EOPA Prep 3

1.         Zander owns a company that buys tea from other companies in China and sells it to grocery stores. Zander's company is a(n)

• industrial user

• retailer

• producer

• wholesaler

Troy has discovered an innovative technology with huge growth potential. He needs $1,000,000 in funding and expert technical advice to launch his business venture. What funding source would be best for him to pursue?

• commercial bank

• angel investor

• family and friends

• venture capitalist

The type of capital resources that a startup business needs to begin operating usually depends on the

• vendors' lead time

• location

• owner's preferences

• industry

To maximize the efficiency of complex business operations, business owners must

• establish standards after conducting a SWOT analysis

• work with financial advisors to reduce tax liability

• rely on economic indicators to develop business strategies

• understand the interdependence of all business functions

A potential benefit to new business owners of establishing business systems and procedures is

• the elimination of employee errors

• improved utility services

• less reliance on networking

• the efficient use of resources

Which of the following terms best describes the overall procedures that guide a small business's activities by standardizing the way the business functions:

• safety

• credit

• operating

• hiring

A small-business owner who uses the brainstorming technique to find solutions to difficult situations is trying to

• plan contract negotiations

• assess long-term budgets

• creatively solve problems

• intentionally prevent conflict

By joining a community organization, such as the local chamber of commerce, an entrepreneur can network with others to

• improve goods and services

• obtain selling experience

• evaluate personal skills and abilities

• identify new venture opportunities

Answer explanation

Aaron, a small-business owner, develops an exit strategy so that his company keeps growing and prospering in the marketplace after he leaves. The exit strategy is one aspect of Aaron's

• competitive advantage

• control system

• management style

• continuation plan

Ellen wants to step back from the day-to-day activities of running her company. She decides to take the company to another level by selling public stock. One way Ellen can stay involved in the company is by

• appointing a family member as president

• serving on the board of directors

• arranging a tactical acquisition

• hiring her successor