Entrepreneurship Test Review

Which of the following is NOT a benefit of being an entrepreneur?

• Steady, reliable income because you always get to pay yourself first

• Work in a field, on a project, that you're passionate about and that you enjoy

• Be your own boss rather than reporting to someone else

• Ability to provide a good or service that no existing company is doing

Connie lives in Tallahassee, FL, and wants to start an exercise studio that focuses on low-impact fitness classes that can be done in a seated position with light weights. Which of these groups most likely represents Connie's target demographic?

• Pre-school age children

• Professional athletes

• International viewers who could stream the workouts online

• Retirees who live in the community

What is the most significant difference between a small business and a startup?

• Startups intend to grow large quite rapidly, whereas small business tend to remain small

• Startups tend to be self-funded, whereas small businesses tend to have investors

• Startups are typically technology companies, whereas small businesses are typically restaurants

• Startups are far less risky than starting your own small business

True or False: Your business plan should always include advertising strategies in each of the 6 media types -- broadcast, print, support, direct marketing, product placement, and the internet.

• True

• False

Angelo thinks he has an outstanding idea for a startup, and he's pretty confident he's got all the qualities to be a successful entrepreneur -- he's confident, passionate about his work, not afraid to take risk -- but he's not so great at managing money and keeping to a budget. What should Angelo do next?

• Not form the startup -- he doesn't have all the necessary skills

• Start a nonprofit instead of a business, so that he doesn't need to worry about finance at all

• Find a partner to join the startup who IS good with finances, so his chances of success are higher

• Go forward with the startup and don't worry about the money -- his idea is so good the finances won't be an issue

A ______________ is a quick description of your business that you use to explain it to potential investors.

• Business plan

• Sales forecast

• Elevator pitch

• Business analysis

__________________ are the operating expenses that a business must pay regardless of how many sales are made.

• Fixed operating expenses

• Variable expenses

• Profits

• Production costs

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

• They should include an overview of your business goals and how you think you are going to achieve them

• They are created before starting a business

• They should never be revised

• They can help lower the risk of starting a new business

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

• Get a mentor

• Immediately put down a deposit for a storefront property

• Estimate the target market

• Create a business pitch

___________ is a potential group of customers, people, or businesses that are able and willing to purchase a particular product or service.

• A Direct Competitor

• Sales force

• An Indirect Competitor

• The Market