Entrepreneurship Midterm Questions

Which of the following would most likely be accepted as collateral for a secured loan for $25,000?

32,000 automobile that is paid for

You and several business owners in your area agree to raise the price of the paint you sell by $1.50 per gallon. You are in violation of the ____.

Sherman Act

Which of the following is not a reason that a bank may reject your loan application?

business is a startup

What determines the type of economic system a country has?

the demand of the people

which of the following is not a pricing objective?

to decrease expenses

Organizations made up of professionals in a specific industry are called ___?

trade associations

An online ad that changes the background of the page being viewed is a ___.

wallpaper ad

You own an office supply store. You purchase desk lamps at a wholesale cost of $14 each. You use a markup of 45 percent to determine the selling price. At the end of the season, you offer a discount price using a markdown of 20 percent of the selling price. The discount price for desk lamps is ___.

$16.24

It is difficult for small businesses to compete with large retailers because a. large retailers are able to order and stock products in alter quantities b. large retail chains don't rely on a single product line c. large companies have more resources to devote advertising

All of the Above

Which of the following is not an advantage of buying an existing business?

Capital is required

Data that help you determine where your potential customers live and how far they will travel to do business with you are ___?

Geographic data

The plant where Goodyear tires are made is an example of which type of business?

Manufacturing business

You want to advertise a special price on a product that you do not have just to get customer traffic into your store. If you do so, you will be in violation of the ___.

Wheeler-Lea Act

To successfully use the marketing concept, a business must do which of the following? a. identify what will satisfy the customers' needs and wants b. develop and market products or services that customers consider better than other choices c. operate profitably

all of the above

Which of the following is the least important consideration for the layout of a wholesale business?

appearance

You are using five separate journals to record your business transactions. In which journal would you record a sale of merchandise in the customer pays you cash at the time of the sale?

cash receipts journal

Which of the following is not a good way to get customer feedback?

check with your competition

Which of the following would be a startup cost?

computer for a business

If a product has inelastic demand, a price increase will cause ___?

consumers to buy less

Sources of secondary data include all of the following except __?

customer feedback from a survey

A new touch-screen tablet computer that lets you surf the internet, send and receive email, watch television, listen to music, and read books has just been released. There are people who want this device so badly they are willing to pay any price for it. This telephone should be priced using ___.

demand-based pricing

The branding, packaging, and labeling of your product should accomplish all of the following except ___.

describe your company's product mix

Which of the following is not a role of entrepreneurs in the US economy?

determine how to allocate natural resources

Which of the following is not a function of business?

finance

You have decided to try to finance your business with equity financing. Whom should you approach to invest in you business?

friends and family

An example of a non economic want is ___?

friendship

Which step of the problem-solving model involves performing research and interviewing customers, suppliers, and employees?

gather information

Another name for economic resource is ___?

goods and services

A potential investor or bank would want to see all of the following financial documents except ___.

journal

The legal form of business that is the simplest to establish is the ___.

limited liability company (LLC)

Which of the following is not a good reason to locate a business in the home?

limited space

Which channel of distribution would be best for someone who makes and sells pottery at his or her home?

manufacturer to consumer

Which of the following types of business is least likely to distribute its products or services directly to consumers?

manufacturing business

For a contract to be legally binding, it must have which of the following elements when it is created?

offer and acceptance, consideration, capacity, legality

Which of the following is a strategy for maintaining customer loyalty?

offering superior service

Which of the following is the least important consideration when organizing the layout of a retail business?

organization of supplies

Which of the following pricing strategies is often used when introducing a new produce into the market with the goal of developing a strong customer base while discouraging competition?

penetration pricing

In which type of lease does a landlord receive a portion of the tenant's revenue each month in addition to a base rent?

percentage lease

The Ford Motor Company operates in which type of market structure?

perfect competition

The four basic principles of the US economic system are ___?

private property, freedom of choice, profit, competition

During late summer, Nordstrom's Department Store offers fall and winter clothes at a discounted price for a short period of time. After that time, the price of this clothing goes up and is not reduced again until the end of season clearance. This is an example of ___.

promotional pricing

The purpose of including supporting documents in a business plan is to ___?

provide additional information

Which of the following would not be included on a cash flow statement?

sale to customer on account

.H&R Block tax service is an example of which type of business?

service business