Entrepreneurship Test Study Guide

Articles of incorporation

Formal documents that establish the corporation

Izzy is currently busy catching up on various administrative paperwork such as quoting, invoicing, and accounting. What will staying on top of this type of paperwork help her business establish?

Good Records

Automobile repair, personal trainers, ride sharing, and landscaping are all examples of

Service-based products

During a recent interview with her school newspaper, Kiara is asked why she wants to be an entrepreneur. She says, "Because I want to have the authority and independence to make decisions." What is another way Kiara could have said this?

"To be my own boss"

Americans with Disabilities Act

A civil rights law that prohibits discrimination against individuals with disabilities

Business plan

A document that outlines a new business's future objectives and the strategies needed to avhieve them

Affirmative action

A set of policies that supports members of groups that have previously suffered discrimination

Christian tries to register his business that employs 2,500 people as a "small business" with the Better Business Bureau but is denied. What is one reason that Christian's business is likely not considered "small"?

A small business is limited in size, often employing less than 500 people

Villanelle started her own business last year with the goal of turning a profit. However, after one year in business, Villanelle has not managed to make any profit. What does this mean?

After all expenses were paid, Villanelle had no financial gain.

What company began as an online bookstore in someone's garage and has grown to a multi-billion dollar business that is innovating drone delivery, cashier-less and checkout-less grocery stores?

Amazon

Derek manages a small pet store and prefers to make decisions without asking for input from his employees. What kind of management style does Derek employ?

Autocratic

Mosimmo runs a successful online fashion retail business and is known for his timely responses to customer calls, emails, and texts. However, Mosimmo only has several employees. How does Mosimmo likely handle large volumes of customer communication efficiently without a large workforce?

Chatbots and virtual answering services

After a self-assessment evaluating her natural characteristics and personal qualities, Camilla's counselor tells her that she shows strength in a characteristic that is common of many entrepreneurs. Based on the fact that Camilla is a natural problem solver, likes to think outside of the box, and generally finds new and innovative ways of accomplishing things, what characteristic does she likely possess that might make her a good entrepreneur one day?

Creativity

Why is it easier to identify and target specific audiences and customers today than it was 40 years ago?

Data and analytics provided by the internet didn't exist 40 years ago.

As the manager of a mid-sized beauty salon, Drea often asks her employees for their input when it comes to making decisions that will impact the entire staff. Her employees appreciate feeling like part of the process thanks to her ________________ management style.

Democratic

Even the most successful entrepreneurs are unable to add economic growth locally, nationally, or even globally.

False

If someone is intrinsically motivated, they are driven by

Internal factors and forces

Shonna prefers to remain fairly hands-off as the manager of a digital design firm. Most of her employees are self-sufficient and need little to no instruction from her. Based on this, what management style does Shonna employ?

Laissez-faire

As an entrepreneur, Louie strives to create a vision for his team each day. He motivates his employees and is the driving force behind the actions of the business. Which entrepreneurial role is being described here?

Leader

Brand recognition

Measures how familiar a customer market is with a company's products or services

What key characteristic that fuels entrepreneurial discoveries is illustrated by the idea that many entrepreneurs consider that failure only occurs when one doesn't try?

Passion

Entrepreneurs often use this quality to overcome setbacks and small failures in their business, viewing these obstacles as opportunities rather than threats and having the ability to quickly bounce back from difficult situations. What quality is being described here?

Resilience

Business culture

The way of doing things within the company that develops through shared values and beliefs

Collateral

Something of value pledged as security for repayment of a loan

Janelle has always dreamed of being able to call herself an entrepreneur. In order to call herself this, what will Janelle need to do?

Start a new business venture

Willie is just starting out on his entrepreneurial journey and is looking for tools and resources to assist with structuring his business, researching the market, creating and registering his business name, and determining the right legal setup for taxes, licenses, and permits. What government-based resource might Willie find helpful?

The U.S. Small Business Administration (SBA)

After following a structured process for ideation, brainstorming, and performing market research, Jonah is ready to assess the feasibility of his business idea. What will Jonah be assessing?

The capability his business idea has to be successful or not

Brand

The concept that distinguishes the business and a person's perception of them

Capital

The financial assets of a business ($, property)

Absolute advantage

When one country or business can produce something more efficiently - using fewer resources

What does the following list of characteristics and qualities have in common? Creativity, Internal Motivation, Resilience, Communication, Strategic Thinking, Time and Organizational Management

They are all traits common of successful entrepreneurs