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Entrepreneurship - Recognizing Opportunity Quiz Review

Total questions: 15

Worksheet time: 8mins

Name
Class
Date
1.

Hiring a firm to design and produce packaging for your product is an example of:

a)

outsourcing

b)

demographics

c)

innovation

d)

corporate venture

2.

Which of the following are some of the major trends for the creation of new businesses?

a)

new kinds of strategic alliances with multiple companies

b)

increased emphasis on "going green"

c)

growth of home-based businesses

d)

all of the above

3.

To find a new business, you may need to hire a(n)

a)

banker

b)

investor

c)

owner

d)

business broker.

4.

An asset of acquiring an existing business is customer loyalty, or

a)

goodwill

b)

the use of customers’ credit cards

c)

ill will

d)

customers’ curiosity about the new owner

5.

To identify consumer markets, you should be aware of

a)

services

b)

demographic changes

c)

technology

d)

investors

6.

Before you can determine if a new venture is feasible, you must prepare

a)

employees

b)

taxes

c)

the office

d)

a business plan

7.

McDonald’s is an example of a(n)

a)

hardware store

b)

investor

c)

franchise

d)

family-owned business

8.

One secret to finding a good business opportunity is the ability to understand ____________________, because changes in interests create profitable niches for new businesses to fill.

a)

an industry

b)

taxable income

c)

good accountants

d)

the law

9.

A franchisor:

a)

Buys a franchise and must be trained to operate the business

b)

Collects a finders fee for franchising a business

c)

Opens a business from scratch

d)

sells the right to open stores and sell products or services using its brand

10.

When franchising a business, what is a royalty fee?

a)

A percentage fee of taxes that must be to the Internal Revenue Service.

b)

a fee calculated as a percentage for the use of a business' name, products and services, and customers.

c)

the cost of doing business that a business incurs for selling goods or services.

d)

Money paid to Mr. Hirsh

11.

Starting a new business entails more ____________________ than opening a franchise.

a)

time and effort

b)

money

c)

starting capital revenue

d)

experience

12.

Instead of starting a new business, you could buy an existing business.

a)

True

b)

False

13.

Forming a partnership with another company is:

a)

innovation

b)

demographics

c)

strategic alliance

d)

customer goodwill

14.

Characteristics that describe a population are:

a)

Franchisors

b)

Franchisees

c)

Outsourcing contracts

d)

Demographics

15.

Finding new ways of doing things is:

a)

Innovation

b)

Customer loyalty

c)

Industry

d)

Business accumen