use in the new business

The marketing plan becomes a part of the______ section of the business plan

• supporting documentation

• description of the business

• executive summary

• analysis of the context

Which of these represents the three stages that new business ventures go through?

• Start-up, rapid growth, decline

• Idea generation, scaling, maturity

• Start-up, transition, scaling

• Idea generation, business formation, maturity

Entrepreneurial firms act as _____ when they provide new and unique ideas that might otherwise go untapped

• agents of change

• intellectual creators

• process improvers

• providers of capital

Nadine is ready to retire after many years building her business. Another entrepreneur has indicated an interest in buying it so Nadine must set a selling price. Which one of the methods below should she use?

• The amount of retirement savings Nadine needs

• The sum of all taxable incomes for all the years she was in business

• The selling price of a similarly situated business

• The sum of all assets currently on the balance sheet less all liabilities (outstanding debt)

   

Which one of the following would most likely be a source for ideas for the would-be entrepreneur?

• Trade publications

• Personal interests and hobbies

• Pure research

• Manufacturing exhibitions