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Entrepreneurship Test Review

Total questions: 21

Worksheet time: 11mins

Name
Class
Date
1.

Which of the following is NOT a benefit of being an entrepreneur?

a)

Steady, reliable income because you always get to pay yourself first

b)

Work in a field, on a project, that you're passionate about and that you enjoy

c)

Be your own boss rather than reporting to someone else

d)

Ability to provide a good or service that no existing company is doing

2.

Connie lives in Tallahassee, FL, and wants to start an exercise studio that focuses on low-impact fitness classes that can be done in a seated position with light weights. Which of these groups most likely represents Connie's target demographic?

a)

Pre-school age children

b)

Professional athletes

c)

International viewers who could stream the workouts online

d)

Retirees who live in the community

3.

What is the most significant difference between a small business and a startup?

a)

Startups intend to grow large quite rapidly, whereas small business tend to remain small

b)

Startups tend to be self-funded, whereas small businesses tend to have investors

c)

Startups are typically technology companies, whereas small businesses are typically restaurants

d)

Startups are far less risky than starting your own small business

4.

True or False: Your business plan should always include advertising strategies in each of the 6 media types -- broadcast, print, support, direct marketing, product placement, and the internet.

a)

True

b)

False

5.

Angelo thinks he has an outstanding idea for a startup, and he's pretty confident he's got all the qualities to be a successful entrepreneur -- he's confident, passionate about his work, not afraid to take risk -- but he's not so great at managing money and keeping to a budget. What should Angelo do next?

a)

Not form the startup -- he doesn't have all the necessary skills

b)

Start a nonprofit instead of a business, so that he doesn't need to worry about finance at all

c)

Find a partner to join the startup who IS good with finances, so his chances of success are higher

d)

Go forward with the startup and don't worry about the money -- his idea is so good the finances won't be an issue

6.

A ______________ is a quick description of your business that you use to explain it to potential investors.

a)

Business plan

b)

Sales forecast

c)

Elevator pitch

d)

Business analysis

7.

__________________ are the operating expenses that a business must pay regardless of how many sales are made.

a)

Fixed operating expenses

b)

Variable expenses

c)

Profits

d)

Production costs

8.

Which of the following is NOT a true statement about business plans?

a)

They should include an overview of your business goals and how you think you are going to achieve them

b)

They are created before starting a business

c)

They should never be revised

d)

They can help lower the risk of starting a new business

9.

Sharon is thinking about opening a bakery. Which of the following would NOT be a good early step?

a)

Get a mentor

b)

Immediately put down a deposit for a storefront property

c)

Estimate the target market

d)

Create a business pitch

10.

___________ is a potential group of customers, people, or businesses that are able and willing to purchase a particular product or service.

a)

A Direct Competitor

b)

Sales force

c)

An Indirect Competitor

d)

The Market

11.

What kind of research would be used to effectively evaluate a potential business opportunity?

a)

Conduct market research to determine whether the business opportunity meets a customer need or want

b)

Analyze national chains that are similar and model your store after it

c)

Talk to your cousin that shops at local stores

d)

Talk to a friend that has money to invest

12.

___________ is an organized way to gather and understand information needed to make informed business decisions based on the potential customers and competitors that exist in the market.

a)

A customer report

b)

Market Research

c)

Competition report

d)

Audience analysis

13.

The amount of money that an entrepreneur earns when total costs are subtracted from total sales is called ______________.

a)

contribution margin

b)

profit

c)

overhead

d)

salary

14.

The act of assuming the risk of organizing productive resources to produce goods and services.

a)

business

b)

critical thinking

c)

entrepreneurship

d)

risk management

15.

Business entity that is easy to start and has a single owner.

a)

sole proprietorship

b)

partnership

c)

limited liability company

d)

corporation

16.

Business entity with two or more owners that share the company's profits and losses.

answer choices

a)

corporation

b)

sole proprietorship

c)

partnership

d)

limited liability company

17.

Business entity that blends elements of partnership and corporate structures.

a)

sole proprietorship

b)

partnership

c)

limited liability company

d)

corporation

18.

Business entity that is usually owned by multiple stockholders and operates as a separate legal entity.

a)

sole proprietorship

b)

partnership

c)

limited liability company

d)

corporation

19.

When private entrepreneurs purchase the rights to open and run a location of a larger company.

a)

corporate model

b)

franchise

c)

partnership

d)

private enterprise

20.

Exclusive rights given to the inventor of a product, for a specific period of time, to protect them from others copying their product.

a)

copyright

b)

trademark

c)

patent

d)

exclusivity rights

21.

Exclusive rights to symbols or designs.

a)

trademark

b)

patent

c)

copyright

d)

exclusivity rights