IBT Unit 3 Assessment

In which type of business ownership do two or more people share responsibilities, profits, and liabilities?

• Sole proprietorship

• Corporation

• Partnership

• Franchise

What does "entrepreneurship" refer to?

• The act of managing a corporation

• The process of starting and running a business

• The act of being an executive of a Fortune 500 company

• Working in a government position

Which of the following is a common trait of successful entrepreneurs?

• Avoidance of risks

• High level of creativity

• Preference for routine

• Lack of adaptability

What is the primary function of a business plan?

• Works to confuse competitors into submission

• Serves as a guide for business operations

• Serves as a means to an end for legal purposes

• Ensures quicker sales and profitability

Which of the following is necessary for the long-term success of a small business?

• Lack of consumer outreach & engagement

• Continuous market and technological adaptation

• Maintaining the original operating strategy of the business

• Refusing to adapt to new technologies, as they can destroy the business

How should an entrepreneur respond to unexpected challenges?

• Ignore them and keep pushing on

• Be flexible, adaptive, and creative

• Blame others for their own failures

• Stick rigidly to their original business plan

How does a well-structured business plan contribute to risk management?

• It does not affect risk management.

• It identifies potential risks and outlines mitigation (risk reduction) strategies.

• It focuses primarily on marketing and growth opportunities for the business.

• It reduces the need for monitoring competition.

How can an entrepreneur BEST leverage (use) technology for marketing purposes?

• By limiting their online presence and engaging primarily in business face to face.

• By using social media to engage in digital advertising on popular platforms like TikTok and YouTube.

• By using the internet to purchase advertising space on interstate billboards.

What can be a result of failing to adapt to technological advancements?

• Increased customer loyalty

• Advantage vs. competitors

• Decline of business

• Greater market share

Which factor is the MOST critical when evaluating a potential business opportunity?

• The amount of employees the business will need to hire.

• Market demand and competition.

• The popularity of similar businesses.

• The entrepreneur’s geographical location.