ENTR 355 Exam 2 | Questions and Answers

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Microsoft's power as a supplier of computer operating systems is ____ by the threat that it might enter the PC industry if PC makers balk too much at the cost of its software. Enhanced The consumer mi... lk industry is characterized by slow growth, repeat (rather than new) customers, and limited product innovation. This industry is an example of a(n) ______ industry. Mature When a firm varies its product or service offerings to meet the demands of the local market, it is pursuing a _____ strategy. Multidomestic The five forces model looks at forces that determine _____ profitability. Industry Businesses offering close substitute products are called ____ competitors. Indirect At the company level, a firm's ____ determines how the company is situated relative to its competitors. Launch The five forces model helps one understand the ___ of an industry. Dynamics The renting of DVDs and video games by mail is an example of a(n) ____ industry. Declining It is useful for a new venture to think about its position at both the _____ level and the product or service level. Company A(n) _____ advantage is a sometimes-insurmountable advantage gained by the first company to establish a significant position in a new market. first mover When there are _____ suppliers to provide a critical product to a large number of buyers, the suppliers have an advantage. only a few Economic trends, ____ trends, technological advances, and political and regulatory changes are the most important environmental trends for entrepreneurs to study. Social The ability of firms in some industries to benefit from an increasing ability to outsource manufacturing or service functions to lower-cost foreign labor markets is an example of a(n) _____ trend. Business Once a firm decides to enter an industry and chooses a market in which to compete, it must gain an understanding of its _____ environment. Competitive Which of the following is NOT a primary factor that determines the nature and intensity of the rivalry among existing firms in an industry? threat of forward integration Industries with ___ fixed costs have a high degree of intensity of rivalry. High The greater the importance of an item is to a buyer, the _____ the buyer will be to the price. more sensitive A geographic roll-out opportunity is available in a(n) ______ industry. Fragmented A leadership strategy in which a firm tries to become the dominant player in the industry is a strategy that works in ____ industries. Declining In general, industries are more attractive when the threat of substitutes is ___. Low A _____ is a condition that creates a disincentive for a new firm to enter an industry. barrier to entry Threat of ____ integration increases the bargaining power of buyers. Backward A(n) _____ industry is one in which standard operating procedures have yet to be developed. Emerging Which of the following is NOT a force as per the five forces model? bargaining power of stockholders Which of the following is NOT a barrier to entry? stakeholder holdout A firm's _____ costs are costs the company incurs whether it sells something or not. Fixed Any material that does not easily fit into the body of the business plan should ______. appear in an appendix A(n) _____ business plan works best for companies that are very early in their development. Summary Most business plan writers interpret or make sense of a firm's historical or pro forma financial statements through _______. ratio analysis "Pro forma" is another term for _____. Projected _____ refers to the process investors go through after they tentatively commit to an investment. due diligence A ____ is a panel of experts asked by a firm's management to provide counsel and advice on an ongoing basis. board of advisors A business plan should be close to ____ pages in length. 25 A(n) _____ is the first physical manifestation of a new product. product prototype Defining the market size too broadly is ________ in a business plan. an example of a red flag A(n) _____ business plan is intended primarily for an internal audience. Operational A business plan is a ____ document. Selling A firm's _____ is an analysis of its fixed versus variable costs. operating leverage Investors are ______ audience for a business plan. the second The _____ breaks the industry into segments and zeroes in on the specific segment (or target market) to which the firm will try to appeal. market analysis When Tish Ciravolo started Daisy Rock Guitar, as a company that makes guitars just for women, she used ________ to get a competitive advantage. market segmentation 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. business plan Return on assets is an example of a(n) _____. Ratio Which of the following slides is NOT a part of the 12 PowerPoint slides to include in an investor presentation? product prototype A (n) ____ is a phrase that a business plans to use to reinforce its position in the marketplace. Tagline A(n) _____ is a panel of individuals elected by a corporation's shareholders to oversee the management of the firm. board of directors If a product sells for $100 and the cost of goods sold is $40, the $60 (the difference between the two) is called ______. contribution margin Psychographic variables (personality, lifestyle, values) can be used in ________. market segmentation Wello's "Bye, Bye Gym Hello Convenience" is an example of a(n) _____. Tagline A(n) ______ chart is a graphic representation of how authority and responsibility are distributed within the company. Organization A ____ is a separate legal entity organized under the authority of a state. corporation [Show More]

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