Entrepreneurship A - Unit 1
15
A small business has _____ or fewer employees.
smaller and easier
Getting better at decision-making starts with _____ problems.
financial planning and savings
In entrepreneurship, having adequate income requires _____ to cover personal costs while starting a company.
public funds loans venture funders
When trying to establish a new company, it can be difficult for an entrepreneur to secure startup funding. Which of these are possible sources of funding?
Occupational Safety and Health Act
Which act is a set of U.S. laws that created workplace standards for safety?
Fair Labor Standards Act
Which act is a set of U.S. laws that established labor standards including minimum wages, requirements for overtime pay, and limitations on child labor?
having high barriers to entry
Which is NOT an example of a competitive advantage?
patenting a trendy new type of shoe that no other company currently offers selling a cost-effective truck in bulk to distribution companies at a faster rate than anyone else having the most employees
Which of these are examples of a competitive advantage?
advantage
You can make the company decisions yourself.
uncontrollable risks
risks that company owners cannot do anything about
economic risks
risks that result from changes in market conditions as a whole
insurable risk
risks whose probability can be approximated
entrepreneurship
the ability and willingness to identify and solve a problem by developing and managing a business venture
profit
the amount of income a business or person has earned, minus expenses
business
the entire process involved in developing and exchanging products
business risk
the possibility a venture will have less profitability than anticipated or fail altogether
speculative risk
the possibility of loss that is assumed by a company and also holds the possibility of a potential return
target marketing
the process of breaking down a market into segments and then directing sales efforts toward those key groups that most closely match a product or service offering
competitive advantage
the status gained from conditions that allow an organization to offer a good or service in a more favorable way than its competitors
obsolescence
the status of a product that becomes outdated or is no longer used
Psychographic
upper class
high
A _____ standard of living is characterized by an abundance of comforts and material goods.
venture capitalist
A brand-new startup, Skip's Boat Trips, approaches Susan, a wealthy businesswoman, to ask her for financing to get the company started. Seeing the potential for the startup to be successful in the sunny coastal city she lives in, Susan agrees. Which of these best describes Susan?
pure risk
The possibility of loss assumed by a company without a potential return is called _____.
tolerance for the unknown
The suggestion of creating a business plan helps alleviate which challenge of entrepreneurship?
managing people
The suggestion of using teams to bring a diversity of perspectives and problem solving skills helps to alleviate which challenge of entrepreneurship?
finding startup funding
The suggestion of utilizing venture capitalists, loans, or self-funding are all options to help alleviate which challenge of entrepreneurship?
stress
The suggestions of doing considerable planning and practicing making tough decisions help to alleviate which challenge of entrepreneurship?
disadvantage
There are barriers to entry.
disadvantage
There are unpredictable work schedules.
True MAYBE
Using venture capitalists is a way to raise startup funding.
shares, or part ownership of the company
Venture capitalists are investors who provide startup funding to entrepreneurs, typically in exchange for what?
standard of living
What is the level of material comfort a society enjoys as measured by goods and services?
uncontrollable risks
Which of these are risks that company owners are unable to do anything about?
Avoid it. Accept it. Transfer it. Reduce it.
Which of these are the four main decision strategies available after severity has been estimated?
an individual who starts and organizes a business while taking on high risks to do so
Which of these describes an entrepreneur?
Replace it.
Which of these is NOT one of the four main decision strategies available after risk severity has been estimated?
reserved for a single department
Which of these is NOT one of the three main qualities of a risk assessment?
risk-management strategy
Which of these is NOT one of the three main qualities of a risk assessment?
business venture
Which of these is a business startup that is expected to produce profits and is accompanied by the risk of loss or failure?
business plan
Which of these is a document stating a business's goals and strategies for achieving them?
entrepreneur
Which of these is an individual who starts and organizes a business while taking on greater-than-normal risks to do so?
a market condition in which the volume of a product or service has exceeded the demand in an economy
Which of these is market saturation?
entrepreneurship
Which of these is the ability and willingness to solve a specific problem by developing and managing a business venture?
advantage
You can choose your own work hours.
Barriers to entry
_____ are any obstacles preventing a startup from entering a market space.
Controllable risks
_____ are those that company owners can do something about.
Uncontrollable risks
_____ are those that company owners cannot do anything about.
Speculative risk
_____ is the possibility of loss assumed by a company that also holds the possibility of a potential return.
Age
_____ is/are an example of demographic segmentation.
Climate
_____ is/are an example of geographic segmentation.
Values
_____ is/are an example of psychographic segmentation.
business venture
a business startup expected to produce profits, accompanied by the risk of loss or failure
business plan
a document stating a business's goals and strategies for achieving them
market segment
a group of consumers who respond similarly to marketing strategies
market saturation
a market condition in which the volume of a product or service has exceeded the demand in an economy
small business
a privately owned organization with 15 or fewer employees
want
a product a consumer desires but can live without, such as a television, smartphone, or water skis
need
a product a consumer must have in order to survive, like food, shelter, or heat
services
actions someone performs for another, such as a haircut, medical checkup, car repair, or tax review
risk mitigation
actions taken to lessen the consequences of risk
barriers to entry
any obstacles preventing new competitors from entering a market space
market
any place producers and consumers come together to exchange goods and services
Demographic
education
producers
entities that create and supply products to consumers
Demographic
gender
consumers
individuals who purchase products for individual use
venture capitalists
investors who provide finances to startup ventures, typically in exchange for shares, or part ownership, of the company
Geographic
neighborhood
Psychographic
personality
goods
physical items that consumers buy, such as food, clothing, toys, cars, or furniture
Geographic
region
human risks
risks caused through human actions, including those of customers, employees, and others outside the organization
natural risks
risks from nature that can adversely affect organizations
uninsurable risk
risks that cannot be insured against because their probability of occurrence is too difficult to estimate
controllable risks
risks that company owners can do something about
business risk
The possibility that a venture will have less profitability than anticipated or fail altogether is called _____.
business plan
The suggestion of creating a _____ helps entrepreneurs with their tolerance for the unknown.
performed regularly
The three main qualities of a risk assessment are that it is data-driven, recorded, and _____.
human risks
Risks caused through human actions, including those of customers, employees, or others outside an organization, are known as _____.
False MAYBE
Small business is typically defined as having fewer than 100 employees.
goods and services
Standard of living is a level of material comfort a society enjoys as measured by _____.
advantage
Starting your own company can be exciting.
risk mitigation
Taking steps to reduce the consequences of risk is known as _____.
natural risk
Match the example with the risk category. changes in climate
speculative risk
Building a new storefront is an example of which kind of risk?
disadvantage
Business risk is always a factor.
practice making tough decisions and plan for the future
Entrepreneurs can _____ to help alleviate stress.
False MAYBE
Entrepreneurship involves small business ventures.
is risky
Entrepreneurship solves problems, seeks profitability, involves starting a small business venture, and _____.
market saturation
Jane was considering the idea of opening a fitness gym startup, but she abandoned the idea after realizing that there were already five other competing gyms in her small city. Which of these describes Jane's reason for abandoning her idea?
natural risk
Match the example with the risk category. flooding
economic risk
Match the example with the risk category. increased competition
economic risk
Match the example with the risk category. product obsolescence
human risk
Match the example with the risk category. shoplifting
demographic segmentation demographic segmentation geographic segmentation psychographic segmentation psychographic segmentation geographic segmentation
Match the segment examples with the market segmentation categories. age race state habits hobbies zip code
using teams to encourage diverse perspectives and problem-solving skills
Mina is struggling with the entrepreneurial challenge of managing people. What suggestion could help her deal with this problem?
sellers
Producers are also known as _____.
insurable risk
Randall buys a comprehensive insurance package for his company car, reasoning that since he can determine the probability of getting into a car wreck, the insurance is worth it. What kind of risk is he trying to mitigate?
uninsurable risk
Risk that cannot be insured against because its probability of occurrence is too difficult to estimate is known as _____.
