Entrepreneurship Unit 1-3

What is a trend that most likely affects the growth of entrepreneurial ventures?

A higher demand for more convenience products

When planning for her new business, Janine allocates two percent of the estimated annual sales of her company to web and newspaper advertising. Janine is developing which document?

A promotional budget

When a business selects a target market, the most useful or desirable market segments to the business are those that are measurable and identified as which characteristic?

Accessible

Marketing strategies are designed and implemented for the overall purpose of which action?

Achieving planned goals

One way for a business to expand its product mix is by performing which action?

Acquiring another company

When a business expands its product mix, its goal is to accomplish which goal?

Appeal to more market segments with a wider variety of options

Which is a way that a business can determine if a product will fulfill the needs of a target market?

Ask the customers

When writing a letter of inquiry, when should the purpose of the letter be revealed?

At the beginning of the letter

Identifying new product opportunities usually requires a person to possess which characteristic?

Awareness

Local governments strongly promote and support small businesses mainly due to which factor?

Businesses are important to the economy.

Regan is deciding if she is willing to give up a secure position with a well-known company so she can start a home-based business. Which risk is Regan assessing?

Career

Which is a consideration in the place element of marketing?

Choosing distribution channels

Which is an example of a company using brand extension?

Coca-Cola adding Caffeine-Free Diet Coke

Which source of start-up information would be recommended to an entrepreneur looking for information about the average start-up and operation costs for a self-serve laundromat?

Coin Laundry Trade Association

The brainstorming process is used to accomplish which primary goal?

Come up with as many ideas as possible.

Which is a characteristic of a well-conducted feasibility study?

Complete

When determining venture-creation opportunities, entrepreneurs must first perform which action?

Conduct research

Sandy opened a small business that carries a very wide variety of products of varying qualities at many different prices. Sandy is losing customers who are disappointed with the selection, quality, and quantity of items. What is lacking in Sandy's product mix?

Consistency

When conducting an environmental scan, which is an economic factor that a business should consider?

Consumer spending habits

What component is important to include in all types of inquiry letters?

Contact information

An effective mission statement should effectively reflect which component of the business?

Core values

Which process helps aspiring entrepreneurs generate venture ideas?

Creative thinking

Governments can encourage entrepreneurial development by performing which action?

Deregulating and reducing taxes

The plan to increase production by 10% over a two-year period is an example of which management activity?

Developing objectives

For a prospective entrepreneur, what is necessary to determine the existence of goods and services?

Entrepreneurial discovery

A business identifies a market that shares common characteristics on the basis of where people live and work. This is an example of market identification by which segmentation?

Geographic

Which statement is true regarding the use of group creative-thinking techniques to facilitate the idea-generation process?

Group members most often generate new ideas by altering or building upon another idea.

Ben is conducting a feasibility study for a new venture idea. Which question should Ben answer in terms of the financial considerations for the venture?

How will the business obtain the money it needs?

One-time, start-up costs often include which fees?

Incorporation

Which is an example of a demographic trend that has encouraged entrepreneurial discovery?

Increased cultural diversity

Which is a financial concern that entrepreneurs often face when starting new businesses?

Irregular paychecks

Which statement is true about a business environment?

It is always changing.

Which statement is true about entrepreneurial discovery?

It is an ongoing process that facilitates the success rate of a business.

The primary responsibility of the facilitator of a product idea brainstorming session are to compile all of the ideas and perform which other action?

Keep the group on task

One factor that an entrepreneur should consider while assessing a venture opportunity is whether it will encounter which situation?

Lead to more opportunities

In order for a business to generate a profit, its operating costs must be identified as which status to the gross margin?

Less than

Businesses that segment the market based on psychographics are grouping people according to which attribute?

Lifestyles

To appeal to a target market with slightly different needs, a business added a group of related items to its product mix. What is this group of items?

Line extension

Which a global trend that might encourage an entrepreneur to consider international business opportunities?

Lower tariffs

Which statement is true about entrepreneurship and small-business growth?

Many people start entrepreneurial ventures during times of economic recession.

Many entrepreneurs encounter which situations of emotional risks?

Marital tensions and family problems

Which is the first factor that a business should consider when it is deciding if it should sell a product?

Market demand

The entrepreneurial discovery process requires knowledge and the recognition of which situation?

Market need

When using mind mapping to generate product ideas, it is best begin by writing down the main problem or which other component?

Market opportunity

Identifying market segments helps a business to develop which factors appropriately?

Marketing strategies

When the Green Company selected its target market, it decided to ignore the segment differences and generate appeal with one offer. The company is using which marketing strategy?

Mass

Which characteristic is descriptive of a meaningful company objective?

Measurable

Alaina needs advice and assistance in starting her new business, so she contacted the Service Corps of Retired Executives (SCORE). Jack, a SCORE volunteer, agreed to act as her guide in the business start-up process. Jack is serving which role?

Mentor

Selecting a target market based on very specific criteria that limit the audience to a well-defined segment is an example of which strategy?

Niche marketing

Which statement is true regarding training for entrepreneurial ventures?

Optimism

The costs of operating a business are often called which expenses?

Overhead

Successful entrepreneurs enjoy their work and often start their businesses so that they can share their interests and enthusiasm with others. In other words, successful entrepreneurs have which characteristic for what they do?

Passion

Which positive effect do small businesses have on the local community?

Pay in of taxes

Managers use broad objectives that they develop for a business as the basis for setting which measurements?

Performance targets

Jessica's hobby is making jewelry. There is potential to sell her bracelets and earrings on eBay. This is an example of identifying a product opportunity by considering which factors?

Personal experiences

An entrepreneur considers the location and financial needs of a business venture during which process?

Planning

A business that identifies products to sell that fill needs is making which decision?

Product mix

Variable expenses increase in direct proportion to the rate of which factor?

Production

Which is an operational issue that entrepreneurs must consider when planning their businesses?

Production process

Costs of sales for a new manufacturing venture typically include which factors?

Raw materials, equipment, and product inventory

Which statement is most likely to have a negative effect on domestic small-business growth?

Restrictive loan policies

What behavior is exhibited when an individual recognizes the possibility of an undesirable outcome and continues to work toward a goal?

Risk-taking

Which is a tool that an entrepreneur develops to project sales for a new business venture?

Sales forecast

Entrepreneurial discovery is an important process in a free-enterprise economic system because an entrepreneur or small-business owner will most likely accomplish which goal?

Satisfy an unmet demand

After a Korean auto manufacturer built a plant in Ames, Iowa, Kwan noticed a substantial growth of Korean residents in the area, many of whom were relocated to Ames to work for the plant. Kwan decided to import Korean goods and sell them in a small Korean specialty store near town. This is an example of a product opportunity resulting from which situation?

Shifts in popularity ethnicity

The primary purpose of a feasibility study is to answer which question?

Should we proceed with this project?

Which factor helps a business to determine its product mix?

Size and target market

When generating new ideas for new businesses, entrepreneurs often look for ways to perform which action?

Solve problems

A business might take an existing product and alter it to fulfill a specific need which different benefactor?

Target market

Which is considered a reliable information source for a business start-up?

The Small Business Administration (www.sba.gov)

Which is an example of a demographic trend?

The aging of the population

Which example illustrates how environmental factors are interrelated?

The economy affects what competitors are doing.

Which statement is true about business start-up requirements?

The financial needs to start a new business depend on the nature of the venture.

Which is a reason why managers develop company objectives?

To identify business purposes

What is a disadvantage of entrepreneurship?

Uncertain income

The product mix that a business decides to offer customers help to project which factor about the business?

Unique image

Which is the most effective mission statement?

We create happiness by providing the finest entertainment for people of all ages, everywhere.'

Entrepreneurs often discover business start-up ideas by looking for gaps between what is being done and which other factor?

What needs to be done

Due to lackluster sales, the Elba Corporation has decided to eliminate several of its product lines. Elba's executives hope that by focusing on fewer product lines, they will see more profit. The Elba Corporation should plan to adjust which aspect of its product mix?

Width

When a business selects a target market, the most useful or desirable market segments to the business are those that are measurable and

accessible.

A business identifies a market that shares common characteristics on the basis of where people live and work, which is an example of market identification by __________ segmentation.

geographic

Home-based businesses are attractive to many people because of which factor?Home-based businesses usually:

have lower start-up costs.

Businesses that segment the market based on psychographics are grouping people according to their

lifestyles

Identifying market segments helps a business to develop appropriate

marketing strategies.

When the Green Company selected its target market, it decided to ignore the segment differences and generate appeal with one offer. The company is using __________ marketing.

mass

Selecting a target market based on very specific criteria that limit the audience to a well- defined segment is an example of

niche marketing.