Indiana University BUS-W300 Midterm

4 Stages of creative problem solving

1) Generalization

2) Conceptualization

3) Optimization

4) Implementation

What are the "4 I's" of building a comprehensive mobile social media marketing strategy?

1) Integration

2) Individualization

3) Involvement

4) Initiation

What does collaborate mean?

a means of establishing mutually beneficial relationship. Social media is a key way to build relationships

What type of marketing research is easily conducted from data already retrieved from the place of business

Sales Analysis

Professor Pieratt advises us to always be _____ in our businss dealings

Customer-focus & Proactive

A _____ Terminates on death or withdraw of sole proprietor

Sole Proprietorship

A ______ is managed by a board of directors

Corporation

Owners interest is freely transferable in what form of business

Corporation

What is a market niche danger signal?

Signals that the store's group of market niche is eroding

What is a significant deterrent in future growth of out economy

Lack of skilled workers

Professor Pieratt said knowing that you cannot sell a product at a price below a specific level and that your customers also will not buy that same product either above or below a specific level is an example of knowing your:

Relevant Price Range

A _____ has only one seller or producer, and no substitutes for the desire good or service exists

monopoly

An _____ is a market with a few dominant firms

Oligopoly

Richard Johnson was an entrepreneurial pioneer in _____.

Gas station/ convenience stores

Franchising is an agreement between a _____ and a _____

Franchisor and franchisee

Which of the following is not an advantage of the corporate form of ownership?

a) Limited Liability

b) Indefinite Life

c) Growth Potential

d) Limited Taxation

d)

Limited Taxation

Which form of business incurs double taxation

C-Corporation

Which of the following is not one of the disadvantages of a sole proprietorship?

a) Unlimited Liability

b) Limited size

c) Limited life

d) Lack of restrictions

d)

Lack of restrictions

Professor Pieratt agrees with the "6 Billion Customers" concept that focuses on enormous groth with reliance on

Mobile

What is the main benefit of Focus Groups?

Provides significant QUALITATIVE data within a short period of time

Individuals who want to invest in a partnership but do not want to risk all of their assets can do so as:

Limited Partners

A _____ is NOT known as a partner by the general public and does not play an active role in the operation of the business

Dormant Partner

Franchising is an arrangement where one party grants another party the right to

a) To use its trademark or trade-name

b) Certain business systems & processes

c) Produce and market a good or service

d) All of the above

d)

All of the above

new/new

look to create a new service

new/old

improving a service

Skills to make problem solving problem successful

1) Divergence

2) Convergence

3) Differing judgement

What is key in entrepreneurship

Motivation

Book Value

Value from an accounting standpoint

Dont expect what you cant inspect

Conceptualization

process of utilizing divergent thinking

Critical elements to negotiation

1) information

2) time

3) pressure

4) alternatives

To buy or build a Subway or McDonals franchise in 2018, Professor Pieratt estimated the cost at....

$500,000 to 1.8 million

In lectures, Professor Pieratt stressed seeking ____ and _____ advice

Legal and Accounting

Number one reasons new ventures fail?

Lack of understanding

Silent Partner

Known to the general public but doesnt do anything with the business

Dormate Partner

Isnt known by the public and doesnt do anything with the business

Limited Partner

Want to invest in partnership but doesnt involve all his/her assets

S-Corporation

Tax flows through only pay once

Sales Analysis

Market research easily conducted from the data

Liquidation Value

how much a business is worth

Cash Flow Value

how much money runs through the business

Book value

accountants worth

characteristics of an entrepreneur

having tolerance for ambiguity

#1 thing to look at before buying a business

Whyre they selling

Fact finding strategies

1) aware of conscious assumptions

2) look for truth

3) share information

Decision to be an entrepreneur

1) Existence of a business idea

2) persons personal characteristics

3) Business environment

Trade credit

paying for something after it's delivered

What are the two most important things on the Business Model Canvas

Value Proposition & Customer Segments

Successful entrepreneurs know the....

value of passion and customer focus

Looking again at the potential sources of financing, especially the most frequently used

personal savings

General Partnership

Unlimited liability. Each partnership must have at lease one General Partner (with ultimate responsibility for the firm). If all partners are this type, its called a General Partnership

Secret Partner

Active to the company but unknown to the public

Nominal Partner

a partner in name only, investing no money and playing no role in management

Advantages and Disadvantages of Corporations

Advantages:

*Limited Liability

*Indefinite Life

*Growth Potential

*Managerial Efficiency

*Transfer of Owner

Disadvantages:

*Heavy taxation

*High organizing expenses

*Government restrictions

*Lack of secrey

Advantages and Disadvantages of Sole Proprietorships

Advantages:

*Financial Advantages

*Lack of Restrictions

*Secrecy

*Personal Satisfaction

Disadvantages:

*Unlimited liability

*Limited size

*Limited life

Pricing Stages

1) Introductory Stage

2) Growth Stage

3) Maturity Stage

4) Decline Stage

Skimming (Pricing Strategy)

Deliberately setting a high price to maximize short term profits

Penetration (Pricing Stages)

setting prices at such a low level that products are sold at a lose

Consumer Pricing (Pricing Strategies)

Combining penetration and competitive pricing in order to gain market share; depends on consumer's perceived value of the product

Demand-oriented Pricing (Pricing Strategies)

A flexible strategy that bases pricing decisions on the demand level for the product

Loss leader pricing (Pricing Strategies)

Pricing the product below cost in an attempt to attract customers to other products

5 stages of Design Thinking

1) Empathize

2) Define

3) Ideate

4) Prototype

5) Test

Advantages and Disadvantages of Starting a New Venture

Advantages:

*Independence

*Financial opportunities

*Community service

*Job Security

*Family employment

*Challenge

Disadvantages:

*Sales fluctuations

*Competition

*Increased Responsibilities

*Financial Losses

*Employee relations

*Laws and regulations

*Risk of failure