A landscaper believes that if a value proposition can be identified that makes the business stand out, the business will grow.

Which 3 strategies are considered potential value propositions to customers of a new business?

• Installing new inventory management software

• Streamlining staffing through job sharing options

• Offering free consultations

• Becoming a leader in a trade association

• Providing extended hours

An individual owns a dog grooming business and must pay self-employment tax on individual earnings.

Which type of legal structure makes self-employment tax a relevant concern?

• C corporation

• S corporation

• Sole proprietorship

• Limited liability companies

A real estate agent started a successful business, but is concerned because revenues are down and the number of sales have dropped rapidly over the last year.

The agent wants to increase the likelihood of business success and sustainability over time.

What should the agent do?

• Eliminate promotional materials to reduce costs

• Develop a marketing plan based on an analysis of why revenues are failing.

• Impose an across-the-board cut of 25% in all expenditures

• Update the business website with a new logo

An independent pizza operator wants to reach customers who eat pizza at a competing national chain.

Which is a strategy for identifying those customers?

• Advertise more than the competitor

• Accept competitor coupons

• Determine revenues of competitor

• Offer a broader menu than the competitor

A cabinetmaker is seeking a new customer for a business that makes expensive cabinets. The cabinetmaker has identified a group of potential customers with high incomes.

Which method of segmentation is the owner using?

• Behavioral

• Demographic

• Geographic

• Psychographic

Which component of a business plan addresses a company's understanding of why their business would succeed in a specific marketplace?

• Competitive Analysis

• Supply chain analysis

• Transportation analysis

• Workforce analysis

The chef of a fine dining restaurant has created several DVDs demonstrating how to prepare the restaurant's best-selling menu items. The chef wants to protect intellectual property rights for the videos.

What action should the chef take?

• Apply for a patent on the videos

• Insert anti-piracy software on the DVDs

• Register the DVDs with the Copyright Office

• Register the restaurant's trademark

A regular customer at a restaurant ordered a steak. The server realizes that the steak came out overcooked. The customer is visibly displeased but does not complain.

The owner wants to give good service and retain this valued repeat customer.

What should the server do FIRST to achieve this goal?

• Allow the customer to finish the meal and discuss the situation later

• Avoid discussing the situation to reduce conflict

• Bring the steak to the owner and gain agreement that the customer should get a new steak

• Wait for the customer to complain, then agree that the steak was overcooked

What is a charasteristic of an entrepreneur?

• Evasive

• Passive

• Smug

• Tenacious

Part 1:

A dog groomer wants to start a business in a local strip mall. The goal is to sell the grooming packages at an average of $30 and break even within one year of operating. For this analysis, the groomer needs to know fixed cost, variable costs, and how many grooming service packages (units) need to be sole in order to break even.

Given the above costs, what is the total fixed costs amount.

• 7,242

• 7,858

• 160,000

• 220,000