WorksheetsEntrepreneurship Semester Exam Review
Total questions: 62
Worksheet time: 31mins
Name
Class
Date
1.
People who own, operate, and take the risk of a business venture are called _____.
a)
entrepreneurs
b)
employees
c)
opportunists
2.
The ability to learn a particular kind of job is called _____.
a)
attitude
b)
aptitude
c)
skill
3.
Attending conferences, seminars, and workshops enable entrepreneurs to _____ with like-minded people.
a)
commit
b)
network
c)
set goals
4.
It is important for an entrepreneur to possess good communication and listening skills.
a)
True
b)
False
5.
Entrepreneurs try to identify unmet _____ of the marketplace.
a)
wants
b)
goals
c)
needs
6.
The process of running your own business is called _____.
a)
self-assessment
b)
brainstorming
c)
entrepreneurship
7.
To assess your suitability for entrepreneurship, you should consider your strengths, weaknesses, _____, interests, past experiences, and aptitude.
a)
goals
b)
needs
c)
hobbies
8.
Entrepreneurs should not be afraid of making mistakes.
a)
True
b)
False
9.
From an entrepreneur’s perspective, mistakes _____.
a)
have no place in the problem-solving process.
b)
will never be made if the problem-solving process is correctly followed.
c)
should be viewed as a learning experience.
10.
An entrepreneur who chooses one alternative over another is using the concept of _____.
a)
marginal cost
b)
opportunity cost
c)
economies of scale
11.
Entrepreneurship thrives in a market economy.
a)
True
b)
False
12.
A supply curve shows that the quantity produced _____.
a)
increases as price increases
b)
decreases as price increases
c)
is not affected by price
13.
Fixed costs must be paid even if a company has no sales.
a)
True
b)
False
14.
_____ measures the advantages of producing one additional unit of a good or service.
a)
Marginal benefit
b)
Marginal cost
c)
Opportunity cost
15.
A demand curve shows that the quantity consumed _____.
a)
increases as price decreases
b)
decreases as price decreases
c)
is not affected by price
16.
When the quantity of a good or service produced increases, variable costs remain the same.
a)
True
b)
False
17.
When a business owner decides to grow the business he or she needs to consider the _____.
a)
variable costs
b)
marginal cost
c)
economies of scale
18.
Things that you think you must have in order to be satisfied are called _____.
a)
needs
b)
goals
c)
wants
19.
_____ is the study of moral choices and values and involves choosing between right and wrong.
a)
Social reponsibility
b)
Code of ethics
c)
Ethics
20.
A code of ethics is a set of standards or rules that outlines the ethical behavior demanded by an individual, a business, or a culture.
a)
True
b)
False
21.
The application of the principles of right and wrong to issues that come up in the workplace is called _____.
a)
code of ethics
b)
business ethics
c)
situational ethics
22.
Businesses find ways to show customers that they practice ethics in their daily operations by _____.
a)
utilizing cost-efficient suppliers
b)
increasing profits
c)
providing accurate product labels
23.
All of the following are reasons a business owner would want to establish an ethical workplace except _____.
a)
ethical behavior gains customer trust
b)
employees are more likely to act ethically if the business owner is too
c)
acting ethically increases the possibility of being sued
24.
A business can demonstrate social responsibility to its customers and suppliers by treating them with respect and handling disputes fairly.
a)
True
b)
False
25.
Social responsibility actions between a business and the government include complying with all federal, state, and local administrative laws that affect your business.
a)
True
b)
False
26.
Environmental law covers _____.
a)
pollution control and correction of the problem
b)
resource conservation and management
c)
all of the above
27.
Business owners can exhibit environmental responsibility by _____.
a)
disposing of waste in responsible ways
b)
using sustainable energy sources
c)
all of the above
28.
A disadvantage of buying an existing business is that it may be poorly located.
a)
True
b)
False
29.
The Franchise Disclosure Document helps the franchise buyer to make a knowledgeable purchase.
a)
True
b)
False
30.
When buying a business, you should do all of the following except _____.
a)
meet with the business seller
b)
visit during business hours to observe the business in action
c)
inspect a list of all customers
31.
If you decide to purchase a franchise, you will have to pay _____.
a)
royalty fees
b)
advertising fees
c)
all of these
32.
Franchisors may offer _____.
a)
management and technical training
b)
to help finance the purchase
c)
free nationwide advertising
33.
Sole proprietorships enable two or more people to be in control of a business.
a)
True
b)
False
34.
The most common form of business ownership in the United States is the corporation.
a)
True
b)
False
35.
A business is a sole proprietorship if it _____.
a)
is owned exclusively by one person
b)
has fewer than ten employees
c)
has the legal rights of a person
36.
A business that has the legal rights of a person and may have many owners is a _____.
a)
sole proprietorship
b)
partnership
c)
corporation
37.
The _____ includes the individuals or companies that are interested in a particular product or service and are willing and able to pay for it.
a)
market
b)
target market
c)
profile
38.
A _____ is a description of the characteristics of the person or company that is likely to purchase a product or service.
a)
target market
b)
market segment
c)
customer profile
39.
Data that describes a group of people in terms of age, marital status, family size, ethnicity, gender, profession, education, and income is called _____.
a)
demographic data
b)
psychographic data
c)
geographic data
40.
Data that describe a group of people in terms of their tastes, opinions, personality traits, and lifestyle habits is called _____.
a)
demographic data
b)
psychographic data
c)
geographic data
41.
Data that help you determine where your potential customers live and how far they will travel to do business with you is called _____.
a)
demographic data
b)
psychographic data
c)
geographic data
42.
Market research is a system for collecting, recording, and analyzing information about customers, competitors, products, and services.
a)
True
b)
False
43.
Information collected for the very first time to fit a specific purpose is _____.
a)
primary data
b)
secondary data
c)
neither of the above
44.
A business that makes most of its money selling the same or similar products or services to the same market as other businesses is considered direct competition.
a)
True
b)
False
45.
Items of value that you own are called _____.
a)
liabilities
b)
assests
c)
equities
46.
Equity capital does not include money invested by the owner of the business.
a)
True
b)
False
47.
Venture capitalists are individuals or companies that _____.
a)
make a living by investing in startup companies
b)
help small businesses find investors
c)
have few criteria for lending money
48.
A cash flow statement shows a business’s revenues and expenses incurred over a period of time and the resulting profit or loss.
a)
True
b)
False
49.
The assets, liabilities, and owner’s equity of a business are shown on a(n) _____.
a)
income statement
b)
balance sheet
c)
cash flow statement
50.
On a balance sheet, buildings and furniture would be included as _____.
a)
fixed assets
b)
long-term liabilities
c)
accounts receivable
51.
The accrual method of accounting _____.
a)
is more difficult and tedious to use than the cash method
b)
does not report expenses that have been incurred but not yet paid
c)
is used by most companies because it offers a better picture of long-term profitability
52.
An aging table shows a business _____.
a)
the status of their inventory
b)
how long it is taking customers to pay their bills
c)
cash sales and cash payments received from customers on their credit accounts
53.
The journal used to record any kind of transaction is the _____.
a)
general journal
b)
sales journal
c)
ledger journal
54.
A marketing plan should do all of the following except ____.
a)
identify your competitors
b)
outline a strategy for keeping customers
c)
identify the owner’s net worth
55.
Companies that use the marketing concept will _____.
a)
focus on product features more than on consumer needs
b)
select a product mix that will most appeal to their target market
c)
make sure that all products and services they offer are profitable
56.
Your marketing strategy should address _____.
a)
product introduction or innovation
b)
pricing and market share
c)
all of the above
57.
The marketing concept for a business is developed by using the primary and secondary data that is gathered through market research.
a)
True
b)
False
58.
The marketing plan should be separate from your business plan.
a)
True
b)
False
59.
Businesses should always set their prices _____.
a)
lower than their competitors’ prices
b)
based on their product mix
c)
high enough to make a profit
60.
Cost-based pricing is determined by _____.
a)
considering what competitors charge for the same product or service
b)
using the wholesale cost of an item as the basis for the price charged
c)
finding out how much customers are willing to pay for a product or service
61.
The price is the actual amount that a customer pays for a product or service.
a)
True
b)
False
62.
With competition-based pricing, the price charged is the same as the price charged by competitors.
a)
True
b)
False
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