Review 1 Entrepreneurship 1

What is a trend that most likely affects the growth of entrepreneurial ventures? A A rise in the desire for slow-response times B The shift to an agricultural-based society C A higher demand for more convenience products D The reduced need for health care and related services

A higher demand for more convenience products

Which statement is true regarding training for entrepreneurial ventures? A Organization B Optimism C Innovation D Determination

Optimism

When generating new ideas for new businesses, entrepreneurs often look for ways to perform which action? A Rationalize spending B Increase liability C Solve problems D Control outcomes

Solve problems

What is a disadvantage of entrepreneurship? A Fewer resources B Personal satisfaction C Lower taxes D Uncertain income

Uncertain income

Entrepreneurs often discover business start-up ideas by looking for gaps between what is being done and which other factor? A How things are being done B What was done in the past C When changes were last made D What needs to be done

What needs to be done

Which personality trait is often associated with creative people? A Shunning recognition and praise B Exhibiting low energy levels C Preferring routine activities D Acting independently

Acting independently

Which is a way that a business can determine if a product will fulfill the needs of a target market? A Observe workers B Distribute promotional materials C Ask the customers D Develop a prospect list

Ask the customers

When writing a letter of inquiry, when should the purpose of the letter be revealed? A At the beginning of the letter B After describing the company C Once the recipient has agreed to meet D After identifying what prompted the inquiry (such as an advertisement)

At the beginning of the letter

Identifying new product opportunities usually requires a person to possess which characteristic? A Decisiveness B Emotional C Awareness D Indifference

Awareness

Local governments strongly promote and support small businesses mainly due to which factor? A Businesses serve only the local communities. B Businesses are owned by one person. C Businesses may become big businesses. D Businesses are important to the economy.

Businesses are important to the economy

Regan is deciding if she is willing to give up a secure position with a well-known company so she can start a home-based business. Which risk is Regan assessing? A Career B Social C Physical D Financial

Career

Which source of start-up information would be recommended to an entrepreneur looking for information about the average start-up and operation costs for a self-serve laundromat? A Service Corps of Retired Executives B Coin Laundry Trade Association C Local chamber of commerce D Small business administration

Coin Laundry Trade Association

The brainstorming process is used to accomplish which primary goal? A Come up with as many ideas as possible. B Analyze each idea as it is presented. C Rate each idea in relation to one another. D Come up with a set number of ideas within a certain time.

Come up with as many ideas as possible.

Which is a characteristic of a well-conducted feasibility study? A Subjective B Abbreviated C General D Complete

Complete

When determining venture-creation opportunities, entrepreneurs must first perform which action? A Obtain financing B Conduct research C Identify staffing needs D Select a location

Conduct research

When conducting an environmental scan, which is an economic factor that a business should consider? A Consumer spending habits B Global trade regulations C Local demographics D Restricted sales territories

Consumer spending habits

What component is important to include in all types of inquiry letters? A Contact information B Personal qualifications C Project specifications D Attention-getting title

Contact information

Which process helps aspiring entrepreneurs generate venture ideas? A Financial planning B Decision-making C Goal-setting D Creative thinking

Creative thinking

Governments can encourage entrepreneurial development by performing which action? A Increasing interest rates on loans B Deregulating and reducing taxes C Establishing higher ethical standards D Passing more legislation with strict guidelines

Deregulating and reducing taxes

For a prospective entrepreneur, what is necessary to determine the existence of goods and services? A Demographic changes B Product standards C Entrepreneurial discovery D Raw materials

Entrepreneurial discovery

Which statement is true regarding the use of group creative-thinking techniques to facilitate the idea-generation process? A The brainstorming technique usually generates the best ideas. B Groups are usually more effective when each member uses mind-mapping techniques. C Group members most often generate new ideas by altering or building upon another idea. D The Six Thinking Hats technique is generally the most effective idea-generation technique.

Group members most often generate new ideas by altering or building upon another idea.

Ben is conducting a feasibility study for a new venture idea. Which question should Ben answer in terms of the financial considerations for the venture? A How will the business obtain the money it needs? B What regulations is the business likely to encounter? C Is there a real demand for the idea, good, or service? D How will the business communicate information about its products?

How will the business obtain the money it needs?

One-time, start-up costs often include which fees? A Shipping and postage B Incorporation C Trade association D Website maintenance

Incorporation

Which is an example of a demographic trend that has encouraged entrepreneurial discovery? A Interest rate fluctuations B Increased cultural diversity C Industry deregulation D Technological advancements

Increased cultural diversity

Which is a financial concern that entrepreneurs often face when starting new businesses? A Irregular paychecks B Long working hours C Shorter vacations D Lower production standards

Irregular paychecks

Which statement is true about a business environment? A It can be avoided. B It is always changing. C It consists of the economy and technology. D It may not affect the business, depending on the industry.

It is always changing.

Which statement is true about entrepreneurial discovery? A It ensures that start-up businesses have continuous funding. B It is an ongoing process that facilitates the success rate of a business. C It provides entrepreneurs with professional development training. D It is a way to determine the long-term profit that a start-up company can generate.

It is an ongoing process that facilitates the success rate of a business.

The primary responsibility of the facilitator of a product idea brainstorming session are to compile all of the ideas and perform which other action? A Keep the group on task B Judge the bad ideas C Select the best idea D Evaluate the creativity of the group

Keep the group on task

One factor that an entrepreneur should consider while assessing a venture opportunity is whether it will encounter which situation? A Lead to more opportunities B Require employee loyalty C Involve complicated paperwork D Satisfy the needs of vendors

Lead to more opportunities

In order for a business to generate a profit, its operating costs must be identified as which status to the gross margin? A Equal to B Greater than C Less than D Identical to

Less than

Which is usually a characteristic of a creative person? A Likes to seek out new challenges B Depends on others C Patient with other people D Prefers working under supervision

Likes to seek out new challenges

Which a global trend that might encourage an entrepreneur to consider international business opportunities? A Higher allowances B Lower tariffs C Enforceable trade agreements D Flexible currency rates

Lower tariffs

Which statement is true about entrepreneurship and small-business growth? A Trade regulations have very little effect on small-business growth. B Many people start entrepreneurial ventures during times of economic recession C Small business start-ups are taxed at a higher rate than multinational companies. D Consumer spending is a primary factor that influences entrepreneurial success.

Many people start entrepreneurial ventures during times of economic recession.

Many entrepreneurs encounter which situations of emotional risks? A Marital tensions and family problems B Unemployment and uncertain income C Competition and difficult suppliers D Inflation and slow market acceptance

Marital tensions and family problems

Which is the first factor that a business should consider when it is deciding if it should sell a product? A Promotional strategy B Taxation rate C Storage space D Market demand

Market demand

The entrepreneurial discovery process requires knowledge and the recognition of which situation? A Economic crisis B Preventable accident C Market need D Creative observation

Market need

When using mind mapping to generate product ideas, it is best begin by writing down the main problem or which other component? A Market opportunity B Supporting facts C Primary associations D Situation analysis

Market opportunity

People who are naturally creative often possess which attribute? A Highly educated B Physically active C Mentally flexible D Emotionally controlled

Mentally flexible

Alaina needs advice and assistance in starting her new business, so she contacted the Service Corps of Retired Executives (SCORE). Jack, a SCORE volunteer, agreed to act as her guide in the business start-up process. Jack is serving which role? A Intermediary B Apprentice C Entrepreneur D Mentor

Mentor

The costs of operating a business are often called which expenses? A Fixed B Overhead C Variable D Markdown

Overhead

Successful entrepreneurs enjoy their work and often start their businesses so that they can share their interests and enthusiasm with others. In other words, successful entrepreneurs have which characteristic for what they do? A Reservations B Concerns C Apathy D Passion

Passion

Which positive effect do small businesses have on the local community? A Reduction of competition B Pay in of taxes C Limitation on job growth D Charging of interest

Pay in of taxes

Jessica's hobby is making jewelry. There is potential to sell her bracelets and earrings on eBay. This is an example of identifying a product opportunity by considering which factors? A Demographic changes B Business processes C Consumer attitudes D Personal experiences

Personal experiences

An entrepreneur considers the location and financial needs of a business venture during which process?A Distribution A Distribution B Controlling C Implementation D Planning

Planning

A business that identifies products to sell that fill needs is making which decision? A Line extension B Product mix C Customer service D Quality control

Product mix

Variable expenses increase in direct proportion to the rate of which factor? A Competition B Production C Automation D Motivation

Production

Which is an operational issue that entrepreneurs must consider when planning their businesses? A Source of financing B Target market C Production process D Direct competitors

Production process

Entrepreneurial discovery is an important process in a free-enterprise economic system because an entrepreneur or small-business owner will most likely accomplish which goal? A Satisfy an unmet demand B Form a technological monopoly C Improve economic sanctions D Change legal requirements

Satisfy an unmet demand

Costs of sales for a new manufacturing venture typically include which factors? A Trade show attendance, raw materials, and equipment B Raw materials, equipment, and product inventory C Trade show attendance, product inventory, and internet access D Internet access, attorney fees, and sales lead lists

Raw materials, equipment, and product inventory

Which statement is most likely to have a negative effect on domestic small-business growth? A Involuntary tax reductions B Restrictive loan policies C Low interest rates D Slow inflation

Restrictive loan policies

What behavior is exhibited when an individual recognizes the possibility of an undesirable outcome and continues to work toward a goal? A Creativity B Self-discipline C Risk-taking D Flexibility

Risk-taking

Which is a tool that an entrepreneur develops to project sales for a new business venture? A Marketing objectives B Sales forecast C Promotional budget D Inventory report

Sales forecast

After a Korean auto manufacturer built a plant in Ames, Iowa, Kwan noticed a substantial growth of Korean residents in the area, many of whom were relocated to Ames to work for the plant. Kwan decided to import Korean goods and sell them in a small Korean specialty store near town. This is an example of a product opportunity resulting from which situation? A Advancements in technology B Changes in travel habits C Differences in priority D Shifts in popularity ethnicity

Shifts in popularity ethnicity

The primary purpose of a feasibility study is to answer which question? A What are the opportunity costs of this project? B What technology will be needed for this project? C Should we proceed with this project? D Is this Business Plan valid?

Should we proceed with this project?

A business might take an existing product and alter it to fulfill a specific need which different benefactor? A Medium B Product mix C Utility D Target market

Target market

Which is considered a reliable information source for a business start-up? A Wikipedia (www.wikipedia.org/wiki/Entrepreneurship) B The Project Management Institute (www.pmi.org) C The Small Business Administration (www.sba.gov) D The National Retail Federation (www.nrf.com)

The Small Business Administration (www.sba.gov)

Which is an example of a demographic trend? A The aging of the population B Shifting political climates C Rising interest rates D A concern for fitness and health

The aging of the population

After Porter realized that he processed an order incorrectly, he waited too long to correct the problem. As a result, an incorrect item was shipped to the customer. Now, the customer will need to ship the item back to the warehouse, and Porter's company will need to pay extra charges to have the product returned. What does this situation illustrate? A Customers are likely to be very angry when employees make mistakes. B Employees should tell their supervisors about all problems as soon as they occur. C The company has unrealistic expectations about Porter's ability to perform his job. D The decisions and actions of an employee can negatively impact others.

The decisions and actions of an employee can negatively impact others.

Which example illustrates how environmental factors are interrelated? A The economy affects what competitors are doing. B New legislation will be written in the future. C Low investor confidence heavily impacts financial planners. D The economy affects banking institutions.

The economy affects what competitors are doing.

Which statement is true about business start-up requirements? A Equipment is the least expensive requirement for a start-up business. B A new business owner usually needs to register for patent protection. C Purchasing a franchise is usually easy and inexpensive for start-up business owners. D The financial needs to start a new business depend on the nature of the venture.

The financial needs to start a new business depend on the nature of the venture.

What is often a positive result of accepting responsibility for a poor decision? A The reinforcement of skeptical attitudes B The control of opinions of others C The demonstration of self-importance D The gain of respect of others

The gain of respect of others

Which statement is true regarding training for entrepreneurial ventures? A Once entrepreneurs are educated or trained in their business field, they rarely need further education. B Most successful entrepreneurs have degrees from four-year colleges or universities. C The type of training and education that entrepreneurs need depends on the nature of the start-up business. D Most entrepreneurs must pass state-mandated exams to operate their business.

The type of training and education that entrepreneurs need depends on the nature of the start-up business.

An individual who takes action when he or she is unsure of the outcome is able to perform which action? A Tolerate ambiguity B Demonstrate sincerity C Show empathy D Resolve conflicts

Tolerate ambiguity

Home-based businesses are attractive to many people because of which factor?Home-based businesses usually: A yield higher profit margins. B provide owners a steady income. C have lower start-up costs. D require less technical training.

have lower start-up costs.

When planning for her new business, Janine allocates two percent of the estimated annual sales of her company to web and newspaper advertising. Janine is developing which document? A promotional budget B sales report C competitive analysis D publicity plan

promotional budget