Entrepreneurship Practice Test
________ are those that company owners can do something about
controllable risk
Which of these is market saturation?
a market condition in which the volume of a product or service has exceeded the demand in an economy
Which of these describes an entrepreneur?
an individual who starts & organizes a business while taking on high risks to do so
_____ are any obstacles preventing a startup from entering a market space.
barriers to entry
The suggestion of creating a _______ helps entrepreneurs with their tolerance for the unknown?
business plan
Which of these is a document stating a business´s goals & strategies for achieving them?
business plan
The possibility that a venture will have less profitability than anticipated or fail altogether is called ________.
business risk
Which of these is a business startup that is expected to produce profits & is accompanied by the risk or loss of failure?
business venture
________ occur(s) when the probability of risk can be approximated.
Insurable risk
_________ are risks from nature that can adversely affect organizations.
natural risks
The 3 main qualities of a risk assessment are that it is data-driven, recorded, and ______.
performed regularly
Entrepreneurs can ____ to help alleviate stress?
practice making tough decisions & plan for the future
habits
psychographic segmentation
hobbies
psychographic segmentation
the possibility of loss assumed by a company without a potential return is called ________.
pure risk
Venture capitalists are investors who provide startup funding to entrepreneurs, typically in exchange for what?
shares, or part ownership of the company
_______ are those that company owners cannot do anything about.
uncontrollable risks
Risk that cannot be insured against because its probability of occurrence is too difficult to estimate is known as _________.
uninsurable risk
Mina is struggling with the entrepreneurial challenge of managing people. What suggestion could help her deal with this problem?
using teams to encourage diverse perspectives & problem-solving skills
Which of these are the four main decision strategies available after severity has been estimated?
1. Reduce it 2.Avoid it 3.Transfer it 4.Accept it
Which of these are examples of a competitive advantage?
1.Patenting a trendy new type of shoe that no other company currently offers 2.selling a cost-effective truck in bulk to distribution companies at a faster rate than anyone else
When trying to establish a new company, it can be difficult for an entrepreneur to secure startup funding. Which of these are possible sources of funding?
1.loans 2.self-funding
A small business has ____ or fewer employees?
15
_______ result(s) from changes in market conditions as a whole.
Economic risks
Taking steps to reduce the consequences of risk is known as _______________.
Risk Mitigation
A(n) _______ is an analysis of potential risks & their relative probabilities of affecting an organization.
Risk assesment
___________ is the possibility of loss assumed by a company that also holds the possibility of a potential return
Speculative risk
age
demographic segmentation
race
demographic segmentation
increased competition
economic risk
product obsolescence
economic risk
Which of these is the ability & willingness to solve a specific problem by developing & managing a business venture?
entrepreneurship
state
geographic segmentation
zip code
geographic segmentation
Standard of living is a level of material comfort a society enjoys as measured by ____?
goods & services
employee injury
human risk
shoplifting
human risk
Risks caused through human actions, including those of customer, employees, or others outside an organization, are known as ________
human risks
changes in climate
natural risk
flooding
natural risk
