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BUSINESS OPPORTUNITY

Total questions: 51

Worksheet time: 26mins

Name
Class
Date
1.

The entrepreneur gets a wealth of experience while risking his own money only.

a)

TRUE

b)

FALSE

2.

International, local and ____ are types of business opportunities

a)

National

b)

livestock

c)

Bilateral

d)

Advanced

3.

Example of international Business opportunity is

a)

Dancing

b)

Farming import and export

c)

Barbing

d)

Mining

4.

For Higher probability of success you must have an attitude of being innovative. What Evaluated Factors do an entrepreneur must have?

a)

Market

b)

Technology

c)

Interest

d)

Man power

5.

It is typically the choice of beginning entrepreneurs.

a)

government grants

b)

Bootstrapping

c)

partnership

d)

sponsoring company

6.

Other grants are available to the entrepreneur at the federal, state and _______ levels.

a)

national

b)

international

c)

local

d)

provincial

7.

After generating profits, a company decides what to do with the earned capital and how to allocate it _________?

a)

effectively

b)

daily

c)

monthly

d)

efficiently

8.

Companies obtain debt financing privately through ________.

a)

relatives money

b)

personal pocket

c)

Bank loans

d)

None of the above

9.

In debt financing, the issuer (borrower) issues_______securities.

a)

revenue

b)

investment

c)

income

d)

debt

10.

The retained earnings can be distributed to shareholders as ________.

a)

cash

b)

dividends

c)

profit

d)

liability

11.

The sources of funding are retained earnings, debt capital and _______.

a)

small capital

b)

equity capital

c)

multiple capital

d)

single capital

12.

Funding can be initiated for either short-term or long-term purposes.

a)

TRUE

b)

FALSE

13.
The source of finance that is provided by the Owners is called 
a)
Capital
b)
Overdraft
14.

The owner of Jack’s Furniture Workshop, a one man company, manages to get a massive order to fit out a secondary school in Michigan. He puts $10.000 of his savings into the company so he can buy the needed raw materials, fully expecting to earn it back quickly.


This is an example of:

a)

Subsidies

b)

Trade Credit

c)

Personal Funds

d)

Share Capital

15.

The Board of Ching Shu, a debt collection firm, decides to postpone the payout of shareholder dividends to finance company expansion. The funds are used to open new offices, increasing their circle of activity. The shareholders think this is a great move as they think this will increase their stock value over time.


This is an example of:

a)

Grants

b)

Share Capital

c)

Retained Profits

d)

Venture Capital

16.
Which of the following is NOT a source of finance.
a)
Family & Friends
b)
Bank Loan
c)
Business Devil
d)
Government Grant
17.
A loan that has to be repaid immediately is called an
a)
Underdraft
b)
Overdraft
c)
Oversight
d)
Undercraft
18.
A loan that is secured on a property is called a 
a)
Mortgage
b)
Overdraft
c)
Credit Card
d)
Government Grant
19.
This type of finance does not need to be repaid.
a)
Bank Loan
b)
Overdraft
c)
Mortgage
d)
Government Grant
20.
A Venture Capitalist / Business Angel specialises in funding risky businesses.
a)
True
b)
False
21.
A mortgage is a long term source of finance.
a)
True
b)
False
22.
A Venture Capital / Business Angel will expect a share of the profits.
a)
True
b)
False
23.
The source of finance that is provided by the Owners is called 
a)
Capital
b)
Overdraft
24.
Which of the following sources of finance does not have interest added.
a)
Overdraft
b)
Owners' Capital
c)
Mortgage
d)
Bank Loan
25.
A business that fails to pay back loans will have
a)
A good credit rating
b)
A poor credit rating
26.

Which of the following is not a source of debt financing?

a)

Angel Investors

b)

Credit Unions

c)

Micro Loans

d)

Credit Cards

27.

Starting a business by yourself, without any outside investment.

a)

Crowdfunding

b)

Bootstrapping

c)

Equity Financing

d)

Debt Financing

28.

Which of the following is NOT an example of equity financing?

a)

Credit Cards

b)

Angel Investorl

c)

Customer Financing

d)

Venture Capital

29.

What is a business plan?

a)

Written document that only outlines the business practices of the new business.

b)

Written document that only describes the ownership of the business.

c)

Written document that describes the financial aspects of the business

d)

Written document that describes all the steps necessary for opening and operating a successful business.

30.

Why do you need a business plan?

a)

To explain your idea

b)

t's a road map that sets objectives and goals for the business.

c)

To help reduce the risk of business failure.

d)

All of the above

31.

Complete the sentence: A business plan...

a)

is useful once your business is operational but not much help during the startup phase

b)

is not usually needed once the business is up and running

c)

can serve as a tool for helping a business during the startup phase and for managing your business once it is up and running

32.

A brief account of the key points contained in a business plan

a)

Executive Summary

b)

Company Description

c)

Mission Statement

d)

Vision Statement

33.

A description that provides an outline of a business

a)

Executive Summary

b)

Company Description

c)

Contingency Plan

d)

Mission Statement

34.

A description that provides an outline of a business

a)

Executive Summary

b)

Company Description

c)

Contingency Plan

d)

Mission Statement

35.

A description of the product or service to be offered

a)

Operational Plan

b)

Marketing Plan

c)

Product and Service Plan

d)

Industry Overview

36.

Research of the potential customer’s profile

a)

Market Analysis

b)

Marketing Plan

c)

Mission Statement

d)

Growth plan

37.

A plan presenting financial forecasts for the business

a)

Financial Plan

b)

Investor Plan

c)

Loan Proposal

d)

Business Loan Plan

38.

A business plan would normally be updated:

a)

Every day

b)

A month after the business starts

c)

Once a business adjusts its aims/objectives

d)

Never - It stays the same in its original form

39.

Refers to what you are selling, including all of the features, advantages and benefits that your customers can get.

a)

Price

b)

Promotion

c)

Packaging

d)

Product

40.

Who will benefit from the product/service?

a)

marketing Strateg

b)

Business Model

c)

Target Market

d)

goals

41.

What does “internal factors” mean?

a)

Factors that can be controlled by a business but are factors inside the business

b)

Factors that can be controlled but are factors outside of the business

c)

Factors than can not be controlled by a business but are factors inside the business

42.

What are 2 examples of internal factors?


a)

Effective planning & competitors

b)

Understanding the market & marketing and promoting

c)

Government legislation & customer satisfaction

43.

What are 2 examples of external factors?

a)

Change in costs of materials & competitors

b)

Competitors & marketing

c)

Government legislation & customer satisfaction

44.

Which 1 of the factors below IS an internal factor

a)

Costings of materials

b)

Competitors

c)

Customer satisfaction

d)

Government legislation

45.

Which 1 of the factors below IS an internal factor

a)

Planning and finance

b)

Competitors

c)

Costings of materials

d)

Government legislation

46.

Which 1 of the factors below IS an internal factor

a)

Government legislation

b)

Competitors

c)

Costings of materials

d)

Understanding the market

47.

Which 1 of the factors below IS an internal factor

a)

Government legislation

b)

Competitors

c)

Human resource costs

d)

Costings of materials

48.

Which 1 of the factors below IS NOT an internal factor

a)

Human resource costs

b)

Competitors

c)

Customer satisfaction

d)

Understanding the market

49.

Which 1 of the factors below IS NOT an internal factor

a)

Human resource costs

b)

Customer satisfaction

c)

Government Legislation

d)

Understanding the market

50.

Which 1 of the factors below IS NOT an internal factor

a)

Understanding the market

b)

Customer satisfaction

c)

Human resource costs

d)

Changes in consumer behaviour

51.

Which 1 of the factors below IS NOT an internal factor

a)

costs of marketing

b)

Customer satisfaction

c)

Human resource costs

d)

Understanding the market