Entrepreneurship Final Exam Study Guide 2

_____ describes personal characteristics of a population.

• Diversities

• Demographics

• Ethnicities

• Cultural segmentation

Hiring a firm to design and produce packaging for your product is an example of _____. 

• outsourcing
• demographics
• innovation
• corporate venture

Forming a partnership with another company is known as a _____.

• joint venture
• corporation
• strategic alliance
• melding

To find a new business, you may need to hire a(n)

• banker

• investor

• owner

• business broker.

An asset of acquiring an existing business is customer loyalty, or

• goodwill

• the use of customers’ credit cards

• ill will

• customers’ curiosity about the new owner

A franchisor:

• Buys a franchise and must be trained to operate the business

• Collects a finders fee for franchising a business

• Opens a business from scratch

• sells the right to open stores and sell products or services using its brand

Finding new ways of doing things is:

• Innovation

• Customer loyalty

• Industry

• Business accumen

When franchising a business, what is a royalty fee?

• A percentage fee of taxes that must be to the Internal Revenue Service.

• a fee calculated as a percentage for the use of a business' name, products and services, and customers.

• the cost of doing business that a business incurs for selling goods or services.

• Money paid to Mr. Hirsh

Starting a new business entails more ____________________ than opening a franchise.

• time and effort

• money

• starting capital revenue

• experience

One secret to finding a good business opportunity is the ability to understand ____________________, because changes in interests create profitable niches for new businesses to fill.

• an industry

• taxable income

• good accountants

• the law