BUSI_3004_QUESTION AND ANSWERS

st attempt • Question 1 Planning the new venture is a process that never ends. Selected Answer: TRUE Correct Answer: TRUE 1 out of 1 points Newsgroups are too closely controlled by competitors to be useful for information gathering. Selected Answer: FALSE Correct Answer: FALSE Nonverbal or hidden language of the culture can be thought of in terms of several components - time, space, and business relationships. Selected Answer: FALSE Correct Answer: TRUE The Internet is a useful tool to access information but is generally not a good vehicle for marketing goods and services. Selected Answer: FALSE Correct Answer: FALSE For a global entrepreneur, technological environment variations are minimal since firms produce mostly standardized, relatively uniform products that can be sorted to meet industry standards. Selected Answer: TRUE Correct Answer: FALSE Letters from customers, distributors, or subcontractors are examples of information that should be included in the executive summary of a business plan. Selected Answer: TRUE Correct Answer: FALSE When gathering financial information, the entrepreneur should develop a budget that includes expected sales and expense figures for the first year. Selected Answer: TRUE Correct Answer: TRUE An evaluation of cultural changes is irrelevant to the venture and should not be included in the business plan. Selected Answer: FALSE Correct Answer: FALSE Bankers agree that most business failures are due to the entrepreneur's inability to plan effectively. Selected Answer: TRUE Correct Answer: TRUE Reference groups in any culture provide values and attitudes that influence behavior. Selected Answer: TRUE Correct Answer: TRUE In the business plan the entrepreneur should address the needs of the entrepreneur and the needs of the market; the investor's perspective is not important. Selected Answer: FALSE Correct Answer: FALSE The executive summary section of the business plan should be written first, before other sections are developed. Selected Answer: TRUE Correct Answer: FALSE is the process of an entrepreneur conducting business activities across national borders. Selected Answer: International entrepreneurship Correct Answer: International entrepreneurship The objectives of the General Agreement on Tariffs and Trade was to liberalize trade by eliminating or reducing tariffs. Selected Answer: FALSE Correct Answer: TRUE If a venture is not a manufacturing firm, an operations plan is not necessary. Selected Answer: TRUE Correct Answer: FALSE The organizational plan section of the business plan should describe the venture's form of ownership. Selected Answer: TRUE Correct Answer: TRUE Most entrepreneurs have difficulty with gathering market information and do not often know where to begin. Selected Answer: TRUE Correct Answer: TRUE One of the most interesting trends since the late 1980s is the increase in market- based economies paralleling the spread of democracy. Selected Answer: TRUE Correct Answer: TRUE Purchasing power parity measures the total value of the goods and services produced annually by a country. Selected Answer: TRUE Correct Answer: FALSE Investors often place more emphasis on the entrepreneur's than lenders do. Selected Answer: Character Correct Answer: Character While preparing the first draft of the business plan, the entrepreneur should not: Selected Answer: Take into consideration the constituencies that will ultimately read and evaluate the plan's feasibility Correct Answer: Take into consideration the constituencies that will ultimately read and evaluate the plan's feasibility In building a marketing plan, the entrepreneur should use a process designed as a pyramid, starting with narrow data and working down to broader-based information. Selected Answer: FALSE Correct Answer: FALSE The four Cs of credit are computers, capital, compromise, and collateral. Selected Answer: FALSE Correct Answer: FALSE Before beginning the business plan, the entrepreneur should define the venture's goals and objectives. These goals should be . Selected Answer: Feasible Correct Answer: Feasible International entrepreneurial decisions are more complex than domestic decisions due to uncontrollable factors such as economic development and stage of economic development. Selected Answer: Correct Answer: 2nd Attempt