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