Question 1

What is a Noncash expense?

Accepted Answer

A)  An expense item that a company purchases on credit to be paid later 
B)  An expense item that can be written off income tax because no cash is paid because of it 
C)  A liability such as unearned revenue that the company has to perform services to earn 
D)  An item such as interest expense from financing 
A)  An expense item that a company purchases on credit to be paid later 
B)  An expense item that can be written off income tax because no cash is paid because of it 
C)  A liability such as unearned revenue that the company has to perform services to earn 
D)  An item such as interest expense from financing B

Question 2

According to chapter 3, what are five of the most important indexes to valuing a company?

Accepted Answer

A)  Cash Flow, Past Earnings, net profit/current ratio, book value, equity value 
B)  Replacement Value, Fair Market Value, Cash Flow, Past Earnings, Liquidation Value 
C)  Liquidation Value, Cash flow, Book Value, Replacement Value, Past Earnings 
D)  Equity value, book value, cash flow, enterprise value, replacement value 
A)  Cash Flow, Past Earnings, net profit/current ratio, book value, equity value 
B)  Replacement Value, Fair Market Value, Cash Flow, Past Earnings, Liquidation Value 
C)  Liquidation Value, Cash flow, Book Value, Replacement Value, Past Earnings 
D)  Equity value, book value, cash flow, enterprise value, replacement value C

Question 3

In the "Analysis of the Facts" stage, the entrepreneur asks which question?

Accepted Answer

A)  Do any competitors exist in the area? 
B)  Who would be attracted to this product or service? 
C)  What does it all mean? 
D)  What will be done, and how will it be done? 
A)  Do any competitors exist in the area? 
B)  Who would be attracted to this product or service? 
C)  What does it all mean? 
D)  What will be done, and how will it be done? C

Question 4

What is not one of the advantages of buying an on-going venture?

Accepted Answer

A)  Because the enterprise is already in operation, it's continued successful operation of the business is more likely 
B)  The time and effort associated with starting a new enterprise are eliminated 
C)  The venture allows you to capture a completely different market that has not yet been tapped. 
D)  It is possible to buy an ongoing business at a discount to its proper valuation 
A)  Because the enterprise is already in operation, it's continued successful operation of the business is more likely 
B)  The time and effort associated with starting a new enterprise are eliminated 
C)  The venture allows you to capture a completely different market that has not yet been tapped. 
D)  It is possible to buy an ongoing business at a discount to its proper valuation

Question 5

What is an earn out?

Accepted Answer

A)  Clause in a purchase agreement where the buyer earns out the difference in purchase price through performance in their own stock 
B)  Clause that allows the seller to buy part of the company back if it "earns out" specific milestones 
C)  Clause in a purchase agreement that allows the seller to receive stock in the buyer company so that they can "earn out" some of the future company value 
D)  Clause where the purchase price of a business is dependent on future performance 
A)  Clause in a purchase agreement where the buyer earns out the difference in purchase price through performance in their own stock 
B)  Clause that allows the seller to buy part of the company back if it "earns out" specific milestones 
C)  Clause in a purchase agreement that allows the seller to receive stock in the buyer company so that they can "earn out" some of the future company value 
D)  Clause where the purchase price of a business is dependent on future performance

Question 6

Consumer surveys should always be conducted by the entrepreneur to ensure specificity.

Accepted Answer

A) True 
 B)False

Question 7

Piggybacking to create a new venture entails improving upon an existing product or service.

Accepted Answer

A) True 
 B)False

Question 8

What is the largest source of new business ideas among both men and women?

Accepted Answer

A)  Education Courses 
B)  Suggestion from a friend 
C)  Hobbies/Interest 
D)  Prior Job 
A)  Education Courses 
B)  Suggestion from a friend 
C)  Hobbies/Interest 
D)  Prior Job

Question 9

"Auction Value" is another term for what?

Accepted Answer

A)  Book Value 
B)  Market Value 
C)  Replacement Value 
D)  Liquidation Value 
A)  Book Value 
B)  Market Value 
C)  Replacement Value 
D)  Liquidation Value

Question 10

Using a new-old approach to creating a new venture is often called:

Accepted Answer

A)  Riding the coattails 
B)  Bleeding Edge 
C)  Piggybacking 
D)  Bootstrapping 
A)  Riding the coattails 
B)  Bleeding Edge 
C)  Piggybacking 
D)  Bootstrapping

Question 11

After breaking the scientific method into four steps, what is the final step of analyzing a business opportunity?

Accepted Answer

A)  Analysis of the facts 
B)  Implementation of an action plan 
C)  Observe the progress of this alternative and adjust it as required 
D)  Select the best alternative and implement it 
A)  Analysis of the facts 
B)  Implementation of an action plan 
C)  Observe the progress of this alternative and adjust it as required 
D)  Select the best alternative and implement it

Question 12

Facebook would be an example of a New-New approach to a business venture.

Accepted Answer

A) True 
 B)False

Question 13

The drawback of the New-Old approach is that competitors can move in more easily.

Accepted Answer

A) True 
 B)False

Question 14

What is a noncompete agreement?

Accepted Answer

A)  A clause where one party agrees not to enter into a similar business or market as the other 
B)  An agreement between regional competitors to split up the market between the two of them 
C)  A clause that restricts an employee from maintaining employment with a new business owner 
D)  An agreement between the Seller and Buyer to not compete over the purchase price of the business 
A)  A clause where one party agrees not to enter into a similar business or market as the other 
B)  An agreement between regional competitors to split up the market between the two of them 
C)  A clause that restricts an employee from maintaining employment with a new business owner 
D)  An agreement between the Seller and Buyer to not compete over the purchase price of the business

Question 15

What are four critical elements in negotiating a deal to purchase an ongoing venture?

Accepted Answer

A)  information, reputation, pressure, alternatives 
B)  information, time, pressure, and alternatives 
C)  time, pressure, alternatives, reputation 
D)  information, time, pressure, reputation 
A)  information, reputation, pressure, alternatives 
B)  information, time, pressure, and alternatives 
C)  time, pressure, alternatives, reputation 
D)  information, time, pressure, reputation

Question 16

When implementing an action plan, what is the worst thing an entrepreneur could do?

Accepted Answer

A)  Scrap all of their efforts when they find the business plan is ineffective 
B)  Focus their efforts on modifying their business plan while attempting to implement it 
C)  Switching to a contingency plan simply because the initial plan did not work out 
D)  Make constant concessions in their plan until it does not resemble the original plan 
A)  Scrap all of their efforts when they find the business plan is ineffective 
B)  Focus their efforts on modifying their business plan while attempting to implement it 
C)  Switching to a contingency plan simply because the initial plan did not work out 
D)  Make constant concessions in their plan until it does not resemble the original plan

Question 17

Name three of the most influential trends Faith Popcorn has identified are driving the marketplace and provide a reason why each one is influential.

Accepted Answer

S.O.S. (SAVE OUR SOCIETY)
The country re

Question 18

What is the difference between the New-New approach and the New-Old approach when evaluating a new business venture?

Accepted Answer

A)  The New-New method looks for new ideas to make a product better while the New-old approach uses old ideas to make new innovations on existing products 
B)  New-New looks to create a new product or service while New-Old innovates an existing product to make it better 
C)  New-New innovates an existing product to break into new markets while New-Old seeks market penetration in existing markets with the new innovation 
D)  New-New creates a new product or service for a new market while New-Old seeks to create a new product or service using old ideas. 
A)  The New-New method looks for new ideas to make a product better while the New-old approach uses old ideas to make new innovations on existing products 
B)  New-New looks to create a new product or service while New-Old innovates an existing product to make it better 
C)  New-New innovates an existing product to break into new markets while New-Old seeks market penetration in existing markets with the new innovation 
D)  New-New creates a new product or service for a new market while New-Old seeks to create a new product or service using old ideas.

Question 19

What is the first step of the scientific method used to evaluate a good or service?

Accepted Answer

A)  Gather all the necessary facts about the problem or question. 
B)  Observe the progress of this alternative and adjust it as required. 
C)  State the problem or question in as clear a manner as possible. 
D)  Organize and analyze the facts. 
A)  Gather all the necessary facts about the problem or question. 
B)  Observe the progress of this alternative and adjust it as required. 
C)  State the problem or question in as clear a manner as possible. 
D)  Organize and analyze the facts.

Question 20

Which of these is not a factor that needs to be taken into consideration while implementing an action plan?

Accepted Answer

A)  The Entrepreneur as a Person 
B)  The financial picture 
C)  Competitor Analysis 
D)  Record keeping 
A)  The Entrepreneur as a Person 
B)  The financial picture 
C)  Competitor Analysis 
D)  Record keeping

What is a Noncash expense?

According to chapter 3, what are five of the most important indexes to valuing a company?

In the "Analysis of the Facts" stage, the entrepreneur asks which question?

What is not one of the advantages of buying an on-going venture?

What is an earn out?

Consumer surveys should always be conducted by the entrepreneur to ensure specificity.

Piggybacking to create a new venture entails improving upon an existing product or service.

What is the largest source of new business ideas among both men and women?

"Auction Value" is another term for what?

Using a new-old approach to creating a new venture is often called:

After breaking the scientific method into four steps, what is the final step of analyzing a business opportunity?

Facebook would be an example of a New-New approach to a business venture.

The drawback of the New-Old approach is that competitors can move in more easily.

What is a noncompete agreement?

What are four critical elements in negotiating a deal to purchase an ongoing venture?

When implementing an action plan, what is the worst thing an entrepreneur could do?

Name three of the most influential trends Faith Popcorn has identified are driving the marketplace and provide a reason why each one is influential.

What is the difference between the New-New approach and the New-Old approach when evaluating a new business venture?

What is the first step of the scientific method used to evaluate a good or service?

Which of these is not a factor that needs to be taken into consideration while implementing an action plan?

New Ventures: The Quiet Giant

Ideation: The Concept

Marketing: The Customer

Legal Considerations: The Parameters

Strategic Pricing: The Hook

Startup Capital: The Injection

Financial Statements: The Scorecard

Financial Analysis: The Gauges

HR and the Development of Teams: The People

Successful Business Plans: The Compass

Scaling Ventures: The Future

Filters

Exam 3: Venture Choices

What is a Noncash expense?

According to chapter 3, what are five of the most important indexes to valuing a company?

In the "Analysis of the Facts" stage, the entrepreneur asks which question?

What is not one of the advantages of buying an on-going venture?

What is an earn out?

Consumer surveys should always be conducted by the entrepreneur to ensure specificity.

Piggybacking to create a new venture entails improving upon an existing product or service.

What is the largest source of new business ideas among both men and women?

"Auction Value" is another term for what?

Using a new-old approach to creating a new venture is often called:

After breaking the scientific method into four steps, what is the final step of analyzing a business opportunity?

Facebook would be an example of a New-New approach to a business venture.

The drawback of the New-Old approach is that competitors can move in more easily.

What is a noncompete agreement?

What are four critical elements in negotiating a deal to purchase an ongoing venture?

When implementing an action plan, what is the worst thing an entrepreneur could do?

Name three of the most influential trends Faith Popcorn has identified are driving the marketplace and provide a reason why each one is influential.

What is the difference between the New-New approach and the New-Old approach when evaluating a new business venture?

What is the first step of the scientific method used to evaluate a good or service?

Which of these is not a factor that needs to be taken into consideration while implementing an action plan?

New Ventures: The Quiet Giant

Ideation: The Concept

Marketing: The Customer

Legal Considerations: The Parameters

Strategic Pricing: The Hook

Startup Capital: The Injection

Financial Statements: The Scorecard

Financial Analysis: The Gauges

HR and the Development of Teams: The People

Successful Business Plans: The Compass

Scaling Ventures: The Future

Filters