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WorksheetsEntrepreneurship midterm 2018
Total questions: 63
Worksheet time: 31mins
Local governments strongly promote and support small businesses mainly due to which factor?
Businesses serve only the local communities.
Businesses are owned by one person.
Businesses may become big businesses.
Businesses are important to the economy.
Which statement is most likely to have a negative effect on domestic small-business growth?
Involuntary tax reductions
Restrictive loan policies
Low interest rates
Slow inflation
Which positive effect do small businesses have on the local community?
Reduction of competition
Pay in of taxes
Limitation on job growth
Charging of interest
Which statement is true about entrepreneurship and small-business growth?
Trade regulations have very little effect on small-business growth.
Many people start entrepreneurial ventures during times of economic recession.
Small business start-ups are taxed at a higher rate than multinational companies.
Consumer spending is a primary factor that influences entrepreneurial success.
Entrepreneurs often discover business start-up ideas by looking for gaps between what is being done and which other factor?
How things are being done
What was done in the past
When changes were last made
What needs to be done
Which statement is true regarding training for entrepreneurial ventures?
Once entrepreneurs are educated or trained in their business field, they rarely need further education.
Most successful entrepreneurs have degrees from four-year colleges or universities.
The type of training and education that entrepreneurs need depends on the nature of the start-up business.
Most entrepreneurs must pass state-mandated exams to operate their business.
Which statement is true regarding training for entrepreneurial ventures?
Organization
Optimism
Innovation
Determination
Which is a financial concern that entrepreneurs often face when starting new businesses?
Irregular paychecks
Long working hours
Shorter vacations
Lower production standards
What behavior is exhibited when an individual recognizes the possibility of an undesirable outcome and continues to work toward a goal?
Creativity
Self-discipline
Risk-taking
Flexibility
Governments can encourage entrepreneurial development by performing which action?
Increasing interest rates on loans
Deregulating and reducing taxes
Establishing higher ethical standards
Passing more legislation with strict guidelines
What is a trend that most likely affects the growth of entrepreneurial ventures?
A rise in the desire for slow-response times
The shift to an agricultural-based society
A higher demand for more convenience products
The reduced need for health care and related services
Successful entrepreneurs enjoy their work and often start their businesses so that they can share their interests and enthusiasm with others. In other words, successful entrepreneurs have which characteristic for what they do?
Reservations
Concerns
Apathy
Passion
Home-based businesses are attractive to many people because of which factor?Home-based businesses usually:
yield higher profit margins.
provide owners a steady income.
have lower start-up costs.
require less technical training.
What is a disadvantage of entrepreneurship?
Fewer resources
Personal satisfaction
Lower taxes
Uncertain income
Alaina needs advice and assistance in starting her new business, so she contacted the Service Corps of Retired Executives (SCORE). Jack, a SCORE volunteer, agreed to act as her guide in the business start-up process. Jack is serving which role?
Intermediary
Apprentice
Entrepreneur
Mentor
Which source of start-up information would be recommended to an entrepreneur looking for information about the average start-up and operation costs for a self-serve laundromat?
Service Corps of Retired Executives
Coin Laundry Trade Association
Local chamber of commerce
Small business administration
Which is considered a reliable information source for a business start-up?
Wikipedia (www.wikipedia.org/wiki/Entrepreneurship)
The Project Management Institute (www.pmi.org)
The Small Business Administration (www.sba.gov)
The National Retail Federation (www.nrf.com)
One-time, start-up costs often include which fees?
Shipping and postage
Incorporation
Trade association
Website maintenance
Identifying new product opportunities usually requires a person to possess which characteristic?
Decisiveness
Emotional
Awareness
Indifference
The costs of operating a business are often called which expenses?
Fixed
Overhead
Variable
Markdown
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. What does this situation illustrate?
Customers are likely to be very angry when employees make mistakes.
Employees should tell their supervisors about all problems as soon as they occur.
The company has unrealistic expectations about Porter’s ability to perform his job.
The decisions and actions of an employee can negatively impact others.
A business that identifies products to sell that fill needs is making which decision?
Line extension
Product mix
Customer service
Quality control
When conducting an environmental scan, which is an economic factor that a business should consider?
Consumer spending habits
Global trade regulations
Local demographics
Restricted sales territories
Entrepreneurial discovery is an important process in a free-enterprise economic system because an entrepreneur or small-business owner will most likely accomplish which goal?
Satisfy an unmet demand
Form a technological monopoly
Improve economic sanctions
Change legal requirements
Variable expenses increase in direct proportion to the rate of which factor?
Competition
Production
Automation
Motivation
For a prospective entrepreneur, what is necessary to determine the existence of goods and services?
Demographic changes
Product standards
Entrepreneurial discovery
Raw materials
What is often a positive result of accepting responsibility for a poor decision?
The reinforcement of skeptical attitudes
The control of opinions of others
The demonstration of self-importance
The gain of respect of others
Which is usually a characteristic of a creative person?
Likes to seek out new challenges
Depends on others
Patient with other people
Prefers working under supervision
When determining venture-creation opportunities, entrepreneurs must first perform which action?
Obtain financing
Conduct research
Identify staffing needs
Select a location
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 which situation?
Advancements in technology
Changes in travel habits
Differences in priority
Shifts in popularity ethnicity
Costs of sales for a new manufacturing venture typically include which factors?
Trade show attendance, raw materials, and equipment
Raw materials, equipment, and product inventory
Trade show attendance, product inventory, and internet access
Internet access, attorney fees, and sales lead lists
In order for a business to generate a profit, its operating costs must be identified as which status to the gross margin?
Equal to
Greater than
Less than
Identical to
Which statement is true regarding the use of group creative-thinking techniques to facilitate the idea-generation process?
The brainstorming technique usually generates the best ideas.
Groups are usually more effective when each member uses mind-mapping techniques.
Group members most often generate new ideas by altering or building upon another idea.
The Six Thinking Hats technique is generally the most effective idea-generation technique.
Which statement is true about business start-up requirements?
Equipment is the least expensive requirement for a start-up business.
A new business owner usually needs to register for patent protection.
Purchasing a franchise is usually easy and inexpensive for start-up business owners.
The financial needs to start a new business depend on the nature of the venture.
An entrepreneur considers the location and financial needs of a business venture during which process?
Distribution
Controlling
Implementation
Planning
People who are naturally creative often possess which attribute?
Highly educated
Physically active
Mentally flexible
Emotionally controlled
When generating new ideas for new businesses, entrepreneurs often look for ways to perform which action?
Rationalize spending
Increase liability
Solve problems
Control outcomes
An individual who takes action when he or she is unsure of the outcome is able to perform which action?
Tolerate ambiguity
Demonstrate sincerity
Show empathy
Resolve conflicts
Which is a characteristic of a well-conducted feasibility study?
Subjective
Abbreviated
General
Complete
Which personality trait is often associated with creative people?
Shunning recognition and praise
Exhibiting low energy levels
Preferring routine activities
Acting independently
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 risk is Regan assessing?
Career
Social
Physical
Financial
Which is an operational issue that entrepreneurs must consider when planning their businesses?
Source of financing
Target market
Production process
Direct competitors
A business might take an existing product and alter it to fulfill a specific need which different benefactor?
Medium
Product mix
Utility
Target market
Many entrepreneurs encounter which situations of emotional risks?
Marital tensions and family problems
Unemployment and uncertain income
Competition and difficult suppliers
Inflation and slow market acceptance
Which example illustrates how environmental factors are interrelated?
The economy affects what competitors are doing.
New legislation will be written in the future.
Low investor confidence heavily impacts financial planners.
The economy affects banking institutions.
Which is an example of a demographic trend?
The aging of the population
Shifting political climates
Rising interest rates
A concern for fitness and health
Which is an example of a demographic trend that has encouraged entrepreneurial discovery?
Interest rate fluctuations
Increased cultural diversity
Industry deregulation
Technological advancements
Which a global trend that might encourage an entrepreneur to consider international business opportunities?
Higher allowances
Lower tariffs
Enforceable trade agreements
Flexible currency rates
Ben is conducting a feasibility study for a new venture idea. Which question should Ben answer in terms of the financial considerations for the venture?
How will the business obtain the money it needs?
What regulations is the business likely to encounter?
Is there a real demand for the idea, good, or service?
How will the business communicate information about its products?
Which is a way that a business can determine if a product will fulfill the needs of a target market?
Observe workers
Distribute promotional materials
Ask the customers
Develop a prospect list
The primary purpose of a feasibility study is to answer which question?
What are the opportunity costs of this project?
What technology will be needed for this project?
Should we proceed with this project?
Is this business plan valid?
When planning for her new business, Janine allocates two percent of the estimated annual sales of her company to web and newspaper advertising. Janine is developing which document?
A promotional budget
A sales report
A competitive analysis
A publicity plan
Which is a tool that an entrepreneur develops to project sales for a new business venture?
Marketing objectives
Sales forecast
Promotional budget
Inventory report
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 which factors?
Demographic changes
Business processes
Consumer attitudes
Personal experiences
The brainstorming process is used to accomplish which primary goal?
Come up with as many ideas as possible.
Analyze each idea as it is presented.
Rate each idea in relation to one another.
Come up with a set number of ideas within a certain time.
Which statement is true about entrepreneurial discovery?
It ensures that start-up businesses have continuous funding.
It is an ongoing process that facilitates the success rate of a business.
It provides entrepreneurs with professional development training.
It is a way to determine the long-term profit that a start-up company can generate.
One factor that an entrepreneur should consider while assessing a venture opportunity is whether it will encounter which situation?
Lead to more opportunities
Require employee loyalty
Involve complicated paperwork
Satisfy the needs of vendors
Which is the first factor that a business should consider when it is deciding if it should sell a product?
Promotional strategy
Taxation rate
Storage space
Market demand
The primary responsibility of the facilitator of a product idea brainstorming session are to compile all of the ideas and perform which other action?
Keep the group on task
Judge the bad ideas
Select the best idea
Evaluate the creativity of the group
Which process helps aspiring entrepreneurs generate venture ideas?
Financial planning
Decision-making
Goal-setting
Creative thinking
The entrepreneurial discovery process requires knowledge and the recognition of which situation?
Economic crisis
Preventable accident
Market need
Creative observation
When using mind mapping to generate product ideas, it is best begin by writing down the main problem or which other component?
Market opportunity
Supporting facts
Primary associations
Situation analysis
Which statement is true about a business environment?
It can be avoided.
It is always changing.
It consists of the economy and technology.
It may not affect the business, depending on the industry.
