Intro to Business

Which of the following is NOT true about an entrepreneur?

• a. An entrepreneur has ownership in the business
• b. An entrepreneur's salary is evaluated based on his ability to complete the tasks assigned to him
• c. An entrepreneur gets to act as his own boss.
• d. An entrepreneur is responsible for the success of their business

Which of the following is NOT a true statement about business plans?

• a. They are created before starting a business
• b. They can help lower the risk of starting a new business
• c. They should include an overview of your business goals and how you think you are going to achieve them
• d. They should never be revised

Which of the following is an advantage of starting your own business?

• a. During the startup phase, you do not have to think about funding
• b. You have control over where and when you work
• c. As long as you make a business plan, you will know what obstacles to expect
• d. You are in charge of the decision making so there is little to no risk

What is the main difference between a personal characteristic and a skill?

• a. Many people are born with business skills, but not characteristics
• b. Characteristics become skills over time
• c. You can learn a characteristic, but not skills
• d. Skills can be learned while characteristics are inherent qualities

What role do entrepreneurs play in economics?

• a. Entrepreneurs tell consumers what they should want or need
• b. Entrepreneurs create the businesses that produce products that meet the wants and needs of consumers
• c. Entrepreneurs borrow money from the economy to start their businesses
• d. None of the above

Which of the following ensures a good idea for a business is an actual business opportunity?

• a. The idea solves a unique need or want in the market that a group of customers is willing to buy.
• b. The idea is something that no one has ever thought of before
• c. The entrepreneur is really passionate about the idea
• d. The entrepreneur will have to spend a lot of money and time to implement the idea

Which of the following should you NOT do when collecting and evaluating data on your market?

• a. Find data on what your target market segment thinks and shift your business to meet their needs or wants
• b. Only look for data that supports your initial idea
• c. Gather data on what your competitors are doing and create a competitive advantage to stay relevant in the market
• d. Collect data from a variety of sources and perspectives

Which of the following is NOT a way that an entrepreneur could increase the contribution margin or profit of each unit sold?

• a. Decrease the variable expenses per unit
• b. Decrease the monthly fixed expenses for the business
• c. Change how the unit is defined
• d. Increase the selling price

Why is it important to use the information gathered from your market research on your target market segment to build your marketing plan?

• a. Marketing strategies should be designed to appeal to these potential customers
• b. It's less costly if you use research to build marketing strategies
• c. Magazines and TV stations will ask to see research before you can buy advertisements
• d. None of the above-market research is not important

Sharon is thinking about opening a bakery. Which of the following would NOT be a good early step?

• a. Create a business pitch
• b. Get a mentor
• c. Estimate the target market
• d. Immediately put down a deposit for a storefront property