Multiple Choice Entrepreneurship GHCDP1
Inventory is considered a:
Current asset
A bank loan is what form of financing?
Debt
According to the reading, this is the first step in market research:
Define the question
The cost of equipment is often recognized over its useful life and recorded on the Income Statement as:
Depreciation
The most convincing elevator pitches do NOT:
Describe how you will copy existing successful competitors
Which of the following is NOT included in an elevator pitch:
Detailed financials
Something that sets your business apart from competitors is called a:
Differentiator
According to the reading, which is the correct order for the steps in the hiring process?
Screening, interviewing candidates, reviewing and verifying application information, and making an offer
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
A target consumer is:
Someone likely to purchase your product or service
An SOP manual lays out:
Standard Operating Procedures
What does SWOT stand for?
Strengths, Weaknesses, Opportunities, Threats
Which is not a common differentiator for businesses?
Taxes
True or False: A business can compete on both product and service
True
True or False: A business often has to pay taxes on its inventory.
True
True or False: According to the reading, investors care about your love for your business.
True
True or False: An entrepreneur should rehearse her elevator pitch.
True
True or False: In a sole proprietorship, the owner's personal assets are at risk if the business is not successful.
True
True or False: Using Twitter as a marketing tool requires frequent monitoring and substantial work.
True
According to the reading, which type of customer is more likely to tell others of their experience?
Unhappy customer
The term bootstrapping refers to the process of:
Using a limited number of resources to generate cash to buy more resources, and so on
A basic entrepreneur's insurance policy is often called a:
Business owner's policy
Checking references refers to:
Calling or contacting previous employers
How do employment agencies normally make money?
Charging a fee to the employee or business when a match is made
A go-to-market strategy:
Combines your marketing goals into a comprehensive plan
When naming a business, you should:
Consider what Internet domain you can get
In an auto shop, clean up rags would best be described as:
Consumable supplies
Which form of business gives you, the business owner, the most protection from lawsuits targeting your business?
Corporation
Which form of business is generally most costly to set up?
Corporation
Pricing your new product based on what you pay for the parts inside it is called:
Cost-based pricing
The appendices should:
Present detailed data supporting claims in the plan
Conducting a survey of your friends to see how many might go to a trampoline park is an example of:
Primary research
What is a call to action?
Proposed next step that requires the listener to respond
Freelancers:
Provide specialty services on an hourly basis or by the job
The reading suggests that if you decide partway through an interview that the candidate is not right for the job, you should:
Remain pleasant and positive, and let them know when you'll make a decision
In a percentage lease, the landlord receives a percentage of the business's:
Revenue
The income statement shows:
Revenue, expenses, and profit
Which of the following are alternatives to hiring full-time permanent staff?
All of the options listed
Good sources of affordable equipment include:
All of the options listed.
Packaging includes:
All of the options listed.
Which of the following have marketplaces where an entrepreneur might sell goods?
All of the options listed.
A business plan is helpful to:
All of the options listed
A business plan is useful to:
All of the options listed
About how long is a true elevator pitch?
30 seconds
A business plan is best described as:
A blueprint for the business
According to the reading, the main body of a business plan does NOT normally include which of the following:
A full roster, with names, of all planned hires for at least six months
Crowdfunding is characterized by:
A large number of investors contributing small amounts of money
A share of stock represents:
A portion of ownership in the company
What is a focus group?
A small group of people asked questions in person only
Market research concerns what aspects of your target market:
All of the listed options - Characteristics;Spending habits; and Location and needs.
Which is an example of a trend?
All of the listed options - Growing availability of WIFI; Shift to electric vehicles; and Shift to organic foods.
An example of a risk not specific to a business is:
An economic downturn
A liability is:
Any debt that your business owes, such as a loan payment
An asset is:
Anything that your business owns, such as cash, equipment, buildings, and even inventory to be sold
The balance sheet shows:
Assets, liabilities, and equity
A secured loan is:
Backed by collateral
If you want to see how much cash you have you should consult your
Balance sheet
When buying an existing business, it is important to:
Both of the options listed
According to the reading, Instagram:
Embeds ads in users' stories
According to the reading, what can make an honest competitive assessment difficult?
Emotional attachment to your idea
Which of the following defines rules for appropriate employee behavior?
Employee handbook
For entrepreneurs, telling a detailed story filled with emotion generally:
Engages customers' brains and senses
A car lift in an auto shop would best be characterized as what type of asset?
Equipment
Selling shares of stock in your company is what form of financing?
Equity
When a venture capitalist offers an entrepreneur $100,000 for shares representing 20% of a company, it is a form of:
Equity financing
True or False: A business plan should avoid talking about the founders and focus on hard facts about the market and execution plans.
False
True or False: According to the reading, most entrepreneurs can get a bank loan for all the equipment a business might eventually need.
False
True or False: If a salaried employee works one hour less per week than normal, she is paid less for that week.
False
True or False: It's called an "elevator pitch" because it is meant to elevate your chances of getting funding.
False
True or False: Secondary data is usually more expensive than collecting primary data.
False
True or False: Social media advertising has a very high minimum cost.
False
True or False: There is a government mandated outline that you must use for a business plan.
False
Pro forma statements are:
Forward-looking predictions
According to the reading, what might support a premium pricing strategy?
Fresh ingredients
An ice cream cone is a:
Good
What is inventory?
Goods the business has in stock to sell to the customer
According to the reading, an entrepreneur should examine _____ when exploring opportunities.
Her hobbies & interests
A business plan should:
Include and discuss risks
If you are looking to tell how much money you made or lost last month, you should consult your:
Income statement
A charge that is a percentage of the loan amount, usually payable monthly, is called:
Interest
Why is the section on key personnel so important?
Investors invest in people even more than ideas
A company's market share is:
Its revenue divided by the revenue of all competitors in the market
Lenders generally prefer a debt to equity ratio that is:
Low
The purpose of market research by entrepreneurs is to:
Make better decisions
In addition to the owner, how many employees can a sole proprietorship have?
Many
Compared with buying a new business, starting a business from scratch is usually:
More risky
A business with two owners where the profits are taxed as income to the owners is most likely a:
Partnership
Abusinesswithtwoownerswheretheprofitsaretaxedasincometotheownersismostlikelya:
Partnership
According to the reading, what are the four functions of management?
Planning, organizing, directing, controlling
When delivering your pitch, you should sound:
Practiced but natural
What is a drawback of buying the least expensive equipment possible?
The equipment may be more likely to break or wear out
Good market research can help you determine your break-even point, which is:
The number of units you need to sell, taking into account variable costs, in order to cover fixed costs
An advantage to joining a family business is:
The other employees are often well known
What is a disadvantage of odd shaped product designs?
They can be inefficient for packaging and shipping
Which of the following would be indirect competition for a candy store?
Walmart, which sells candy
In the reading, Kevin considered frequent job changes as a possible:
Warning sign
Which of the following is helpful in assessing a new business opportunity?
Working in a related business and Exposure to potential customers of the new business
An advantage of social media advertising is:
You receive real-time information about who is seeing your ads and how they are reacting to them