Entrepreneurship 1 Mid Term Review (M)

Which of the following examples illustrates how environmental factors are interrelated:

• The economy affects what competitors are doing.

• New legislation will be written in the future.

Variable expenses increase in direct proportion to the increased rate of

• motivation.

• production

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

• Production process

• Target market

An entrepreneur considers venture location and financial needs during the ____________ process.

• planning

• implementation

Which of the following is a tool that an entrepreneur develops to project sales for a new business venture:

• Inventory Report

• Sales forecast

When planning for her new business, Janine allocates two percent of the company's estimated annual sales to web and newspaper advertising. Janine is developing a

• promotional budget

• sales report

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

• product mix

• target market

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

• Ask the customers

• Develop a prospect list

The primary purpose of a feasibility study is to answer which of the following questions:

• Is the business plan valid?

• Should we proceed with this project?

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

• Complete

• General