Entrepreneurship I (Unit 2)

Which of the following is a way that a business can determine if a product will fulfill its target market's needs:

•  Observe workers
•  Distribute promotional materials. 
•  Ask the customers
•  Develop a prospect list

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

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

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

The primary responsibility of the facilitator of a product idea brainstorming session are to compile all of the ideas and

•  keep the group on task. 
•  judge the bad ideas. 
•  select the best idea. 
•  evaluate the group's creativity. 

Which of the following statements is true about entrepreneurial discovery:

•  It ensures that start-up businesses have continuous funding. 
•  It's an ongoing process that facilitates a business's success rate. 
•  It provides entrepreneurs with professional development training. 
•  It's a way to determine the long-term profit that a start-up company can generate. 

Which of the following is a global trend that might encourage an entrepreneur to consider international business opportunities:

•  Higher allowances
•  Lower tariffs
•  Enforceable trade agreements
•  Flexible currency rates

In order for a business to generate a profit, its operating costs must be ___________ the gross margin.

•  equal to
•  greater than
•  less than
•  identical to

People who are naturally creative often are 

•  highly educated. 
•  physically active. 
•  mentally flexible.
•  emotionally controlled.

When determining venture-creation opportunities, entrepreneurs must first

•  obtain financing. 
•  conduct research.
•  identify staffing needs.
• select a location.

A business might take an existing product and alter it to fulfill a specific need for a different 

•  medium.
•  product mix.
•  utility. 
•  target market.