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WorksheetsSemester Test Small Business Operations
Total questions: 90
Worksheet time: 1hrs 29mins
Name
Class
Date
1.
This is someone who takes the initiative to start and operate a new business.
a)
Chief Executive Officer
b)
Entrepreneur
2.
This a process that requires hard work, perseverance, and the willingness to assume some degree of risk.
a)
Managing
b)
Entrepreneurship
3.
To be successful, the entrepreneur must:
a)
ignore the needs and wants of customers.
b)
focus on serving the needs and wants of customers.
4.
Because of entrepreneurs, we have:
a)
a shortage of goods and services available to consumers.
b)
an abundance of goods and services from which to choose.
5.
He is the entrepreneur behind SpaceX and Tesla Motors. His goal is to change the world and improve humanity.
a)
Neil Armstrong
b)
Elon Musk
6.
Anyone can be an entrepreneur and:
a)
you must be 21 years of age to get started.
b)
you can begin at any age.
7.
Entrepreneurs must be willing to risk the chance of failure in order to be successful. What important characteristic of entrepreneurs is this?
a)
Risk-taking
b)
Perseverance
c)
Creativity
d)
Self-confident
8.
The ability to use imaginative skills to find unique ways to solve problems.
a)
Self-confident
b)
Creativity
c)
Self-Confidence
d)
Perseverance
9.
Belief in oneself and one’s own abilities with an expectation to be successful.
a)
Self-confident
b)
Creativity
c)
Self-Confidence
d)
Perseverance
10.
Entrepreneurs are flexible and will refuse to give up despite obstacles, failures, and discouragement from others. This characteristic is known as:
a)
Self-confident
b)
Creativity
c)
Self-Confidence
d)
Perseverance
11.
Entrepreneurs do not listen to the negative people around them. They take the road less traveled.
a)
Independent-minded
b)
Hardworking
12.
In this economic system, also known as capitalism or a free market economy, people have the freedom to own property, buy products, and they can choose to start their own businesses.
a)
Communism
b)
Free Enterprise
c)
Socialism
d)
Command Economy
13.
This is an important reason or incentive that entrepreneurs have for starting their own businesses.
a)
The competition.
b)
The profit motive.
c)
The ability to pay taxes.
d)
Government regulations.
14.
This refers to the quantity of a product consumers are willing and able to purchase at a given price
a)
Industrialization
b)
Competition
c)
Supply
d)
Demand
15.
This is a business owned and managed by one person.
a)
Partnership
b)
Proprietorship
c)
Corporation
d)
Limited Liability Cooperative
16.
This is someone who is experienced, successful and willing to provide advice and guidance.
a)
Mentor
b)
President
c)
CEO
d)
Industrial Engineer
17.
This organization is dedicated to helping small businesses get off the ground, grow and achieve their goals through education and mentorship. This group offers free, confidential business advisors in person or via email. Thousands of their volunteers are willing to share their expertise across 62 industries.
a)
SCORE
b)
TOUCHDOWN
18.
This is an independent agency of the federal government with the mission of aiding, counseling, and assisting entrepreneurs and small businesses.
a)
EPA
b)
SBA
19.
The greatest asset of any is company is the
a)
supplier
b)
building
c)
customer
d)
supplier
20.
Looking for things that need to be done and doing them is the definition of:
a)
initiative
b)
loyalty
21.
No business can exist without repeat customers.
a)
True
b)
False
22.
When getting ready for work, you should be appropriately _____________ and well groomed.
a)
dressed
b)
punctual
23.
You should always wear your name tag when working.
a)
True
b)
False
24.
Use positive language, if you are out of a product apologize and tell the customer:
a)
when the product will be in and offer a substitute.
b)
not to worry about it and buy something else.
25.
You should feel free to wear pajama pants to work.
a)
True
b)
False
26.
Most entrepreneurial ventures will be very small and:
a)
are planned to remain that way.
b)
will grow to be worth billions of dollars.
27.
Some new businesses are designed to expand rapidly and:
a)
will require almost no startup capital.
b)
might require millions of dollars in startup capital.
28.
Lonnie Johnson invented the Super Soaker and licensed the product to the Hasbro toy company. He earned over $200 million from his invention because he was able to obtain a:
a)
patent
b)
coupon
29.
Evan Spiegel co-founder of Snapchat made $272 million on the day of his company’s IPO in 2017. This is an example of a:
a)
harvest plan
b)
consumer plan
30.
Most small businesses require little startup capital and will be:
a)
funded by venture capitalists.
b)
funded by the owner.
31.
This is issued a government agency for a new invention will protect the invention from competition for a period of 20 years.
a)
patent
b)
copyright
32.
When generating ideas for entrepreneurship, you should consider which of the following:
a)
your hobbies
b)
your skills
c)
your work experience
d)
all of these should be considered
33.
This is a clear statement that describes the benefit of the new business, how it solves customer's needs and what distinguishes it from the competition.
a)
universal price guarantee
b)
industrial worth proposal
c)
business cost structure
d)
unique value proposition
34.
Engaging friends and family in an activity designed to spontaneously create ideas:
a)
brainstorming
b)
licensing
c)
franchising
d)
patenting
35.
Entrepreneurs should solve:
a)
puzzles
b)
problems
36.
This deals with the money you invest in the business and the return you realize on that money based on the net profit of the business.
a)
cost to value (CTV)
b)
profit to investment (PTI)
c)
return on investment (ROI)
d)
sales on value (SOV)
37.
Which of the following is a reason why small businesses fail?
a)
Lack of research, preparation, and planning.
b)
Poor management and leadership skills.
c)
Lack of financial capital.
d)
All are reasons why businesses fail.
38.
This entrepreneur was born in 1902 in Oak Park, Illinois. He was the son of immigrants. He is best known for his leadership in franchising a particular fast-food restaurant.
a)
Dave Thomas
b)
Ray Kroc
39.
Who opened the first McDonald’s restaurant?
a)
The McDonald brothers in San Bernardino, California in 1948.
b)
Ray Kroc in Des Plaines, Illinois in 1955.
40.
The McDonald brothers perfected
a)
the speedy system of using carhops to deliver food.
b)
the speedy service system for delivery of food quickly.
41.
This is the legal right granted to an individual (or group) to operate a business as if it were part of a larger chain of stores.
a)
franchise
b)
patent
42.
This is the individual or organization selling the franchise.
a)
franchisor
b)
franchisee
43.
This is the person or organization purchasing the franchise.
a)
franchisee
b)
franchisor
44.
What does the franchisor provide for those purchasing the franchise?
a)
advice
b)
training
c)
advertising
d)
all of these are provided
45.
Buying one of these will allow the owner to operate a business using a well-established brand name with proven business practices.
a)
franchise
b)
corporate charter
46.
One of the most important physical elements of a retail business is:
a)
the location
b)
the vendors
47.
Of all the positive characteristics Ray Kroc possessed, which of the following was the most important to him personally? This was emphasized in the movie The Founder.
a)
Ray was creative.
b)
Ray had perseverance
48.
The franchisee must follow ALL rules stated in the franchise agreement.
a)
True
b)
False
49.
This is the gathering and interpreting of information about a market, about a product or service to be offered to that market, and about the customers for that product or service.
a)
Market Research
b)
Industrial Management
50.
How can an entrepreneur learn about and understand the industry related to their idea for a new business?
a)
Take a class or course related to the industry.
b)
Read books and journals about the industry.
c)
Interview people who currently work in the industry.
d)
All of these are correct.
51.
The entrepreneur should profile the potential customers for the new business. This means that the entrepreneur should determine (to the degree possible) the typical customer’s:
a)
age & gender
b)
income level
c)
education level
d)
all of these are correct
52.
The first step of the Marketing Research Process is
a)
Gathering primary data.
b)
Defining the problem.
53.
This is a planned set of questions to which individuals or groups of people respond.
a)
Survey
b)
Invoice
54.
This is a geographic area in which a new product or service is tested in order to gather information about customer reaction to the tested product or service.
a)
Industrial Test
b)
Test Market
55.
This is a small number of people who are brought together to discuss elements of a specific issue or problem.
a)
Focus Group
b)
Observation
c)
Survey
d)
Test Market
56.
One of the advantages of reviewing secondary data it can be done quickly and easily.
a)
True
b)
False
57.
The possibility that a loss can occur as a result of a business decision or a business activity:
a)
Risk
b)
Pilferage
58.
Providing security and safety for products, personnel, and customers.
a)
Industrial Management
b)
Risk Management
59.
Caused by the unpredictability of nature. Examples: floods, tornadoes, earthquakes
a)
Economic Risk
b)
Natural Risk
60.
Associated with political and economic trends. Examples: unemployment, inflation, competition, new government regulations.
a)
Economic Risk
b)
Natural Risk
61.
Caused by the potential actions of customers, employees, or other individuals. Examples: shoplifting, employee pilferage or negligence
a)
Economic Risk
b)
Human Risk
62.
The possibility of success is known as:
a)
Opportunity
b)
Risk
63.
Occurs when customers take an item without paying for it or intentionally pay less than the retail price.
a)
Shoplifting
b)
Pilferage
64.
Employee theft – any stealing, use or misuse of the employer's assets.
a)
Pilferage
b)
Shoplifting
65.
Taking the property of another person by means of force or fear.
a)
Robbery
b)
Burglary
66.
Illegal entry into a building to commit a theft and usually occurs when the business is closed.
a)
Robbery
b)
Burglary
67.
A sophisticated cash register connected to a computer.
a)
Point-of-Sale Terminal
b)
Main Computer Terminal
68.
Which of the following is NOT a strategy for dealing with risk?
a)
Insure the risk.
b)
Assume the risk.
c)
Avoid the risk.
d)
Forget about the risk.
69.
Which of the following statements BEST describes the movie We Bought a Zoo?
a)
The movie is a dramatization of the events surrounding Benjamin Mee’s purchase of a run-down zoo in southwest England.
b)
The movie is a very accurate description of the events surrounding Benjamin Mee’s purchase of a run-down zoo.
c)
The movie is a dramatization of Matt Damon’s purchase of a successful zoo in southwest England.
d)
The movie is a totally accurate presentation of the events surrounding Matt Damon’s purchase of a successful zoo in southern California.
70.
This is someone who takes the initiative of organizing and managing a small business:
a)
Wholesaler
b)
Retailer
c)
Entrepreneur
d)
Industrialist
71.
To be successful, the entrepreneur must:
a)
ignore the needs and wants of customers.
b)
focus on serving the needs and wants of customers.
72.
The person who assumes the risks involved in starting and owning a small business:
a)
Wholesaler
b)
Entrepreneur
73.
This is the personal characteristic of doing something that needs to be done, but without being told to do it:
a)
cooperation
b)
collaboration
c)
teamwork
d)
initiative
74.
Which of the following is one of the ways that entrepreneurs can acquire a business?
a)
Entrepreneurs can found their own small business.
b)
Entrepreneurs can purchase someone else’s small business.
c)
Entrepreneurs can take over (or inherit) an existing family business.
d)
Entrepreneurs can acquire a business venture in all of these ways.
75.
What motivates the entrepreneur to become a small business owner?
a)
The entrepreneur wants to retire and stop working altogether.
b)
The entrepreneur wants to become a hobo.
c)
The entrepreneur wants to be his or her own boss.
d)
The entrepreneur wants to perform boring work.
76.
This is any individual or organization that will be impacted by the success or failure of the entrepreneur.
a)
Bankers
b)
Stakeholders
c)
Family Members
d)
Employees
77.
This is the ability to complete what you start in spite of difficulties and obstacles.
a)
Passion
b)
Vision
c)
Perseverance
d)
Persuasiveness
78.
This is the drive and love that entrepreneurs have for what they do.
a)
Passion
b)
Vision
c)
Perseverance
d)
Persuasiveness
79.
Entrepreneurs have the ability to convince those around them to believe in and support their vision of what is possible. This is known as:
a)
Passion
b)
Vision
c)
Perseverance
d)
Persuasiveness
80.
This is the ability to see what is possible when others can’t.
a)
Passion
b)
Vision
c)
Perseverance
d)
Persuasiveness
81.
Entrepreneurs have the ability to generate new and unique ideas. This is known as:
a)
Creativity
b)
Courage
82.
This is the quality of mind that enables a person to face difficulty or danger without fear.
a)
Creativity
b)
Courage
83.
Many events in life can “trigger” the entrepreneur to become a small business owner. Which of the following is one of those common triggers?
a)
Finding a new job.
b)
Getting a promotion at work.
c)
Being happy with a current job.
d)
Being laid off from a job.
84.
The first and primary source of start-up capital for most entrepreneurs comes from:
a)
Personal savings and personal loans.
b)
Loans from banks or other financial institutions
c)
Interest in the business sold to venture capitalists.
d)
Money earned from an initial public offering.
85.
This is the term used to describe the first time that the stock of a private company is offered to the public.
a)
This is a loan from a bank.
b)
This is a loan from a VC.
c)
This is an initial public offering (IPO).
d)
This is a last resort offering (LRO).
86.
Borrowing from friends and family is another common way to finance a new small business venture. However, this can be risky because, if the business fails:
a)
Everyone will be happy to lose his or her money in the failed business.
b)
People will likely be angry and relationships can be damaged if the business fails.
c)
Everyone can be guaranteed a good return on his or her investment in the business.
d)
People will still be happy with each other if the business fails.
87.
This is a less common source of startup capital for the new business. These investors will want and require partial ownership of the business.
a)
Family Members
b)
Personal Friends
c)
Venture Capitalists
d)
Bankers
88.
This is a less common source of startup capital for the new business. These investors will want and require partial ownership of the business.
a)
Family Members
b)
Personal Friends
c)
Venture Capitalists
d)
Bankers
89.
To be successful, the entrepreneur must create goods and services needed and wanted by customers.
a)
True
b)
False
90.
This organization prepares emerging leaders and entrepreneurs in marketing, finance, hospitality and management in high school and colleges across the globe.
a)
DECA
b)
Leo Club
c)
Key Club
d)
FFA
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