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WorksheetsEntrepreneurship Exam
Total questions: 55
Worksheet time: 2hrs 50mins
Successful entrepreneurs are good at recognizing opportunities.
True
False
Planning ahead doesn’t work for entrepreneurs because new businesses are too unpredictable.
True
False
Running your own business is difficult, and many companies started by entrepreneurs
go out of business.
True
False
In your business plan, you will need to identify who your target customer is and how you will keep your customers.
True
False
Researching all the parts of your business will not teach you a great deal about running a business but may provide you with specific ideas for starting up your company.
True
False
The marketing section of your plan should describe the products or services you plan to offer.
True
False
A disadvantage of buying an existing business is that banks are less likely to lend to a new owner.
True
False
The initial franchise fee, start-up costs, and royalty fees have to be paid only the first year of operation.
True
False
Franchises must offer only certain products or services and must charge prices set by the franchisor.
True
False
Identifying your target customer will not help you estimate demand for your product or service.
True
False
Questions in a survey should be clearly worded and easy to answer, and only the most important questions should be included.
True
False
If you can find a weakness in a direct competitor, you can arrange for your business to have a strength in that area.
True
False
A manager is the person responsible for planning, organizing, staffing, and implementing the operations of a business.
True
False
If your sales are below the break even point, you will have to decrease your prices, decrease the quantity you sell, or reduce your costs.
True
False
The income statement is important because it shows how much money you have available to pay your bills.
True
False
Free samples, coupons, and rebates are forms of personal selling and can increase sales for a business.
True
False
Types of sales promotion include contests and gift certificates.
True
False
The four marketing mix elements are product, position, price, and promotion.
True
False
The marketing plan defines your market, identifies customers and competition, outlines strategies for change, and describes capital needs.
True
False
A list of startup costs includes one-time-only expenses that are paid to establish a business.
True
False
A balance sheet shows the assets, liabilities, and capital of a business at a particular point in time.
True
False
The basic accounting equation is: Assets = Liabilities + Owner’s equity.
True
False
Successful entrepreneurs are confident and able to make quick decisions when necessary.
True
False
A business plan is helpful not only in the initial stages of your company but also in future decision making.
True
False
A business that has an operations manual will have a procedure in place for all activities of the business.
True
False
Disadvantages of entrepreneurship include
uncertain income
risk
working long hours
all of these
Characteristics of successful entrepreneurs include
optimism
independence
self-control
indiscretion
Without a business plan you will not be able to
manage your business
obtain a business loan
make sales projections
find a location for your business
In researching all the parts of your business, you can
learn a great deal about running a business
find specific ideas for starting up your company
find information through trade associations
all of these
The executive summary
is the second introductory element
should capture the interest of the readers
includes the name, address, and phone number of your company
is rarely read by lenders or investors
Which of the following is not a disadvantage of owning a franchise?
Some profits must be returned to the franchisor as royalty fees
Only certain products or services may be offered
Attracting customers is an uncertainty
A large amount of initial capital is usually needed
The legal right to exclusive publication, production, sale, or distribution of a literary or artistic work is a
patent
trademark
copyright
license to publish
An advantage of buying an existing business is that
a large amount of capital is not required
policies and procedures are already established
it is financially stable
it has a reputation with customers
Data that describe a group of people in terms of their tastes, opinions, and lifestyle habits are
demographics
demonstration data
psychographics
psychology data
The target market includes the individuals or companies that are interested in a particular product or service and
can afford to pay for it
are customers of the competition
are willing and able to pay for it
are located in the surrounding area
Below the breakeven point
sales equal expenses
you neither make nor lose money
expenses exceed revenues
revenues exceed expenses
Advertising can be important for new businesses because it
helps you communicate with potential customers
allows you to set up a network of reliable distributors
is a free form of promotion
helps identify your target customers
A marketing plan includes information about a business’s
product or service
location
competition
all of these
The different products and services a business sells compose a
marketing mix
price line
distribution mix
product mix
The reason a bank may turn down your loan application is
you have previously owned a business
a startup business is less likely to default on a loan
your business plan is poorly written
you have invested too much of your own money
What is the accounting equation?
Assets = Liabilities – Owner’s equity
Owner’s equity = Assets + Liabilities
Owner’s equity = Liabilities – Assets
Assets - Liabilities = Owner's Equity
The financial statement that shows what a business owes and what it owns is the
income statement
bank statement
cash flow statement
balance sheet
To determine whether a business opportunity is realistic, you should find out
how much money is needed to start the business
the rate of failure for this type of business
how many hours a week it is likely to take to run the business
all of these
When starting your own business, an important consideration is
the location
what product or service to offer
what employees to hire
all of these
To keep customers, you will need to
develop strategies to keep them happy
respond to their concerns
stay in touch with their needs
all of these
What is brainstorming?
People who work for someone else
How quickly you will pay off your debts.
A problem-solving technique that involves generating a large number of ideas
Person who buys a product or service
What are demographics?
Data that describe a group of people in terms of their age, marital status, family size, ethnicity, and gender
Competition from a business that makes most of its money selling the same or similar products or services.
The individuals or companies that are interested in a product or service and are willing and able to pay for it.
A problem-solving technique that involves generating a large number of ideas
What is a target market?
People who work for someone else
People who work for someone else
People who own, operate, and take the risk of a business venture.
The individuals or companies that are interested in a product or service and are willing and able to pay for it.
What is an entrepreneur?
A problem-solving technique that involves generating a large number of ideas
People who own, operate, and take the risk of a business venture.
A system for collecting, recording, and analyzing information about customers, competitors, goods, and services.
Person who uses a product or service
What is a financial goal?
How quickly you will pay off your debts.
A problem-solving technique that involves generating a large number of ideas
A system for collecting, recording, and analyzing information about customers, competitors, goods, and services.
Data that describe a group of people in terms of their age, marital status, family size, ethnicity, and gender
What is direct competition?
Competition from a business that makes most of its money selling the same or similar products or services.
A system for collecting, recording, and analyzing information about customers, competitors, goods, and services.
The individuals or companies that are interested in a product or service and are willing and able to pay for it.
How quickly you will pay off your debts.
What is market research?
Competition from a business that makes most of its money selling the same or similar products or services.
The individuals or companies that are interested in a product or service and are willing and able to pay for it.
Data that describe a group of people in terms of their age, marital status, family size, ethnicity, and gender
A system for collecting, recording, and analyzing information about customers, competitors, goods, and services.
What are employees?
Person who uses a product or service
People who work for someone else
People who own, operate, and take the risk of a business venture
Person who buys a product or service
What is a consumer?
People who work for someone else
People who own, operate, and take the risk of a business venture.
Person who uses a product or service
Person who buys a product or service
What is a customer?
Person who buys a product or service
People who work for someone else
Person who uses a product or service
People who own, operate, and take the risk of a business venture.
