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EOPA Prep 3

Total questions: 10

Worksheet time: 10mins

Name
Class
Date
1.

1.         Zander owns a company that buys tea from other companies in China and sells it to grocery stores. Zander's company is a(n)

a)

industrial user

b)

retailer

c)

producer

d)

wholesaler

2.

Troy has discovered an innovative technology with huge growth potential. He needs $1,000,000 in funding and expert technical advice to launch his business venture. What funding source would be best for him to pursue?

a)

commercial bank

b)

angel investor

c)

family and friends

d)

venture capitalist

3.

The type of capital resources that a startup business needs to begin operating usually depends on the

a)

vendors' lead time

b)

location

c)

owner's preferences

d)

industry

4.

To maximize the efficiency of complex business operations, business owners must

a)

establish standards after conducting a SWOT analysis

b)

work with financial advisors to reduce tax liability

c)

rely on economic indicators to develop business strategies

d)

understand the interdependence of all business functions

5.

A potential benefit to new business owners of establishing business systems and procedures is

a)

the elimination of employee errors

b)

improved utility services

c)

less reliance on networking

d)

the efficient use of resources

6.

Which of the following terms best describes the overall procedures that guide a small business's activities by standardizing the way the business functions:

a)

safety

b)

credit

c)

operating

d)

hiring

7.

A small-business owner who uses the brainstorming technique to find solutions to difficult situations is trying to

a)

plan contract negotiations

b)

assess long-term budgets

c)

creatively solve problems

d)

intentionally prevent conflict

8.

By joining a community organization, such as the local chamber of commerce, an entrepreneur can network with others to

a)

improve goods and services

b)

obtain selling experience

c)

evaluate personal skills and abilities

d)

identify new venture opportunities

9.

Aaron, a small-business owner, develops an exit strategy so that his company keeps growing and prospering in the marketplace after he leaves. The exit strategy is one aspect of Aaron's

a)

competitive advantage

b)

control system

c)

management style

d)

continuation plan

10.

Ellen wants to step back from the day-to-day activities of running her company. She decides to take the company to another level by selling public stock. One way Ellen can stay involved in the company is by

a)

appointing a family member as president

b)

serving on the board of directors

c)

arranging a tactical acquisition

d)

hiring her successor