G-Metrix Entrepreneurship & Small Business v.2 - U.S Practice Exam 1

A hair salon acquired 100 new customers last year. costs in the marketing and sales area were the following •marketing costs = $1000 •sales calls = $10,000 •salaries = $96,000 what was the customer acquisition cost?

$10

You are examining the end your balance sheet for your business. according to the information in the balance sheet what is your equity in the business?

$11,000

clarify several businesses as either B2B or B2C

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

You recently started a small affiliate marketing service. Last month you spend $1000 on a paper click online advertising campaign that resulted in $1200 in sales. What was last months return on investment for your affiliate marketing service?

20%

Ola past increasing the minimum wage by 30%. The owner of the small landscaping business must now pay all of their laborers 30% higher wages. What is the minimum amount the owner must now charge customers for labor to balance her increased operational expenses

30%

Complete the sentence about Company roles and responsibilities by selecting the correct option for each drop-down list.

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

You are 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?

Contact on screen 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?

Demographic behavioral and geographic

Which sales channel has open to manufactures but because of digital tools?

Direct to customer

Which three characteristics help identify a business opportunity?

Either: •Price •Quality •Selection •location •Service

You need a photograph to use in a commercial presentation. You decide to use a photo from creative Commons license and implement the intellectual property guidelines for reusing the authors work. Match each creative Commons license time to its useage guideline. To answer drag each creative Commons type from the column on the left to its description on the right

Identifies it is a creative Commons license: CC Credit must be given to the creator: BY Adaptations must be shared under the same terms: SA Only non-commercial uses of the work are permitted: NC No derivatives or adaptations of the work are permitted: ND

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 the business plan of a company

Lean canvas and pitch deck

Classify the following data either primary or secondary.

Primary: • information collected from your focus group • A marketing survey you posted on Facebook Secondary: • facts you collected from professional journal articles • demographic data you obtain from the government

You operate a small insurance office with a partner. which expense is a fixed cost?

Property lease for the office

Match each element of the design thinking process to its corresponding description. To answer, move each element from the list on the left to it's description on the right.

Research your users' needs: Empathize State your users' needs and problems: Define Challenge assumptions and create ideas: Ideate Create solutions: Prototype Try your solutions: Test

You create a legal structure for your small business. Do you would like some of the benefits of 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. Which legal structure should you set up for your business?

S-Corporation

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 entrepreneur do first before offering to design and build water features as part of his landscaping business?

The first thing the business owner should do is determine if there is a demand for water features. The best way to do that is ask the customers.

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

Schedule control

Match each type of sales channel to its corresponding description. to answer move each type from the list on the left to its description on the right.

Selling products directly to end customers for a profit either in store or online mail order or by phone: retail Selling products in bulk to various outlets or retailers for onward sale: Wholesale When a brand or manufacturer sells direct to customers and the end users of their products as opposed to selling to them solely through retailers: Direct to customer Businesses that sell to other businesses who are the intended end-user of the product: B2B

What is Entrepreneurship?

Setting up a business with the aim to make a profit.

Your company manufactures 72 hour emergency kits and sells them for 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

Place the stages of the business life cycle in the correct order. Move all of the stages to the answer area and place them in the correct order.

Stage 1: existence Stage 2: survival of the fittest Stage 3: success Stage 4: takeoff Stage 5: maturity

A photographer wants to do a SWOT Analysis with the characteristics identified. Set up a SWOT analysis with the characteristics provided about this business by matching the company characteristics with the appropriate SWOT element. to answer drag the company characteristics from the column on the left to the corresponding SWOT element on the right.

Strengths: large gallery of stock photos Weaknesses: working alone no skilled help Opportunities: increase in weddings expected as Covid restrictions ease Threats: covid pandemic restrictions disallow large family gatherings

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 an email. which would be the most effective way to gather reactions from those who attended the dance?

Surveys

Which two are off-line marketing platforms?

TV ads and flyers and pamphlets

Successful entrepreneurs have mindsets that typically possess which three characteristics?

Tenacious adaptable and responsible

For each statement about product quality control testing select true or false

True: • refined quality measures as needed to increase the level of satisfaction with your product • establish the method to use for testing product quality • determine what standards have to be met based on the product and industry False: • review the results of a 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: • A partner owns equity. • founders own equity. False: • contractors own equity. • all stakeholders own equity.

For each statement about the components of business plans and pitch decks select true or false

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

For each statement about requirements for equity versus the financing select true or false

True: • debt financing requires borrowing money whereas equity 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 • 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 False: • Equity financing place is a large financial burden on the company

For each statement about the selection of distribution channel 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 handler's before reaching the end customer

For each statement about the sales process select true or false

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

For each statement about direct competition and indirect competition select true or false

True: • when your target audience buys products from a competitor instead of from you that is indirect competition • indirect competition as a business who services are different from yours but satisfy the same needs • Direct competition is a company that offers the same things you offer False: • all companies that sell goods and services are indirect competitors

Which three statements help define a market fit hypothesis

• product market fit exists when you have the right solution to a problem worth solving • a fit exists when people need your product rather than just seeing a potential benefit of using it • when users love your product so much to tell other people to use it

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

• The manufacturer controls all the aspects of distribution • A direct distribution channel is also known as a zero level channel

You create a new type of electric shaver that is lightweight portable and holds a longer charge. What are three things you will need to consider regarding the mass production of your electric shaver?

• finding a manufacturer • sourcing materials needed for the components of the product • creating your prototype to demonstrate the products function to potential customers

Which three elements are required to have a trade secret?

• information that has economic value because it is not generally known • has value to others who cannot legitimately obtain the information • and is subject to reasonable efforts to maintain at secrecy

Which two are benefits of equity funding?

• investors do not get paid if the business does not make a profit • can be used to raise working capital

Which two ways can customer service and support affect sales?

• more sales through customer evangelists • increased sales to responsiveness and personalization

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

• permits licenses and incorporation fees • Business cards