DECA - Entrepreneurship Exam // Practice 2

What is the disadvantage of brainstorming ideas on your own?

• A. Absence of criticism from others

• B. Less flexibility

• C. Insufficient space

• D. Lack of exposure to others' viewpoints

Costs of sales for a new manufacturing venture typically include

• A. raw materials, equipment, and product inventory.

• B. internet access, attorney fees, and sales lead lists.

• C. trade show attendance, product inventory, and internet access.

• D. trade show attendance, raw materials, and equipment.

Which of the following is an inexpensive method for entrepreneurs to collect information during concept development:

• A. Conducting an observational study

• B. Researching similar products

• C. Creating a product prototype

• D. Introducing the product to a test market

Rae hired engineers to develop her new robotic coffee maker. Before the product is released, how can Rae keep the engineers from sharing her idea with others?

• A. Copyright

• B. Trademarks

• C. Nondisclosure agreements

• D. Patents

Business process design contributes to the standardization of work tasks by

• A. relying on the experience of veteran employees to ensure that defects are minimized.

• B. encouraging employees to complete their tasks based on their specific strengths.

• C. establishing best practices and communicating them throughout the organization.

• D. inspecting the quality of the final product and locating issues through the process of elimination.

Although hiring a highly skilled employee is an added expense, a business owner benefits because the employee's activities increase the firm's overall productivity based on their

• A. inability.

• B. self-control.

• C. expertise.

• D. attitude.

Bethany wants to make sure she is making informed, intelligent decisions for her entrepreneurial venture. Bethany should

• A. turn the business over to someone else.

• B. form and consult an advisory board.

• C. hire an assistant.

• D. become a business consultant.

Looking at problems from various points of view helps a small-business owner develop

• A. practical arguments.

• B. unpredictable results.

• C. creative solutions.

• D. unnecessary conflicts.

A car company has decided to invest less in its successful pickup truck and to use those funds instead on the development of its new hybrid vehicle. This is an example of

• A. a harvest strategy.

• B. risk mitigation.

• C. a marketing plan.

• D. the discovery process.

Which section of a feasibility study may not be necessary if the venture doesn't require any significant changes in human resources:

• A. Organizational

• B. Technical

• C. Market analysis

• D. Financial