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ME Unit 1 Quiz - Spring 21

Total questions: 20

Worksheet time: 20mins

Name
Class
Date
1.

Leo is thinking about opening a greeting card store on the main street in his small town. In addition to thinking about the business’s feasibility in terms of the customers he hopes to attract, which aspects of feasibility should Leo prioritize during his initial research?

a)

skills, abilities

b)

laws, codes

c)

trends, competitors

d)

resources, labor

2.

The idea of selling flavored water to dogs in an example of:

a)

a business idea not rising to the level of a business opportunity that meets customer demand.

b)

an idea that was difficult to implement for the actual users.

c)

how a business plan should highlight the experience of the CEO.

d)

an unconventional product being offered to interested customers.

3.

A recent business plan for a new industrial cleaning product included a slide titled “Penetrate Alkaline-Based B2C Chemical Converter @ 30% YOY.” Which is a potential problem with including text like this in a business plan?

a)

It might not be understood by most people.

b)

It sounds cautious about the product’s potential.

c)

It doesn’t speak directly to the investors.

d)

It doesn’t tell a convincing story.

4.

Originally named Mrs. Fields’ Chocolate Chippery, Debbi Fields and her husband grew Mrs. Field’s to a company of over 400 locations and 4,000 employees. In describing the many obstacles that she overcame along the way, to what does Debbi Fields credit for her persistence?

a)

Focusing on doing what you love

b)

Knowing how to deal with success

c)

Giving back to your community

d)

Hiring talented family members

5.

Which is a method for tamping down the initial excitement of a potentially “winning” idea during the ideation stage?

a)

Ask yourself if the idea reflects your company’s mission and vision.

b)

See if the idea still seems like a good one after a few days have passed.

c)

Build a simple prototype and show it to members of the target market.

d)

Consider how you would feel if you didn’t move forward with the idea.

6.

In the case of Segway, makers of the Segway personal mobility vehicle, the company discovered that individuals would be reluctant to purchase their products for personal use only after it had spent over $100 million in research and development. Instead of scrapping the product, Segway shifted their sales and marketing toward organizations like police departments and warehouse operators, where they could be successful. Which phrase BEST describes the approach they took?

a)

Pivoting to new market

b)

Refining an existing offering

c)

Creating a minimally viable product

d)

Using feedback to iterate on a product

7.

Sheng is a young entrepreneur who hopes to attract funding for his new home security camera business. Before creating his business plan, Sheng considers the product’s feasibility from a number of perspectives, including the potential competition in the marketplace and his product’s potential for making a profit. What else should Sheng consider in his feasibility analysis?

a)

what’s going on in the security camera market

b)

which type of legal business entity he should create

c)

how he plans to effectively communicate with partners

d)

why having enthusiasm for his idea is the most important thing

8.

A business plan is to a new business as a _____ is to a new house.

a)

front yard

b)

foundation

c)

mortgage

d)

mailbox

9.

Which is an example of an entrepreneur connecting with a market to validate an idea for a new business?

a)

Before Maia gives her business plan presentation, she has a friend check it for potential errors.

b)

Tamiko spends time with his skateboarding friends to find out how they feel about the latest skating products.

c)

Jason generates ideas for six different businesses, then he narrows it down to the one idea that could actually make money.

d)

When Dwight made a prototype of his new unicycle, he realized he could never sell it at a price that would be profitable.

10.

The Dollar Shave Club, which went from a one-person operation to a company with over 600 employees and 4 million subscribers in five years, offers a way for men to avoid the inconvenience of shopping for razors at the store. In which section of their business plan would you expect to find detailed information about the specific value that the company is delivering to its customers?

a)

Financials

b)

Operations

c)

Executive summary

d)

Sales and Marketing

11.

A group of friends wants to start a business, and they think they have a winning idea for a new type of unicycle. Before they go to the effort of building a prototype to try it out with real customers, what else would they be wise to consider?

a)

the importance of giving accurate numbers and figures

b)

the ways in which their business tells a story

c)

the opportunity to develop lasting partnerships

d)

the potential for making any profit

12.

Tabitha wants to use her expert knowledge of scuba diving to start a scuba school, so she made a plan to present her idea to partners and investors. In addition to making sure that her plan is both accurate and realistic, what else should Tabitha’s plan try to communicate overall?

a)

her focus on the hazards

b)

her excitement for the business

c)

the history of scuba as a business

d)

her willingness to incur debt

13.

Which is an important component of any factual claims that are made in a business plan?

a)

detail

b)

visuals

c)

evidence

d)

excitement

14.

In addition to being accurate and free of errors, what else should an effective business plan attempt to be?

a)

humble

b)

realistic

c)

revolutionary

d)

exhaustive

15.

Business planning _____ often uses _____ to build the plan.

a)

software; templates

b)

tools; spreadsheets

c)

methods; prototypes

d)

services; sales

16.

Garrett hopes to open an amusement park featuring cutting-edge rides and “extreme” attractions right in the middle of his hometown. When considering the legal aspects of such a business, in addition to thinking about how he will manage the business risk, what else would Garrett be wise to focus on at this stage?

a)

zoning issues

b)

online presence

c)

positioning

d)

import laws

17.

Jan started a T-shirt business because her friends were always commenting on the clever sayings that she scribbled on her old T-shirts. At first, Jan thought that her new business would revolve around writing funny slogans and keeping her ideas protected from copyright infringement. But once she bought her first thousand blank T-shirts from an online vendor and paid too much, she started to wonder if she’d ever be able to make a profit. Which aspect of her business did she misjudge?

a)

human resources

b)

location

c)

sourcing

d)

marketing

18.

Which is a primary goal of “pitching” a business plan?

a)

doing a deep dive into each section

b)

conveying a sense of authenticity

c)

presenting a summary version of the plan

d)

including testimonials to sell the idea

19.

What is the goal of performing a breakeven analysis?

a)

determining how much sales are required to cover costs

b)

understanding how market trends might affect product demand

c)

planning how customers find and purchase the product

d)

preventing ideas that aren’t feasible from getting off the ground

20.

Food Dude is a home-based, homemade meal delivery business that creates meals in licensed home kitchens for delivery to customers in the local area. From there, customers simply freeze and then reheat the meals when they’re ready to eat them. Given this arrangement, which word BEST describes the company’s primary value to customers?

a)

prestige

b)

quality

c)

price

d)

convenience