Entrepreneurship 2.07-2.11 Test Review

A business that identifies products to sell that fill needs is

making which decision?

• Line Extension

• Product Mix

• Customer Service

• Quality Control

An entrepreneur considers the location and financial needs of a business venture during which process?

• Distribution

• Controlling

• Implementation

• Planning

Which is the FIRST factor that a business should consider when it is deciding if it should sell a product?

• Promotional Strategy

• Taxation rate

• Storage space

• Market demand

Which is a way that a business can determine if a product will fulfill the needs of a target market?

• Observe workers

• Distribute promotional materials

• Ask the customers

• Develop a prospect list

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

• Medium

• Product

• Utility

• Target market

Which is a characteristic of a well-conducted feasibility study?

• Subjective

• Abbreviated

• General

• Complete

Which statement is true about business start-up requirements?

• Equipment is the least expensive requirement for a start-up business

• A new business owner usually needs to register for patent protection

• Purchasing a franchise is usually easy and inexpensive for start-up business owners

• The financial needs to start a new business depend on the nature of the venture

The primary purpose of a feasibility study is to answer which question?

• What are the opportunity costs of this project?

• What technology will be needed for this project?

• Should we proceed with this project?

• Is this business plan valid?

Ben is conducting a feasibility study for a new venture idea. Which question should Ben answer in terms of the financial considerations for the venture?

• 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?

Which is a tool that an entrepreneur develops to project sales for a new business venture?

• Marketing objectives

• Sales forecast

• Promotional budget

• Inventory report