Small Business and Entrepreneurs Exam 1

Which three characteristics help identify a business opportunity? (Choose three)

Service, Price Quality

What is Entrepreneurship?

Setting up a business with the aim to make a profit

Your company manufactures 72 hr. emergency kits and sells them for a low profit margin. You want to expand your customer base to increase your sales volume, but you have a limited budget. What marketing method would be the best choice?

Social Media

Stage 1. Stage 2. Stage 3. Stage 4. Stage 5.

1. Existence 2. Survival of the Fittest 3. Success 4. Take-off 5. Maturity

What is customer acquisitions cost? 100 new customers last year, and 1,000 in marketing costs.

$10 Customer Acquisition Cost

Which three statements define Market/Fit Hypothesis (Choose three)

1. A fit exists when people need your product rather than just seeing a potential benefit of using it. 2. Product/market fit exists when you have the right solution to a problem worth solving. 3. When users love your product so much they tell other people to use it.

1. Identifies it is a Creative Commons license 2. Credit must be given to the creator 3. Adaptations must be shared under the same terms 4. Only noncommercial uses of the work are permitted 5. No derivatives or adaptations of the work are permitted

1. CC 2. BY 3. SA 4. NC 5. ND

Which two are benefits of equity funding? (Choose two)

1. Can be used to raise working capital 2. Investors do not get paid if the business does not make a profit

You create a new type of electric shaver that is light-weight, portable, and holds a longer charge. What are three things you will need to consider regarding the mass production of your electric shaver? (Choose three)

1. Creating your prototype to demonstrate the product's function to potential customers 2. Finding a manufacturer 3. Sourcing materials needed for the components of the products.

1. Research your users' needs 2. State your User's Needs and Problems 3. Challenge Assumptions and Create Ideas 4. Create Solutions 5. Try your Solutions

1. Empathize 2. Define 3. Ideate 4. Prototype 5. Test

1. Strengths 2. Weaknesses 3. Opportunities 4. Threats

1. Large gallery of stock photos 2. Working alone, no skilled help 3. Increase in weddings expected as COVID restrictions ease 4. COVID pandemic restrictions disallow large family gatherings

Which two ways can Customer Service and Support affect sales? (Choose two)

1. More Sales through Customer Evangelists 2. Increased Sales through Responsiveness and personalization

Which two should be included when calculating start-up costs for a business?

1. Permits, licenses, and incorporation fees 2. Business cards

1. Selling products directly to end customers for a profit, either in-store, online, mail-order, or by phone. 2. Selling products in bulk to various outlets or retailers for onward sale. 3. When a brand or manufacturer sells direct to consumers and the end users of their products, as opposed to selling to them solely through retailers. 4. Businesses that sell to other businesses who are the intended end user of the product.

1. Retail 2. Wholesale 3. Direct- to-Consumer 4. B2B

Which are two characteristics of direct distribution that differ from fulfillment centers.

1. The manufacturer controls all aspects of distribution 2. Direct distribution is also known as a zero level channel

What is your equity in the business?

11,000 (17,000-6,000) subtract Total Liabilities from Total Assets

You recently started a small affiliate marketing service. Last month, you spend $1,000 on a Pay-Per-Click (PPC) online advertising campaign that resulted in $1,200 in sales. What was last month's Return on Investment (ROI) for your affiliate marketing service?

20%

A law was passed increasing the minimum wage by 30%. The owner of a small landscaping business must now pay all of her laborers 30% higher wages. What is the minimum amount the owner must now charge customers for labor to balance her increased operational expenses?

30%

The owner of a landscaping business has noticed that none of his competitors are including ponds or other water features in the gardens they create. The landscaper wants to determine the viability of this business opportunity. What should this entrepreneurs d first before offering to design and build water features as part of his landscaping business?

Ask the customers in the area if they are interested in adding a water feature to their gardens.

You've been asked to classify several businesses as either B2B or B2C

B2B: Purchases requiring a tax exemption certificate, Wholesale flooring distributor B2C: Motorcycle repair shop, chain of local grocery stores

Your a technical trainer. You teach online courses to help workers more efficiently use Microsoft Office applications. What is an effective way to measure your teaching performance during an online course?

Conduct onscreen pop-up quizzes

What is a target market?

Customers to whom a company wants to sell its products and services.

Which three are segments in a Marketing Plan? (Choose three)

Demographic, Behavioral, and Geographic

Which Sales Channel has been opened to manufacturers because of digital tools?

Direct-to-Consumer

You have an idea for a new product. Market research suggests the product is needed to solve a problem and will be enthusiastically embraced by customers. What is one of the first steps you must do before creating a product prototype?

Identify materials

Which two documents summarize a business plan of a company? (Choose two)

Lean Canvas and Pitch Deck

An example of ________ compensation is paying field laborers for the amount of fruit they pick. A ________ employee receives a set amount of pay each month without overtime compensation for extra hours worked. Employees most affected by minimum wage laws are compensated ________. An employee who is paid a percentage of a sale is paid by ________.

Piece Work, Salary, Hourly, Commission

Classify the following data as either Primary or Secondary.

Primary: a marketing survey you posted on Facebook, information collected from your company focus group Secondary: demographic data you obtained from the government, facts you collected from professional journal articles

You operate a small insurance office with a partner. Which expensive is a fixed cost?

Property lease for the office

Successful entrepreneurs have mindsets that typically possess which three characteristics?

Responsible, Adaptable, and Tenacious

You need to create a legal structure for your business. You would like some of the benefits enjoyed by large corporations, but do not want to be taxed twice. You have four partners who will be shareholders. None of you plan to sell your ownership shares to the public, but do want to be protected from business liabilities. What legal structure should you set up for your business?

S-Corporation

Which is one of the greatest benefits of being an entrepreneur?

Schedule control

Which three elements are required to have a trade secret? (Choose three)

Subject to reasonable efforts to maintain its secrecy, others cannot legitimately obtain the information, information has economic value not generally known

A DJ wants to analyze market reactions to the new music selections played at his dance last weekend. He advertises his weekly dances using social media and email. Which would be the most effective way to gather reactions from those who attended the dance?

Surveys

Which two are office marketing platforms? (Choose two)

TV ads and Flyers and Pamphlets

For each statement about requirements for Equity vs Debt Financing, select True or False.

True: Creditors look favorably upon a relatively low debt-to-equity ratio, which benefits the company if it needs to access additional debt financing in the future, Debt financing requires selling a portion of the company, The main advantage of equity financing is that there is no obligation to repay the money acquired through it False: Equity financing places a large burden on the company

For each statement about Product Quality Control Testing, select True or False

True: Determine what standards have to be met based on the product and industry, Refine quality measures as needed to increase the level of satisfaction with your product, Establish the method to use for testing product quality False: Review the results of competitors quality assurance testing, don't spend money on Product Quality Control Testing unless more than 10% of customers complain

For each statement about owners of equity in a business, select True or False

True: Founders own equity False: Partner own equity

For each statement about Direct Competition and Indirect Competition, select True or False

True: Indirect Competition is a business whos services are different from yours but satisfy the same need, When your target audience buys products from a competitor instead of from you, that is Indirect Competition. Direct Competition is a company that offers the same thing you offer. False: All companies that sell goods and services are Indirect Competitors

For each statement about Selection of Distribution Channels, select True or False

True: Perishable products require more direct distribution, Product price affects the length of a distribution channel False: Products that are bulky, large in size, and technically complicated are usually sold through multiple handlers before reaching the end customer

For each statement about the components of Business Plans and Pitch Decks, select True or False

True: The goal of a business plan is to get investors' to buy-in, a pitch deck is a visual slide presentation, Business plans are text-based documents False: Business Plans are highly visual, a typical pitch deck has between 20-100 slides

For each statement about the sales process, Select True or False

True: determining if the potential customer can afford your product is part of prospecting, handling obligations involves listening to the potential customer's concerns and addressing them, prospecting is usually the first step in the sales process False: closing the deal is the last final element in the Sales Process, presentation is best done with a PowerPoint slide deck