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WorksheetsEntrepreneurship I (Unit 2)
Total questions: 46
Worksheet time: 40mins
Name
Class
Date
1.
Which of the following is a way that a business can determine if a product will fulfill its target market's needs:
a)
Observe workers
b)
Distribute promotional materials.
c)
Ask the customers
d)
Develop a prospect list
2.
Regan is deciding if she is willing to give up a secure position with a well-known company so she can start a home-based business. Which of the following risks is Regan assessing:
a)
Career
b)
Social
c)
Physical
d)
Financial
3.
One-time start-up costs often include _____________ fees.
a)
shipping and postage
b)
incorporation
c)
trade association
d)
website maintenance
4.
The primary responsibility of the facilitator of a product idea brainstorming session are to compile all of the ideas and
a)
keep the group on task.
b)
judge the bad ideas.
c)
select the best idea.
d)
evaluate the group's creativity.
5.
Which of the following statements is true about entrepreneurial discovery:
a)
It ensures that start-up businesses have continuous funding.
b)
It's an ongoing process that facilitates a business's success rate.
c)
It provides entrepreneurs with professional development training.
d)
It's a way to determine the long-term profit that a start-up company can generate.
6.
Which of the following is a global trend that might encourage an entrepreneur to consider international business opportunities:
a)
Higher allowances
b)
Lower tariffs
c)
Enforceable trade agreements
d)
Flexible currency rates
7.
In order for a business to generate a profit, its operating costs must be ___________ the gross margin.
a)
equal to
b)
greater than
c)
less than
d)
identical to
8.
People who are naturally creative often are
a)
highly educated.
b)
physically active.
c)
mentally flexible.
d)
emotionally controlled.
9.
When determining venture-creation opportunities, entrepreneurs must first
a)
obtain financing.
b)
conduct research.
c)
identify staffing needs.
d)
select a location.
10.
A business might take an existing product and alter it to fulfill a specific need for a different
a)
medium.
b)
product mix.
c)
utility.
d)
target market.
11.
Variable expenses increase in direct proportion to the increases rate of
a)
competition.
b)
production.
c)
automation.
d)
motivation.
12.
Which of the following personality traits is often associated with creative people:
a)
Shunning recognition and praise
b)
Exhibiting low energy levels
c)
Preferring routine activities
d)
Acting independently
13.
The primary goal during the brainstorming process is to
a)
come up with as many ideas as possible.
b)
analyze each idea as it is presented.
c)
rate each idea in relation to one another.
d)
come up with a set number of ideas within a certain time.
14.
Costs of sales for a new manufacturing venture typically include
a)
trade show attendance, raw materials, and equipment.
b)
raw materials, equipment, and product inventory.
c)
trade show attendance, product inventory, and internet access.
d)
internet access, attorney fees, and sales lead lists.
15.
What is often a positive result of accepting responsibility for a poor decision?
a)
You reinforce skeptical attitudes.
b)
You control others' opinions.
c)
You demonstrate self-importance.
d)
You gain others' respect.
16.
After a Korean auto manufacturer built a plant in Ames, Iowa, Kwan noticed a substantial growth of Korean residents in the area, many of whom were relocated to Ames to work for the plant. Kwan decided to import Korean goods and sell them in a small Korean specialty store near town. This is an example of a product opportunity resulting from
a)
advancements in technology.
b)
changes in travel habits.
c)
differences in priority.
d)
shifts in popularity ethnicity.
17.
Which of the following is a tool that an entrepreneur develops to project sales for a new business venture:
a)
Marketing objectives
b)
Sales forecast
c)
Promotional budget
d)
Inventory report
18.
Which of the following processes helps aspiring entrepreneurs generate venture ideas:
a)
Financial planning
b)
Decision making
c)
Goal setting
d)
Creative thinking
19.
The entrepreneurial discovery process requires knowledge and the recognition of a(n)
a)
economic crisis.
b)
preventable accident.
c)
market need.
d)
creative observation.
20.
The primary purpose of a feasibility study is to answer which of the following questions:
a)
What are the opportunity costs of this project?
b)
What technology will be needed for this project?
c)
Should we proceed with this project?
d)
Is this business plan valid?
21.
When generating new ideas for new businesses, entrepreneurs often look for ways to
a)
rationalize spending.
b)
increase liability.
c)
solve problems.
d)
control outcomes.
22.
Which of the following examples illustrates how environmental factors are interrelated:
a)
The economy affects what competitors are doing.
b)
New legislation will be written in the future.
c)
Low investor confidence heavily impacts financial planners.
d)
The economy affects banking institutions.
23.
Emotional risks that many entrepreneurs face include
a)
marital tensions and family problems.
b)
unemployment and uncertain income.
c)
competition and difficult suppliers.
d)
inflation and slow market acceptance.
24.
Which of the following is an example of a demographic trend that has encouraged entrepreneurial discovery:
a)
Interest rate fluctuations
b)
Increased cultural diversity
c)
Industry deregulation
d)
Technological advancements
25.
Identifying new product opportunities usually requires a person to be
a)
decisive.
b)
emotional.
c)
aware.
d)
indifferent.
26.
Which of the following statements is true about entrepreneurial discovery:
a)
It ensures that start-up businesses have continuous funding.
b)
It's an ongoing process that facilitates a business's success rate.
c)
It provides entrepreneurs with professional development training.
d)
It's a way to determine the long-term profit that a start-up company can generate.
27.
Entrepreneurial discovery is an important process in a free-enterprise economic system because an entrepreneur or small-business owner can
a)
satisfy an unmet demand.
b)
form a technological monopoly.
c)
improve economic sanctions.
d)
change legal requirements.
28.
Which of the following is an example of a demographic trend:
a)
The aging of the population
b)
Shifting political climates
c)
Rising interest rates
d)
A concern for fitness and health
29.
Which of the following is a true statement about a business's environment:
a)
It can be avoided.
b)
It is always changing.
c)
It consists of the economy and technology.
d)
It may not affect the business, depending on the industry.
30.
When conducting an environmental scan, which of the following is an economic factor that a business should consider:
a)
Consumer spending habits
b)
Global trade regulations
c)
Local demographics
d)
Restricted sales territories
31.
Jessica's hobby is making jewelry. There is potential to sell her bracelets and earrings on eBay. This is an example of identifying a product opportunity by considering
a)
demographic changes.
b)
business processes.
c)
consumer attitudes.
d)
personal experiences.
32.
When using mind mapping to generate product ideas, you begin by writing down the main problem or
a)
market opportunity.
b)
supporting facts.
c)
primary associations.
d)
situation analysis.
33.
Which of the following statements is true regarding the use of group creative-thinking techniques to facilitate the idea-generation process:
a)
The brainstorming technique usually generates the best ideas.
b)
Groups are usually more effective when each member uses mind-mapping techniques.
c)
Group members most often generate new ideas by altering or building upon another idea.
d)
The Six Thinking Hats technique is generally the most effective idea-generation technique.
34.
Market opportunity is often affected by
a)
methodology.
b)
location.
c)
rewards.
d)
timing.
35.
Which of the following is usually a characteristic of a creative person:
a)
Likes to seek out new challenges
b)
Depends on others
c)
Is patient with other people
d)
Prefers working under supervision
36.
Which of the following processes helps aspiring entrepreneurs generate venture ideas:
a)
Financial planning
b)
Decision making
c)
Goal setting
d)
Creative thinking
37.
After Porter realized that he processed an order incorrectly, he waited too long to correct the problem. As a result, an incorrect item was shipped to the customer. Now, the customer will need to ship the item back to the warehouse, and Porter's company will need to pay extra charges to have the product returned. This situation illustrates that
a)
customers are likely to be very angry when employees make mistakes.
b)
employees should tell their supervisors about all problems as soon as they occur.
c)
the company has unrealistic expectations about Porter's ability to perform his job.
d)
an employee's decisions and actions can negatively impact others.
38.
Jack, a manager, said to his staff, "I know that many of you think that this is a risky course of action. But, I've decided that we should proceed. If this is successful, it could greatly benefit the company. If it fails, I'll accept the consequences and work to find a solution." What is Jack doing?
a)
Requesting that his staff support his decision
b)
Indicating that he doesn't think he's made a good decision
c)
Asking his staff to share the blame, if the action fails
d)
Accepting responsibility for his decision
39.
When planning for her new business, Janine allocates two percent of the company's estimated annual sales to web and newspaper advertising. Janine is developing a
a)
promotional budget.
b)
sales report.
c)
competitive analysis.
d)
publicity plan.
40.
Which of the following is an operational issue that entrepreneurs must consider when planning their businesses:
a)
Source of financing
b)
Target market
c)
Production process
d)
Direct competitors
41.
An entrepreneur considers venture location and financial needs during the _____________ process.
a)
distribution
b)
controlling
c)
implementation
d)
planning
42.
Variable expenses increase in direct proportion to the increases rate of
a)
competition.
b)
production.
c)
automation.
d)
motivation.
43.
The costs of operating a business are often called __________ expenses.
a)
fixed
b)
overhead
c)
variable
d)
markdown
44.
Which of the following statements is true about business start-up requirements:
a)
Equipment is the least expensive requirement for start-up business.
b)
New business owners usually need to register for patent protection.
c)
Purchasing a franchise is usually easy and inexpensive for start-up business owners.
d)
The financial needs to start a new business depend on the nature of the venture.
45.
The primary purpose of a feasibility study is to answer which of the following questions:
a)
What are the opportunity costs of this project?
b)
What technology will be needed for this project?
c)
Should we proceed with this project?
d)
Is this business plan valid?
46.
Which of the following is a characteristic of a well-conducted feasibility study:
a)
Subjective
b)
Abbreviated
c)
General
d)
Complete
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