Tuttle Twins: Show Business Quiz

What is a monopoly?

• A business that does not have any competition.

• When there is a lot of competition between businesses.

• A board game about railroads.

• A way to make sure that customers have a lot of choices.

Answer explanation

A monopoly is defined as a business that has no competition, allowing it to control the market and set prices without rival influence. This makes the first choice the correct answer.

What are problems with a monopoly?

• High prices, poor quality, little variety.

• Lowest prices, best quality, more variety.

• Everyone gets tired before the game is over because it takes too long.

• Monopolies make business too fair.

Answer explanation

Monopolies often lead to high prices because they lack competition. This can result in poor quality products and limited variety, as consumers have no alternative options. Thus, the correct choice highlights these negative aspects.

What is a budget?

• A document listing how much money is being received and spent.

• How much money you wish you had.

• How much it is going to cost to start a business.

• The amount of money you have in your bank.

Answer explanation

A budget is primarily a document that outlines how much money is being received and spent, making the first answer choice the correct one. The other options do not accurately define what a budget is.

What is an entrepreneur?

• A business owner who identifies a need and assumes risk to meet that need in hopes of earning a profit.

• A person who works for someone else.

• A person who works for the city at the new rec center.

• A person who acts in plays.

Answer explanation

An entrepreneur is a business owner who identifies a market need and takes on the associated risks to fulfill that need, aiming to generate profit. This distinguishes them from employees or those in unrelated roles.

What is a network?

• The people you know and interact with who you can work with to help build a business.

• A TV channel.

• A group of people who run city government.

• Costume designers in a play.

Answer explanation

A network refers to the people you know and interact with, particularly in a business context. This choice highlights the importance of relationships in building and growing a business, unlike the other options which are unrelated.

Is competition good or bad in business? Why?

• Competition is good because it gives customers the lowest prices, the best quality, and more variety.

• Competition is bad because it forces people to buy products they don’t want.

• Competition is good because it forces people to buy products they don’t want.

• Competition is bad because it makes companies work hard to get customers.

Answer explanation

Competition is beneficial as it drives businesses to offer lower prices, higher quality, and a wider variety of products, ultimately enhancing customer satisfaction.

Why is it important to identify who you are before becoming an entrepreneur?

• Not everyone likes taking risks, and although entrepreneurship can be rewarding, it also requires a lot of risk and a lot of discipline so you have to think about if you’re the kind of person who is willing to work hard and take risks in order to get a reward.

• Not everyone is allowed to be an entrepreneur.

• Some people don’t like being in front of large crowds, and that makes them unlikely to be successful as entrepreneurs.

• Only rich people can become entrepreneurs.

Answer explanation

Identifying who you are is crucial because entrepreneurship involves significant risks and requires discipline. You need to assess if you are willing to work hard and embrace those risks for potential rewards.

How do you make a business plan?

• Write out how your business will operate in order to meet its future goals.

• Write a play and ask your grandma to give you money to buy costumes.

• Buy a large theater and hope that lots of people come to your shows.

• Ask your boss to give you their business because you do a lot of work there.

Answer explanation

The correct choice outlines the essential steps for creating a business plan, which involves detailing how the business will function to achieve its goals. The other options are irrelevant or impractical.

What is the first thing you need to identify when you want to start your own business?

• You have to think of creative ways to improve people’s lives.

• You have to borrow money from a wealthy family member.

• You have to write a play.

• You have to find an office space to buy.

Answer explanation

The first step in starting a business is identifying a need or a way to improve people's lives. This creative thinking lays the foundation for a viable business idea, making it the most crucial initial step.

Why did Nana’s Dance Studio have to close?

• The city used tax money to open their own dance center and could charge a lot less for lessons than private businesses could so a lot of small dance studios had to close.

• She wasn’t a good ballet teacher.

• She didn’t get the proper licensing to stay open, so the city made her close her business.

• She forgot to pay her taxes.

Answer explanation

Nana’s Dance Studio had to close because the city opened its own dance center using tax money, allowing them to charge lower prices for lessons, which forced many small studios to shut down.