Entrepreneurship SV104

Pre-Final Examination
I. Questions
1. What is an entrepreneur? Explain characteristics of entrepreneurs.
2. What make someone an entrepreneur?
3. What is creativity and innovation in entrepreneurship? Give an example of
each?
4. What are the major benefits of business ownership?
5. Which of the potential drawback to business ownership are most critical?
6. Briefly describe the role of the following groups in entrepreneurship: women,
minorities, immigrants, part timers, home based business owners, family
business owners, coroners, corporate castoffs, and corporate dropouts.
7. What contributions do small businesses make to our economy?
8. Describe the small business failure rate.
9. How can be the small business owners avoid the common pitfall that often lead
to business failures?
10. Why is it important to study the small business failure rate?
11. Explain the typical entrepreneurs attitude toward failure.
12. What advice would you offer an entrepreneurial friend who has just suffered a
business failure?
13. Noting the growing trend among collegiate entrepreneurs launching business
which still in school, one educator say, A student whose main activity on
campus is running a business is missing the basic reason for being here, which
is to get an education, Do you agree? Explain.
14. What is five forces model? Explain.
15. Why entrepreneurs use five forces model for analyze their organization?
16. What is consumption Chain Analysis? Explain.
17. Describe the constructions of Consumption Chain?
18. What are the Consumption chains for a manufactured product?
19. What are the Consumption chains for a service business?
20. What is PESTLE Analysis? Explain.

21. What are the opportunities and threats of PESTLE?

22. What is business model canvas? Explain.
23. Why do entrepreneurs need a business model canvas?
24. Describe how nine component of a business model fit together, is a powerful
technique for painting picture of how organizations work.
25. What is involved in a feasibility analysis, and what value might it provide?
26. What is feasibility analysis? Explain.
27. How is feasibility study different from business plan?
28. What is business prototyping?
29. What factors should entrepreneur consider before choosing a form of
ownership?
30. Why are sole proprietorships the most popular form of ownership?
31. How does personal conflict affect partnerships? What steps might partners take
to minimize personal conflict?
32. Why are the articles important to a successful partnership address?
33. Can one partner commit another to a business deal without the others consent?
Why and what are the potential ramifications?
34. Explain the differences between a domestic corporation, a foreign corporation,
and an alien corporation.
35. What issues should the certificate of incorporation cover?
36. What role do limited partners play in a partnership? What will happen if a
limited partner takes an active role in managing the business?
37. What advantages does a limited liability company offer over an S corporation?
Over a sole proprietorship?
38. How does a joint venture differ from a partnership?
39. In what circumstances might a joint venture be applicable?
40. What is franchising?
41. Describe the three types of franchising and provide an example of each.
42. How does franchising benefit the franchisor?
43. Discuss the advantages and the disadvantages of franchising for the franchisee.
44. How beneficial to franchisee is a quality training program? What types of
entrepreneurs may benefit most from this training?

45. Compare the failure rates for franchises with those of independent businesses.
What are some of the reasons for this difference?
46. Why might an independent entrepreneur be dissatisfied with a franchising
arrangement?
47. What clues might indicate an unreliable franchisor?
48. Should a prospective franchise investigate before investing in a franchise? If so,
how and in what areas?
49. Outline the rights the Trade Regulation Rule gives all prospective franchisees.
50. What is the source of most franchisor-franchisee litigation? Which party does
the standard franchise contract favor?
51. Describe the current trends affecting franchising within the United States and
internationally.
52. One franchisee says, Franchising is

helpful because it gives you somebody

(the franchisor) to get you going, nurture you, and shove you along a little.
However, the franchisor wont make you successful. That depends on what you
bring to the business, how hard you are prepare to work, and how committed
you are to finding the right franchise for you. Do you agree?
53. Why might an entrepreneur consider franchising to be an attractive growth
strategy?
54. What should an entrepreneur be prepared for in considering franchising as a
viable alternative?
55. What advantage can an entrepreneur who buys a business gain over one who
starts a business from scratch?
56. How would you go about determining the value of the assets of a business if
you were unfamiliar with them?
57. Why do so many entrepreneurs run into trouble when they buy an existing
business? Outline the step involved in the right way to buy a business.
58. When evaluating an existing business that is for sale, what areas should an
entrepreneur consider? Briefly summarize the key elements of each area.
59. How should a buyer evaluate a businesss goodwill?

60. What is a restrictive covenant? Its fair to ask the seller of a travel agency
located in a small town to sign a restrictive covenant for 1 year covering a 20square-mile area? Explain.
61. How much negative information can you expect the seller to give you about the
business? How can a prospective buyer find out such information?
62. Why is it so difficult for buyers and seller to agree on a price for a business?
63. Which method of valuing a business is best? Why?
64. Outline the different exit strategies available to a seller.
65. Explain the buyers position in a typical negotiation for a business. Explain the
sellers position.
66. What tips would you offer a buyer about to begin negotiating the purchase of a
business?
67. What benefits might you realize from using a business broker? What are the
disadvantages?
68. Why should an entrepreneur develop a business plan?
69. Why do entrepreneur who are not seeking external financing need to prepare
business plans?
70. What is business plan? Describe content of Business plan.
71. What are the benefits of creating a business plan?
72. Describe the two essential function of business plan.
73. Describe the three tests every business plan must pass.
74. What is executive summary in Business plan? How is it important?
75. How can an entrepreneur seeking funds to launch a business convince potential
lenders and investors that a marker for the product for service really exist?
76. Describe the 5 Cs of credit?
77. What are the five basic areas of business plan presentation?
78. Why is strategic planning important to a small company?
79. What are business strategies? Explain.
80. What is competitive advantage and core competency? Explain.
81. Why is competitive advantage important for a small business to establish one?
82. What are in the step the strategic management processes?
83. What is vision statement, mission statement, objectives and goal?

84. What are the key success factors of the business?

85. What is SWOT analysis? Explain.
86. What is competitive intelligence? What benefits does it offer a small company?
87. Explain the characteristics of effective objectives.
88. Why is setting objectives important for small business?
89. Explain the three basic strategies from which entrepreneurs can choose. Give
an example of each one.
90. Describe the three basic strategies available to small companies. Under what
conditions is each most successful?
91. What is a marketing plan? What lies at its center?
92. What is a Guerrilla marketing plan? Why it is important for small business?
93. How can market research benefit a small business owner? List some possible
sources of market information.
94. Does market research have to be expensive and sophisticated to be valuable?
Explain.
95. Why is it important for small business owners to define their target markets as
part of their marketing strategies?
96. What is a competitive edge? How might a small company gain a competitive
edge?
97. Explain the concept of the marketing mix? What are the four Ps?
98. List and explain the stages in the product life cycle. How can a small firm
extend its products life?

II. Key Terms

27. Competitive Edge,

52. Focus Strategy,

1. Creativity,

28. Customer

53. Differentiation
Strategy,

2. Innovation,

Relationship

3. Sole proprietorship,

Management (CRM),

4. The partnership,
5. Franchise contracts,
6. Franchise, Risk,
7. Opportunity,

29. Total

Quality

Management (TQM)
30. Marketing Mix (Four

54. Balance Scorecards,

55. Corporate citizenship,
56. Customer Perspective,
57. Internal

Business

Perspective,

Ps),

8. E-commerce,

31. Product Life Cycle,

58. Financial Perspective,

9. E-business,

32. Product Development,

59. Innovation

10.

Vision,

33. Product Introduction,

11.

Mission statement,

34. Sale Growth,

60. Five Forces Analysis,

12.

SWOT,

35. Guerrilla

61. Rivalry

13.

E-marketing,

14.

Entrepreneurship,

36. Intellectual capital,

15.

Entrepreneur,

37. Knowledge

16.

Strategic

management,

Marketing

Plan,

management,
38. Strategic
Management,

17.

Corporation,

18.

Feasibility analysis,

39. Objectives,

19.

Business plan,

40. Goals,

20.

Competitive

41. Growth strategy,

advantage,

and

learning perspective,

among

existing firms,
62. Bargaining power of
suppliers,
63. Bargaining power of
buyers,
64. Threat of Substitute
products or Services,
65. Threat

of

New

Entrants,

42. Exit strategy,

66. Consumption Chain,

21.

Core competency,

43. Key success factors,

67. PESTLE Analysis,

22.

Market research,

44. Strategy,

68. Business Model,

23.

Focus group,

45. Primary data,

69. Customer segments,

24.

Target market,

46. Secondary data,

70. Value Propositions,

25.

Guerrilla marketing

47. Capital requirement,

71. Channels,

48. Reality test,

72. Revenue Streams,

49. Economic,

73. Key Activities,

marketing (or one-to-

50. Demographic factors,

74. Key Resources,

one marketing),

51. Cost leadership,

75. Key Partners,

strategies,
26.

Individualized

76. Cost Structure,

77. Financial

Feasibility

Analysis,
78. Product

or

Service

Feasibility Analysis,
79. Industry and Market
Feasibility Analysis,
80. Capital Requirements,
81. Return on investment,
82. Value Test,
83. Competitive Test,
84. Marketing Strategy,
85. Marketing Plan,
86. Executive Summary,
87. Direct competitors,
88. Significant
competitors,
89. Indirect competitors,
90. Competitor Analysis,
91. Data Mining,
92. Guerrilla

marketing

principles
93. Existing Customers,
94. Advertising,
95. Promotion,
96. Unique

Selling

Proposition (USP),
97. Value Proposition,
98. Personal selling,
99. Publicity,
100. Word-of-Mouth
Advertising