Entrepreneurship IA4 Prep

A business plan is helpful for which of the following reasons?

• It helps a business set future goals.

• It can take the place of an accountant.

• It sets a course of action that cannot be changed.

• It takes a long time to produce.

All the following are examples of assets EXCEPT

• stock purchased by company.

• an employee’s car used for deliveries.

• equipment owned by the business.

• accounts receivable.

By definition, a small business

• has only one location.

• has only one employee.

• has fewer than 500 employees.

• must have at least three employees.

Consumers are willing to pay more for a product if

• they perceive the brand as better.

• it is a complementary product.

• there are many comparable products.

• their friends have had a negative experience with it.

Entrepreneurs need to know the basics of accounting even if they hire a professional because

• the entrepreneur will be able to have the same level of expertise.

• the entrepreneur will need to understand the financial reports.

• the entrepreneur no longer needs to pay attention to accounting.

• the entrepreneur will need to tell the accountant what information is required.

Making sure that your business has something special and distinct to offer is known as

• diffusion

• differentiation

• distinction

• distancing

The fact that personal dynamics are more likely to be a problem in a family business is an example of

• reduced risk

• human risk

• natural risk

• economic risk

What are the potential consequences if a business does not follow regulations?

• The business can go bankrupt

• The business can be fined

• The business can lost its license

• All of the above

What is the difference between a marketing strategy and a marketing plan?

• A marketing strategy tells where a business wants to go and the marketing plan tells how to get there.

• There is no difference between a marketing strategy and a marketing plan.

• A marketing strategy is rather flexible, but a marketing plan should not be revised once it has been created

• A marketing plan is written first and forms the basis of the marketing strategy.

Which of the following is included in a job description?

• the supervisor’s contact information

• the amount of vacation time the company allows

• the personal attributes of the last person to hold the job

• the duties the person in the position performs