Question Details

MGT 101 Chapter 6--Managing Small Business Start-Ups PART 6

91.	A group of companies or individuals that invests money in new or expanding businesses for ownership and potential profits is known as: 
 
A. 	an equity financing firm.
B. 	franchising.
C. 	a venture capital firm.
D. 	a corporation.
E. 	a trade alliance.

 
92.	A venture capital firm wants to invest in businesses with a high rate of return. In return, they will: 
 
A. 	invest large amounts of money.
B. 	provide necessary assistance and advice.
C. 	provide information to help the entrepreneur prosper.
D. 	all of these.
E. 	provide necessary assistance and advice and provide information to help the entrepreneur prosper only.

 
93.	Which of these refers to the financing that consists of funds that are invested in exchange for ownership in the company? 
 
A. 	Venture-debt
B. 	Debt financing
C. 	Equity financing
D. 	Franchising
E. 	Licensing

 
94.	Wendy enjoys making crafts and giving these away as gifts to friends and family.  One day, she decided to quit her job and make crafts full-time, selling them on her new company Web site.  Which tactic of becoming a business owner did Wendy use? 
 
A. 	Equity financing
B. 	New business start-up
C. 	Buying an existing business
D. 	Buying a franchise
E. 	Merger and acquisition

 
95.	Which of these offers the advantage that the entrepreneur has the ability to develop and design the business in the entrepreneur's own way? 
 
A. 	Participate in a business incubator
B. 	Start a new business
C. 	Buy a franchise
D. 	Buy an existing business
E. 	All of these

 
96.	An advantage of which of these tactics is that there is a shorter start-up time and an existing track record? 
 
A. 	Participate in a business incubator
B. 	Start a new business
C. 	Buy a franchise
D. 	Buy an existing business
E. 	Debt financing

 
97.	_____ refers to an arrangement by which the owner of a product or service allows others to purchase the right to distribute the product or service with help from the owner. 
 
A. 	Franchising
B. 	Business incubation
C. 	Spinning-off
D. 	Globalization
E. 	Right offerings

 
98.	_____ was one of the top 10 fastest-growing franchises in 2011. 
 
A. 	Arby's
B. 	Krispy Kreme
C. 	Subway
D. 	Wendy's
E. 	Dairy Queen

 
99.	Which of these is true about the business incubator? 
 
A. 	It gives up control since every business is run the same way.
B. 	It provides shared office space, management support services, and management advice.
C. 	It develops an international business.
D. 	It provides an established name and advertising.
E. 	All of these.

 
100.	The majority of the incubators are operated by: 
 
A. 	large corporations.
B. 	non-profit organizations.
C. 	small businesses.
D. 	international businesses.
E. 	college drop-outs.

 
101.	Entrepreneurs who aspire to start online businesses implement all the following steps except: 
 
A. 	create a professional Web site.
B. 	choose a domain name.
C. 	build online relationships
D. 	determine physical location.
E. 	identify a profitable market niche.

 
102.	Max is the Web site manager for a local florist.  The company- owner would like Max to redesign the Web site so that customers can connect directly with florist employees on a daily basis about products and specials. This relates to which step in establishing an online business? 
 
A. 	Finding a niche market
B. 	Creating a professional Web site
C. 	Choosing a target market
D. 	Choosing a domain name
E. 	Building online relationships

 
103.	Managers must tailor their planning, organizing, leading, and controlling to fit: 
 
A. 	the current stage of growth.
B. 	financial needs.
C. 	inventory levels.
D. 	the number of orders to be filled.
E. 	their comfort level.

 
104.	Marion is an entrepreneur. At this stage of his company's growth, his main concerns are do we have enough customers and money. What stage of growth is Marion's company in? 
 
A. 	Start-up
B. 	Survival
C. 	Takeoff
D. 	Resource maturity
E. 	Success

 
105.	All of these are entrepreneurial characteristics except: 
 
A. 	self-confidence.
B. 	tolerance for ambiguity.
C. 	external locus of control.
D. 	high energy level.
E. 	awareness of passing time.

 
106.	Samuel Rohrer is providing consumers with a new, unique business. The stage of the growth where his business has demonstrated that it is a workable business entity is considered the: 
 
A. 	start-up stage.
B. 	survival stage.
C. 	success stage.
D. 	takeoff stage.
E. 	resource maturity stage.

 
107.	At which stage of growth is the company if it is solidly based and profitable? 
 
A. 	Resource maturity
B. 	Takeoff
C. 	Survival
D. 	Success
E. 	Existence

 
108.	Janelle is very innovative and attentive to detail. As she starts her own company, she leads her employees and ensures that every detail is attended to. As her company grows, she finds it more difficult to deal with and motivate her employees. She is more interested in the product. What stage of growth is Janelle's company going through? 
 
A. 	Resource maturity
B. 	Takeoff
C. 	Survival
D. 	Success
E. 	Existence

 
109.	Formal planning, such as a strategic plan, is usually instituted during which stage? 
 
A. 	Start-up
B. 	Survival
C. 	Takeoff
D. 	Success
E. 	Resource maturity

 
110.	During the _____ stage, the company will need to make greater use of budgets, standard cost systems, and statistical reports. 
 
A. 	existence
B. 	survival
C. 	takeoff
D. 	success
E. 	maturity