1.There are two significant benefits of obtaining a loan over investing capital: a. the money does not have to be repaid, and lenders usually take an active interest in their creditors b. the investment does not have to be repaid, and no ownership of the company is surrendered c. no ownership of the company is given up or surrendered, and interest payments are tax deductible d. banks are dependable providers of venture funding, and interest charges are tax deductible 2.A _________ aims to improve a good or service's revenue by increasing marketing activities or increasing production ability and performance. a. product line extension strategy b. geographic expansion strategy c. market penetration strategy d. strategic alliance strategy 3.Entrepreneurs should be aware of three issues about business growth. What are the issues? a. a business's valuation increases with its growth, a business can grow too fast, and business growth is a top priority of most entrepreneurial firms b. not all businesses have the potential to be aggressive growth firms, business success scales, and business growth is a top priority of most entrepreneurial firms c. business growth is a top priority of most entrepreneurial firms, a business can't grow too fast, and businesses that price their products aggressively grow the fastest d. not all businesses have the potential to be aggressive growth firms, a business can grow too fast, and business success doesn't always scale 4.The cost of acquiring real estate, constructing buildings, and purchasing machinery for a startup company frequently exceeds the firm's capacity to finance those expenses on its own. In this case, which of the following factors motivates businesses to pursue funding or financing? a. costs associated with building a brand b. capital investments c. cash flow challenges d. lengthy product development cycles 5.The rate at which a company grows is referred to its: a. annual basis of the company b. comparison to a national index of all companies c. comparison to its closest competitor d. comparison to industry norms
1.There are two significant benefits of obtaining a loan over investing capital:
a. the money does not have to be repaid, and lenders usually take an active interest in their creditors
b. the investment does not have to be repaid, and no ownership of the company is surrendered
c. no ownership of the company is given up or surrendered, and interest payments are tax deductible
d. banks are dependable providers of venture funding, and interest charges are tax deductible
2.A _________ aims to improve a good or service's revenue by increasing marketing activities or increasing production ability and performance.
a. product line extension strategy
b. geographic expansion strategy
c. market penetration strategy
d. strategic alliance strategy
3.Entrepreneurs should be aware of three issues about business growth. What are the issues?
a. a business's valuation increases with its growth, a business can grow too fast, and business growth is a top priority of most entrepreneurial firms
b. not all businesses have the potential to be aggressive growth firms, business success scales, and business growth is a top priority of most entrepreneurial firms
c. business growth is a top priority of most entrepreneurial firms, a business can't grow too fast, and businesses that price their products aggressively grow the fastest
d. not all businesses have the potential to be aggressive growth firms, a business can grow too fast, and business success doesn't always scale
4.The cost of acquiring real estate, constructing buildings, and purchasing machinery for a startup company frequently exceeds the firm's capacity to finance those expenses on its own. In this case, which of the following factors motivates businesses to pursue funding or financing?
a. costs associated with building a brand
b. capital investments
c. cash flow challenges
d. lengthy product development cycles
5.The rate at which a company grows is referred to its:
a. annual basis of the company
b. comparison to a national index of all companies
c. comparison to its closest competitor
d. comparison to industry norms
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