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Entrepreneurship Final Exam Study Guide 2

Total questions: 20

Worksheet time: 10mins

Name
Class
Date
1.

_____ describes personal characteristics of a population.

a)

Diversities

b)

Demographics

c)

Ethnicities

d)

Cultural segmentation

2.
Hiring a firm to design and produce packaging for your product is an example of _____. 
a)
outsourcing
b)
demographics
c)
innovation
d)
corporate venture
3.
Forming a partnership with another company is known as a _____.
a)
joint venture
b)
corporation
c)
strategic alliance
d)
melding
4.

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

a)

banker

b)

investor

c)

owner

d)

business broker.

5.

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

6.

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

7.

Finding new ways of doing things is:

a)

Innovation

b)

Customer loyalty

c)

Industry

d)

Business accumen

8.

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

9.

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

a)

time and effort

b)

money

c)

starting capital revenue

d)

experience

10.

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

11.

Many _______________ can be turned into successful businesses.

a)

Alliances

b)

Clubs

c)

Efforts

d)

Interests

12.
The entrepreneurial process involves taking the steps to recognize a(n) ________ and create a business for profit.
a)
opportunity
b)
perception
c)
niche
d)
market
13.

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

a)

New kinds of strategic alliances

b)

Increased emphasis on outsourcing

c)

Growth of home-based businesses

d)

All of the above

14.

To identify consumer markets, you should be aware of:

a)

Services

b)

Demographic changes

c)

Technology

d)

Investors

15.

Chick-Fil-A is an example of a(n):

a)

Hardware store

b)

Investor

c)

Franchise

d)

Sole proprietorship

16.

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

a)

Employees

b)

Office Space

c)

Taxes

d)

A Business Plan

17.

An overview of your Business Plan is called the:

a)

Business Plan Overview

b)

Executive Summary

c)

Market Summary

d)

Detailed Overview

18.

The largest error an entrepreneur makes when writing a business plan is:

a)

Not making a detailed enough plan

b)

Skipping parts of their plan

c)

Never writing a business plan

d)

Skipping the executive summary

19.

The second part of a business plan is:

a)

Executive Summary

b)

Business Description

c)

Marketing Plan

d)

Financial Plan

20.

The part of a business plan that details what a company sells is called the:

a)

Financial Plan

b)

Marketing Plan

c)

Products and Services Plan

d)

Executive Summary