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