MANA 3325
Professor Thurburn
Mid Term Exam Answer Guide
Student Name: _______________________________
Print Clearly
1. Define Entrepreneur:
a. One who creates a new business in the face of risk and uncertainty for the purpose of achieving profit and
growth by identifying opportunities and assembling the necessary resources to capitalize on them.
2. List 3 Characteristics of Entrepreneurs: (potential answers)
a. Desire for responsibility
b. Preference for moderate levels of risk – risk eliminators
c. Confidence in their ability to succeed
d. Determination
e. Desire for immediate feedback
f. High level of energy
g. Future orientation – opportunity, necessity, and serial entrepreneurs
h. Skilled at organizing
i. Value achievement over money
3. List 3 Benefits of being an Entrepreneur: (potential answers)
a. Create your own destiny
b. Make a difference
c. Reach your full potential
d. Reap impressive profits
e. Contribute to society and to
be recognized for your efforts
f. Do what you enjoy and to have fun at it
4. List 3 Drawbacks of being an Entrepreneur: (potential answers)
a. Uncertainty of income
b. Risk of losing your entire investment
c. Long hours and hard work
d. Lower quality of life until the business gets established
e. High levels of stress
f. Complete responsibility
g. Discouragement
5. A Design Patent is Superior to a Utility Patent. __ True _ x _ False
6. A Utility Patent expires in 20 years. _ x _ True __ False
7. A Design Patent may be extended for 14 years when it expires. __ True _ x _ False
8. A Copyright need not be filed with the Patent Office to be enforceable. _ x _ True __ False
9. Select the form of Capital does not belong in the following list:
a. __ Human Capital
b. _ x _ Financial Capital
c. __ Structural Capital
d. __ Customer Capital
10. Define Competitive Advantage:
a. Any aspect of how you operate your business that is difficult for your competitors to copy and which customers
appreciate and respond to.
11. The 3 elements of a Mission Statement cover all of the following EXCEPT…
a. __ Purpose of the company
b. __ Customers the company targets
c. __ Values of the company
d. _x_ Core Competencies
MANA 3325
Professor Thurburn
Mid Term Exam Answer Guide
Student Name: _______________________________
Print Clearly
12. In the context of Assessing a Company’s Strengths and Weaknesses, define Strengths:
a. Positive internal factors a company must overcome to accomplish its mission, goals, and objectives.
13. Describe the difference between a Strength and Opportunity.
a. Strengths are Internal and Opportunities are External
14. List 3 potential Strengths: (potential answers)
a. Loyal Customers
Special Skills
b. Special Knowledge
Superior Products
c. Positive Public Image
Employee Experience
d. Unique Suppliers
15. Which of the following Threats were not listed in the book as a Threat? ALL ANSWERS ARE GOOD
a. _ x _ Law Suits
b. _ x _ Environmental Disasters
c. _ x _ Loss of Key Individuals
d. _ x _ Failure to Secure Funding in the Future
16. Which of the folliwng types of Competitors was listed in the book and represents the least potential threat?
a. __ Significant Competitor
b. _ x _ Indirect Competitor
c. __ Major Competitor
d. __ Direct Competitor
17. List the Two (2) Primary Revenue Models:
a. Recurring Revenue
b. Non-Recurring Revenue
18. List three (2) other factors that define a Business Model other that the answer to #17 above. (potential answers)
a. Customer Profile
b. Value Proposition
c. Differentiation
d. Pricing
e. Selling Process
f. Distribution
g. Support
19. When considering Market Research… Primary Research is generally more expensive while Secondary Research is
generally less valuable. _x _ True __ False
20. Goals are both Long Range and Abstract/Lofty
21. List the six (6) ‘characteristics’ of Objectives:
a. Specific
b. Measurable
c. Assignable
d. Realistic
e. Timely
f. Written
22. Who are the Three (3) groups you would write a business plan for?
a. Yourself
b. Partners
c. Investors/Lenders
MANA 3325
Professor Thurburn
Mid Term Exam Answer Guide
Student Name: _______________________________
Print Clearly
23. Define Value Test:
a. Does the proposed venture have a realistic probability of returning enough on the Investment to make it worth
doing?
24. DEFINITION: “A market really does exist for your product or service and you can actually build or provide it for the
cost estimates in the plan.“ Which of the following is the foregoing a definition of?
a. __ Competitive Test
b. _ x _ Reality Test
c. __ Value Test
d. __ Implementation Test
25. A Feasibility Analysis includes the following analysis activities… EXCEPT:
a. __ Financial Feasibility Analysis
b. _ x _ Competitive Feasibility Survey
c. __ Product & Service Feasibility Analysis
d. __ Industry and Market Feasibility Analysis
26. When performing a Financial Feasibility Analysis you look at three things to determine if the project makes sense.
Those three things include all of the following… EXCEPT:
a. __ Capital Requirements
b. _ x _ Asset Productivity
c. __ Return on Investment
d. __ Estimated Cash Flow and Earnings
27. The Five C’s of Capital include all of the following… EXCEPT:
a. __ Capital
b. _ x _ Contracts
c. __ Collateral
d. __ Character
28. The Business Plan must satisfy all of the following Tests… EXCEPT:
a. _ x _ Reasonable
b. __ Reality
c. __ Value
d. __ Competitive
29. The following statement “a descriptive fact about a product or service” represents which?
a. _ x _ a Feature
b. __ a Benefit
30. The following list of disadvantages would apply to a _sole proprietor__ form of business. Note: The list is for you to
use to decide what form of business belongs in the blank… not to select from.
a. Unlimited personal liability
b. Limited skills and capabilities
c. Feelings of isolation
d. Limited access to capital
e. Lack of continuity of the business
31. A Corporation has all of the following attributes EXCEPT:
a. __ Is a separate legal Entity from its owners.
b. _ x _ Management has personal liability for losses
c. __ Unlimited Life as an Entity
d. __ Is Taxable as an Entity
MANA 3325
Professor Thurburn
Mid Term Exam Answer Guide
Student Name: _______________________________
Print Clearly
32. Which of the following is a Corporation with more than 200 shareholders, about 20 or which are family members
who own the majority of the share that has been organized outside of your State but inside the United States?
a. __ Domestic
b. _ x _ Foreign
c. __ Public
d. __ Alien
33. Which of the following contains the best definition of marketing?
a. __ Includes Advertising, Brand Management, and Lead Generation.
b. __ Includes Market Research, Advertising, and Sales Management.
c. _ x _ Includes Market Research, Advertising, Selling, and Customer Service
d. __ Includes Sales Management, Lead Generation, and Closing the Sale.
34. Advertising is primarily related to Lead Generation. _ x _ True __ False
35. Selling is the art of converting a Need into a Want. _ x _ True __ False
36. Place the 5 steps in the Consumer Perception Process in the proper sequence by putting a 1, 2, 3, 4 or 5 in front:
a. _2_ Top of Mind Awareness
b. _3_ Authority
c. _1_ Awareness
d. _5_ Purchase
e. _4_ Trhuse
37. What is the following is the primary difference between Traditional Media and Digital Media? __Interactivity____
38. Fill in the Blank: Attracting new customers costs the typical business ____________ times as much as keeping
existing customers.
a. __ 6-8
b. _ x _ 7-9
c. __ 9-10
d. __ more than 9
39. Fill in the Blank: A company must land __________ new customers to offset the impact of one lost loyal customer!
a. __ 8-12
b. _ x _ 12-20
c. __ 20-25
d. __ more than 25
40. List the 4 steps in conducting Market Research:
a. Define the Problem
b. Collect Data
c. Analyze Data
d. Implement Proposed Plan of Action
41. Define SEO (Search Engine Optimization)
a. Anything that you do digitally that helps to get your website found on Page 1 of Google for a specific search
term or keyword phrase.
MANA 3325
Professor Thurburn
Mid Term Exam Answer Guide
Student Name: _______________________________
Print Clearly
42. SERP stands for (fill in the blanks):
a. __ Search Results Page
b. __ Search Engine Resolution Point
c. _x_ Search Engine Results Position
d. __ Search Engine Rank Potential
43. Regarding Keywords and Keyword Phrases… the shorter the Keyword Phrase the greater the number of searches
performed but the less qualified the buyer. _ x _ True __ False
44. Page Rank is a numerical value between 1 and 10 that represents the Authority that Google assigns to your website
content. __ True _ x _ False
45. The Case Study Recipe has three steps. List those steps:
a. Problem
b. Solution
c. Benefit
46. How do Americans Define Product Quality? List 2 of the 5 covered in lecture…(potential answers)
a. Reliability (average time between breakdowns)
b. Durability (how long an item lasts)
c. Ease of use
d. Known or trusted brand name
e. Low price
47. Telling a story is the most effective marketing that you can use. _ x _ True __ False
48. Dominos, Pizza Hut, and Little Cesar’s are examples of:
a. __ Product Distribution Franchising
b. __ Trade Name Franchising
c. __ Name Format Franchising
d. _ x _ Pure (Business Format) Franchising
49. Harley Davidson, Chevrolet and Mercedes Benz are examples of:
a. __ Pure (Business Format) Franchising
b. __ Trade Name Franchising
c. __ Product Name Licensing Agreements
d. _ x _ Product Distribution Franchising
50. True Value Hardware and Western Auto are examples of:
a. __ Product Distribution Franchising
b. __ Pure (Business Format) Franchising
c. __ Trade Product Franchising
d. _x_ Trade Name Franchising