WorksheetsBusiness Planning and Entrepreneurship Exam
Total questions: 50
Worksheet time: 3hrs 31mins
Which alternative is not one of the common myths about entrepreneurs, according to the course book?
Entrepreneurs are born, not made
Entrepreneurs should be young and energetic
Entrepreneurs want to be their own boss
Entrepreneurs are motivated primarily by money
Which alternative is not one of the four characteristics?
Execution intelligence
Passion for the business
High risk taker
Product/customer focus
Which alternative is not correct regarding positive effects of entrepreneurship and entrepreneurial firms?
Schumpeter argues that creativity will decrease consumer demand and lower economic activity, new products and new technologies will not emerge.
In addition to the impact that entrepreneurial firms have on economies and societies, they also positively impact the effectiveness of larger firms.
New and young companies contribute to economic dynamism by injecting competition into the market and driving innovation.
The European commission believes that SMEs and entrepreneurship are the main factors that contribute to economic growth, innovation, job creation and social integration in the region.
Which alternative is correct regarding the approaches entrepreneurs use to identify opportunities?
Brainstorming, focus groups, library and internet research
Observing trends, solving a problem, finding gaps in the market.
Preparation, incubation, insight
Prior industry experience, cognitive factors, social networks.
Which is the finale stage of the creative process?
Insight, the stage when a flash of recognition to a solution is seen.
Elaboration, the stage which the details are worked out and the idea is transformed into something of value.
Preparation, the stage when background, experience, and knowledge are brought to the opportunity recognition process.
Incubation, the stage during which a person considers an idea or thinks about a problem.
What does Leapfrogging is encouraged mean in a formal brainstorming session?
Freewheeling, which is when carefree expression of ideas free from rules or restraints is encourage.
No criticism is allowed
The session should move quickly and nothing is permitted to slow down its pace.
This means using one idea as a means of jumping forward quickly to other ideas.
Which statement is correct regarding feasibility analysis?
Feasibility analysis has 4 key areas it assess: the product/service, the industry/target, the organisation and the financials.
Completing a feasibility analysis do not requires both primary and secondary research.
Feasibility analysis is an assessment of if a product idea is not useful for a customer.
Feasibility analysis is focused on selling and planning, not the business plan.
Which alternative belongs to the Organisational part of feasibility analysis?
Product desirability and concept test
Attractiveness and barriers to entry
Start-up cash and financial performance
Prowess and sufficiency
Which statement about what a business model is, is not correct?
A Business model can be a standard business model or a disruptive business model.
Business models are foundational to a firm's ability to succeed, both in the short and long terms.
A Business model do not explain how the business will be funded.
A business model is a firm's plan or recipe for how it creates, delivers, and captures value for its stakeholders.
What is the starting point (component) when working with a business model template?
The first component to start with is the core strategy (Value proposition): The mission, the basis of differentiation, the target market and the product/market scoop
The first component to start with is the operations: describe how to produce, the channels to use to deliver and key partners to cooperate with
The first component to start with is the revenue stream: Describe the ways in which the business makes money
The first component to start with is the resources: the core competency and the key assets
Which alternative is not mentioned as a common revenue stream, in the course book?
Commissions
Product sales
Download fees
Stock free sales
What is the main purpose of industry analysis?
To identify local capital requirements
To assess the need of marketing
To forecast the target market position in detail
To understand industry trends and attractiveness
Which alternative is connected to the threat of rivalry among existing firms, according to the course book?
Capital requirements
Supplier concentration
Number and balance of competitors
Threat of backward integration
Which alternative is not described correctly regarding industry types?
A mature industry is an industry that is experiencing slow or no increase in demand
A fragmented industry is one that is characterized by a large number of firms of approximately equal size
An emerging industry is a new industry in which standard operating procedures are yet to be developed
A declining industry is an industry that is experiencing significant global international sales
Which alternative describes the three general types of competitors a business will face, according to the course book?
Emerging, fragmented, mature
first-mover advantage, geographic roll-up, global
Niche, cost reduction, leadership
Direct competitors, indirect competitors, future competitors
Who is the primary audience for a business plan?
The firm's societal community
A firm's employees and investors
The tax authority
The firm's potential customers
What section of a full business plan typically includes the company's mission statement and the product or service position?
The Economics of the Business
The Marketing Plan
The Operation Plan
The company Description
Which alternative do not belong to the three specific steps to build a strong ethical culture?
Avoiding legal disputes to avoid misunderstandings or simple lack of knowledge of the law
Implement an ethics training programs to promote ethical behavior
Leading by example is an important step any entrepreneur can do to build a strong ethical culture
Introduce a code of conduct that provides specific guidance regarding expectations in terms of ethical behavior
Which alternative is not a method to govern employees' behavior?
Avoid undercapitalization
Establish procedures
Set standards
Establish policies
Which alternative is to the highest extent correct associated to the ability to meet its short-term financial obligation?
The efficiency
The liquidity
The profitability
The stability
What is proforma financial statements?
It is forecasts of a firm's incomes and expenses on a detailed level
It is projections of the income/loss, the cash flow and the balance sheet for future periods based on forecasts
It is historical financial statements based on known facts
It is ongoing analysis of financial results versus plans
What is the value of a IT-server in the end of year 2, if a company acquires an IT-server in the beginning of year 1 for 600 000 SEK and the server's lifetime is 5 years?
480 000 SEK
120 000 SEK
360 000 SEK
240 000 SEK
If a company have a total product cost per unit of 400 SEK and wants a profit margin of 20%, what will the price offered be to the customer?
480 SEK
750 SEK
600 SEK
500 SEK
What is the rate of return in the end of year 5 for the venture capitalist?
15%
150%
200%
75%
What is a new-venture team, according to the course book?
It is the group of creative persons that fund an idea to become a pre-stage opportunity
It is the group of entrepreneurs that turn a business idea to a pre-stage opportunity
It is the group of founders, key employees and advisers that move a new venture from an idea to a fully functioning firm
It is the group of employees that move an idea to a fully functioning product unit
Which statement explain correct the concept of Liability of newness?
It is about the size of the founding team and the qualities of the founders
It refers to the choice of using an inside or outside director
It refers to the fact that companies often falter because of not being able to adjust quickly
enough to their new roles
It is about if the team is heterogeneous rather than homogeneous
The course book brings up that the board of directors has three formal responsibilities. Which alternative is not one of the three formal responsibilities?
Declare dividends
Appoint the firm ́s officers (the key managers)
Fund the corporations need of capital
Oversee the affairs of the corporation
The course book brings up three challenges to why new ventures need funding. Which challenge is connected to that inventory must be purchased and employees must be paid before sales can be made?
Lengthy product development cycles challenges
Promissory note challenges
Cash flow challenges
Capital investment challenges
The course book mention bootstrapping as a source of funding. Which alternative describes bootstrapping, according to the course book?
It is a way to avoid the need for external financing through creativity, ingenuity and cost-cutting.
It is a way of funding a project by raising monetary contributions from an Angle investor
It is a way of funding a project by selling stocks to the public by staging an initial public offering
It is a way of funding a project by raising monetary contributions from a large number of people
What type of funding is peer-to-peer lenders, vendor credit and factoring?
Sources of debt financing
Sources of equity funding
Sources of personal financing
Sources of Angel investors based financing
According to the course book there are three rules of thumb that entrepreneurs should follow when asking friends and family members for money. Which alternative is not correct as one of the three thumb of rules?
If the help is received in the form of a loan, a promissory note should be prepared
Financial help should be requested only from those who are in a legitimate position to offer assistance
The request of help should be presented in a businesslike manner
No ownership shall be offered to family and friends, only factoring
How can a market be segmented?
By crafting a unique market position from the view of the closest competitors
By geography, demographic-, psychographic-, behavioral variables and product types
By using Porters Five Force Model
By develop a tagline
What is guerilla marketing?
Traditional marketing tactics
Place, explain a product's comparative features and benefits
A direct face-to-face sales approach
Unconventional and memorable ways of promotional strategies
The 4P model is a marketing mix model. Which alternative is correctly associated with one of the 4P?
Promotion encompasses all the activities that move a firm's product
Place explain a product's comparative features and benefits
Price can be set from quality attribution, cost-based pricing or value-based pricing
Product demostrate the ability of working with advertising through public relations
There are four key forms of intellectual property. Patents, trademarks and copyrights are three of them. Which one is the fourth one?
Land rights
Trade secrets
Physical assets
Market place rights
Which alternative do not describe what an intellectual property is?
It is called intellectual property because it is the product of human imagination, creativity, and inventiveness
New and useful inventions and business processes, improvements to existing inventions and processes are examples of intellectual property
It is called intellectual property because it is connected to businesses physical assets such as land, buildings and equipment
It is any product of human intellect that is intangible but has value in the marketplace
The course book brings up three important focuses a business can have when preparing for growth. Which alternative is not one of them and instead more of a reason for growth, according to the course book?
Appreciating the nature of business growth
Planning for growth
Stay committed to a core strategy
Capturing economies of scale
The organisational life cycle has five stages. In which stage increases the need for structure, the resource requirements of the business are usually a major concern, its pace of growth accelerates, and often the business will start developing new products and expand to new markets?
In the continuous growth stage
In the maturity stage
In the introduction stage
In the decline stage
What is economy of scoop?
It is when a more efficient use of fixed costs lower the fixed cost per unit
It is when increasing volume lower the fixed cost per unit
It is when increasing volume lower the variable cost per unit
It is when sales increase due to guerilla marketing
Which alternative is considered to be an external growth strategy, according to the course book?
Licensing
Other internal product related strategies
International direct sales expansion
New product development
What is organic growth?
It is when growth is nurtured through outside intervention
It is when a company's growth relies on its own competencies, expertise, business practice, and employees to grow
It is growth through acquisitions or mergers
It is growth that is accomplished through outside intervention
Franchising is a form of growth that allows a business to get its products or services to the market through the efforts of business partners. Which alternative is not correct regarding franchising?
It is no risk of fraud, misunderstanding, or lack of franchisor commitment in a purchase of a franchise.
There are two distinctly diffrent types of franchise systems: the product and trade market franchise and the business format franchise
A common type of franchise arrangement is an individual franchise agreement
Develop a franchise business plan, get professional advice, and conduct an intellectual property audit are steps needed to be considered to successfully set up a franchise system
Which alternative is a disadvantage of franchising as a method of business expansion?
Income from franchise fees and royalties
Rapid, low-cost market expansion
Differences in required business skills
Access to ideas and suggestions
Which alternative is not correct regarding why states are driving towards reaching perfect competition?
Perfect competition strives to achieve a fair, efficient and free market
Perfect competition increases the national boundaries and protection from foreign competition
Perfect competition lowers the profit levels and increase consumer welfare
Perfect competition increases the supply and demand interactions on the market
The World Trade Organisation (WTO) was created to handle three regulatory systems. Which alternative is not one of the three regulatory systems?
TSRA, Trade specialisation regulatory agreement
GATT, The general agreement on tariffs and trades
TRIPS, Trade Related Intellectual Property rights
GATS, The general agreement on trade in services
Which statistical measure is preferable when searching for national trends and emerging markets?
The GNI (Gross National Income) per capita
The GDP (Gross National Product) per company
The GDP (Gross Domestic Product) per capita
The GNI (Gross National Income) growth rate
Which alternative is not true?
Sustainable development is a development that satisfies today's needs without compromising the ability of future generations to meet their needs
Agenda 2030 was developed by the Brundtland Commission
Sustainable development has three dimensions: economic, social, and ecological sustainability
Agenda 2030 is the most ambitious plan to create a sustainable development that the world has ever adopted
Which alternative is not true?
The Living Planet Index is a measure of the state of the world's biological diversity based on population trends of vertebrate species from terrestrial, freshwater and marine habitats
The Global Peace Index is based on an assessment of the number of survaivals in combating countries
The Human Development Index is measured from three dimensions: A decent standard of living, knowledge, long and healthy life
The Gender Social Norm Index shows a very large percent of women and men worldwide have a gender social norm bias
Which alternative is not true?
The Global Reporting Initiative (GRI) is an international independent standards organisation that helps businesses, governments and other organizations understand and communicate their impacts on issues such as climate change, human rights and corruption
The United Nations global compact is based on ten principles that is connected to the areas of human rights, labour standards, environment, and anti-corruption
Representatives from government, NGOs, industry, consumer groups and labor organisations around the world were involved in the development of ISO 26000
The Triple Bottom Line (3 BL) is based on three parts the People, the Company, and the Economy
Which alternative is not true?
In principle, there can be a trade-off or a win-win between a company’s sustainability performance and financial performance
A good corporate sustainability report should have several quality attributes connected to Clarity, Business benefit, Social benefits achievements, Long-term sustainability goals, Credibility and Overall relevant information
A company can create business opportunities and competitive advantage by thinking and acting sustainably through environmental product innovation & product branding to increase margins
Circular economy is a concept to enhance social responsibility funding into the business model
