Entrepreneurship Exam

Successful entrepreneurs are good at recognizing opportunities.

• True

• False

Planning ahead doesn’t work for entrepreneurs because new businesses are too unpredictable.

• True

• False

Running your own business is difficult, and many companies started by entrepreneurs

go out of business.

• True

• False

In your business plan, you will need to identify who your target customer is and how you will keep your customers.

• True

• False

Researching all the parts of your business will not teach you a great deal about running a business but may provide you with specific ideas for starting up your company.

• True

• False

The marketing section of your plan should describe the products or services you plan to offer.

• True

• False

A disadvantage of buying an existing business is that banks are less likely to lend to a new owner.

• True

• False

The initial franchise fee, start-up costs, and royalty fees have to be paid only the first year of operation.

• True

• False

Franchises must offer only certain products or services and must charge prices set by the franchisor.

• True

• False

Identifying your target customer will not help you estimate demand for your product or service.

• True

• False