ENTREPRENEURSHIP EXAM 1

A business that fails to protect its employees from unnecessary risk or health hazards on the job may be sued for

• libel.

• misrepresentation.

• negligence.

• incompetence.

What requirement of a legally enforceable contract requires that both of the parties who are entering into the contract are sane, sober, and of legal age?

• Genuineness of assent

• Consideration

• Capacity

• Legality of purpose

The owner receives all of the profits of the business and can act quickly in making business decisions when the form of business ownership is a

• corporation.

• partnership.

• joint venture.

• sole proprietorship.

Which of the following is the type of tax that businesses are required to collect from customers when they purchase certain goods or services:

• Estate

• Income

• Sales

• Corporate

Which of the following is a condition that must exist for channels to be effective:

• A. Channel members must not share tasks.

• B. They must have at least five members.

• C. Channel members must have varying goals.

• D. They must be properly managed.

Which of the following is a marketing function that can be performed by channel intermediaries:

• Promoting products

• Monitoring union activities

• Training employees

• Recruiting workers

A manufacturer of dishwashing soap has just invented a new type of soap that cleans better. The manufacturer should choose to distribute the soap through (a)   distribution.

• intensive

• exclusive

• inclusive

• selective

What type of information does a well-written proposal include?

• Vague goals

• Specific benefits

• Previous trends

• Contingency data

There are several auto repair shops in town, but Patricia's stands out. Her auto repair shop does great work, but what really sets her shop apart is the customer service. Every customer is greeted by a friendly employee, and s/he is given snacks and drinks while s/he waits for the repairs to be completed. The great customer service that people can expect from Patricia's business is considered her:

• vision

• tagline

• brand promise

• mission statement

Financial loss from investing time and money to comply with accounting standards is an example of which strategic risk:

• Changing customer needs

• Reputation damage

• Regulatory and political issues

• Obsolescence