Venture Creation and Management
Final Test Solutions
Course Introduction
Venture Creation and Management introduces students to the fundamental concepts and practical approaches needed to successfully launch and manage new business ventures. The course covers key topics such as opportunity identification, business model development, resource acquisition, team formation, and scaling strategies. Students will explore entrepreneurial decision-making, risk analysis, and effective leadership within startups, as well as the legal, financial, and ethical considerations crucial to venture success. Through case studies, group projects, and interaction with experienced entrepreneurs, students gain hands-on experience in developing and pitching business plans, positioning them to turn innovative ideas into viable enterprises.
Recommended Textbook
Entrepreneurship Successfully Launching New Ventures 5th Edition by Bruce R. Barringer
Available Study Resources on Quizplus
15 Chapters
1124 Verified Questions
1124 Flashcards
Source URL: https://quizplus.com/study-set/288 Page 2
Chapter 1: Introduction to Entrepreneurship
Available Study Resources on Quizplus for this Chatper
75 Verified Questions
75 Flashcards
Source URL: https://quizplus.com/quiz/4778
Sample Questions
Q1) 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.
A) prompting event
B) entrepreneurial prompt
C) initiating event
D) triggering event
E) kick-off event
Answer: D
Q2) 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.
A) creative destruction
B) repetitive destruction
C) iterative replacement
D) inventive replacement
E) iterative destruction
Answer: A
To view all questions and flashcards with answers, click on the resource link above. Page 3
Chapter 2: Recognizing Opportunities and Generating Ideas
Available Study Resources on Quizplus for this Chatper
75 Verified Questions
75 Flashcards
Source URL: https://quizplus.com/quiz/4779
Sample Questions
Q1) Focus groups typically involve a group of people who are unfamiliar with a topic and are brought together to respond to questions.
A)True
B)False
Answer: False
Q2) The term "window of opportunity" is a metaphor describing the time period in which a firm can realistically raise money.
A)True
B)False
Answer: False
Q3) A network entrepreneur is an individual who identifies his or her business idea
A) on their own
B) through the assistance of a paid consultant
C) through social contacts
D) with one or more partners
E) through a business incubator program
Answer: C
To view all questions and flashcards with answers, click on the resource link above. Page 4
Chapter 3: Feasibility Analysis
Available Study Resources on Quizplus for this Chatper
75 Verified Questions
75 Flashcards
Source URL: https://quizplus.com/quiz/4780
Sample Questions
Q1) PickFu and Ubounce are Web sites that provide access to ________.
A) 3D printing services
B) Web site usability testing
C) online whiteboarding services
D) A/B split testing services
E) feedback on business ideas
Answer: D
Q2) Which of the following is an incorrect approach to administering a concept test?
A) The concept statement shouldn't exceed one page.
B) After the concept statement is developed, it should be shown to at least 10 people.
C) The best candidates to distribute a concept statement to are family and friends.
D) If time permits, a concept statement should be used in an iterative manner and distributed to several groups of people.
E) A short survey should be attached to the concept statement to solicit feedback.
Answer: C
To view all questions and flashcards with answers, click on the resource link above. Page 5
Chapter 4: Developing an Effective Business Model
Available Study Resources on Quizplus for this Chatper
75 Verified Questions
75 Flashcards
Source URL: https://quizplus.com/quiz/4781
Sample Questions
Q1) A business's mission or mission statement describes why it exists and what its business model is supposed to accomplish.
A)True
B)False
Q2) Which of the following firms introduced a disruptive business model?
A) Salesforce.com
B) eBay
C) Panera Bread
D) Barnes & Nobel
E) J. Crew
Q3) Standard business models depict existing plans or recipes firms can use to determine how they will create, deliver, and capture value for their stakeholders.
A)True
B)False
Q4) Core strategy describes what causes consumers to pick one company's products over another.
A)True
B)False
Q5) Describe the Barringer/Ireland Business Model Template and discuss its purpose.
To view all questions and flashcards with answers, click on the resource link above. Page 6
Chapter 5: Industry and Competitor Analysis
Available Study Resources on Quizplus for this Chatper
75 Verified Questions
75 Flashcards
Source URL: https://quizplus.com/quiz/4782
Sample Questions
Q1) There are four factors that determine the threat of new entrants: number and balance of competitors, degree of difference between products, growth rate of an industry, and level of fixed costs.
A)True
B)False
Q2) The two most common strategies pursued by firms in global industries are the ________ strategy and the ________ strategy.
A) inclusive, multidomestic
B) multidomestic, global
C) multidomestic, worldwide
D) inclusive, global
E) home, worldwide
Q3) The first step in a competitor analysis is to determine who the competition is.
A)True
B)False
Q4) A fragmented industry is an industry that is experiencing slow increases in demand, numerous repeat customers, and limited product innovation.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 7
Chapter 6: Writing a Business Plan
Available Study Resources on Quizplus for this Chatper
75 Verified Questions
75 Flashcards
Source URL: https://quizplus.com/quiz/4783
Sample Questions
Q1) Which of the following statements is incorrect regarding the executive summary of a business plan?
A) It is a short overview of the entire business plan.
B) In many instances an investor will first ask for a copy of a firm's executive summary and will request a copy of the full business plan only if the executive summary is sufficiently convincing.
C) It is arguably the most important section of the business plan.
D) It should not exceed two single-spaced pages.
E) The executive summary is the first thing that should be written in preparing a business plan.
Q2) The document that does the best job of introducing potential investors and other stakeholders with the business opportunity the firm is pursuing and how it plans to pursue it is the ________.
A) business plan
B) feasibility analysis
C) opportunity analysis
D) industry analysis
E) marketing plan
Q3) What are the two main reasons for writing a business plan?
To view all questions and flashcards with answers, click on the resource link above.
Page 8
Chapter 7: Preparing the Proper Ethical and Legal Foundation
Available Study Resources on Quizplus for this Chatper
75 Verified Questions
75 Flashcards
Source URL: https://quizplus.com/quiz/4784
Sample Questions
Q1) If the owners of a corporation don't file their annual paperwork, neglect to pay their annual fees, or commit fraud, a court could ignore the fact that a corporation has been established and the owners could be held personally liable for the actions of the corporation. This chain of events is referred to as ________.
A) vacating the corporate status
B) yielding the corporate privilege
C) surrendering the corporate shield
D) piercing the corporate veil
E) capitulating the corporate doctrine
Q2) A ________ combines the advantages of a partnership and a C corporation.
A) subchapter S corporation
B) limited partnership
C) general partnership
D) sole proprietorship
E) subchapter K corporation
Q3) What is meant by the term "piercing the corporate veil"? How can the corporate veil be pierced?
Q4) Describe what is meant by a "general partnership" and a "limited partnership." Describe the major difference between the two.
Page 9
To view all questions and flashcards with answers, click on the resource link above.
Chapter 8: Assessing a New Venture's Financial Strength and Viability
Available Study Resources on Quizplus for this Chatper
75 Verified Questions
75 Flashcards
Source URL: https://quizplus.com/quiz/4785
Sample Questions
Q1) A(n) ________ is a snapshot of a company's assets, liabilities, and owners' equity at a specific point in time.
A) income statement
B) statement of cash flows
C) effectiveness statement
D) balance sheet
E) efficiency statement
Q2) Match the financial objective with its correct definition.
A) stability - the overall health of the financial structure of the firm, particularly as it relates to its debt-to-equity ratio
B) profitability - how productively a firm utilizes its assets
C) liquidity - a company's ability to make a profit
D) efficiency - a company's ability to meet its short-term obligations
E) profitability - the overall health of the financial structure of the firm, particularly as it relates to its debt-to-equity ratio
Q3) Describe the purpose of the income statement, the balance sheet, and the statement of cash flows.
Q4) Describe the difference between historical and pro forma financial statements.
Q5) What is ratio analysis? Why is it important?
To view all questions and flashcards with answers, click on the resource link above. Page 10
Chapter 9: Building a New-Venture Team
Available Study Resources on Quizplus for this Chatper
74 Verified Questions
74 Flashcards
Source URL: https://quizplus.com/quiz/4786
Sample Questions
Q1) A board of directors' three formal responsibilities are to appoint the officers of the firm, oversee the affairs of the corporation, and ________.
A) conduct the annual meeting
B) provide funding for the firm
C) submit the firm's annual report to the stockholders
D) declare dividends
E) write the firm's strategic plan
Q2) The Savvy Entrepreneurial Firm feature in Chapter 9 focuses on how business founders overcome a lack of business experience. Which of the following was not mentioned as a practical way for a new business founder to overcome a lack of business experience?
A) Hiring consultants from a major consulting firm (e.g., Bain & Company or McKinsey & Company)
B) Taking on a partner that has business experience
C) Getting help from a Small Business Development Center
D) Joining a Meetup group
E) Participating in online forums
Q3) What is SCORE? What is its role in helping a firm fill out its new venture team?
Q4) What is a skills profile and what is it used for?
To view all questions and flashcards with answers, click on the resource link above. Page 11
Chapter 10: Getting Financing or Funding
Available Study Resources on Quizplus for this Chatper
75 Verified Questions
75 Flashcards
Source URL: https://quizplus.com/quiz/4787
Sample Questions
Q1) Once a venture capitalist makes an investment in a firm, subsequent investments are made in rounds and are referred to as ________.
A) later funding
B) successive funding
C) subsequent backing
D) follow-on funding
E) ensuing backing
Q2) According to our textbook, the seed money that gets a company off the ground typically comes from ________.
A) angel investors
B) venture capitalists
C) commercial banks
D) governmental agencies
E) the founders of the firm
Q3) Venture capital is money that is invested by venture capital firms in startups and small businesses with exceptional growth potential.
A)True
B)False
Q4) Why do most firms need funding? Provide a brief explanation of each reason.
To view all questions and flashcards with answers, click on the resource link above. Page 12
Chapter 11: Unique Marketing Issues
Available Study Resources on Quizplus for this Chatper
75 Verified Questions
75 Flashcards
Source URL: https://quizplus.com/quiz/4788
Sample Questions
Q1) According to the textbook, a brand is all of the following except a(n) ________.
A) firm's reputation
B) firm's credentials
C) indicator of trust and reduced risk
D) description of a company's nature
E) written warranty
Q2) In ________-based pricing, the list price of an item is determined by adding a markup percentage to a product's cost.
A) cost
B) compliance
C) value
D) competitive
E) economic
Q3) A tagline is a catchy phrase that's used consistently in a company's literature, advertisements, and even invoices and thus becomes associated with a company to reinforce its position in the market.
A)True
B)False
Q4) What is a brand? How does a new firm develop a brand?
To view all questions and flashcards with answers, click on the resource link above. Page 13
Chapter 12: The Importance of Intellectual Property
Available Study Resources on Quizplus for this Chatper
75 Verified Questions
75 Flashcards
Source URL: https://quizplus.com/quiz/4789
Sample Questions
Q1) ________ 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.
A) Collective
B) Share
C) Examination
D) Joint
E) Certification
Q2) Which of the following symbols is the copyright bug?
A) ç
B)
C) ¢
D) ©
E)
Q3) 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.
A)True
B)False
Q4) Identify and briefly describe the three types of patents.
To view all questions and flashcards with answers, click on the resource link above. Page 14
Chapter 13: Preparing for and Evaluating the Challenges of Growth
Available Study Resources on Quizplus for this Chatper
75 Verified Questions
75 Flashcards
Source URL: https://quizplus.com/quiz/4790
Sample Questions
Q1) According to the textbook, the businesses that have the potential to grow the fastest over a sustained period of time are ones that ________.
A) solve a significant problem or have a major impact on their customers' productivity or lives
B) are cost leaders and promote themselves aggressively
C) have a major impact on their customers' lives and sell high quality products
D) take advantage of environmental trends and are cost leaders
E) solve a significant problem or sell high quality products
Q2) According to the textbook, the toughest decisions regarding business growth are made in the ________ stage of the organizational life cycle.
A) introduction
B) early growth
C) continuous growth
D) maturity
E) decline
Q3) A firm's pace of growth is the rate at which it is growing compared to its main competitors.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 15
Chapter 14: Strategies for Firm Growth
Available Study Resources on Quizplus for this Chatper
75 Verified Questions
75 Flashcards
Source URL: https://quizplus.com/quiz/4791
Sample Questions
Q1) In an acquisition, the surviving firm is called the ________, and the firm that is acquired is called the ________.
A) target; acquirer
B) goal; objective
C) objective; aggressor
D) acquirer; target
E) aggressor; objective
Q2) According to a survey of rapid growth firms conducted by the Small Business & Entrepreneurship Council and the Financial Services Roundtable, ________ percent of the firms in the survey said that expanding into overseas markets factored into their business plans over the next five years.
A) 9
B) 21
C) 40
D) 53
E) 66
Q3) Geographic expansion is most common in manufacturing settings.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above.
Page 16
Chapter 15: Franchising
Available Study Resources on Quizplus for this Chatper
75 Verified Questions
75 Flashcards
Source URL: https://quizplus.com/quiz/4792
Sample Questions
Q1) The document that consummates the sale of a franchise is called the ________.
A) franchise disclosure document
B) franchise agreement
C) license agreement
D) uniform franchise contract
E) franchise circular
Q2) Jenna Page recently entered into an agreement with Anytime Fitness to open five Anytime Fitness franchises. According to the agreement that Jenna entered into, she has the right to open up to five Anytime Fitness franchises within the city limits of Lawrence, Kansas. Jenna has entered into a(n) ________ franchise agreement,
A) individual
B) district
C) locality
D) area
E) city
Q3) What are the primary advantages and disadvantages to establishing a franchise system (from the franchisor's point of view)?
Q4) How can a person tell if franchising is right for them?
Q5) List and explain three of the common misconceptions about franchising.
To view all questions and flashcards with answers, click on the resource link above. Page 17