EEE 2023 EXAM 2 COMBINED SET
QUESTIONS WITH COMPLETE
SOLUTIONS
Mature Industries - Answer-slow or no demand increase
Opportunities: Process and after-sale service innovation (ex. Casper mattress co.)
Declining Industries - Answer-reduced demand
Opportunities: Leadership, niche market, cost reduction (Cirque Du Soleil)
Global Industries - Answer-significant international sales
Opportunities: multi-domestic & global strategies (ex. Uber)
Direct Competitors - Answer-Businesses offering identical or similar products
Indirect Competitors - Answer-Business's offering close substitute products
Future Competitors - Answer-Business's that are not yet direct or indirect competitors
but could be at anytime
Competitive Analysis Grid - Answer-A tool for organizing the information entrepreneurs
collect about their competitors
Founders' Agreement - Answer-a written document that deals with issues such as the
relative split of the equity among the founders of the firm, how individual founders will be
compensated for the cash or the "sweat equity" they put into the firm, and how long the
founders will have to remain with the firm for their shares to fully vest.
Nondisclosure agreement - Answer-binds an employee or other party (such as a
supplier) to not disclose a company's trade secrets.
Noncompete agreement - Answer-prevents an individual from competing against a
former employer for a specific period of time.
Ethical Culture Lead by Example: - Answer-The most important thing that any
entrepreneur, or team of entrepreneurs, can do to build a strong ethical culture is to lead
by example
Ethical Culture Establish a Code of Conduct: - Answer--A code of conduct (or code of
ethics) is a formal statement of an organization's values on certain ethical and social
issues.
, Ethical Culture Implement an Ethics Training Program: - Answer--Ethics training
programs teach business ethics to help employees deal with ethical dilemmas and
improve their overall ethical conduct.
Ethical Culture Be willing to _Say__Sorry: - Answer--Mark Zuckerberg as an example of
someone coming out publicly and saying sorry.
Federal_ Licenses and Permits - Answer-Most businesses do not require a federal
license to operate, but some do. (ex. Alcohol, Firearms, Commercial Fishers)
State_ Licenses and Permits - Answer-Business Registration Requirements, Sales Tax
Permits, Professional and Occupational Licenses and Permits
Local_ Licenses and Permits - Answer-Permits for operating a certain type of business
(ex. childcare, salons)
Additional Requirements Licenses and Permits - Answer-If you plan to use a fictitious
name for your business, in most cases you'll need to obtain a fictitious business name
permit
Business Names Consumer-Driven Companies: - Answer-If a company plans to focus
on a particular type of customer, its name should reflect the attribute of its clientele. (ex.
girls who code)
Business Names Product/Service-Driven Companies: - Answer-If a company plans to
focus on a particular product or service, its name should reflect the advantage that its
product or service brings to the marketplace (ex. Anytime Fitness)
Business Names Industry-Driven Companies: - Answer-If a company plans to focus on
a broad range of products or services in a particular industry, its name should reflect the
category in which it participates (ex. Homedepot)
Business Names Personality/Image-Driven Companies: - Answer-Some companies are
founded by individuals who put such an indelible stamp on the company that it may be
smart to name the company after the founder. (ex. Tesla, Walt Disney)
Business Names Businesses with Made Up Names: - Answer-Some businesses opt to
make up a name and build a brand from scratch. (ex. Google, Yahoo)
Form of Business Ownership Sole Proprietorship: - Answer-Involves one person
(person and business are essentially the same) (Not a separate Legal entity)
Sole Proprietorship adv. and dis: - Answer-Adv: Creating it is easy and inexpensive
It is not subject to _Double Taxation
Dis: Unlimited owner liability
QUESTIONS WITH COMPLETE
SOLUTIONS
Mature Industries - Answer-slow or no demand increase
Opportunities: Process and after-sale service innovation (ex. Casper mattress co.)
Declining Industries - Answer-reduced demand
Opportunities: Leadership, niche market, cost reduction (Cirque Du Soleil)
Global Industries - Answer-significant international sales
Opportunities: multi-domestic & global strategies (ex. Uber)
Direct Competitors - Answer-Businesses offering identical or similar products
Indirect Competitors - Answer-Business's offering close substitute products
Future Competitors - Answer-Business's that are not yet direct or indirect competitors
but could be at anytime
Competitive Analysis Grid - Answer-A tool for organizing the information entrepreneurs
collect about their competitors
Founders' Agreement - Answer-a written document that deals with issues such as the
relative split of the equity among the founders of the firm, how individual founders will be
compensated for the cash or the "sweat equity" they put into the firm, and how long the
founders will have to remain with the firm for their shares to fully vest.
Nondisclosure agreement - Answer-binds an employee or other party (such as a
supplier) to not disclose a company's trade secrets.
Noncompete agreement - Answer-prevents an individual from competing against a
former employer for a specific period of time.
Ethical Culture Lead by Example: - Answer-The most important thing that any
entrepreneur, or team of entrepreneurs, can do to build a strong ethical culture is to lead
by example
Ethical Culture Establish a Code of Conduct: - Answer--A code of conduct (or code of
ethics) is a formal statement of an organization's values on certain ethical and social
issues.
, Ethical Culture Implement an Ethics Training Program: - Answer--Ethics training
programs teach business ethics to help employees deal with ethical dilemmas and
improve their overall ethical conduct.
Ethical Culture Be willing to _Say__Sorry: - Answer--Mark Zuckerberg as an example of
someone coming out publicly and saying sorry.
Federal_ Licenses and Permits - Answer-Most businesses do not require a federal
license to operate, but some do. (ex. Alcohol, Firearms, Commercial Fishers)
State_ Licenses and Permits - Answer-Business Registration Requirements, Sales Tax
Permits, Professional and Occupational Licenses and Permits
Local_ Licenses and Permits - Answer-Permits for operating a certain type of business
(ex. childcare, salons)
Additional Requirements Licenses and Permits - Answer-If you plan to use a fictitious
name for your business, in most cases you'll need to obtain a fictitious business name
permit
Business Names Consumer-Driven Companies: - Answer-If a company plans to focus
on a particular type of customer, its name should reflect the attribute of its clientele. (ex.
girls who code)
Business Names Product/Service-Driven Companies: - Answer-If a company plans to
focus on a particular product or service, its name should reflect the advantage that its
product or service brings to the marketplace (ex. Anytime Fitness)
Business Names Industry-Driven Companies: - Answer-If a company plans to focus on
a broad range of products or services in a particular industry, its name should reflect the
category in which it participates (ex. Homedepot)
Business Names Personality/Image-Driven Companies: - Answer-Some companies are
founded by individuals who put such an indelible stamp on the company that it may be
smart to name the company after the founder. (ex. Tesla, Walt Disney)
Business Names Businesses with Made Up Names: - Answer-Some businesses opt to
make up a name and build a brand from scratch. (ex. Google, Yahoo)
Form of Business Ownership Sole Proprietorship: - Answer-Involves one person
(person and business are essentially the same) (Not a separate Legal entity)
Sole Proprietorship adv. and dis: - Answer-Adv: Creating it is easy and inexpensive
It is not subject to _Double Taxation
Dis: Unlimited owner liability
