Entrepreneurship and Small Business

You have a small business. Your first-year financials are as follows: Start-up costs = $60,800 Gross sales = $65,800 Total expenses = $28,500 Income taxes = $6,370 What is the return on investment (ROI) for your business? 1. 1.96% 2. 51% 3. 61% 4. 92%

1.96%

Which type of business should you choose if you need to invest in a business that has simple transactions, low inventory costs, and fast, free, product delivery. 1.A business that offers cleaning services 2.A business that sells products directly to other businesses 3.A business that sells digital products 4.A business that is a restaurant franchise

A business that sells digital products

Which of the following expenses are a "Customer Retention Cost"? 1. SEO Marketing 2. Affiliate programs 3. Training programs 4. Engagement programs

Affiliate programs and Engagement programs

Who reports to the board of directors and is the highest-ranking employee in the company? 1.CFO 2.Founder 3.CEO

CEO

Who creates budgets and financial strategies for a company? 1. CEO 2. Founder 3. CFO

CFO

A sole proprietorship protects the owner from personal liability True or False

False

You need to start a customer loyalty program to reward and retain your current customers. Which two types of programs should you select? 1.Points program 2.Coupon code 3.Annual sale 4.Referral program

Points program and Referral program

A fixed cost has the same value each time it is incurred. True or False

True

Affiliate sales programs offer commissions to companies who sell their products. True or False

True

Which type of funding should someone seek if they need money for their start-up company, have a few potential ideas for their business, and are seeking mentorship? 1.Crowdfunding 2.Angel Investor 3.Small business loan 4.Personal loan

angel investor

Which two marketing platforms are examples of owned media? 1.Social media ads 2.Blogs 3.Websites 4.Reviews

blogs and websites

This market segment describes statistical information about customers Demographic, psychographic, behavioral?

demographic

You currently opened a food truck business. Identify what are your operating costs. 1.Gasoline 2.Cooking utensils 3.Business license 4.Truck lease payments

gasoline and truck lease payments

This market segment describes where customers are located and how they can be reached. Demographic, psychographic, behavioral?

geographic

You want to buy a gift shop in a popular location within a large town. Which three factors will help you determine if the business opportunity is viable? 1.Shop floor plan 2.Market size 3.Revenues and costs 4.Current inventory. 5.Financing requirements

market size, revenue and costs, financing requirements

Which two elements below of the sales process, goes before the sales pitch? 1.Prospect 2.Follow-up 3.Approach 4.Overcome objections

prospect and approach

You own a business that manufactures pool chairs. For each pool chair, you determine the following: Labor: $40 Materials: $100 Desired markup: 40% What should your selling price be? 1.$140 2.$180 3.$196 4.$280

$196

The design thinking process places a high emphasis on developing customer empathy. True or False

True

Which identifies the internal factors that impact your business while performing SWOT analysis? 1.Strengths and weaknesses 2.Weaknesses and threats 3.Strengths and opportunities 4.Opportunities and threats

Strengths and weaknesses

You need to create an operating budget for your business. Your financial information for the month is as follows: Labor: $1,000 Materials: $4,000 Utilities: $400 Computer: $1,400 Rent: $700 Website deign: $1,200 Insurance: $150 What is your monthly operating budget? 1. $6,250 2. $7,450 3. $7,650 4. $8,850

$8,850

What are two advantages of using the Lean Canvas business plan instead of the traditional business model? 1.A Lean Canvas focuses on the problem, solutions, key metrics, and unique value propositions 2.A Lean Canvas is a quick, concise tool to document or update a business plan 3.A Lean Canvas is an extremely detailed, thorough, multiple-page report 4.A Lean Canvas includes financial projections, a market analysis, and the marketing strategy

A Lean Canvas focuses on the problem, solutions, key metrics, and unique value propositions and A Lean Canvas is a quick, concise tool to document or update a business plan

Which two criteria are required for obtaining venture capital funding? 1. Multiple business partners 2. A scalable business model 3.A profitable exit strategy 4. Brand new technology

A scalable business model and A profitable exit strategy

For third-party sellers, what are two marketing benefits of selling products on a marketplace? 1.Access to the marketplace's market knowledge 2.Access to the marketplace's technology 3.Access to the marketplace's employees 4.Access to the marketplace's customer base

Access to the marketplace's employees and Access to the marketplace's customer base

What are the characteristics of an entrepreneurial mindset? 1.Creativity, adaptability, determination, and empathy 2.Business knowledge, financial knowledge, and organizational skills 3.Community awareness, educational readiness, and literacy 4.People skills, problem solving, and career exploration

Creativity, adaptability, determination, and empathy

Which two actions help start-up companies achieve product/market fit? 1.Determining the primary competition 2.Hiring additional staff to handle exponential growth 3.Identifying underserved customer needs 4.Testing the Minimum Viable Product (MVP) prototype with customers

Determining the primary competition and Testing the Minimum Viable Product (MVP) prototype with customers

Which two actions should you complete when conducting a competitive analysis? 1.Identify the competitors' market share 2.Assess the competitors' management style 3.Research the competitors' strengths and weaknesses 4.Evaluate the competitors' branding

Identify the competitors' market share and Research the competitors' strengths and weaknesses

What is a benefit of being an entrepreneur? 1.Limitless income potential 2.Paid sick time and health insurance 3.Predictable job description 4.Consistent 40-hour work weeks

Limitless income potential

You decide to create new type of energy bar. You take some samples to a focus group to get their reactions to your product. Which stage of the development process are you in? 1.Market strategy creation 2.Concept development 3.Product development 4.Idea generation

Market strategy creation

A non-profit organization is taxed. true or false

false

A variable cost is eventually paid off over time. true or false

false

Which two elements below of the sales process, goes after the sales pitch? 1. Prospect 2. Overcome objections 3. Follow-up 4. Approach

Overcome objections and Follow-up

An S corporation is suitable for international companies with at least 200 shareholders. true or false

false

Which two services does direct distribution provide that fulfillment centers do not? 1.Product shipping 2.Product storage 3.Product marketing 4.Product manufacturing

Product shipping and Product storage

Which of the following expenses are a "Customer Acquisition Cost"? 1.SEO Marketing 2.Affiliate program 3.Training program 4.Engagement program

SEO Marketing and Training program

For a personal business opportunity, you will generally have lower start-up costs than opening a franchise. true or false

false

The design thinking process aims to develop a product based on the designer's needs. True of False

false

Which three items should you include in your value proposition when creating a business plan? 1. The services you offer to customers 2.An overview of your business. 3.The differences between your business and your competitors' businesses 4.Your target audience's demographic information

The services you offer to customers, The differences between your business and your competitors' businesses, Your target audience's demographic information

For which two reasons should a meal delivery company use direct distribution channels over indirect distribution channels? 1. To build stronger relationships with customers 2. To lower shipping costs 3. To quickly get products to customers before they spoil 4. To serve customers in a wide geographic area

To build stronger relationships with customers and To quickly get products to customers before they spoil

Trade secret licensing must be registered with the government. true or false

false

An entrepreneur is a person who assumes the responsibilities and risks of starting a business. true or false

true

Business longevity increases potential funding opportunities. true or false

true

Copyright licensing is required for material in the public domain. true or false

true

Fixed costs are expenses that have to be paid by a company, regardless of changes in revenue. true or false

true

For a franchise opportunity, you will receive ongoing support from larger companies. true or false

true

Lenders require business owners to identify the purpose of the loan. true or false

true

Most online marketplaces charge fees to vendors for listing or selling products. true or false

true

One objective of entrepreneurship is to make a profit. true or false

true

The design thinking process aims to develop solutions to problems. true or false

true

Trademark licensing is used for brand names, logos, or slogans. true or false

true

Value engineering encourages use of materials that save money. true or false

true

Variable costs depend on the increase or decrease in the amount of goods or services produced or sold. true or false

true

Who finds and invests resources to form the company and help it succeed? 1. CFO 2. Founder 3. CEO

Founder

Value engineering adds features and functions to a product. true or false

false

You own a business that manufactures sandals. For each sandal, you determine the following: Labor: $20 Materials: $30 Desired markup: 25% What should your selling price be? 1.$50.00 2.$62.50 3.$65.50 4.$75.00

$62.50

You have a cleaning company. You raised $10,000 from investors to get started. After three months, you have $7,450. What is your burn rate and current runway? 1. $850 and about nine months of expenses covered. 2. $850 and about twelve months pf expenses covered. 3. $1000 and about three months of expenses covered. 4. $1000 and about ten months of expenses covered

$850 and about nine months of expenses covered.

You currently opened a food truck business. Identify what are your start-up costs. 1.Gasoline 2.Cooking utensils 3.Business License 4. Truck lease payments

Cooking utensils and business license

What is the first step in forming a product/market fit hypothesis? 1.Determine who the competition is 2.Determine who the target customer is 3.Establish a distribution system 4.Create a product prototype

Create a product prototype

In what section of the business plan should you describe that in five years you plan to sell your company to another organization? 1.Financial projections 2.Executive summary 3.Exit strategy 4.Vision

Exit strategy

Distributors use their sales force to sell another company's product. True or False

False

Patent licensing is used for a new product or invention True or False

False

Taking on business debt is a requirement for entrepreneurship True or False

False

The business owner's personal credit score does not affect their ability to qualify for a loan. True or False

False

The design thinking process is highly focused on using secondary research to develop solutions to problems. True or False

False

Value engineering changes the purpose of the product. True of False

False

This market segment describes the benefits to customers based on their wants or needs and how they use the product. Demographic, psychographic, behavioral?

behavioral

Which type of sales channel is someone using if they own an ecommerce website where customers can purchase the jewelry that they make 1.Business-to-Business 2.Retail 3.Wholesale 4.Direct-to-consumer

direct-to-consumer

For a franchise opportunity, you will be able to purchase the items you believe will sustain your business without having to ask for permission. true or false

false

For a personal business opportunity, you will be required to go through more intensive training than for a franchise opportunity. True or false

false

What is a risk of being an entrepreneur? 1.Supply shortage 2.Changing consumer trends 3.Lack of financial resources 4.Negative press or media coverage

lack of financial resources

This market segment describes what customers think about and value, and how they live their lives. Demographic, psychographic, behavioral?

psychographic