Entrepreneurship Midterm 2020

Pete's disappointed with the projections of how much his cupcake cart will make in the first month. What could he do to try to improve his net profit? a. Increase the prices b. Increase the number of cupcakes he sells c. Decrease his fixed expenses d. All of the above

d. All of the above

Which of the following is an example of a tax you must pay? a. Bounced check b. Late fee c. Rental payment d. Social security

d. Social security

Which of the following is an advantage of starting your own business? a. During the start-up phase, you do not have to think about funding b. You are in charge of the decision-making so there is little to no risk c. You have control over where and when you work d. As long as you make a business plan, you will know what obstacles to expect

c. You have control over where and when you work

Which one of these is NOT considered a skill? a. Determination Skills b. People Skills c. Business Skills d. Communication Skills

a. Determination Skills

Which of the following is probably NOT an important point to include in a business pitch? a. A detailed description of the meaning behind the company's name b. The problems that the product or service solves or the demands it meets c. How the product or service is different d. Clear reasons why the potential customers and investors should care about the business

a. A detailed description of the meaning behind the company's name

Sharon is thinking about opening a bakery. She knows she wants to set her own hours, reduce her stress, and make a profit. But she still has a lot to think through. Which of the following would NOT be a good early step? a. Immediately finding a storefront property for her business, putting down a deposit, and signing a lease. b. Contacting a mentor who has experience in the restaurant industry c. Creating an initial elevator pitch with her limited information and staring to ask around for advice d. Beginning to estimate her target market for her business

a. Immediately finding a storefront property for her business, putting down a deposit, and signing a lease.

What is the "Marketing Mix"? a. The 4 P's of Marketing b. The 4 T's of Marketing c. The 4 B's of Marketing d. The 4 M's of Marketing

a. The 4 P's of Marketing

While being an entrepreneur can be the right career choice for many, some may not feel that starting a business is for them. What is the best reason to study entrepreneurship? a. Thinking like an entrepreneur can make you a better student and employee, no matter what your job is b. Knowing about entrepreneurship means you will never have to work for a boss c. Entrepreneurs do not have to worry about getting good grades in school because they start their own business d. None of the above

a. Thinking like an entrepreneur can make you a better student and employee, no matter what your job is

What is a fixed expense? a. An expense that is the same during some months, and different during other months b. An expense that typically does not change month to month c. An expense that typically varies from month to month d. None of the above

b. An expense that typically does not change month to month

What role do entrepreneurs play in economics? a. Entrepreneurs tell consumers what they should want or need b. Entrepreneurs create the businesses that produce products and services that meet the wants and needs of consumers c. Entrepreneurs borrow money from the economy to start their businesses d. None of the above

b. Entrepreneurs create the businesses that produce products and services that meet the wants and needs of consumers

What are the 4 P's of Marketing? a. Price, Purchase, Product, Personality b. Place, Price, Product, Promotion c. Price, Promotion, Payment, Presentation d. Place, Price, Person, Purchase

b. Place, Price, Product, Promotion

Which of the following is NOT necessarily a characteristic of successful entrepreneurs?a. Creativity & Collaboration b. Comfort with Risk c. Aggressiveness & Intensity d. Initiative & Self-Direction

c. Aggressiveness & Intensity

What is the definition of an entrepreneur? a. An entrepreneur is someone who manages a business b. An entrepreneur is someone who owns a business and makes profit from that business c. An entrepreneur is someone who creates, owns, and potentially runs a business d. None of these

c. An entrepreneur is someone who creates, owns, and potentially runs a business

George and Miguel want to know more about their local and online competitors and about the retail industry. What is the best way for them to find all of this information? a. Go online to find trade associations, listings of local and national competitors, and any information on financials b. Explore websites of other shoe retail businesses and take notes c. Try to think of friends, family members or acquaintances who have experience in retail and ask them about it d. All of the above

d. All of the above

Your friend is developing a marketing plan for her new business. What should she put in this plan? a. Where she wants to sell her product b. The price of her product c. A description of the people in her target market d. All of the above

d. All of the above

An example of an asset is: a. Time b. Money c. A Car d. All of these

d. All of these

Which of the following items are typically included in a balanced budget? a. The amount you earn in income b. The amount you pay in taxes c. The amount to put away in savings d. All of these items are included in a balanced budget

d. All of these items are included in a balanced budget

What are federal taxes? a. Federal taxes are payments you make to the state government where you live b. Federal taxes are money you earn from the US federal government c. Federal taxes are money you earn from working at a job d. Federal taxes are payments you make the US federal government

d. Federal taxes are payments you make the US federal government

Which of the following is a variable expense? a. Student loan payments b. Rental payments c. Health insurance d. Groceries

d. Groceries

What is Medicare? a. Medicare is federal life insurance for people under age 65 b. Medicare is federal life insurance for people over age 65 c. Medicare is federal health insurance for people under age 65 d. Medicare is federal health insurance for people over age 65

d. Medicare is federal health insurance for people over age 65

Which of the following is a fixed expense? a. Clothing purchases b. Groceries c. Movie tickets d. Rental payments

d. Rental payments

What is the main difference between a personal characteristic and a skill? a. You can learn a personal characteristic, but it is not possible to learn a skill b. Personal characteristics become skills over time c. Many people are born with business skills but you cant be born with characteristics d. Skills can be learned and developed while personal characteristics are inherent qualities within

d. Skills can be learned and developed while personal characteristics are inherent qualities within

What is take home pay? a. The amount you earn each month in income minus what you save b. The amount you earn each month in income minus what you spend c. The amount left over from your monthly paycheck before deductions d. The amount left over from your monthly paycheck after deductions

d. The amount left over from your monthly paycheck after deductions

In a balanced budget, the amount you ____ is ____ the amount you earn. a. save; less than b. spend; greater than c. save; greater than d. spend; equal to

d. spend; equal to

What is a variable expense? a. An expense that is the same during some months, and different during other months b. An expense that is the same from month to month c. An expense that is different from month to month d. None of the above

c. An expense that is different from month to month

What is MBTI? a. Ms. Briscoe Testing Interests b. Mr. Briggs Type Identity c. Myers Briggs Type Indicator d. My Business Testing Interests

c. Myers Briggs Type Indicator

George and Miguel are considering opening up a shoe store but first need to do market research. Which on of these is NOT part of the market research process? a. Identify research objectives and write down the questions they want answered b. Conduct research--both primary and secondary--to hear from the people firsthand and determine if there is a need for their business c. Start promoting their shoe store to people in the neighborhood d. Draw conclusions and make decisions for their business based on the research results

c. Start promoting their shoe store to people in the neighborhood

What are the four parts of a SWOT Analysis? a. Sales, Work ethic, Organization, Training b. Strengths, Weaknesses, Obstacles, Threats c. Strengths, Weaknesses, Opportunities, Threats d. Strengths, Weaknesses, Options, Threats

c. Strengths, Weaknesses, Opportunities, Threats

Which statement is the best description of a Value Proposition? a. The cost of creating a product b. A component of the business plan that identifies the target market for the product c. The features and benefits that make the product or business unique d. None of the above

c. The features and benefits that make the product or business unique

What is the main purpose of developing a business pitch? a. To tell investors all the important details and goals of your business so they don't need to read the business plan b. To provide customers with an in-depth description of how your business was formed c. To briefly share the most important information about your business to people in an engaging way d. To determine whether your business idea is a business opportunity

c. To briefly share the most important information about your business to people in an engaging way

Sharon realizes that she needs additional research before she approaches potential investors. What kind of research should she do to effectively evaluate her potential business opportunity? a. Conduct market research to determine whether her business idea is a business opportunity that meets a consumer need or want b. Discuss the situation with her cousin who has shopped at the local bakery a few times c. Discuss the situation with a family friend who has money and might want to invest in her idea d. Analyze a national chain that sells pies and model her new business after it. This will save time and money that would otherwise be spent on independent research and planning

a. Conduct market research to determine whether her business idea is a business opportunity that meets a consumer need or want

Which of the following statements is TRUE about startup capital? a. Startup money is the money you invest in the form of supplies, marketing, legal services, and other investments to get your business up and running b. Startup capital is the money spent in order to create a balanced budget for your personal finances c. Both of the statements d. Neither of the statements

a. Startup money is the money you invest in the form of supplies, marketing, legal services, and other investments to get your business up and running

Which of the following is NOT a true statement about business plans? a. They should never be revised b. They can help lower the risk of starting a new business c. They are created before starting a business d. They should include an overview of your business goals and how you think you are going to achieve them

a. They should never be revised