IBM Study Guide

Not true about business plans

They should not be advised

What is the best reason to study entrepreneurship?

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

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?

All of the above

Based on the diagram, has Pete's business broken even?(meaning, covered its fixed expenses and become profitable)

Not enough information

Which of the following is NOT one of the four steps to preparing a sales forecast?

Selecting an organizational structure for your company

Example of tax you must pay

Social Security

variable expense

an expense that changes from month to month

Identify which item in her target market profile is in the wrong category and where it should be moved.

"Don't spend money on unnecessary items" moved from Demographics to Buying Patterns

What is not a skill?

Determination skills

Which statement is the best description for Value Proposition?

Features and benefits that makes a business different or unique

Medicare

Federal health insurance for people over the age of 65

Pete wants to write a business plan for Pete's PB &J Cupcake Cart. He needs to identify all expenses associated with making a peanut butter and jelly cupcake for the Economics of One Unit. What is the most accurate way of determining his expenses?

Go through the detailed process of making the cake step by step, measuring the ingredients he uses and calculating the cost per ingredient

NOT a creative thinking exercise entrepreneurs use to generate ideas

Judge each idea as unrealistic or not

Example of a tax

Medicare

take-home pay

Money received after all adjustments and deductions are made.

startup capital

Money you invest in forms of supplies, marketing, legal services, etc

She asks you if indirect competitors are important to know about. What should you say?

Yes, Indirect competition is important to understand, since the different product fulfills the same customer need.