Entrepreneurship and Business Growth Quiz

What is a business plan?

• A document containing random ideas and thoughts

• A document containing historical data of the business

• A document containing personal goals and aspirations

• A document containing business objectives and details about operations

What are the characteristics of a successful entrepreneur?

• Risk taker, creative, optimistic, hardworking

• Optimistic, innovative, self-confident, lazy

• Creative, independent, hardworking, introverted

• Risk averse, pessimistic, dependent, ineffective communicator

How can a business be classified as big or small?

• Number of customers, value of profits, value of assets, value of liabilities

• Number of shareholders, value of revenue, value of expenses, value of profits

• Number of branches, value of investments, value of expenses, value of debts

• Number of employees, value of output, value of sales, value of capital employed

What is internal growth of a business?

• When a business takes over or merges with another business

• When a business expands its existing operations

• When a business reduces its operations and focuses on a niche market

• When a business diversifies into a completely different industry

What is external growth of a business?

• When a business expands its existing operations

• When a business takes over or merges with another business

• When a business reduces its operations and focuses on a niche market

• When a business diversifies into a completely different industry

What is a vertical merger?

• When a firm merges with or takes over another firm in a completely different industry

• When a firm merges with or takes over another firm in the same industry at the same stage of production

• When a firm merges with or takes over another firm in the same industry but at a different stage of production

• When a firm merges with or takes over another firm in a different country

Why do some businesses stay small?

• Due to lack of demand in the market

• Due to lack of skilled employees

• Due to the personal objectives of the owners

• Due to poor financial management

What is a common cause of business failure for new firms?

• Poor financial management

• Lack of demand in the market

• Over expansion

• Lack of skilled employees

What is backward vertical integration?

• When a firm merges with or takes over another firm in a completely different industry

• When a firm merges with or takes over another firm in the same industry at a different stage of production

• When a firm merges with or takes over another firm in the same industry at the same stage of production

• When a firm merges with or takes over another firm in a different country

What is the main reason for poor management as a cause of business failure?

• Lack of skilled employees

• Over expansion

• Lack of demand in the market

• Lack of experience