Entrepreneurship review

Which of the following is helpful in assessing a new business opportunity?

Exposure to potential customers of the new business

What is a focus group?

A group interviewing or discussion technique which is used to enhance understanding and gain in-depth knowledge by gauging consumer feedback

You plan to be at least 5 miles (straight line distance) from your competitor. Your drive there via a route that forms two legs of a right triangle. The legs are 4 miles and 3.5 miles. Are you far enough away?

yes

According to the reading, what might cause customers to come to a restaurant even if its prices are somewhat higher than competitors?

fresh ingredients

An ice cream cone is a:

good

According to the reading, an entrepreneur should examine _____________, fill in the blank, when exploring opportunities.

hobbies and interests

Good market research can help you determine your break-even point, which is:

number of units needed to sell

One survey has 3 respondents, and another has 100. Which survey is more likely to give accurate data?

one with larger sample

Which type of chart would best display data on the flavors of ice cream that customers prefer?

pie chart

Abby can purchase a secondary data report for $500 or create primary data by surveying 300 people at a cost of $1.33 per person. Which is cheaper?

primary

Conducting a survey of your friends to see how many might go to a trampoline park is an example of:

primary research

Reviewing census data to see how many seniors over 55 are near your proposed location is an example of:

secondary research

Offering a better warranty is an example of competing on:

service

What does SWOT stand for?

strengths, weaknesses, opportunities, threats

You receive a report that demand for lawncare services (demand) will grow from $900,000 per year to $990,000 and the available crews (supply) will grow from 100 to 120. Which is growing faster (as a percentage), supply or demand?

supply

Demand for plumbing services for the last 3 years, from furthest past to most recent, was $44 million, $42 million, and $38 million. A graph of this trend would have a slope that is:

negative

70 of 500 respondents say they would visit a trampoline park. What percentage of respondents is this?

14 percent

Your break-even point is 3,000 units. You make $5 on each unit; that is, your price minus variable cost is $5. What are your fixed costs? Use the formula: Break-even Point = Fixed Costs / (Price - Variable Cost)

15,000

Demand for electrical services in your area is $12 million per year. It is expected to grow 10% compounded annually over the next 5 years. What will demand be in 5 years? The formula for compound growth is E = B x (1 + R)T, where E is ending value, B is beginning value, R is rate of growth, and T is the amount of time.

19,326,120

Your research finds 5,400 potential customers for your bowling alley, and you think each is willing to spend $10, five times per year, to bowl. What is the total potential revenue represented by these customers?

270,000

You estimate that your new business's revenue will grow at a compounded rate of 30% each month for the first 6 months. If your third month's revenue is estimated at $5,000, what is your second month's revenue? (Round to the nearest dollar.)

3,846

Three smoothie shops exist in your town with annual sales of $300,000; $344,000; and $412,000. What is the average of their sales?

352,000

Your research of competitors shows prices of $45, $78, $13, $125, and $66. If you throw out the highest and lowest data points (outliers), what is the mean of the remaining prices?

63

You have heard that customers will try a new caterer if the price is 20% below their existing caterer. Your competitor prices a luncheon at $800. What does your price need to be to get customers to try your business?

640

You count customers going into the 5 pizza shops in your city. You get 56, 98, 43, 112, and 106. What is the median number of customers going into the shops?

98

There are about 30.2 million small businesses in the United States and about 30,000 other larger businesses. What percent of all businesses in the U.S. are small businesses?

99.9

You plan on using cost-based pricing. The cost of your product is $10, and you are planning a 30% mark-up. What should the price of your product be?

13

Which is an example of a trend?

All options listed

Which of the following would be indirect competition for a candy store?

Walmart which sells candy

Market research concerns what aspects of your target market:

characteristics, habits, location

Pricing your new product based on what you pay for the parts inside it is called:

cost based pricing

According to the reading, this is the first step in market research:

define the question

According to the reading, what can make an honest competitive assessment difficult?

emotional attachment to idea

True or False: Secondary data is usually more expensive than collecting primary data.

false

You are counting your competitors in town. This number is a(n):

integer

You have data showing demand for plumbing services rising for each of the last five years. This would best be displayed on a:

line graph

The primary goal of market research by entrepreneurs is to:

make better descisisons

If 60% of the population is female and 30% of females buy physical therapy services, and 70% of men buy physical therapy services, is there more demand for physical therapy from women or men?

men

Which is not a common differentiator for businesses?

taxes

True or False: A business can compete on both product and service

true