MGT 410 TEST 1 QUESTIONS AND
ANSWERS ALL CORRECT
Any material that does not easily fit into the body of the business plan should ______. -
Answer- appear in an appendix
A firm's _____ costs are costs the company incurs whether it sells something or not. -
Answer- fixed
A ___ is a written narrative, typically between 25 and 35 pages long, that describes
what a new business intends to accomplish and how it intends to accomplish it. -
Answer- business plan
Defining the market size too broadly is ________ in a business plan. - Answer- an
example of a red flag
Which of the following slides is NOT a part of the 12 PowerPoint slides to include in an
investor presentation? - Answer- product prototype
_____ refers to the process investors go through after they tentatively commit to an
investment. - Answer- Due diligence
Most business plan writers interpret or make sense of a firm's historical or pro forma
financial statements through _______. - Answer- ratio analysis
When Tish Ciravolo started Daisy Rock Guitar, as a company that makes guitars just for
women, she used ________ to get a competitive advantage. - Answer- market
segmentation
Psychographic variables (personality, lifestyle, values) can be used in ________. -
Answer- market segmentation
A(n) ______ chart is a graphic representation of how authority and responsibility are
distributed within the company. - Answer- organization
A firm's _____ is an analysis of its fixed versus variable costs. - Answer- operating
leverage
A(n) _____ is a panel of individuals elected by a corporation's shareholders to oversee
the management of the firm. - Answer- board of directors
, Wello's "Bye, Bye Gym Hello Convenience" is an example of a(n) _____. - Answer-
tagline
A(n) _____ business plan is intended primarily for an internal audience. - Answer-
operational
A(n) _____ is the first physical manifestation of a new product. - Answer- product
prototype
A (n) ____ is a phrase that a business plans to use to reinforce its position in the
marketplace. - Answer- tagline
A business plan should be close to ____ pages in length. - Answer- 25
Entrepreneur are usually ____ risk takers - Answer- Moderate
A firm's business model is its plan or recipe for how it creates, delivers, and captures
value for ______. - Answer- its stakeholders
A ____ is a written document that describes all the aspects of a business venture in a
concise manner. - Answer- business plan
Which of the following motivations to launch one's own firm often fails to live up to its
hype? - Answer- Pursing financial rewards
The number one characteristic shared by successful entrepreneurs is __________. -
Answer- a passion for their business
The majority of individuals who start companies are in their _______. - Answer- thirties
and forties.
Netflix with regard to DVDs is an example of _______. - Answer- creative destruction
Because entrepreneurs are trying something __, the possibility of failure exists. -
Answer- new
LinkedIn, Dropbox, and Facebook are examples of ____ firms. - Answer-
entrepreneurial
That entrepreneurs are born and not made is ______. - Answer- a myth
Established firms often resist ______. - Answer- innovation
ANSWERS ALL CORRECT
Any material that does not easily fit into the body of the business plan should ______. -
Answer- appear in an appendix
A firm's _____ costs are costs the company incurs whether it sells something or not. -
Answer- fixed
A ___ is a written narrative, typically between 25 and 35 pages long, that describes
what a new business intends to accomplish and how it intends to accomplish it. -
Answer- business plan
Defining the market size too broadly is ________ in a business plan. - Answer- an
example of a red flag
Which of the following slides is NOT a part of the 12 PowerPoint slides to include in an
investor presentation? - Answer- product prototype
_____ refers to the process investors go through after they tentatively commit to an
investment. - Answer- Due diligence
Most business plan writers interpret or make sense of a firm's historical or pro forma
financial statements through _______. - Answer- ratio analysis
When Tish Ciravolo started Daisy Rock Guitar, as a company that makes guitars just for
women, she used ________ to get a competitive advantage. - Answer- market
segmentation
Psychographic variables (personality, lifestyle, values) can be used in ________. -
Answer- market segmentation
A(n) ______ chart is a graphic representation of how authority and responsibility are
distributed within the company. - Answer- organization
A firm's _____ is an analysis of its fixed versus variable costs. - Answer- operating
leverage
A(n) _____ is a panel of individuals elected by a corporation's shareholders to oversee
the management of the firm. - Answer- board of directors
, Wello's "Bye, Bye Gym Hello Convenience" is an example of a(n) _____. - Answer-
tagline
A(n) _____ business plan is intended primarily for an internal audience. - Answer-
operational
A(n) _____ is the first physical manifestation of a new product. - Answer- product
prototype
A (n) ____ is a phrase that a business plans to use to reinforce its position in the
marketplace. - Answer- tagline
A business plan should be close to ____ pages in length. - Answer- 25
Entrepreneur are usually ____ risk takers - Answer- Moderate
A firm's business model is its plan or recipe for how it creates, delivers, and captures
value for ______. - Answer- its stakeholders
A ____ is a written document that describes all the aspects of a business venture in a
concise manner. - Answer- business plan
Which of the following motivations to launch one's own firm often fails to live up to its
hype? - Answer- Pursing financial rewards
The number one characteristic shared by successful entrepreneurs is __________. -
Answer- a passion for their business
The majority of individuals who start companies are in their _______. - Answer- thirties
and forties.
Netflix with regard to DVDs is an example of _______. - Answer- creative destruction
Because entrepreneurs are trying something __, the possibility of failure exists. -
Answer- new
LinkedIn, Dropbox, and Facebook are examples of ____ firms. - Answer-
entrepreneurial
That entrepreneurs are born and not made is ______. - Answer- a myth
Established firms often resist ______. - Answer- innovation
