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WorksheetsEntrepreneurship Final Exam Study Guide
Total questions: 103
Worksheet time: 2hrs 55mins
Name
Class
Date
1.
How can an entrepreneur learn about and understand the industry related to their idea for a new business?
a)
Take a class or course related to the industry.
b)
Read books and journals about the industry.
c)
Interview people who currently work in the industry.
d)
All of these are correct.
2.
The entrepreneur should profile the potential customers for the new business. This means that the entrepreneur should determine (to the degree possible) the typical customer’s:
a)
age & gender
b)
income level
c)
education level
d)
all of these are correct
3.
The trading area should be carefully analyzed and evaluated.
a)
True
b)
False
4.
Which of the following is a cultural trend that might influence an entrepreneur?
a)
Athletic wear is worn to many places.
b)
The unemployment rate is increasing.
5.
Which of the following is an economic trend that might influence an entrepreneur?
a)
Athletic wear is worn to many places.
b)
Unemployment is decreasing.
6.
The first step of the Marketing Research Process is
a)
Gathering primary data.
b)
Defining the problem.
7.
This is information that is useful and has already been collected for another purpose.
a)
Primary Data
b)
Secondary Data
8.
This is information that is collected for the first time to solve the problem being studied or for use in achieving the goal of the project.
a)
Primary Data
b)
Secondary Data
9.
This is the gathering and interpreting of information about a market, about a product or service to be offered to that market, and about the customers for that product or service.
a)
Market Research
b)
Industrial Management
10.
This is a planned set of questions to which individuals or groups of people respond.
a)
Survey
b)
Invoice
11.
This is a geographic area in which a new product or service is tested in order to gather information about customer reaction to the tested product or service.
a)
Industrial Test
b)
Test Market
12.
This primary data collection method collects information by recording the actions of customers without interacting with or communicating with them
a)
Focus Group
b)
Observation
c)
Survey
d)
Test Market
13.
This is a small number of people who are brought together to discuss elements of a specific issue or problem.
a)
Focus Group
b)
Observation
c)
Survey
d)
Test Market
14.
This is an organized method of collecting, storing, analyzing, and retrieving information to improve the effectiveness and efficiency of marketing decisions.
a)
Marketing Information System
b)
Industrial Management System
15.
The small business entrepreneur, as well as large businesses, use this tool to effectively gather sales and product information for use in decision-making.
a)
The Advertising Broadcast System
b)
The Point of Sale System
16.
What is one way that a business might use marketing information?
a)
To develop new products
b)
To calculate sales transactions
17.
Which of the following research methods is appropriate when a business wants to obtain in-depth, qualitative information from a few customers:
a)
Structured observation
b)
Personal interview
18.
Which of the following is a source of primary market research:
a)
Focus groups
b)
US Census Bureau
19.
Walmart uses secondary data (information collected by their POS) to plan for new product offerings and predict the sale of certain items. What product will increase in sales by seven times ahead of a predicted hurricane?
a)
Red Seedless Grapes
b)
Whole Milk
c)
Strawberry Pop-Tarts
d)
Large Eggs
20.
One of the advantages of reviewing secondary data it can be done quickly and easily.
a)
True
b)
False
21.
The possibility that a loss can occur as a result of a business decision or a business activity:
a)
Risk
b)
Pilferage
22.
Providing security and safety for products, personnel, and customers.
a)
Industrial Management
b)
Risk Management
23.
Caused by the unpredictability of nature. Examples: floods, tornadoes, earthquakes
a)
Economic Risk
b)
Natural Risk
24.
Associated with political and economic trends. Examples: unemployment, inflation, competition, new government regulations.
a)
Economic Risk
b)
Natural Risk
25.
Caused by the potential actions of customers, employees, or other individuals. Examples: shoplifting, employee pilferage or negligence
a)
Economic Risk
b)
Human Risk
26.
The possibility of success is known as:
a)
Opportunity
b)
Risk
27.
Nearly _____ of all workplace injuries are sprains, strains, and tears.
a)
10%
b)
40%
28.
The loss of products due to theft, fraud, negligence, or error.
a)
Inventory Shrinkage
b)
Robbery
29.
Occurs when customers take an item without paying for it or intentionally pay less than the retail price.
a)
Shoplifting
b)
Pilferage
30.
Employee theft – any stealing, use or misuse of the employer's assets.
a)
Pilferage
b)
Shoplifting
31.
Employee theft is responsible for _____ of all business bankruptcies.
a)
33%
b)
10%
32.
Taking the property of another person by means of force or fear.
a)
Robbery
b)
Burglary
33.
Illegal entry into a building to commit a theft and usually occurs when the business is closed.
a)
Robbery
b)
Burglary
34.
A sophisticated cash register connected to a computer.
a)
Point-of-Sale Terminal
b)
Main Computer Terminal
35.
This is organized from right to left by lowest denominations.
a)
Cash Drawer
b)
Credit Drawer
36.
Provides insurance for the failure of a person to perform his or her duties or for losses resulting from employee theft or dishonesty.
a)
Professional Liability Insurance
b)
Surety Bond
37.
Provides protection from consumer claims arising from the use of the company's products
a)
Product Liability Insurance
b)
Credit Liability Insurance
38.
Protects against claims of negligent or harmful actions by business professionals. Example: malpractice insurance for a doctor.
a)
Professional Liability Insurance
b)
Surety Bond
39.
This is a risk that will result in a predictable and measurable financial loss to the business such as a natural risk. Also known as a pure risk.
a)
Insurable Risk
b)
Speculative Risk
40.
These are risks that could result in a loss OR a gain. The entrepreneur cannot purchase insurance to manage these types of risks.
a)
Speculative Risk
b)
Insurable Risk
41.
Slips, trips, and falls are common workplace accidents. Which of the following is a FALSE statement concerning the prevention of workplace accidents.
a)
Employees should wear non-slip waterproof shoes that fully cover the foot.
b)
Employees should be careful when climbing on countertops to reach high places.
42.
There are many electrical hazards in businesses today because of the variety of electrical appliances in use. You can avoid being shocked by knowing:
a)
Not to plug in electrical equipment while touching a wet or damp surface.
b)
How to shut off the current in case of an emergency.
c)
To pull the plug, not the cord when unplugging equipment.
d)
All these are correct answers.
43.
Personal injury lawsuits frequently arise when customers slip and fall while on a business’s premises. Avoid customer slips and falls by:
a)
Allowing customers to walk on wet floors.
b)
Keeping debris stacked on the floor
c)
Being sure that rug edges are not sticking up or bunched up.
d)
All of these answers are correct.
44.
When completing cash transactions with the customer, which of the following should the cashier NOT do?
a)
State the amount of cash given to you by the customer.
b)
Place the bill on the self above the cash drawer.
c)
Count the change as you take it out of the cash drawer.
d)
Count the change again as you place it on the counter in front of the customer.
45.
Which of the following is NOT a strategy for dealing with risk?
a)
Insure the risk.
b)
Assume the risk.
c)
Avoid the risk.
d)
Forget about the risk.
46.
What is the most common form of business ownership?
a)
Corporation
b)
Company
c)
Sole Proprietorship
d)
LLC
47.
Owned by one individual.
a)
Proprietorship
b)
Partnership
c)
Corporation
d)
None of the above
48.
Which type of legal structure is used when two or more people join together to start a business and have unlimited liability?
a)
Sole trader
b)
Partnership
c)
LTD
d)
PLC
49.
What are the owners of private and public limited companies called?
a)
Stakeholders
b)
Managers
c)
Board of directors
d)
Shareholders
50.
Which of the following best describes the term limited liability? If the business fails:
a)
Personal possessions of the owner can be taken to pay any debts
b)
The owner is personally liable for all the debts of the business
c)
There is no limit on the amount the owner has to pay to settle debts
d)
The owner only loses the amount invested in the business
51.
Which of the following is a drawback for an entrepreneur setting up a business as a sole trader?
a)
Profit is shared
b)
Financial accounts are kept private
c)
Limited liability
d)
Unlimited liability
52.
Which of the following is an advantage of operating a large established business as a public limited company?
a)
Shares can be sold to the public to raise additional finance
b)
Financial accounts are published
c)
Shares can only be sold to invited investors to raise finance
d)
Owners have unlimited liability
53.
A private limited company may change into a public limited company because it wants:
a)
Limited liability
b)
To raise additional finance
c)
Unlimited liability
d)
To avoid takeover
54.
Which of the following statements is always true of a public limited company?
a)
Shareholders have day to day control of the company
b)
Liability is limited
c)
The ability to expand is limited
d)
Board of directors own the business
55.
Which of the following is a disadvantage of being a public limited company?
a)
The business is at risk of takeover
b)
Large sums of money can be raised
c)
Unlimited liability
d)
Limited liability
56.
Which of the following is a disadvantage of being a public limited company?
a)
The business is at risk of takeover
b)
Large sums of money can be raised
c)
Unlimited liability
d)
Limited liability
57.
Which of the following is a disadvantage of setting up a business as a partnership?
a)
Shared losses
b)
Shared workload
c)
Shared profit
d)
More ideas generated
58.
Only liable for up to the amount invested into the company, and has little to no voice in management.
a)
General Partner
b)
Proprietor
c)
Limited Partner
d)
Corporation
59.
This type of organization is a legal entity separate from its owners.
a)
Sole proprietorship
b)
Partnership
c)
Corporation
d)
Franchise
60.
The major policy and financial decision-makers of a corporation are determined by the?
a)
CEO/GM/President
b)
Chairman of the Board
c)
Shareholders
d)
Board of Directors
61.
Law firms and doctor's offices are examples of?
a)
Sole Proprietorships
b)
Partnerships
c)
Corporations
d)
Franchises
62.
Disadvantages for this type of business include: owner pays for everything, hard to get money to start from the bank, owner might lack skills & unlimited liability.
a)
Sole Proprietorship
b)
Partnership
c)
Corporation
d)
Franchise
63.
This type of business is a contractual agreement with a parent company to sell its products/services in an area.
a)
Sole Proprietorship
b)
Partnership
c)
Corporation
d)
Franchise
64.
McDonald's and Burger King are examples of?
a)
Sole Proprietorships
b)
Partnerships
c)
Corporations
d)
Franchises
65.
Nike, Google, and Apple are examples of?
a)
Sole Proprietorships
b)
Partnerships
c)
Corporations
d)
Franchises
66.
Who can own a small business?
a)
Only a college graduate
b)
Anyone
c)
Only someone with a lot of money
d)
Only smart people
67.
This is someone who takes the initiative to start and operate a new business.
a)
Chief Executive Officer
b)
Entrepreneur
68.
This a process that requires hard work, perseverance, and the willingness to assume some degree of risk.
a)
Managing
b)
Entrepreneurship
69.
Pursuing their passions, developing an idea into a business, creating wealth for themselves, and providing jobs for other people, allows entrepreneurs to increase their:
a)
personal satisfaction
b)
number of friends
70.
Entrepreneurs often start their business while working for another company, this allows them:
a)
to increase their income.
b)
to practice community service.
71.
Entrepreneurs do not receive a regular paycheck. This means that entrepreneurs:
a)
make lots of money.
b)
have an uncertain income
72.
Entrepreneurs will work very long hours – often 7 days a week. This means that:
a)
plenty of time will remain to pursue personal and family interests.
b)
personal interests will often take a backseat to the business.
73.
To be successful, the entrepreneur must:
a)
ignore the needs and wants of customers.
b)
focus on serving the needs and wants of customers.
74.
Because of entrepreneurs, we have:
a)
a shortage of goods and services available to consumers.
b)
an abundance of goods and services from which to choose.
75.
He is the entrepreneur behind SpaceX and Tesla Motors. His goal is to change the world and improve humanity.
a)
Neil Armstrong
b)
Elon Musk
76.
Anyone can be an entrepreneur and:
a)
you must be 21 years of age to get started.
b)
you can begin at any age.
77.
Entrepreneurs must be willing to risk the chance of failure in order to be successful. What important characteristic of entrepreneurs is this?
a)
Risk-taking
b)
Perseverance
c)
Creativity
d)
Self-confident
78.
The ability to use imaginative skills to find unique ways to solve problems.
a)
Self-confident
b)
Creativity
c)
Self-Confidence
d)
Perseverance
79.
Belief in oneself and one’s own abilities with an expectation to be successful.
a)
Self-confident
b)
Creativity
c)
Self-Confidence
d)
Perseverance
80.
Entrepreneurs are flexible and will refuse to give up despite obstacles, failures, and discouragement from others. This characteristic is known as:
a)
Self-confident
b)
Creativity
c)
Self-Confidence
d)
Perseverance
81.
Entrepreneurs do not listen to the negative people around them. They take the road less traveled.
a)
Independent-minded
b)
Hardworking
82.
In this economic system, also known as capitalism or a free market economy, people have the freedom to own property, buy products, and they can choose to start their own businesses.
a)
Communism
b)
Free Enterprise
c)
Socialism
d)
Command Economy
83.
This is an important reason or incentive that entrepreneurs have for starting their own businesses.
a)
The competition.
b)
The profit motive.
c)
The ability to pay taxes.
d)
Government regulations.
84.
This is the rivalry among businesses for customers. It forces companies to operate efficiently while keeping prices down and quality up.
a)
Industrialization
b)
Competition
c)
Supply
d)
Demand
85.
This refers to the quantity of a product consumers are willing and able to purchase at a given price
a)
Industrialization
b)
Competition
c)
Supply
d)
Demand
86.
This refers to the quantity of a product that producers are willing and able to produce at a given price.
a)
Industrialization
b)
Competition
c)
Supply
d)
Demand
87.
This is a business owned and managed by one person.
a)
Partnership
b)
Proprietorship
c)
Corporation
d)
Limited Liability Cooperative
88.
A business that is owned and operated by two or more people who share in the decision-making and profitability of the company.
a)
Partnership
b)
Proprietorship
c)
Corporation
d)
Limited Liability Cooperative
89.
The person who has sole ownership of a business.
a)
Proprietor
b)
Chief Executive Officer
c)
Stock Holder
d)
Senior Partner
90.
A legal document that specifies the responsibilities and financial relationships of business partners.
a)
Charter
b)
Partnership Agreement
c)
Articles of Incorporation
d)
Licensing Agreement
91.
In this type of partnership the profits, liability and management duties are divided equally among partners.
a)
General Partnership
b)
Limited Partnership
92.
In this type of partnership some partners may have only partial liability as well as restricted input with management decisions. These restrictions will reflect the percentage of the initial investment made by each partner.
a)
General Partnership
b)
Limited Partnership
93.
This is a temporary partnership created for a single project or purpose.
a)
Joint Venture
b)
Limited Partnership
c)
General Partnership
d)
Industrial Partnership
94.
A business owned by people who purchase stock in the company. These businesses are granted a charter by the state in which they are formed.
a)
Industrial Organization
b)
Corporation
c)
Partnership
d)
Proprietorship
95.
The a legal document allowing the corporation to operate as if it were a person.
a)
Charter
b)
Partnership Agreement
c)
Licensing Agreement
96.
Which of the following statements is an ADVANTAGE of the proprietorship form of business ownership?
a)
The proprietor may not have all the skills needed to run the business.
b)
Most new businesses require a lot of money to start, this could be more than one owner can provide.
c)
The risk can be great and must be carried by the proprietor, includes personal liability.
d)
The proprietor receives all profits from the operation of the business.
97.
Which of the following statements is a DISADVANTAGE of the corporation form of ownership?
a)
Offers the owners limited liability.
b)
The business can exist indefinitely, beyond the life of the owners.
c)
Ownership is easy to transfer by the selling of stock.
d)
Corporations are usually taxed at a higher rate than other forms of ownership.
98.
Which of the following statements is an ADVANTAGE of the partnership form of ownership?
a)
Partners are able to combine their knowledge, skills, and abilities.
b)
Disagreements on important decisions can occur among partners.
c)
All partners are responsible for any actions and decisions made by another partner
d)
Partners share the profits of the business.
99.
This is a type of legal structure that provides the limited liability features of a corporation and the tax benefits of a partnership. This is a complex business structure and may require legal advice and assistance to setup.
a)
Limited Sole Proprietorship (LSP)
b)
Limited Liability Company (LLC)
c)
Limited Industrial Company (LIC)
d)
Limited Business Company (LBC)
100.
Entrepreneurs must be willing to seek advice from others.
a)
True
b)
False
101.
This is someone who is experienced, successful and willing to provide advice and guidance.
a)
Mentor
b)
President
c)
CEO
d)
Industrial Engineer
102.
This organization is dedicated to helping small businesses get off the ground, grow and achieve their goals through education and mentorship. This group offers free, confidential business advisors in person or via email. Thousands of their volunteers are willing to share their expertise across 62 industries.
a)
SCORE
b)
TOUCHDOWN
103.
This is an independent agency of the federal government with the mission of aiding, counseling, and assisting entrepreneurs and small businesses.
a)
EPA
b)
SBA
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