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WorksheetsBizInnovator Final Exam Prep
Total questions: 91
Worksheet time: 59mins
Name
Class
Date
1.
Which of the following is not a persistent myth about entrepreneurs?
a)
Leaders are born, not made
b)
Entrepreneurs are gamblers
c)
Solo entrepreneurs limit their potential for growth
d)
Entrepreneurs should be young and energetic
2.
What is at the heart of the entrepreneurial process?
a)
Innovation and creativity
b)
Opportunity recognition
c)
Team work
d)
Marshalling resources
3.
Entrepreneurship is the process of getting into and operating a business of one’s own.
a)
true
b)
false
4.
Entrepreneurs are the mechanism by which our economy turns supply into demand.
a)
true
b)
false
5.
Entrepreneurship is the process of starting, opening and growing a business.
a)
true
b)
false
6.
Most entrepreneurs find themselves working long hours, especially during the start-up period of the business.
a)
true
b)
false
7.
Entrepreneurship does not occur in the public sector.
a)
true
b)
false
8.
Failure is part of the dynamics of innovation and economic renewal.
a)
true
b)
false
9.
Bootstrapping can create significant competitive advantages.
a)
true
b)
false
10.
Creative ideas can be generated from the world in which a person lives.
a)
true
b)
false
11.
Each person can be inspired to generate new uses for a common everyday object such as a pencil, plastic milk jug, pop bottle.
a)
true
b)
false
12.
Entrepreneurial opportunities can be generated from things, events or objects that bother someone.
a)
true
b)
false
13.
Innovation and creativity cannot be taught and/or learned.
a)
true
b)
false
14.
Which of the following is a barrier to creativity?
a)
Seeing many “correct” answers
b)
Being illogical
c)
Fearing mistakes/failure
d)
Believing you are creative
15.
Which of the following two statements have a better chance of spurring creativity?
a)
Can we put it to other uses?
b)
We’ve never done anything like that before.
16.
Which of the following documents is most analogous to a business plan of a high-potential venture? (choose 2)
a)
A blueprint
b)
A roadmap
c)
An investment contract
d)
A 'How To' manual
17.
Being opportunity-focused means never lose sight of what?
a)
Competitive Advantages
b)
The customer and the marketplace
c)
Theeconomic and funding fetrics of the venture
d)
Distinctive completencies
18.
Which of the following should receive first consideration in the opportunity screening process?
a)
The Product
b)
The Financials
c)
The Market
d)
Depends on the opportunity
19.
All of the following are ways to protect your ideas except:
a)
Trademarks
b)
Patents
c)
Copyrights
d)
By-laws
20.
For owners of small businesses, extremely long hours of 70, 80, or even 100 hours a week, and rare vacations, are often the rule rather than the exception.
a)
true
b)
false
21.
The best opportunities are focused enterprises; what you start out to do is what you end up doing.
a)
true
b)
false
22.
The vast majority of radical innovation occurs in new and smaller firms.
a)
true
b)
false
23.
A break-even analysis helps analyze costs and the level of sales needed to cover costs.
a)
true
b)
false
24.
The EXECUTIVE SUMMARY of a business plan should include all of the following except:
a)
Description of the business
b)
Unique features and proprietary rights
c)
Market potential
d)
Team member resumes and detailed background
25.
The legal structure of a new venture is typically described in detail in which section of the business plan?
a)
Finances
b)
Executive Summary
c)
Marketing
d)
Management
26.
The foremost purpose of a business plan is to secure financing for the new venture.
a)
true
b)
false
27.
While very important to the business owner, the business plan does not need to include cash flow projections.
a)
true
b)
false
28.
The four P’s of marketing are:
a)
Product, price, place, promotion
b)
Presence, profitability, portability, product
c)
Positioning, positive cash flow, performance, placement
d)
Potential, position, positive top-of-mind, principal
29.
Maria buys soda in six can units for $.40 each. She sells the cans of soda individually through her catering business at $.80 each. Maria’s pricing strategy is:
a)
Key stoning
b)
Optimizing
c)
Leveraging
d)
Journaling
30.
Sherylann meets with her potential customer face to face. She explains the unique features and benefits the prospect will enjoy if they switch to her quick-printing service. The process she is using is:
a)
Marketing
b)
Selling
c)
Positioning
d)
Up-selling
31.
Which of the following methods will yield the greatest amount of emotional data when collecting market research data?
a)
Postage paid return post card survey
b)
Telephone interviews
c)
Face to face visits
d)
Questionnaire
32.
All of the following are considered marketing research “who’s” except _______
a)
User
b)
Influencer
c)
Neutral
d)
Decision-maker
33.
In market research, the term “demographics” means:
a)
The process of deciding who will buy a product or service.
b)
Numeric facts about particular groups of people.
c)
Price, product, placement, and positioning.
34.
Psychographics is the study of buyer’s attributes relating to personality, values, attitudes, interests, or lifestyles
a)
true
b)
false
35.
Start-up costs differ from operating costs as follows.
a)
Start-up costs happen once in a business life.
b)
Start-up costs are annual expenses.
c)
Start-up costs are usually paid with investor resources.
d)
Start-up costs are tax free.
36.
The funds left over after accounting for the cost of goods sold is called:
a)
Net Income
b)
Liabilities
c)
Gross Profit
d)
Operating Costs
37.
The amount of funds left over after operating expenses for a business is called:
a)
Net Income
b)
Liabilities
c)
Gross Profit
d)
Operating Costs
38.
The body of the income statement consists of an itemized list of
a)
Assets and Liabilities
b)
Assets and Owner’s Equity
c)
Cash and Revenue
d)
Revenue and Expenses
39.
Advertising, insurance, rent and utilities are all considered:
a)
Gross margin factors
b)
Unanticipated expenses
c)
Operating costs
d)
Cost of goods
40.
A cash flow statement is:
a)
a portion of the profits distributed to owners
b)
a statement of net income or net loss for a specific period of time
c)
cash receipts minus cash disbursements during a defined period of time
d)
a summary of assets, liabilities and owners equity
41.
Start-up costs include:
a)
Second mortgages, supplies, cash flow
b)
Utility hook-up, employee training and site renovation
c)
Benefit packages, lawyer fees, taxes
d)
Interest expense, liquidation costs, dividend payments
42.
The body of the balance sheet consists of an itemized list of
a)
Assets and Liabilities
b)
Assets, Liabilities & Owner’s Equity
c)
Cash and Revenue
d)
Revenue and Expenses
43.
Venture capitalists may provide financing in exchange for an equity position in the business
a)
true
b)
false
44.
Ownership of portion of a business is called Equity.
a)
true
b)
false
45.
Using low-cost or free techniques to minimize your cost of doing business is called bootstrapping.
a)
true
b)
false
46.
Business sources of capital could include inventory financing.
a)
true
b)
false
47.
The Accounting Equation may be expressed as Assets-Liabilities=Owner’s Equity.
a)
true
b)
false
48.
Financial Statements commonly prepared by a business include an income statement and balance sheet.
a)
true
b)
false
49.
Cash flow is not the same as profitability.
a)
true
b)
false
50.
Money borrowed with the understanding that it will be repaid is referred to as credit
a)
true
b)
false
51.
Current ratio is calculated as current assets divided by current liabilities.
a)
true
b)
false
52.
Debt-to-asset ratio is calculated as total liabilities divided by total assets.
a)
true
b)
false
53.
Assets that will be used or converted into cash within one year are called Long Term Assets.
a)
true
b)
false
54.
A mortgage on an office building is an example of an asset.
a)
true
b)
false
55.
Equipment installation costs are included in start-up costs.
a)
true
b)
false
56.
A sole proprietorship is a business owned by one person.
a)
true
b)
false
57.
A corporation is owned by multiple shareholders and is overseen by a board of directors, which hires the business's managerial staff.
a)
true
b)
false
58.
A major disadvantage of doing business as a general partnership is that all partners are not personally liable for business debts and liabilities.
a)
true
b)
false
59.
An individual proprietor owns and manages the business and is responsible for all business transactions, and personally responsible for all debts and liabilities incurred by the business.
a)
true
b)
false
60.
Honest people always act ethically.
a)
true
b)
false
61.
All business people make ethical decisions.
a)
true
b)
false
62.
An entrepreneurs personal self-interests always comes first when making business decisions.
a)
true
b)
false
63.
Social responsibility involves activities like making store-fronts safe, clean, and user-friendly
a)
true
b)
false
64.
Evaluating products to reduce packaging is a demonstration of social responsibility.
a)
true
b)
false
65.
Organizational charts are created to foster two-way communication.
a)
true
b)
false
66.
A chain of command encourages managers to use delegation of responsibilities.
a)
true
b)
false
67.
Corporations, limited liability partnerships, and other specific types of business organizations protect their owners from business failure by doing business under a separate legal entity with certain legal protections. This type of business entity is called
a)
Sole Proprietorships
b)
Partnership
c)
Corporation
d)
LLC
68.
The terms of a partnership are partly governed by a
a)
Partnership agreement
b)
Handshake agreement
c)
A vote of the members
d)
President
69.
The following are advantages of what type of ownership model? 1)Limited liability for managers and stockholders, 2)Transferable ownership, 3) Does not terminate when ownership changes, 4)May have a fiscal year ending on a date other than December 31
a)
Sole Proprietorships
b)
Partnership
c)
Corporation
d)
LLC
70.
The following are disadvantages of what type of ownership model? 1)Unlimited liability for all debts and claims, 2)Terminates upon death, withdrawal, or addition of partner, 3) Individual partners act as agents for the partnership
a)
Sole Proprietorships
b)
Partnership
c)
Corporation
d)
LLC
71.
This is a cross between a partnership and a corporation. It provides for investors, simply called "members" to contribute money or other consideration to the company. These members share in profits and losses and can participate in its management.
a)
Sole Proprietorships
b)
Partnership
c)
Corporation
d)
LLC
72.
A code of ethics is
a)
A new term for an employment contract
b)
A set of guidelines that details appropriate employee conduct
c)
A vacation guidebook
73.
In which level of the organizational chart does the long-range planning usually occur?
a)
First-level (supervisory)
b)
Middle Managers
c)
Top-Level (Executives)
74.
Middle-level managers
a)
Set goals for their departments and other business units.
b)
Motivate and assist first-line managers to achieve business objectives
c)
Communicate upward, by offering suggestions and feedback to top managers
d)
All
75.
First level managers
a)
Usually have a four-year college degree
b)
Are responsible with training and evaluating employees they supervise
c)
Are charged with motivating upper level managers
d)
Reflect the skills of the top-level managers
76.
Top-level managers hold titles such as:
a)
Chief Executive Officer (CEO) and Chief Financial Officer (CFO)
b)
Chief Operational Officer (COO) and Chief Technology Officer (CTO)
c)
Chairperson of the Board, President, Vice President
d)
All
77.
Financial statements are usually compared with
a)
one or more previous periods
b)
data from the industry as a whole
c)
similar businesses in the industry
d)
All
78.
Quick Ratio measures
a)
Income
b)
Expenses
c)
measures a company's financial strength or weakness
d)
current liabilities
79.
Companies are looking for returns on equity that are _____________.
a)
high and growing
b)
breaking even
c)
able to payoff loans
d)
can obtain loans
80.
Debt to Equity ratio is
a)
Assets-Liabilities
b)
Net worth/Assets
c)
Income-Expenses
d)
Debt/Equity
81.
Suggested time periods for sales and expense estimates are at 3 months, 6 months and 1 year intervals.
a)
true
b)
false
82.
Increased sales will always solve supply chain problems.
a)
true
b)
false
83.
An Income Statement is also called the Profit and Loss Statement
a)
true
b)
false
84.
The Balance Sheet uses the basic equation A + OE = L.
a)
true
b)
false
85.
Cost of goods sold includes packaging and transportation costs.
a)
true
b)
false
86.
Financial ratios are one tool that can be used to help analyze and plan for future decisions.
a)
true
b)
false
87.
Raising or lowering your selling price of a product or service would be one way to increase your profits.
a)
true
b)
false
88.
Business owners only need one comparison tool to help to make future changes for their business.
a)
true
b)
false
89.
When analyzing your business, a comparison should be made to goals that were set.
a)
true
b)
false
90.
The total debt-to-asset ratio is one of several ratios used to measure Net Worth.
a)
true
b)
false
91.
Liquidity refers to the degree to which debt obligations coming due in the next 12 months can be paid from cash or assets that will be turned into cash.
a)
true
b)
false
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