intro to business ( entrepreneurship test)
You should never limit advertising your business because of a limited budget ( true or false)
true
Which type of advertising is more expensive
tv/radio ads
Small business owners
usually get direct information from their customers about what they like and dislike
Small businesses have an advantage over big businesses when customers
want more individual attention
Identify the three contacts or people you believe would be the most important to assist a new small business owner. Justify each of your choices
1. Mentor - a mentor would be good because they will help you with the company name, location, finacing options, and federal requirements 2. Past employee - a past employee would be good because they will already kind of have an idea about what you are expecting from them 3. Supplier - a supplier would help because they can help you get the equipment you need for your business.
Freddie is thinking about starting a small business and has come to you for advice. While reflecting on the reasons you have learned for why most small businesses fail, what would you tell Freddie that will help him increase his chances for being successful
1. keep good and adequate records 2. enough start up cost 3. good location
A patent gives an inventor of a new product the sole right to make, use, or sell the item for
20 years
It is recommended that entrepreneurs have enough capital to cover the cost of setting up their business location, stocking their inventory, and staffing it for a minimum of ______________ months in preparation for the business not earning a profit right away.
3
According to the Small Business Administration, a small business is an independent business with fewer than _____ employees
500
what is the definition of innovation
a brand new invention
what is the definition of improvement
a change that increases the usefulness of a product
what is the definition of business plan
a written description of the business idea
Which of the following is a function of promotion
advertising
A competitive advantage that small businesses have over large is
attention to unique customer needs
Which source of funding is available to an entrepreneur for starting up a business venture
bank loans, personal savings, contributions from friends and family
If you start a new business, you need information about
competitors, government regulations, and customers
A ________________ protects the creative work of authors, composers, and artists
copyright
The most successful small business owners
establish good working relationships with professionals such as bankers, lawyers, and accountants
After new product ideas have been generated, companies will most likely
evaluate the ideas to determine which have the best chance to be successful
Personal selling is usually done
face-to-face with each customer
A large splashy ad is better than smaller ads over a long period of time ( true or false)
false
If financing for the business is not needed, it is not recommended that a business plan be written because the business owner is well aware of the information in the plan. (true or false)
false
Lack of experience really does not matter that much when it comes to taking the risk to start your own business (true or false)
false
Marketing is the same thing as advertising ( true or false)
false
Once a business plan is written, it should never be revised and should never be updated ( true or false)
false
The Small Business Association loans money on a regular basis to businesses (true or false)
false
The only reason businesses choose to close is because they are losing money and are no longer profitable ( true or false)
false
Successful entrepreneurs tend to have all of the following characteristics EXCEPT
hesitant
Scrubbles laundry detergent has been on the market for years. The manufacturer of Scrubbles recently added a new ingredient to give the detergent extra cleaning power. This is an example of an
improvement
What is the main reason that small businesses fail
lack of sufficient funds
Which of the following is probably the LEAST important factor in becoming an entrepreneur
living in a major U.s. city
When naming your business, do all of the following EXCEPT
make it similar to your competitor
Which marketing function involves communicating directly with potential customers to determine their needs
marketing information management--market research
what is the definition of venture capital
money provided by large investors to finance new businesses
Location is important to small retail businesses because
most retailers need good customer traffic to survive many potential customers will stay away if the business is not easy to find customers generally do not want to travel long distances to find what they need
Which of the following scenarios will most likely result in comparatively low prices
products are sold at a large warehouse store offering little personal service located on the outskirts of town
The first step in the consumer decision-making process is to
recognize a need
Which of the following would NOT generally be considered one of the marketing functions
repairing
Customer perception is often based on which of the following
reputation, online or storefront presence, marketing messages and packaging
Product costs + operating expenses + profit =
selling price
This type of marketing research study gathers information from people using a carefully planned set of questions
survey
What is one way that companies come up with ideas for innovative products?
surveys, focus groups, and observations
what is the definition of an entrepreneurship
the process of starting, organizing, and managing a business
A word, letter, or symbol linked with a specific company or product is a(n)
trademark
A mentor is someone who helps you start and organize your business ( true or false)
true
Choosing target markets and studying their needs and decision-making processes can make promotion more effective ( true or false)
true
If your competitor chooses to advertise in print, you may need to do same ( true or false)
true
It is easier for a small business to meet the precise needs of customers than a large business ( true or false)
true
Most products you use today are minor or major improvements in existing products ( true or false)
true
One of the drawbacks of online advertising is that businesses have a tendency to over-rely on this form of advertising and lose touch with their customers (true or false)
true
One of the main reasons that businesses started by entrepreneurs fail is inadequate capital ( true or false)
true
TV and radio ads may be more expensive; however, they also tend to be remembered longer than other forms of advertising ( true or false)
true