I&E Exam 1

What do you call the money an organization receives from sales to customers? a) dividends b) revenue c) profit d) costs

b) Revenue

An investment of $200,000 with a profit of $50,000 would represent an ROI of ___

$50,000 / $200,000 = 0.25 or 25%

What is not a recommended testing option? a) billboard b) online ads c) pay per click d) in-person survey

a) billboard

Marketing's primary tasks include understanding the organization's present customers and also to _____. a) explore venture capital opportunities b) choose suppliers c) find new customers d) keep data secure

c) Find new customers

Procurement departments prefer _____. a) concrete deliverables b) long, detailed contracts c) strategic insights d) problem solving

a) concrete deliverables

Which supply chain function is responsible for packaging and shipping containers? a) logistics b) manufacturing c) operations d) procurement

a) Logistics

Which is NOT one of the five tips for getting ahead? a) Help your manager get noticed and promoted. b) Send your superiors a daily email filled with all of your questions. c) Try to anticipate what your manager will need next week. d) Develop skills the company needs.

b) Send your superiors a daily email filled with all of your questions.

Which is NOT one of the three things that must continuously flow in a healthy organization? a) information b) money c) materials d) stock

d) Stock

Cami is starting her own business canning homemade gourmet sauces. If she begins with a side hustle, what can Cami do? a) Cami can sell her sauces at a local farmers' market. b) Cami can approach grocery store managers to put her sauces on their shelves. c) Cami can gather her friends and relatives for a sales party. d) Cami can create packaged meals to use with the sauces.

a) Cami can sell her sauces at a local farmers' market.

Which is NOT a good reason to use value-based fees? a) It is easier than pricing hourly. b) It is better for the client. c) It will help you make more money. d) It is better for the consultant.

a) It is easier than pricing hourly.

What is NOT a good way to identify additional options for a prospective client? a) Offer different options to achieve different objectives. b) Expand the research you will provide--for example, conducting more interviews. c) Commit to doing the work yourself vs having a team member do it. d) Add follow up "check in" meetings to ensure that the results of your work "stick".

a) Offer different options to achieve different objectives.

Which strategy should you start with when seeking publicity for your personal brand? a) Start small and work your way up. b) Focus on the big wins. c) Remember that more is better. d) Avoid pitching your brand too often.

a) Start small and work your way up

When preparing for an early meeting with a prospective client, what should you bring? a) a lot of thoughtful questions and frameworks b) a pre-written, standard contract for signing c) several colleagues to show that you are a "real" consulting firm d) recommendations for the prospect

a) a lot of thoughtful questions and frameworks

What is an effective way to cheaply test the viability of your business idea? a) all of these answers b) have a special phone number for tracking inbound calls c) have an add run on a local Craigstlist page d) have a simple website landing page so you can measure opt-ins

a) all of these answers

What should the Business Validation Micro Plan list? a) all of these answers b) budget for test c) test period d) most likely customers

a) all of these answers

How are business coaches different than mentors? a) A business coach can only look at problems superficially, but a mentor can take a deep-dive into problems. b) Unlike business coaches who have full-time day jobs, mentors can spend many hours per day with you. c) Unlike mentors, business coaches know your business, so their feedback is biased. d) Your success is a full-time job for business coaches, while it is only part of a mentor's unpaid job.

d) Your success is a full-time job for business coaches, while it is only part of a mentor's unpaid job.

What is not an opportunity factor that leads to a successful business? a) demand on products and services b) resources like equipment and materials c) expertise in the industry d) a clever business idea

d) a clever business idea

Which discoveries will help you with your new business idea? a) Discover people's pain. b) Discover what other people are wanting and needing. c) Discover business annoyances. d) all of these answers

d) all of these answers

Which is a potential source of value to offer? a) intangible benefits b) value to the buyer c) value to the company d) all of these answers

d) all of these answers

Think twice before immediately seeking out a _____ who has a skill that you lack. a) employee b) freelancer c) contractor d) partner

d) partner

Who is the ideal partner to bring into your new business? a) someone with a different vision than yours b) someone who has experience in your industry c) someone with the same skill set as yours d) someone who has strengths where you have weaknesses

d) someone who has strengths where you have weaknesses

Kumar is starting a business and decides to use bootstrapping for his funding. His funding is both startup and growth. What is Kumar doing? a) copying what other successful new businesses did to start up and grow b) using his own labor in place of monetary funding to start up and grow c) borrowing money from relatives and friends to start up and grow d) using his own savings and profits to start up and grow

d) using his own savings and profits to start up and grow

When testing your business idea, who should not be a source to ask for feedback? a) sites that run surveys b) neighbors in your area that fit your business demographic c) people who are in your target audience d) your friends and family

d) your friends and family

When making your list of ideas for a new business, what is something you should avoid? a) erasing and editing ideas b) writing down business ideas you've had in the past c) writing down ideas that aren't thought out all the way through d) writing down existing business ideas

a) erasing and editing ideas

Jackson is looking to grow revenue but needs to buy inventory and equipment. Which type of capital will help with this? a) financial b) nonfinancial c) human d) intellectual

a) financial

The micro-message that you need to set for your business ideas should not _____. a) leave people guessing what the business offers b) leave people with a clear message about the business c) use the most enticing concepts behind the business offer d) explain the benefit of the business to the people

a) leave people guessing what the business offers

In order to test the business opportunity you have chosen, you need to create a _____ before you invest any money. a) micro business plan b)business card c) company name d) company website

a) micro business plan

In order to finalize your single best business idea out of your top five ideas, you need to take each idea through all of the _____ factors to test it. a) opportunity b) distribution c) profitability d) marketability

a) opportunity

What should be the focus of an early conversation between the prospect and the consultant? a) the prospect's objectives b) the consultant's methodology c) pricing d) the consultant's background

a) the prospect's objectives

In using the "three W's" marketing strategy, what should you focus on first? a) the who b) the when c) the where d) the what

a) the who

Which is NOT one of the primary responsibilities of the information technology team? a) developing and maintaining secure communication systems b) developing corporate onboarding videos c) collecting and storing data d) developing and maintaining the organization's IT infrastructure

b) Developing corporate onboarding videos

When considering a product partnership, which key questions should you ask? a) Is the potential partner's product distinct enough to not compete with me, and can the partner help grow my business? b) Does the potential party share the same audience, and can the partner help grow my business? c) Does the potential partner share my vision, and can the partner provide funding for my business? d) Is the potential partner well-funded, and can the partner provide me with business connections?

b) Does the potential party share the same audience, and can the partner help grow my business?

Which team is responsible for bringing money into the company via loans or from investors? a) accounting b) finance c) marketing d) sales

b) Finance

What type of accountant is responsible for developing the annual report used by investors, potential investors, and lenders to evaluate the financial status of the company? a) forensic accountant b) financial accountant c) auditor d) managerial accountant

b) Financial accountant

Developing an excellent brand might _____ a) confuse and alienate customers b) help build customer loyalty c) decrease sales revenue d) reduce bond debt

b) Help build customer loyalty

Which is NOT one of the three forms of equity financing? a)venture capital b) issuing bonds c) selling stock d) using retained earnings

b) Issuing bonds

Jaime decides to use the Myers-Briggs personality assessment to identify pitfalls within himself. Why should Jaime do this? a) Jaime can identify his personal weaknesses. b) Jaime can develop strategies to overcome his personal weaknesses. c) Jaime can keep a diary of the weaknesses he identifies. d) Jaime can understand how his weaknesses may affect his chances for success.

b) Jaime can develop strategies to overcome his personal weaknesses.

_____ like materials, equipment, and money are what you need to assess carefully before you start your business. a) Skills b) Resources c) Profits d) Services

b) Resources

If you run your test, and all results are successful, what should you do next? a) Go find an investor to give you a loan. b) Run a new test, this time focusing on price. c) Stop dreaming and get back to work in a real job. d) Start selling your product or service.

b) Run a new test, this time focusing on price.

Why should you engage with the early adopters of your product or service? a) They give you feedback to help improve your product along the way. b) They become a walking billboard for your business. c) They are excited to help you grow your business.

b) They become a walking billboard for your business.

What has been found to work best for testing a business opportunity that offers services, and can be customized geographically? a) none of these b) a listing on Craigslist c) a website that explains what the business offers d) a phone number for people to call and get information about the business

b) a listing on Craigslist

The process of figuring out if you need to sell the product over the internet, in stores, or face-to-face helps you discover your _____ model. a) profit b) distribution c) resource d) expense

b) distribution

The secret to value based pricing is to focus on _____ instead of _____. a) delivering; selling b) output; input c) input; output d) selling; delivering

b) output; input

A _____ advantage, like a patent or a trademark, can add a tremendous amount of value to your business idea. a) monopoly b) proprietary c) proprietor d) monarchy

b) proprietary

If you are growing your network of connections with friends and family, what do you want to AVOID? a) seeking out others via social media b) showing you are in control of all aspects of your business c) asking your friends and family for help d) admitting there is something you do not know

b) showing you are in control of all aspects of your business

What should NOT be a consideration when determining how to price a consulting engagement? a) the value of your contribution to the client's success b) your hourly rate c) your opportunity costs d) the client's substitutes--what they'd do if they didn't work with you.

b) your hourly rate

You are considering seeking funding from friends and family for your startup business. What best practice should you follow? a) Rely on verbal commitments to avoid upsetting friends and family. b) Avoid upsetting your friends and family with worst-case scenarios. c) Be clear about your expectations regarding the likelihood that you will be successful. d) Understand that they do not need to be kept in the communication loop early on in the investment.

c) Be clear about your expectations regarding the likelihood that you will be successful.

Which is NOT a primary responsibility of the supply chain team? a) managing quality b) developing business processes c) maximizing ROI d) minimizing waste

c) Maximizing ROI

What is the first thing you should do if you want to transition to value-based fees from hourly? a) Fire all of your hourly clients. b) Raise your prices. c) Start focusing on how you can provide the most value to each client. d) Start charging your hourly clients value-based fees

c) Start focusing on how you can provide the most value to each client.

There are a number of myths about venture capital. What is actually true about venture capital and venture capitalists? a) Venture capitalists are celebrities or well-known individuals, such as Mark Zuckerberg of Facebook. b) Venture capital guarantees success for a startup business. c) Venture capitalists provide both money and advice to a startup business. d) Venture capitalists invest because they believe in the startup company's vision.

c) Venture capitalists provide both money and advice to a startup business.

When is a good time to price for hours and not value? a) When you don't feel like figuring out value sources. b) When the client wants to pay hourly. c) When the client wants you to behave like an employee, not an advisor. d) When the client has limited budget.

c) When the client wants you to behave like an employee, not an advisor.

You implemented a marketing strategy for a product that ended up being costly because customers were not buying it. Which approach would have helped you avoid this situation? a) committing more resources to the marketing plan b) sticking to your plan for a longer period of time c) being flexible in the early stages of a marketing plan d) assessing the costs of implementation

c) being flexible in the early stages of a marketing plan

The _____ number is overhead divided by the contribution margin. This is what you need to double every month to make sure your business is highly profitable. a) sale b) profit c) break-even d) expense

c) break-even

Which type of financing product provides you an unlimited credit line as long as the balance is paid within 30 days? a) finance cards b) credit cards c) charge cards d) debit cards

c) charge cards

Which opportunity factor is referred to as market size? a) resources b) profitability c) demand d) geographic region

c) demand

What is the most important value you provide as a consultant? a) hard work and dependability b) subject matter expertise c) process expertise or subject matter expertise d) process expertise

c) process expertise or subject matter expertise

What is the best tip to help you avoid being seen as a nuisance by potential customers? a) Always be mindful of your customers' time. b) Always request a meeting with customers by email. c) Always use sales calls to communicate with your customers. d) Always have a meaningful reason for contacting customers.

d) Always have a meaningful reason for contacting customers.

What is not the best starting point when it comes to finding your new business idea? a) Find the gifts you were born with. b) Find the things that you love and enjoy doing. c) Find the skills and the knowledge you acquired over time. d) Find lists online of the businesses that you can create.

d) Find lists online of the businesses that you can create.

You have the financial resources to start your own business. Before proceeding, what question should you ask yourself? a) What are my goals for the first year? b) Am I emotionally ready to start my business? c) Are the people closest to me ready? d) Have I assessed my worst-case scenario?

d) Have I assessed my worst-case scenario?

What is not a step in the original process of narrowing down your list to the best five business ideas? a)Make sure the business idea is very exciting to you. b) Make sure the business idea is logical. c) Make sure the business idea is ranking high on the list. d) Make sure the business idea hasn't been done before.

d) Make sure the business idea hasn't been done before.

You are an entrepreneur looking for a mentor. What advice should you follow? a) Avoid seeking out numerous mentors. b) Limit your mentors to older individuals with significant experience. c) Keep your relationship with mentors formal. d) Make the time you spend with mentors count.

d) Make the time you spend with mentors count.

Which is NOT one of the primary responsibilities of the human resources team? a) assisting in hiring employees b) assisting in training employees c) working to retain employees d) managing employee email accounts

d) Managing employee email accounts

Portia wants to be an entrepreneur. What should she do first? a) Portia needs to find her funding. b) Portia needs to find her what. c) Portia needs to find her emotional readiness. d) Portia needs to find her why.

d) Portia needs to find her why.

You are having difficulty coming up with a company name that is catchy and memorable. Which tried-and-true method can help you? a) Use terms in the popular culture. b) Examine company trademarks. c) Search through social media. d) Refer to history or fiction.

d) Refer to history or fiction.