Test 2

Question 1

How do startups raise money?

Answer 1

start with friends and family, then angel investors, then venture capital.

Question 2

intellectual property

Answer 2

It is the product of the human intellect that is embodied in the goods and services a company offers and by which the company is known

Question 3

Ethics and stewardship

Answer 3

legal is the most basic level. Ethical is a step up. Moral is the
highest level and asks the question “How can I do the most good with my business?”

Question 4

corporate responsibility

Answer 4

a belief that corporations have a social responsibility beyond pure profit

Question 5

What does an LLC do?

Answer 5

they provide the limited liability features of a corporation and the tax efficiencies and operational flexibility of a partnership

Question 6

What are some disadvantages of the sole-proprietor business?

Answer 6

Possible Limited Life and Self-Employment Taxes

Question 7

franchise

Answer 7

one business owner licensing trademarks and methods to an independent entrepreneur for a prescribed period of time.

Question 8

What advice does the textbook have for franchisors and franchisees?

Question 9

What are the advantages of franchising for franchisors and franchisees?

Answer 9

1. Increased ability for franchisor to expand
2. Recognized name, product, and operating concept
3. Management training and assistance
4. Financial assistance

Question 10

horizontal merger

Answer 10

occurs between companies in the same industry

Question 11

vertical merger

Answer 11

the merger of two organizations that have a buyer-seller relationship or, two or more firms that are operating at different levels within an industry’s supply chain.

Question 12

acquisition

Answer 12

occurs when a company purchases the assets of another business and usually permits the acquired company to continue operating as it did prior to the acquisition

Question 13

four entrepreneurial Types

Answer 13

1. Builder - office square footage and size of payroll
2. Opportunist- measures success in financial terms
3. Specialist - They measure success based on their personal income
4. Innovator - They measure success based on impact; it’s about the mission, not the money

Question 14

VC

Answer 14

Venture Capital - professionally managed funds that provide high-potential start-ups with funds in exchange for management fees and equity or shares of stock in the start-up

Question 15

Angel investor

Answer 15

very early participants in funding start-ups

Question 16

startup accelerator

Answer 16

program that helps early-stage companies grow and a mentor-based program that provides guidance, support and limited funding in exchange for equity

Question 17

SISP

Answer 17

solution in search of a problem - a proposal that doesn’t solve a problem or provide value

Question 18

What is a “tarpit” idea

Answer 18

a startup idea that seems good, but has been tried by many founders before with little to no success

Question 19

When coming up with startup ideas, what is an “idea space” and what are some good
examples?

Answer 19

Artificial intelligence and web development

Question 20

What are the 6 main reasons startups fail according to the textbook?

Answer 20

1. Lack of Planning
2. Failure to Delegate
3. Unwillingness to Change
4. Forgetting That Cash is King
5. Lack of Objective Targets
6. Failure to Ask the Right Questions

Question 21

the best way to come up with a company is to what?

Answer 21

find a problem
worth solving

Question 22

What is the difference between management and leadership?

Answer 22

leaders tell people where to be and managers get them there orderly and what to do

Question 23

What is the most important skill of a manager?

Answer 23

Interpersonal excellence

Question 24

4DX concept is based on the 4 principles of what?

Answer 24

focus, leverage, engagement, and accountability

Question 25

What is the difference between a lead measure
and a lag measure?

Answer 25

A lead measure indicates whether you are likely to achieve a goal, while a lag measure indicates whether you have achieved a goal

Question 26

the difference between intrinsic and extrinsic motivators

Answer 26

Intrinsic motivation is the drive to complete a task because it’s interesting or enjoyable. Extrinsic motivation is the drive to complete a task for an external reward

Question 27

What are the acquired needs theory of management and what motivates them?

Answer 27

1. Achievement - a sense of accomplishment and recognition for their efforts rather than external rewards
2. affiliation - sense of belonging and social recognition
3. power -desire to influence, control, and lead others.

Question 28

risk tolerance

Answer 28

the level of risk an entity or investor is willing to take

Question 29

Human Resources

Answer 29

Optimizing employee management for organizational success

Question 30

What is the core function of HR

Answer 30

Recruiting

Question 31

Right to work state

Answer 31

fire for a good reason, bad reason, no reason at all

Question 32

Protected classes

Answer 32

• Race, ethnicity, national origin
• Gender
• Sexual orientation
• Religion
• Age
• Disability
• Pregnancy

Question 33

Termination

Answer 33

How you fire is important for morale

Question 34

How business benefit from diversity

Answer 34

Innovation

Question 35

Challenges

Answer 35

§ Stereotypes
§ Culture confusion
§ Communication

Question 36

Current causes of worker shortage

Answer 36

Pandemic
Great resignation
Changing worker preferences
!Demographic changes!

Question 37

What should be done about the worker shortage?

Answer 37

1. Political Left Solutions - Bring in more temporary migrants
2. Political Right Solutions - Weaken child labor laws