WorksheetsEntrepreneurship Final Exam
Total questions: 65
Worksheet time: 33mins
Name
Class
Date
1.
First Name
4 lines
2.
Last Name
4 lines
3.
People who own, operate and take the risk of business ventures are called?
a)
employees
b)
entrepreneurs
c)
executives
d)
managers
4.
Special meetings where companies of the same or related industries display their products are called?
a)
Social Networking
b)
SBA
c)
Trade Shows
d)
Internet Activities
5.
Thoughts or concepts that come from creative thinking are called?
a)
ideas
b)
advantages
c)
opportunities
6.
A corporate executive who develops new business within a corporation is called what?
a)
Social Entrepreneur
b)
Intrapreneur
c)
Green Entrepreneur
7.
More than half of all new businesses do not survive beyond four years.
a)
True
b)
False
8.
What must be subtracted from net sales to find gross profit?
a)
Total expenses
b)
Operating expenses
c)
Cost of goods sold
d)
Interest expenses
9.
Taking a physical inventory means counting the number of items you have in stock.
a)
True
b)
False
10.
Training and compensating the employees of a business is part of which management function?
a)
Planning
b)
Staffing
c)
Implementing
d)
Controlling
11.
The person in a business who is responsible for planning, organizing, staffing, implementing, and controlling the operations of a business is the
a)
manager
b)
chairman of the board
c)
employee
d)
intern
12.
Analyzing your sales by product can help you
a)
determine whether or not your business is earning a profit
b)
make decisions about what kind of inventory to stock
c)
find the breakeven point
d)
determine the amount of income tax to pay
13.
The level of inventory you keep in stock depends on
a)
the frequency with which you sell your inventory
b)
the cost of carrying inventory
c)
the cost of losing a sale because you are out of stock
d)
all of these
14.
Things that you think you must have in order to feel satisfied are called?
a)
needs
b)
preferences
c)
goals
d)
wants
15.
Raw materials supplied by the environment are called?
a)
human resources
b)
capital resources
c)
natural resources
d)
monetary resources
16.
The three types of economic resources an entrepreneur may use are called?
a)
factors of production
b)
supply curves
c)
production hierarchies
d)
factors of consumption
17.
The psychologist who developed a theory on the hierarchy of needs was?
a)
Sigmund Freud
b)
Karl Jung
c)
Abraham Maslow
d)
Terrence McKenna
18.
According to the theory of the hierarchy of needs,
a)
everyone's needs will eventually be satisfied
b)
everyone has the same needs
c)
needs and wants are usually the same
d)
people must satisfy lower-level needs before focusing on higher-level needs
19.
The U.S. economic system is based on four basic principles. Which one is NOT one of the four basic principles?
a)
Private Property
b)
Freedom of Choice
c)
Opportunity Cost
d)
Profit
20.
When a change in price creates a change in demand?
a)
inelastic demand
b)
supply
c)
elastic demand
d)
insurance
21.
Private ownership of resources by individuals rather than by government is what type of government?
a)
socialism
b)
communism
c)
capitalism
d)
independence
22.
A written document that describes all the steps necessary for opening and operating a successful business.
a)
Cover Letter
b)
Executive Summary
c)
Business Plan
d)
Pro Forma Financial Statement
23.
Which of the documents below are NOT part of the Business Plan?
a)
Supply Curve
b)
Cover Letter
c)
Statement of Purpose
d)
Executive Summary
24.
After it is completed, you can use your business plan to
a)
identify your product or service
b)
help manage your business
c)
identify your target customer
d)
all of the above
25.
Before lenders will loan money to a new business.
a)
they will want to interview all potential employees
b)
the new business must have at least two years worth of work already lined up
c)
they need to be convinced that the people running the business have the necessary skills to succeed
d)
all of these
26.
To minimize the risks of international business, you should
a)
conduct business in only one foreign country
b)
never hire employees from the country you are targeting
c)
learn about the other country's culture
d)
all of these
27.
Which of the following is not a strategy for dealing with a global risk?
a)
conduct business in only one country to minimize the risk
b)
seek government assistance
c)
work with local business partners
d)
employee local managment
28.
Which of the following types of insurance would cover the cost to repair your office
building if it were damaged by fire?
a)
liability protection
b)
property insurance
c)
business interruption insurance
d)
life insurance
29.
The law that provides benefits to employees who have suffered work-related injuries or occupational diseases is the
a)
Occupational Safety and Health Act
b)
Fair Labor Practices Act
c)
Equal Opportunity Act
d)
Federal Employees' Compensation Act
30.
Lost wage payments provided by workers’ compensation are usually about ___ of the
employee’s income.
a)
25%
b)
50%
c)
67%
d)
100%
31.
Businesses lose millions of dollars every year because of shoplifting, the act of purchasing goods using a stolen credit card.
a)
True
b)
False
32.
Liability insurance covers fire, storm damage, and floods.
a)
True
b)
False
33.
Taking action to prevent or reduce the possibility of loss to your business
a)
audit control
b)
insurable risk
c)
risk management
d)
safety manager
34.
To identify your target market, you need to know
a)
who your customers are
b)
how old your customers are
c)
where your potential customers currently shop
d)
all of the above
35.
Data that help you determine where your potential customers live and how far they will travel to do business with you are
a)
geographic data
b)
use-based data
c)
psychographics
d)
demographics
36.
Which of the following is not a step involved when preparing a competitive analysis?
a)
make a list of all competitors
b)
summarize products and prices offered by competitors
c)
create a customer profile
d)
list your competitors strengths and weaknesses
37.
Which of the following is a strategy for maintaining customer loyalty?
a)
offering superior service
b)
adhering to strict return policies
c)
keeping standard business hours
d)
none of the above
38.
The FIRST step of primary market research is to
a)
determine the data needed
b)
define the question
c)
analyze the data
d)
collect the data
39.
The most common type of primary market research is
a)
direct observation
b)
a focus group
c)
magazine and newspaper articles
d)
a survey
40.
The total market for a product must be known in order to determine
a)
short-term marketing goals
b)
how to write a marketing plan
c)
market share
d)
medium-term goals
41.
Medium-term goals describe what you want your business to achieve
a)
by using various promotion methods
b)
in ten years
c)
in terms of market share
d)
in two to five years
42.
Product characteristics that will satisfy consumer needs are called
a)
features
b)
packaging
c)
branding
d)
labeling
43.
A product mix
a)
is the different products and services a business sells
b)
identifies features such as color, size, and quality
c)
helps determine the pricing strategy
d)
is used to maximize sales
44.
To use the marketing concept, businesses must do all of the following except
a)
develop products that are better than other choices
b)
identify what will satisfy customers’ needs and wants
c)
devote half of its profits toward marketing
d)
operate profitably
45.
The marketing plan consist of all of the following except?
a)
product or service
b)
market share
c)
pricing strategy
d)
competition
46.
When services are combined under one price, rather than making the customer pay for each individual part of the service, this is called price skimming.
a)
True
b)
False
47.
Physical distribution includes all of the following except
a)
branding
b)
packaging of products
c)
transportation
d)
handling
48.
What is a line of credit?
a)
a grant provided by the Department of Housing and Urban Development to encourage business development in needy areas
b)
an agreement by a bank to lend up to a certain amount of money whenever the borrower needs it
c)
money a bank invests in a business in return for a share of the profits
d)
a short-term loan offered to new entrepreneurs that must be repaid within a year
49.
Personal-selling skills become more important when customers
a)
seek to meet their upper-level needs
b)
are making rational buying decisions
c)
know exactly what they want
d)
try to satify their basic needs
50.
Using the telephone to promote your product is called phishing.
a)
True
b)
False
51.
The component of the marketing mix that involves the locations and methods used to make products available to customers is called
a)
promotion
b)
distribution
c)
shipping
d)
selling
52.
The act of establishing a favorable relationship with customers and the general public is called
a)
self-promotion
b)
advertising
c)
public relations
d)
publicity
53.
The most common legal form of business in the United States is
a)
partnership
b)
limited liability company
c)
sole proprietorship
d)
S corporation
54.
The amount paid for the right to run a franchise is
a)
an advertising fee
b)
an initial franchise fee
c)
a startup cost
d)
a royalty fee
55.
This law requires all banks to calculate credit costs in the same way.
a)
Sherman Act
b)
Clayton Act
c)
Truth-in-Lending Act
d)
Anti Trust Act
56.
A business with the legal rights of a person and which may be owned by many people is a
a)
sole proprietorship
b)
corporation
c)
partnership
d)
dual partnership
57.
The law that bans false or misleading advertising is the
a)
Sherman Act
b)
Wheeler-Lea Act
c)
Clayton Act
d)
Robinson-Patman Act
58.
An advantage of buying an existing business is that
a)
there will not be any customer goodwill
b)
less capital is required
c)
suppliers are lined up
d)
it is making a profit
59.
Hayley owns her own flower shop. She is wanting to raise the price of lillies from $23 to $26 a dozen. Before she does so, she wants to talk to the owner of Fresh Cut Flowers to see if he will raise his price as well. This is a violation of what Anti-trust law?
a)
Robinson Patman Act
b)
Clayton Act
c)
Wheeler Lea Act
d)
Sherman Act
60.
If you are considering buying an existing business, ask the current owner to provide you with a complete financial accounting of operations for at least
a)
the past year
b)
the past three years
c)
the past six months
d)
the past ten years
61.
Determining the amount of inventory is particularly difficult for owners of new businesses because
a)
they do not know what their level of sales will be
b)
their insurance may not cover damage to stored inventory
c)
they need to take advantage of quantity discounts
d)
all of these
62.
A start up business should initially purchase the minimum quantity of equipment and supplies needed.
a)
True
b)
False
63.
E-commerce consists of
a)
doing business by email
b)
buying and selling over the internet
c)
offering customer electronic banking
d)
none of these
64.
Money invested in a business in return for a shareof the business' profits is?
a)
debt capital
b)
venture capital
c)
equity capital
d)
investment capital
65.
An income statement indicates
a)
how much money a business earns or loses during a particular period
b)
actual cash coming in and going out
c)
your total current assets
d)
expenses you have not yet received
100 %
