WorksheetsEntrepreneurship IA4 Prep
Total questions: 40
Worksheet time: 20mins
A business plan is helpful for which of the following reasons?
It helps a business set future goals.
It can take the place of an accountant.
It sets a course of action that cannot be changed.
It takes a long time to produce.
All the following are examples of assets EXCEPT
stock purchased by company.
an employee’s car used for deliveries.
equipment owned by the business.
accounts receivable.
By definition, a small business
has only one location.
has only one employee.
has fewer than 500 employees.
must have at least three employees.
Consumers are willing to pay more for a product if
they perceive the brand as better.
it is a complementary product.
there are many comparable products.
their friends have had a negative experience with it.
Entrepreneurs need to know the basics of accounting even if they hire a professional because
the entrepreneur will be able to have the same level of expertise.
the entrepreneur will need to understand the financial reports.
the entrepreneur no longer needs to pay attention to accounting.
the entrepreneur will need to tell the accountant what information is required.
Making sure that your business has something special and distinct to offer is known as
diffusion
differentiation
distinction
distancing
The fact that personal dynamics are more likely to be a problem in a family business is an example of
reduced risk
human risk
natural risk
economic risk
What are the potential consequences if a business does not follow regulations?
The business can go bankrupt
The business can be fined
The business can lost its license
All of the above
What is the difference between a marketing strategy and a marketing plan?
A marketing strategy tells where a business wants to go and the marketing plan tells how to get there.
There is no difference between a marketing strategy and a marketing plan.
A marketing strategy is rather flexible, but a marketing plan should not be revised once it has been created
A marketing plan is written first and forms the basis of the marketing strategy.
Which of the following is included in a job description?
the supervisor’s contact information
the amount of vacation time the company allows
the personal attributes of the last person to hold the job
the duties the person in the position performs
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?
trends, competitors
laws, codes
resources, labor
skills, abilities
The idea of selling flavored water to dogs in an example of:
an idea that was difficult to implement for the actual users.
a business idea not rising to the level of a business opportunity that meets customer demand.
how a business plan should highlight the experience of the CEO.
an unconventional product being offered to interested customers.
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?
It might not be understood by most people.
It doesn’t tell a convincing story.
It sounds cautious about the product’s potential.
It doesn’t speak directly to the investors.
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?
Hiring talented family members
Giving back to your community
Knowing how to deal with success
Focusing on doing what you love
Which is a method for tamping down the initial excitement of a potentially “winning” idea during the ideation stage?
Build a simple prototype and show it to members of the target market.
See if the idea still seems like a good one after a few days have passed.
Consider how you would feel if you didn’t move forward with the idea.
Ask yourself if the idea reflects your company’s mission and vision.
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?
Creating a minimally viable product
Pivoting to new market
Refining an existing offering
Using feedback to iterate on a product
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?
what’s going on in the security camera market
which type of legal business entity he should create
how he plans to effectively communicate with partners
why having enthusiasm for his idea is the most important thing
A business plan is to a new business as a _____ is to a new house.
front yard
foundation
mortgage
mailbox
Which is an example of an entrepreneur connecting with a market to validate an idea for a new business?
Before Maia gives her business plan presentation, she has a friend check it for potential errors.
Jason generates ideas for six different businesses, then he narrows it down to the one idea that could actually make money.
When Dwight made a prototype of his new unicycle, he realized he could never sell it at a price that would be profitable.
Tamiko spends time with his skateboarding friends to find out how they feel about the latest skating products.
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?
Executive summary
Sales and marketing
Financials
Operations
When Chef Daniel thought up his idea for drone-delivered desserts, he thought he had something the public would gladly welcome. He couldn’t convince anyone to invest in funding the business, but luckily, he had enough money to launch it himself, including money for a sizable marketing budget. Unfortunately, Daniel only received a few orders for his desserts, and even those orders appeared to be prank calls. Which phrase BEST describes the most likely reason for his business failure?
Lack of customer focus
Bad business idea
Not enough managerial experience
Lack of cash
Which word BEST describes the overall landscape of business?
basic
predictable
forgiving
dynamic
Maurice opened a successful flower shop last year, and now he employs seven full-time workers. Although he is off to a great start, based on industry averages, what are his chances of still being in business five years from now?
20 percent
50 percent
60 percent
75 percent
Entrepreneurs need to _____ and _____ risk to be successful.
evaluate, manage
identify, build
plan, create
find, amplify
Which is an example of a company experiencing external risk?
a paint store that manages its waste with green technologies
a technology business operating during a power outage
a toy store operating in an area with no families or children
an investment company that was accused of defrauding investors
Houston’s Cupcake Kitchen experienced $30,000 worth of storm damage due to Hurricane Harvey. When the store reopened 5 miles away from the original site, it experienced an immediate jump in sales. What does this illustrate?
Hazards like hurricanes can force entrepreneurs to reinvest
People are the most important commodity in any business venture
Location risks can include risks to sales, not just disasters
Businesses that learn through failure can sometimes succeed
When Tabitha opened her architectural planning firm, she spent months considering the risks and figuring out how to manage each one. Unfortunately, she didn’t plan for employee theft, so when it happened—to the tune of $50,000—she was forced to close. Which kind of risk did Tabitha fail to plan for?
people risk
hazardous risk
location risk
internal risk
The story of Amazon’s Jeff Bezos putting $100 million worth of toys into his company’s inventory is an example of:
strategic risk.
hazardous risk.
people risk.
location risk.
Which is an example of a business that failed because of strategic issues?
a food truck that parked away from crowded areas
a food truck that was started by two real estate agents
a food truck that lost money to employee theft
a food truck that couldn’t earn enough to pay its suppliers
Which is an example of a macro-level event that can affect people everywhere?
a political election
a company laying off employees
a seasonal snowfall
a change in global climate
When ParkWhiz was first starting their business, they realized they needed to hire more employees skilled in engineering. What did ParkWhiz MOST likely conduct to make this determination?
a morale survey
an employee training
a business plan assessment
a needs assessment
Which word BEST describes the issue of job dissatisfaction today?
mysterious
widespread
temporary
irrelevant
Employers know that _____ employees are _____.
busy, tireless
happy, productive
new, inexpensive
salaried, optimal
Last year, Jake got an entry-level sales job in the banking industry, but so far he hasn’t been able to meet his monthly sales goals. Though he likes his colleagues, in truth, Jake has never liked either sales or banking, but he thought the job could bring him some financial security. Which factor is MOST likely impacting Jake’s productivity?
poor health
lack of resources
work environment
job fit
To help improve the work/life balance of the team, the owner of an advertising sales company instituted a practice of leading the office in applause every time an employee made a sale. Which aspect of work/life balance is the owner attempting to work on?
working conditions
flexibility
employee self-care
recognition
Galileo, an educational summer camp, receives very high customer satisfaction ratings. The success is largely due to the talented group of counselors, mentors, and teachers that run the camps. What process does Galileo MOST likely excel at in their organization?
terminating
recruiting
scheduling
marketing
Darren is currently screening candidates for the open job on his sales team. What will he MOST likely do next?
conduct interviews
develop job descriptions
hire a recruiting firm
compose an offer letter
When Bonnie left her job as an air traffic controller, her manager estimated that it could take anywhere from 12–18 months to hire and thoroughly train her replacement. According to statistics, how does the manager’s estimate compare with the average for most job replacements?
It’s double the average.
It’s a little higher than average.
It’s about average.
It’s lower than average.
Which is an example of involuntary termination due to employee performance?
A customer service center terminates the three agents in the office who consistently earned the lowest customer satisfaction scores.
An ice cream shop hires 10 students to work for the summer, but can only keep three on during the rest of the year.
A hospital lays off a physical therapist because he didn’t appear for work for weeks on end.
A bank eliminated 50 managerial positions when the headquarters was moved to another state.
When Garrett started his fine art printing business, he did everything from taking orders to making the fine art prints. But success has allowed him to make new two hires: a salesperson and a printer. Which BEST describes Garrett’s experience?
chain of command
specialization
product divisions
departmentalization
