What is a reference account? How can having a reference account help a new firm?
> Why is it important for a prospective franchisee to retain his or her own franchise attorney?
> Typically, if an individual franchise unit is losing money, does it still have to pay a monthly royalty to the franchisor? Explain your answer.
> What are the four primary factors that play a role in determining the nature and intensity of the bargaining power of buyers?
> What is franchising?
> What is an international expansion strategy? What are the keys to implementing this strategy successfully in an entrepreneurial firm?
> Naomi Stephenson plans to open a company that will design and manufacture accessories for smartphones. She has read that having a clearly articulated business model will help “all of the elements of her business fit together.” Naomi isn’t quite certain s
> What is a market penetration strategy? Provide an example of a market penetration strategy, and describe how using it effectively might increase a firm’s sales.
> What are some of the common reasons new products fail?
> What are the keys to a firm’s effort to achieve success through new product and service development?
> How does a joint venture differ from a strategic alliance?
> What is a joint venture?
> Over the past several years, why have strategic alliances and joint ventures become increasingly prevalent growth strategies for entrepreneurial firms?
> What is the meaning of the term licensing? How can licensing be used to increase a firm’s revenues?
> What is the purpose of completing a competitive analysis grid?
> What is the difference between a licensor and a licensee?
> Why might firms work hard to achieve a market leadership position?
> What are the benefits of planning for growth?
> What are some of the red flags that would suggest that the overall financial attractiveness of a proposed new venture is poor? Which of the red flags you identified would suggest that realistically, a proposed venture isn’t feasible?
> Why is it difficult for some firms to grow or scale their operations?
> Is it possible for a firm to grow too fast? If so, what are the potential downsides?
> What are the potential downsides to firm growth?
> What are the differences between entrepreneurial services and managerial services?
> Can most firms be classified as rapid-growth firms? Explain your answer.
> In what stage or stages of the organizational life cycle are capital constraints most prevalent?
> What is a company’s “basis of differentiation” and what is the importance of this part of a business template?
> What information does not qualify for trade secret protection? Make your answer as thorough as possible.
> Why is price stability such an important issue for a firm entering a period of rapid growth?
> How do rapid growth firms deal with potential cash flow shortfalls?
> Why is cash flow management such an important issue for a firm entering a period of rapid growth?
> Keith Ambrose, who is a physical therapist, is thinking about starting a firm to provide in-home therapy services for people who are suffering from sports-related injuries. Keith lives in Columbus, Ohio. He doesn’t know if Columbus is large enough to sup
> What is adverse selection and how might it affect entrepreneurial firms?
> What is the managerial capacity problem?
> What is meant by the term trade dress?
> What are the three steps involved in selecting and registering a trademark?
> Search the USPTO database and find three patents issued to Donald E. Weder of Highland Park, Illinois. Describe the patents. In what areas are most of Mr. Weder’s patents?
> What is a standard business model and what is a disruptive business model?
> What are the two primary rules for determining whether intellectual property protection should be pursued for a particular intellectual asset?
> What types of physical measures do firms take to protect their trade secrets?
> What information does not qualify for trade secret protection? Make your answer as thorough as possible.
> What is a copyright bug? Where would one expect to find the bug, and how is it used?
> What is a copyright?
> If you were interested in opening a musical instruments store near the college of university you are attending in order to sell guitars, drums, and other types of musical instruments, what online resources would you draw on to conduct secondary research
> What is meant by the term trade dress?
> What are the three steps involved in selecting and registering a trademark?
> What is meant by creating “buzz” for a company? Provide an example of a firm that has created effective buzz for its product or service.
> What is a tagline? What is your favorite tagline? Why
> What are some of the techniques a start-up can use to estimate its potential financial performance by comparing it to similar, already established businesses?
> What is a niche market?
> What is meant by the term guerrilla marketing? Provide an example of guerrilla marketing not provided in the chapter.
> What is meant by the term brand equity?
> Describe the most common sources of debt financing
> What are the most common sources of equity funding?
> Linda Toombs, who has considerable experience in the home security industry, is planning to launch a new line of home security alarms that she believes would be superior to other products in the market. Linda knows how to develop a concept statement and
> Describe the three steps involved in properly preparing to raise debt or equity financing.
> What is meant by the term sweat equity?
> What are the three separate components of financial feasibility analysis?
> What are the three most common sources of equity funding?
> Why is it so important to get a personal introduction before approaching a potential investor or banker?
> What are the three most common reasons most entrepreneurial ventures need to raise money in their early life?
> Why does having relevant industry experience help the founder or founders of a firm?
> What are the personal attributes that affect a founder’s chances of launching a successful new firm?
> What are the two potential pitfalls of using a team to start a firm?
> What are the differences between a heterogeneous and a homogeneous founding team?
> Jennifer Pisano just applied for a bank loan to finance an Italian restaurant she wants to launch. When visiting with the banker about the loan application, she was asked if she had conducted any primary research to assess the feasibility of her proposed
> What is liability of newness?
> What types of advice and counsel do SCORE volunteers provide?
> What are the attributes or characteristics of an attractive industry for a new venture?
> What is the purpose of SCORE?
> Why do new ventures often turn to consultants for advice?
> In what ways do lenders and investors lend legitimacy to a firm?
> Who are the primary participants in a start-up’s new-venture team?
> How does recruiting a well-known and highly respected board of directors lend legitimacy to a firm?
> What are the three formal responsibilities of a board of directors?
> What is the difference between inside and outside directors?
> What is a board of directors?
> Jackson Reed, a friend of yours, just told you an interesting story. He was at his parents’ house over the weekend. While there, his father saw the entrepreneurship textbook that is being used in one of the classes Jackson is taking this semester. He loo
> What are the reasons for completing a skills profile for a new firm?
> What are the five stages of the creative process for an individual?
> What is a new-venture team?
> On what factors or conditions do completely new firms base their forecasts?
> What is meant by the term stability as it relates to the financial management of a firm?
> What is meant by the term efficiency as it relates to the financial management of a firm?
> What are the four main financial objectives of a firm?
> Why is a firm’s sales forecast the basis for most of its other forecasts?
> What is the purpose of a balance sheet?
> How does a firm compute its price-to-earnings ratio? Why does a high price-to-earnings ratio indicate that the stock market thinks the firm will grow?
> What are the two primary functions of the financial management of a firm?
> Charlie Berry, Shelly Toombs, Nancy Harder, James Ndofor, Jennifer Atwood, and Cliff Bell are all experienced software engineers. For some time, they’ve been talking about starting a company—the six of them—around a software solution in which all of them
> What are the changes to the demographic makeup of entrepreneurs in the United States that are described in this chapter?
> What is the difference between technological alliances and marketing alliances? Provide examples of both types of alliances and how they can increase a firm’s sales.
> What does evidence show us about the rate of failure associated with entrepreneurial ventures?
> What is the purpose of a nondisclosure agreement and the purpose of a no compete agreement?
> What are some of the more important criteria to consider when selecting an attorney for a new firm?
> What is the purpose of a code of conduct?
> What are some of the specific steps that can be taken in an entrepreneurial venture for the purpose of building a strong ethical culture?
> Why is it important for an entrepreneur to build a strong ethical culture for his or her firm?
> How is a C corporation subject to double taxation?
> Based on the information included in this chapter, in general, do entrepreneurs tend to overestimate or underestimate their knowledge of the laws that pertain to starting a new firm, and why?
> What might trigger a firm’s decision to change how it is legally organized?
> Why isn’t choosing a legal entity a one-time event?
