Which of the following is incorrect regarding the typical role of consultants in business startups?

Catherine Smith has just finished writing a business plan for a startup in the medical products industry. She has now reached the point where she needs to develop a plan for how her firm will compete, use its resources, structure its relationships, interface with customers, and create value to sustain itself on the basis of the profits it earns. Jennifer needs to establish her firm's:

In regard to business models, which of the following statements is incorrect?

There is a standard business model that most firms follow.

Which of the following is not one of the purposes of a business model?

Serves as a template for conducting industry analysis

The ________ is the string of activities that moves a product from the raw material stage,

through manufacturing and distribution, and ultimately to the end user.

Which of the following is a "primary" activity in the value chain?

According to the textbook, by studying a product's or service's value chain an organization can:

Identify ways to create additional value and assess whether it has the means to do so

________ involves a firm's relationship with its suppliers and involves all the activities of receiving, storing, and shipping component parts to the place where they will be added to the final product.

Two fatal flaws can render a business model untenable from the beginning. These are utterly unsound economics and:

A complete misread of the customer

The four components of a firm's business model are:

Core strategy, strategic resources, partnership network, and customer interface

Jeff Mommer is starting an environmentally friendly lawn and garden service. One thing that Jeff has worked hard on is determining how his company will compete in the marketplace. This element of Jeff's business model is referred to as:

A firm's ________ describes why it exists and what its business model is supposed to accomplish.

Which of the following statements is incorrect regarding the "core strategy" component of a firm's business model?

The product a firm chooses has little impact on its core strategy and business model.

Match the business model component with its explanation:

Core strategy/how a firm interfaces with its customers

Zappo's competence in customer service, Apple's competence in designing consumer products, and Netflix's competence in supply chain management are examples of ________, which serve as each of these respective firms' competitive advantage of their rivals.

In a business model context, the three components of a firm's partnership network are:

Suppliers, partners, and other key relationships

A supplier is a company that:

Provides parts or services to another company

An arrangement between two or more firms that establishes an exchange relationship but has no joint ownership involved is called a:

________, a relatively new approach to partnering, takes place when a service provided comes inside a partner's facilities and helps the partner design and manage its supply chain.

According to the textbook, the single most important thing the founders of an entrepreneurial venture can do is:

Establish a strong ethical culture for their firms

According to Chapter 7, which of the following forms of misconduct or unethical behavior was observed by the highest percentage of the U.S. workforce?

A ________ is a formal statement of an organization's values on certain ethical and social issues.

A(n) ________ is a written document that deals with issues such as the relative split of the equity among the founders of the firm, how individual founders will be compensated for the cash or the "sweat equity" they put into the firm, and how long the founder will have to remain with the firm for their shares to fully vest.

Which of the following is typically not included in the founders' agreement for a firm?

A(n) ________ agreement binds an employee or another party to not disclose a company's trade secret. A ________ agreement prevents an individual from competing against a former employer for a specific period of time.

Nondisclosure, noncompete

________ is the process in which an impartial third party helps those involved in a dispute reach an agreement.

The simplest form of business entity is the:

Partnerships are organized as either:

General or limited partnerships

A ________ partnership is a modified form of a general partnership.

A separate legal entity organized under the authority of a state is referred to as a:

Corporations are organized as either:

C corporations or subchapter S corporations

Most C corporations have two classes of stock:

A corporation is formed by filing ________ with the Secretary of State's office in the state of incorporation.

Articles of incorporation

If the owners of a corporation don't file their annual paperwork, neglect to pay their annual fees, or commit fraud, a court could ignore the fact that a corporation has been established and the owners could be held personally liable for the actions of the corporation. This chain of events is referred to as:

Piercing the corporate veil

Which of the following is an advantage of a C Corporation?

Stock is liquid if traded on a major stock exchange.

Financial management deals with two things—managing a company's finances and:

The four main financial objectives of a firm are:

Profitability, liquidity, efficiency, and stability

A company's ability to productively utilize its assets relative to its revenue and its profits is referred to as:

A company's merchandise, raw materials, and products waiting to be sold is called its:

A financial statement is a(n):

Written report that quantitatively describes a firm's financial health

In regard to budgets, which of the following statements is not true?

Budgets are a poor tool for financial control.

Which of the following statements about pro forma financial statements is incorrect? 

Pro forma financial statements are required by the SEC.

On a firm's income statement, net sales consists of:

Total sales minus allowances for returned goods and discounts

A(n) ________ is a snapshot of a company's assets, liabilities, and owners' equity at a specific point in time.

Real estate, buildings, equipment and furniture are classified as ________ on a company's balance sheet.

In the context of a firm's statement of cash flows, ________ include the purchase, sale, or investment in fixed assets, such as real estate, equipment, and buildings.

A firm's pro forma financial statements are similar to its historical financial statements except that:

They look forward rather than back

A ________ is the group of founders, key employees, and advisers that move a new venture from an idea to a fully functioning firm.

The fact that companies often falter because the people who start the firms can't adjust quickly enough to their new roles and because the firm lacks a "track record" with outside buyers and sellers, is referred to as the:

Which of the following statements is untrue regarding founding teams?

It is generally believed that new ventures started by an individual have an advantage over new ventures started by a team.

The members of homogeneous teams are:

Diverse in terms of their experiences, but very similar in terms of their abilities

The process of building and maintaining relationships with people whose interests are similar or whose relationship could bring advantages to the firm is called:

A(n) ________ is a chart that depicts the most important skills that are needed in a new venture and where skills gaps exist.

A skills profile is a chart that depicts the:

Most important skills that are needed in a business startup and where skills gaps exist

If a new venture organizes as a corporation, it is legally required to have a(n) ________, which is a panel of individuals who are elected by a corporation's shareholders to oversee the management of the firm.

A board of directors is typically made up of both inside and ________ directors.

A board of directors has three formal responsibilities:

Appoint the officers of the firm, declare dividends, and oversee the affairs of the corporation

A(n) ________ is a panel of experts who are asked by a firm's managers to provide counsel and advice on an ongoing basis.

Which of the following statements about advisory boards is incorrect?

Similar to a board of directors, an advisory board has legal responsibility for the firm in certain areas

Which of the following is incorrect regarding the typical role of consultants in business startups?

Help manage the day-to-day activities of the firm

Which of the following statements is incorrect regarding founding teams group of answer choices?

Is a person who works for a business as an apprentice or trainee for the purpose of obtaining actual experience?

Which of the following is most suggested as a consistent predictor of future entrepreneurial performance?

Is a chart that depicts the most important skills that are needed and where skills gaps exist?