Entrepreneurship & Small Business V.2 Study Guide

In general, which two characteristics define a "small" business?

- Less than $35.5 million revenue - Fewer than 1,500 employees

Which three elements are required to have a trade secret? (choose three)

- Others cannot legitimately obtain the information - Subject to reasonable efforts to maintain its secrecy - Information has economic value not generally known

Which three are online marketing platforms? (choose three)

- Social Media - Google Ads - Email

Which two types of Sales Channels sell primarily to other businesses? (choose two)

B2B AND WHOLESALE

B2B

Businesses that sell to other businesses who are the intended end user of the product.

You need to create a legal structure for your small business. You have plans for it to grow and hope in the future to sell shares to the public. Your startup partners are citizens of Mexico and Japan. You do not want to be personally responsible for business liabilities. What legal structure should you set up for your business?

C-Corporation

Which tool is most useful in helping Customer Service support sales startegies?

CUSTOMER REALATIONSHIP MANAGEMENT (CRM)

Success

Company is stable and profitable. Success

CFO

Creates budgets, analyzes financial data, and forecasts company profits.

What is a Target Market?

Customers to whom a company wants to sell its products and services.

What is a primary benefit of starting a new business without purchasing a franchise or buying an existing business.

Developing your own rules

Which of these is a characteristic of a successful entrepreneur mindset?

Doesn't give up easily

Takeoff

Expansion strategies are implemented, and investment is balanced with potential. Takeoff

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

Financial Instability

You own a lawn care business. You have employees who work long hours laboring in good weather, often exceeding 40 hours per week. They also work short hours when the weather is bad, sometimes they can't work at all. You do all of the sales for your business. Which two types of compensation would be appropriate for these landscape employees?

Hourly & Salary

You have an idea for a new service. Market research suggest the service is needed to solve a problem and will be enthusiastically embraced by customers. What is one of the first steps you must do before offering a new service?

Identify knowledge required

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

You have opened a for-profit adult technical school and you want to advertise it to potential students throughout your state. Which marketing method would be most appropriate?

Local Television Ad

A bakery has developed a new artisan bread. The staff are giving away taste samples to customers as they enter the store. What are two criteria the bakery can use to determine the quality of their new product? (choose two)

Observe customer reactions while they taste the product AND Measure sales of the new bread after customers have sampled it.

COO

Oversees the day-to-day administrative functions of a business; second in comand.

You need to create a legal structure for your small business. You would like some of the benefits 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

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

Schedule control

Retail

Selling products directly to end customers for a profit, either in-store, online, mail-order, or by phone.

Wholesale

Selling products in bulk to various outlets or retailers for onward sale.

What is Entrepreneurship?

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

Business Life Cycle:

Stage 1: Existence Stage 2: Survival of the fittest Stage 3: Success Stage 4: Take-Off Stage 5: Maturity

Design Thinking Process:

Step 1: Empathize Step 2: Define Step 3: Ideate Step 4: Prototype Step 5: Test

Existence

The business introduces itself to the market and attempts to catch the attention of potential customers. Existence

Maturity

The business is separate from the owner with responsibilities delegated to staff. A business in this stage usually commands a considerable share of the market and may even be a household name.

CEO

The highest-ranking employee in the company; reports to the board of directors.

Direct-to-consumer

When a brand or manufacturer sells direct to consumers and the end users of their products, as opposed to selling to them solely through retailers.