A+ Answers


Question 1

The three reasons startups need funding are:

A. business research, cash flow challenges, and costs associated with building a brand.

B. attorney fees, capital investments, and marketing research.

C. bonuses for members of the new venture team, attorney fees, and lengthy product development cycles.

D. cash flow challenges, capital investments, and lengthy product development cycles.

Question 2

Equity financing (or funding) means:

A. exchanging partial ownership in a firm, usually in the form of stock, for funding.

B. getting a grant or outright gift.

C. getting a loan guarantee.

D. getting a lease.

Question 3

A brief carefully constructed statement that outlines the merits of a business opportunity is called a(n):

A. teaser speech.

B. elevator speech.

C. subway speech.

D. bootstrap speech.

Question 4

Venture capital firms are __________ of money managers who raise money in “funds” to invest in startups and growing firms.

A. consortiums

B. limited partnerships

C. strategic partnerships

D. finance associations

Question 5

A(n) __________ is an institution, such as Credit Suisse First Boston, that acts as an underwriter or agent for a firm engaged in an initial public offering.

A. venture bank

B. fiduciary bank

C. public bank

D. investment bank

Question 6

__________ is a financial transaction whereby a business sells its accounts receivable to a third party at a discount in exchange for cash.

A. Factoring

B. Vendor credit

C. Leasing

D. Peer-to-peer lending

Question 7

Prosper is the best known:

A. provider of SBA guaranteed loans.

B. provider of vendor credit.

C. peer-to-peer lending network.

D. factorial.

Question 8

The main difference between the SBIR and the STTR programs is that the STTR program requires the participation of:

A. a venture capitalist.

B. a certified public accountant.

C. researchers working at universities or other research institutions.

D. a government agency in conducting the research.

Question 9

The major advantage of leasing is that:

A. it enables a company to have access to average or above average facilities and equipment.

B. it enables a company to acquire the use of assets with little or no down payment.

C. it is cheaper in the long run than purchasing.

D. it is easier to obtain credit on a lease than a purchase.

Question 10

The most notable SBA program available to small businesses is the:

A. SBA 1060 Guaranty.

B. Code 604 Guaranty Program.

C. 7(A) Guaranty Program.

D. SBA 101 Program.

Question 11

A __________ is a place within a market segment that represents a narrower group of customers with similar interests.

A. position market

B. niche market

C. slot market

D. gap market

Question 12

In __________, the list price is determined by estimating what consumers are willing to pay for a product and then backing off a bit to provide a cushion.

A. value-based pricing

B. tactical pricing

C. strategic pricing

D. cost-based pricing

Question 13

A __________ is a route a product takes from the place it is made to the customer who is the end user.

A. trade channel

B. product channel

C. promotion channel

D. distribution channel

Question 14

A firm’s marketing mix consists of the following four elements:

A. product, price, promotion, and place.

B. passion, presentation, promotion, and place.

C. place, promotion, presentation, and product.

D. expertise, promotion, product, and price.

Question 15

Once a firm has segmented the market, the next step is to:

A. decide on a position within the segment.

B. select a critical market.

C. select a target market.

D. decide on the “4Ps” of the marketing strategy.

Question 16

A __________ illustrates a firm’s positioning strategy relative to its major rivals.

A. product attribute map

B. positioning plot

C. competitive analysis grid

D. positioning diagram

Question 17

Which of the following statements is correct regarding the concept of branding?

A. Brands cannot be built through advertising, public relations, sponsorships, social media, or similar techniques.

B. ChA brand can denote a negative impression of a company.

C. Startups usually start with an established brand.

D. A brand can be one of a company’s most valuable assets.

Question 18

Creating __________ means creating awareness and a sense of anticipation about a company and its offerings.

A. noise

B. clatter

C. buzz

D. a ruckus

Question 19

__________ is a term that denotes the set of assets and liabilities that are linked to a brand and enable it to raise a firm’s valuation.

A. Trademark equity

B. Brand equity

C. Trademark value-add

D. Brand strength

Question 20

A firm’s __________ is the set of controllable, tactical marketing tools that it uses to produce the response it wants in the target market.

A. tactical mix

B. promotional blend

C. value mix

D. marketing mix