EEE 2023 FINAL EXAM QUESTIONS ANSWERED CORRECTLY LATEST UPDATE 2026
There are three reasons that most entrepreneurial ventures need to raise money during their early
life: cash flow challenges, capital investments, and _____. - Answers Lengthy product development
cycles
Which of the following is NOT an example of a bootstrapping method?
A. Hire interns
B. Minimize personal expenses
C. Coordinate purchases with other businesses
D. Share office space or employees with other businesses
E. Buy new instead of used equipment - Answers Buy new instead of used equipment
John invested $25,000 in Marlo Ventures, a home flipping business. While Sammy invested $20,000 in
the venture, Daniel did not put in any money in the venture, but became a 50 percent equity owner
because he had contributed enormous time and expertise into the venture. The 50 percent is
________ equity that represents the value of the time and effort that Daniel put into Marlo Ventures.
- Answers Sweat
The three most common _____ for a new venture are when it goes public, finds a buyer, or merges
with another company. - Answers Liquidity Events
______ financing means exchanging partial ownership of a firm, usually in the form of stock, for
funding. - Answers Equity
The most common sources of debt financing are commercial banks and _______. - Answers Small
Business Administration-- guaranteed loans
When a venture has high risk with an uncertain return (characterized by weak cash flow, high
leverage), its most appropriate source of funding is ______. - Answers personal funds, family and
friends, and/or bootstrapping
In June 2017, Blue Apron made a first sale of its stock to the public. This was Blue Apron's ________. -
Answers initial public offering
Wanderberg Machines went on a whirlwind tour that consisted of meetings in 12 key cities where the
firm presented its business plan to groups of investors. This tour was a ______. - Answers road show
_______ allows entrepreneurs to raise money in exchange for some type of amenity or reward. -
Answers Rewards-based crowdfunding
___, trademarks, copyrights, and trade secrets are the four key forms of intellectual property. -
Answers Patents
In 2016, the United States Patent & Trademark Office (USPTO) received more than ___ patent
applications. - Answers 600,000
Lofty Ambitions has patented its method for matching loft owners with loft renters. This is an example
of a _______ patent. - Answers business method
While a utility patent protects the way an invention is used and works, a ___ patent protects the way
it looks. - Answers Design
Judy's Home Care Products engaged in the unauthorized use of The Casey Corporation's patent. This
is an example of _________. - Answers Patent Infringement
The name "McDonald's" is an example of a ____. - Answers Trademark
There are four types of trademarks: trademarks, ____, collective marks, and certification marks. -
Answers Service marks
Which of the following CAN be trademarked?
A. Surnames
B. Deceptive matter
C. Immoral or scandalous matter
D. Descriptive marks
E. Sounds - Answers Sounds
As a book reviewer, Charlie Smuckers often quotes short passages from the book he is reviewing. He
is protected because ____ allows the limited use of copyrighted material for purposes such as
criticism, comment, news reporting, teaching, or scholarship. - Answers Fair Use
Which of the following is NOT a physical measure to protect trade secrets?
A. Labeling documents
B. Maintaining logbooks for visitors
C. Maintaining logbooks for access to sensitive material
, D. Restricting access
E. Maintaining low-cost overall security measures - Answers Maintaining low-cost overall security
measures
A firm's core strategy is largely determined by its _______. - Answers Core Competencies
Acme Corp., a producer of safety blades, produces the highest volume of products annually in the
industry that results in it having the lowest average cost. Acme Corp benefits from economies of
___________. - Answers Scale
When Starbucks uses the same feature to advertise Starbucks coffee along with Starbucks music and
Starbucks apparel, it is benefitting from economies of ________. - Answers Scope
Angie's Bakery pays a rent of $2,000 per month whether it sells something or not. For Angie's Bakery,
rental costs are ________. - Answers Fixed
Market leadership occurs when a firm holds the number one or two position in an industry or niche
market in terms of ____. - Answers Sales Volume
The __________ stage of the organizational life cycle is a very "hands-on" phase for the founder(s),
who are normally involved in every aspect of the day-to-day life of the business. - Answers
Introduction
A firm's administrative framework consists of two kinds of services that are important to a firm's
growth, ________ and managerial services. - Answers Entrepreneurial
____ means that as a firm grows and adds personnel, the new hires typically do not have the same
ownership incentives as the original founders, so the new hires may not be as motivated as the
founders to put in long hours or may even try to avoid hard work. - Answers Moral hazard
The faster a firm grows, the less time managers have to evaluate the suitability of job candidates and
the higher the chances are that unsuitable candidates will be chosen. This problem is called ____. -
Answers Adverse selection
A business can literally have $1 million in accounts receivable but not be able to meet a $25,000
payroll. This is called the ____ problem. - Answers Cash flow management
The Art Shoppe grew over the years by developing new products and attracting new customers. The
Art Shoppe's growth is called ___________. - Answers Organic
Which of the following is NOT a top reason why new products fail?
Which of the following is NOT a top reason why new products fail?
A. Customers saw the product as too expensive.
B. The product was no different than the competition's.
C. The product was poorly designed.
D. The potential market was underestimated.
Your answer is correct.
E.
The costs of developing the product line were too high. - Answers The potential market was
underestimated
To free up factory space to increase production of its basic product, Parris Metals that used to
package its products internally decides to use the services of an outside packer. Parris Metals has
___________ packaging. - Answers Outsourced
A(n) ____ strategy involves making additional versions of a product so that it will appeal to different
clientele or making related products to sell to the same clientele. - Answers Product line extension
Acme Toys produces all its educational toys in its Canton, Ohio plant and ships them all over Europe
for sale. Acme Toys is using __________. - Answers Exporting
A ____ agreement is an arrangement whereby a firm with the proprietary rights to a product grants
permission to another firm to manufacture that product for specified royalties or other payments. -
Answers Licensing
Which foreign market entry strategy gives a firm total control over its foreign operations? - Answers
Wholly-owned subsidiary
_____, acquisitions, strategic alliances, joint ventures, licensing, and franchising are examples of
external growth strategies. - Answers Mergers
Anton's Bakery made an outright purchase of Meg's Cakes. Anton's Bakery was involved in a(n)
__________. - Answers Acquisition
Which of the following is NOT an advantage of emphasizing external growth strategies?
A. Economies of scale
B. Increased business complexity
There are three reasons that most entrepreneurial ventures need to raise money during their early
life: cash flow challenges, capital investments, and _____. - Answers Lengthy product development
cycles
Which of the following is NOT an example of a bootstrapping method?
A. Hire interns
B. Minimize personal expenses
C. Coordinate purchases with other businesses
D. Share office space or employees with other businesses
E. Buy new instead of used equipment - Answers Buy new instead of used equipment
John invested $25,000 in Marlo Ventures, a home flipping business. While Sammy invested $20,000 in
the venture, Daniel did not put in any money in the venture, but became a 50 percent equity owner
because he had contributed enormous time and expertise into the venture. The 50 percent is
________ equity that represents the value of the time and effort that Daniel put into Marlo Ventures.
- Answers Sweat
The three most common _____ for a new venture are when it goes public, finds a buyer, or merges
with another company. - Answers Liquidity Events
______ financing means exchanging partial ownership of a firm, usually in the form of stock, for
funding. - Answers Equity
The most common sources of debt financing are commercial banks and _______. - Answers Small
Business Administration-- guaranteed loans
When a venture has high risk with an uncertain return (characterized by weak cash flow, high
leverage), its most appropriate source of funding is ______. - Answers personal funds, family and
friends, and/or bootstrapping
In June 2017, Blue Apron made a first sale of its stock to the public. This was Blue Apron's ________. -
Answers initial public offering
Wanderberg Machines went on a whirlwind tour that consisted of meetings in 12 key cities where the
firm presented its business plan to groups of investors. This tour was a ______. - Answers road show
_______ allows entrepreneurs to raise money in exchange for some type of amenity or reward. -
Answers Rewards-based crowdfunding
___, trademarks, copyrights, and trade secrets are the four key forms of intellectual property. -
Answers Patents
In 2016, the United States Patent & Trademark Office (USPTO) received more than ___ patent
applications. - Answers 600,000
Lofty Ambitions has patented its method for matching loft owners with loft renters. This is an example
of a _______ patent. - Answers business method
While a utility patent protects the way an invention is used and works, a ___ patent protects the way
it looks. - Answers Design
Judy's Home Care Products engaged in the unauthorized use of The Casey Corporation's patent. This
is an example of _________. - Answers Patent Infringement
The name "McDonald's" is an example of a ____. - Answers Trademark
There are four types of trademarks: trademarks, ____, collective marks, and certification marks. -
Answers Service marks
Which of the following CAN be trademarked?
A. Surnames
B. Deceptive matter
C. Immoral or scandalous matter
D. Descriptive marks
E. Sounds - Answers Sounds
As a book reviewer, Charlie Smuckers often quotes short passages from the book he is reviewing. He
is protected because ____ allows the limited use of copyrighted material for purposes such as
criticism, comment, news reporting, teaching, or scholarship. - Answers Fair Use
Which of the following is NOT a physical measure to protect trade secrets?
A. Labeling documents
B. Maintaining logbooks for visitors
C. Maintaining logbooks for access to sensitive material
, D. Restricting access
E. Maintaining low-cost overall security measures - Answers Maintaining low-cost overall security
measures
A firm's core strategy is largely determined by its _______. - Answers Core Competencies
Acme Corp., a producer of safety blades, produces the highest volume of products annually in the
industry that results in it having the lowest average cost. Acme Corp benefits from economies of
___________. - Answers Scale
When Starbucks uses the same feature to advertise Starbucks coffee along with Starbucks music and
Starbucks apparel, it is benefitting from economies of ________. - Answers Scope
Angie's Bakery pays a rent of $2,000 per month whether it sells something or not. For Angie's Bakery,
rental costs are ________. - Answers Fixed
Market leadership occurs when a firm holds the number one or two position in an industry or niche
market in terms of ____. - Answers Sales Volume
The __________ stage of the organizational life cycle is a very "hands-on" phase for the founder(s),
who are normally involved in every aspect of the day-to-day life of the business. - Answers
Introduction
A firm's administrative framework consists of two kinds of services that are important to a firm's
growth, ________ and managerial services. - Answers Entrepreneurial
____ means that as a firm grows and adds personnel, the new hires typically do not have the same
ownership incentives as the original founders, so the new hires may not be as motivated as the
founders to put in long hours or may even try to avoid hard work. - Answers Moral hazard
The faster a firm grows, the less time managers have to evaluate the suitability of job candidates and
the higher the chances are that unsuitable candidates will be chosen. This problem is called ____. -
Answers Adverse selection
A business can literally have $1 million in accounts receivable but not be able to meet a $25,000
payroll. This is called the ____ problem. - Answers Cash flow management
The Art Shoppe grew over the years by developing new products and attracting new customers. The
Art Shoppe's growth is called ___________. - Answers Organic
Which of the following is NOT a top reason why new products fail?
Which of the following is NOT a top reason why new products fail?
A. Customers saw the product as too expensive.
B. The product was no different than the competition's.
C. The product was poorly designed.
D. The potential market was underestimated.
Your answer is correct.
E.
The costs of developing the product line were too high. - Answers The potential market was
underestimated
To free up factory space to increase production of its basic product, Parris Metals that used to
package its products internally decides to use the services of an outside packer. Parris Metals has
___________ packaging. - Answers Outsourced
A(n) ____ strategy involves making additional versions of a product so that it will appeal to different
clientele or making related products to sell to the same clientele. - Answers Product line extension
Acme Toys produces all its educational toys in its Canton, Ohio plant and ships them all over Europe
for sale. Acme Toys is using __________. - Answers Exporting
A ____ agreement is an arrangement whereby a firm with the proprietary rights to a product grants
permission to another firm to manufacture that product for specified royalties or other payments. -
Answers Licensing
Which foreign market entry strategy gives a firm total control over its foreign operations? - Answers
Wholly-owned subsidiary
_____, acquisitions, strategic alliances, joint ventures, licensing, and franchising are examples of
external growth strategies. - Answers Mergers
Anton's Bakery made an outright purchase of Meg's Cakes. Anton's Bakery was involved in a(n)
__________. - Answers Acquisition
Which of the following is NOT an advantage of emphasizing external growth strategies?
A. Economies of scale
B. Increased business complexity
