entrepreneurship

Which is an advantage of owning a franchise? A. The company has wide-spread name and brand recognition B. Owners spend a lot of time in the beginning getting things up and running C. Owners are locked into franchise rules, food, menu, uniforms, etc D. Owners pay a large franchise fee up-front to "buy-in"

A - The company has wide-spread name and brand recognition

A person goes on the same amusement park ride five times in a row. Which ride do you think produced the highest marginal benefit for the person? A. The first ride B. The third ride C. The fifth ride D. None of the rides

A - The first ride

What might be a motivation to become an entrepreneur? a. be your own boss b. lack of responsibility c. doing paperwork d. risk of financial ruin

A - Be your own boss

Which of the following is the best long-term strategy to reach profitability? A. Expand into different markets B. Find new vendors with lower prices C. Cut store hours D. Lay off employees

A - Expand into different markets

You are running a business. During one month your total expenses are $5,250 and your total revenues are $5,750. Which statement best expresses how the business did? A. It was in the black B. It was in the red C. It was neutral

A - It was in the black

Which is the best definition of "marginal benefit?" A. The added satisfaction or benefit a person gets from buying one more product or service. B. The added satisfaction or benefit a person gets from a substitute product or service. C. The added benefit a person gets to their quality of life from buying one more product or service.

A - The added satisfaction or benefit a person gets from buying one more product or service.

When making a business decision between several options, what are you determining when you estimate the opportunity cost? A. The benefits missed when choosing one option over another B. The benefits of choosing the best option C. The benefits of pursuing a new opportunity

A - The benefits missed when choosing one option over another

What is marginal cost? A. The change in total production cost when the quantity produced changes by one unit. B. The cost of total overhead due to changes in production levels C. The change in the cost of producing one more unit of product

A - The change in total production cost when the quantity produced changes by one unit.

What is the definition of market share? A. The percentage of sales earned by a company over a specific period of time B. Sharing the responsibility for grocery shopping C. A subgroup of a larger market that shares at least one characteristic or need D. Sharing business resources with another business to keep costs down

A - The percentage of sales earned by a company over a specific period of time

For a business to make a profit which of the following has to be true? A. Total revenues > Total expenses B. Total revenues < Total expenses C. Total revenues = Total expenses

A - Total revenues > Total expenses

Identifying the target market for a product allows an entrepreneur to _____. A. market the product to specific people B. worry less about the future of their business C. develop plans for expanding their business D. better budget their time and money

A - market the product to specific people

Which is the best short-term option to reach profitability? A. Develop new markets B. Open new locations C. Create a new product D. Cut total expenses

D - Cut total expenses

What are the successful entrepreneurs willing to do?

B - Take risks

What does total revenue minus total expenses indicate? A. The total cost to keep the business open. B. The profit or loss made by the business. C. The total cost to run the business.

B - The profit or loss made by the business.

Why is collecting feedback from customers important? A. So your customers think you care about what they think. B. To better understand what your customers like and dislike about your business. C. To generate ideas for the business's marketing campaigns.

B - To better understand what your customers like and dislike about your business.

Which could be good sources of information for entrepreneurs? A. Local universities B. Websites, webinars, and message boards C. Corporate human resources departments D. Reality television shows

B - Websites, webinars, and message boards

A national coffee chain is an example of what kind of business opportunity? A. An internet-based business B. Corporate freelance business C. A franchise D. An existing business

C - A franchise

If you owned a flower shop what kinds of businesses would you network? A. A high school, nail salon and a burger restaurant B. A comic book shop, a sea food shop and a greeting card shop C. A wedding chapel, a funeral home and a hospital D. A pet store, a tire store and cell phone store

C - A wedding chapel, a funeral home and a hospital

Which is more important when doing planning for your business? A. Short-term planning B. Long-term planning C. Both short and long-term planning D. Neither short nor long-term planning

C - Both short and long-term planning

Which of the following is an example of a market segment? A. Students attending college B. Married women C. Realtors selling homes under $130,000 D. Adults living in a city

C - Realtors selling homes under $130,000

What is a target customer? A. The customers marketed to by competitors B. The possible customers for a business C. The ideal customers a business should try to attract D. The customers a business should avoid

C - The ideal customers a business should try to attract

What is the purpose of networking with other businesses? A. To develop a web of organizations that is mutually beneficial while remaining exclusive and competitive. B. To have businesses outside the network understand the benefits of being in the network. C. To create a supportive system of sharing information and resources with businesses who have similar goals, interests, and clients. D. To create stronger and more stable internet access for those who subscribe to the network.

C - To create a supportive system of sharing information and resources with businesses who have similar goals, interests, and clients.

Why is it important for entrepreneurs to identify customers' wants and needs as they plan their businesses? A. To better obtain start-up funding from an investor B. To tell their customers what they really want and need C. To understand how to make money fulfilling those wants and needs D. To create something no other business has ever created

C - To understand how to make money fulfilling those wants and needs

How can a business get involved in its community? A. Sponsor community events. B. Donating products or services to non-profit organizations C. Organize special events. D. All of the above

D - All of the above

The definition of an entrepreneur is a person who A. Works for a large company creating new products. B. Provides entertainment to people in a variety of ways. C. Is active in their community and encourages business owners. D. Is willing to take a risk in the hunt for new business opportunities.

D - Is willing to take a risk in the hunt for new business opportunities.

Why is it a good idea to match a specific product to a target market? A. To create an organized look and feel for the product B. To produce a better year-end report for the product C. To more easily create advertising for the product D. To ensure a strong customer base for the product

D - To ensure a strong customer base for the product

What is a benefit of starting a new business from scratch? A. Your start-up costs will be small B. The business will make profits quickly C. The business will have name and brand recognition D. You are creating something that is uniquely your own

D - You are creating something that is uniquely your own

What is most important for entrepreneurs with home-based businesses to remember? A. You shouldn't wear your pajamas all day just because you can. B. You need to clearly define your "work" time and your "home" time. C. You should schedule lunches out of the house as a tax write-off. D. You need to work hard to build your business and make it successful.

D - You need to work hard to build your business and make it successful.