Chapter $6$ Mini$-$Case

Peppy Roaney believes that pizza is a much more versatile dish than most people realize. As the national marketing manager for Pizza Guys, he observed how consumers were delighted with barbecue pizza, Hawaiian pizza, Mexican pizza and other unique combinations. His suggestions for other unusual pizzas, however, were met with a negative response by his superiors. Even some of his colleagues laughed at his ideas. Peppy's confidence in his ability to understand the market has led him to focus on planning a business of his own. Peppy realizes that he will take a risk when he leaves his job with Pizza Guys and embarks upon a new venture: Peppy's Pizzazzeria. Peppy is excited about the potential of profitably catering to the unmet desires of pizza consumers.

Flag question: Question $1$

Question $12$ pts

$1.$ Given Peppy's willingness to accept the risks of opening and running Peppy's Pizzazzeria, he is clearly an example of a$($n$)$:

Group of answer choices

A$.$ arbitrageur.

B$.$ intrapreneur.

C$.$ gambler.

D$.$ entrepreneur.

Flag question: Question $2$

Question $22$ pts

$2.$ Peppy remains confident and enthusiastic even though his colleagues have poked fun at his ideas. This shows that Peppy is:

Group of answer choices

A$.$ self$-$disciplined.

B$.$ self$-$nurturing.

C$.$ self$-$generating.

D$.$ auto$-$inspirational.

Flag question: Question $3$

Question $32$ pts

$3.$ Peppy is confident that Peppy's Pizzazzeria will be a success, but only if he has enough money to do things right. Since Peppy has very little personal wealth, he knows he must obtain financial assistance. In order prepare for meetings with bankers and potential investors, Peppy should:

Group of answer choices

A$.$ hire a public relations firm to develop promotional materials.

B$.$ develop a business plan.

C$.$ read a book on entrepreneurship.

D$.$ create a partnership contract.

Flag question: Question $4$

Question $42$ pts

$4.$ Peppy has inquired about the possibility of obtaining a microloan from the SBA. This type of loan is awarded primarily on the basis of the:

Group of answer choices

A$.$ borrower's integrity and the soundness of the business idea.

B$.$ amount of collateral the borrower can pledge.

C$.$ borrower's credit history and record of previous business success.

D$.$ age of the borrower, since only senior citizens qualify.

Flag question: Question $5$

Question $52$ pts

$5.$ Peppy knows a lot about marketing, but not much about the legal or financial aspects of starting a new business. He wants to consult with a lawyer and accountant, but his budget is tight with all of the expenses involved in getting Peppy's Pizzazzeria up and running. Peppy should:

Group of answer choices

A$.$ delay talking with a lawyer and accountant until the business has established a positive cash flow for at least one year.

B$.$ trust his basic instincts and try to put it together without the advice of lawyers and accountants.

C$.$ consult with a lawyer and accountant even though the budget is tight.

D$.$ immediately hire full time lawyers and accountants for his staff.