Entrepreneurship 2.0b

Regan is deciding if she is willing to give up a secure position with a well-known company so she can start a home-based business. Which of the following risks is Regan assessing:

• Career
• Social 
• Physical
• Financial 

Ben is conducting a feasibility study for a new venture idea. Which of the following questions should Ben answer in terms of the venture's financial considerations:

• How will the business obtain the money it needs?
• What regulations is the business likely to encounter?
• Is there a real demand for the idea, good, or service?
• How will the business communicate information about its products?

What is often a positive result of accepting responsibility for a poor decision?

• You reinforce skeptical attitudes.
• You control others' opinions. 
• You demonstrate self-importance.
• You gain others' respect.

Which of the following is an operational issue that entrepreneurs must consider when planning their businesses:

• Source of financing
• Target market
• Production process
• Direct competitors

The costs of operating a business are often called _____ expenses.

• fixed
• overhead 
• variable 
• markdown

Jack, a manager, said to his staff, "I know that many of you think that this is a risky course of action. But, I've decided that we should proceed. If this is successful, it could greatly benefit the company. If it fails, I'll accept the consequences and work to find a solution." What is Jack doing?

• Requesting that his staff support his decision
• Indicating that he doesn't think he's made a good decision
• Asking his staff to share the blame, if the action fails
• Accepting responsibility for his decision

Which of the following is a characteristic of a well-conducted feasibility study:

• Subjective
• Abbreviated 
• General 
• Complete

Costs of sales for a new manufacturing venture typically include:

• trade show attendance, raw materials, and equipment.
• raw materials, equipment, and product inventory.
• trade show attendance, product inventory, and internet access.
• internet access, attorney fees, and sales lead lists.

One-time start-up costs often include ______ fees.   

• shipping and postage
• incorporation
• trade association
• website maintenance

Variable expenses increase in direct proportion to the increases rate of

• competition.
• production.
• automation.
• motivation.