GMetrix Marketing final test
A target market is the _______ markets its products and/or services to which a company customer group financial group business group location
customer group
Appliance World is a top-rated appliance manufacturer. Super Steel supplies metal to Appliance World to build their appliances. What type of transaction is this? • Physical • Business-to-consumer(B2C) • Digital • Business-to-business(B2B)
• Business-to-business(B2B)
Which corporation uses a double layer of taxation? • Sole proprietorship • S corporation • C corporation • Limited Liability Company
• C corporation
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. Which legal structure should you set up for your business? • S- Corporation • C- Corporation • Sole Proprietorship • Limited Liability Company
• C- Corporation
Billboards are commonly seen on the sides of freeways, on _________ , and on benches throughout cities. social media monuments buses emails
buses
Factors that aid in determining whether or not a business opportunity is viable include market size, _____________ manage of cash flow, management skillets, and passion. location marketing costs employees' skillsets relationships
relationships
A law was passed increasing the minimum wage by 30%. The owner of a small landscaping business must now pay all of her laborers 30% higher wages. What is the minimum amount the owner must now charge customers for labor to balance her increased operational expenses? Note: Disregard associated increases in taxes, such as FICA. 15% No increase is needed 60% 30%
30%
Tom owns a hat shop. His total monthly cost is $1,850. Each hat costs $50. How many hats must Tom sell to break even each month? 40 39 38 37
37
An executive summary should briefly explain everything in a business plan in __________ pages. one three two four
two
Clare sells gourmet boxes of chocolates. One box of chocolates costs Nancy $6.75 to produce. She sells her boxes of chocolate for $10.00. What is Clare's return on investment (ROI)? 45% 47% 48% 46%
48%
Companies run the risk of employees sharing trade secrets. Which two documents do many companies have their employees sign to help mitigate this risk? Confidentiality agreement Non-disclosure agreement (NDA) Employee handbook Trade secret contacts
Confidentiality agreement Non-disclosure agreement (NDA)
What is the formula for determining equity? Equity = Liabilities / Assets Equity = Assets x Liabilities Equity = Assets - Liabilities Equity = Liabilities - Assets
Equity = Assets - Liabilities
Which three are online marketing platforms? (Choose three) TV ads Google ads Flyers and Pamphlets Email Social Media
Google ads Email Social Media
You have a handyman services business. You have the following financial information for the month. • Initial cash balance: $1,500 • Projected revenue based on existing clients: $2,500 • Gas: $100 • Equipment maintenance fees: $300 • Truck payment: $400 • Payroll: $3,000 • Insurance: $120 What is your projected ending cash balance for the month? ($80) $4.000 $80 $500
$80
Terri owns a computer repair shop. Her revenue at the end of last month was $7.450. What is Terri's run rate? $89.400 $113.400 $105.650 $73.800
$89.400
Hailey owns a bike shop. She is preparing the cash flow statement for her first year of operation. She had a beginning cash balance of $4,700, $101,000 in total cash sales, $3,300 for utilities, $2,500 in loan payments, and $5,600 for marketing costs. What is Hailey's ending cash balance? $94.600 $105,700 $94.300 $11,400
$94.300
Tim purchased a movie from a popular streaming service. He received immediate access to the movie. What type of e-commerce product did Tim purchase? • Digital • Wholesale • Market • Physical
• Digital
You recently started a small affiliate marketing service. Last month, you spend $1,000 on a Pay-Per-Click (PPC) online advertising campaign that resulted in $1,200 in sales. What was last month's Return on Investment (ROI) for your affiliate marketing service? 20% 120% 16% 83%
20%
When must real estate loans through the Small Business Administration (SBA) be paid back? 15 years 10 years 25 years 20 years
25 years
Linda's company acquired 6,000 new customers last year. They spent $40,000 in marketing costs and $20,000 in sales costs. What is Linda's customer acquisition cost (CAC)? $100 $10 $75 $20
$10
You are examining the year-end balance sheet for your business. According to the information in the Balance Sheet, what is your equity in the business? Balance Sheet for year ending December 31 Assets Cash: $10,000 Inventory: $2,000 Equipment: $5,000 Total Assets: $17,000 Liabilities Credit card balance: $2,500 Long-term debt: $0 Unearned revenues: $3,500 Total Liabilities: $6,000 $17.000 $6,000 $11,000 $23,000
$11,000
A hair salon acquired 100 new customers last vear. Costs in the marketing and sales areas were the following: • Marketing costs = $1,000 • Sales costs = $10,000 • Salaries = $96.000 What was the customer acquisition cost? $110 1.070 $100 $1
$110
Holden owns a restaurant. His assets include $6,500 in cash, $2,400 in inventory, $8,000 in equipment, and $15,000 for a delivery vehicle. His liabilities include a $3,500 credit card balance, $2,200 in bank loans, and $12,500 in mortgage payments for the restaurant. What is Holden's equity? $13,700 $14,100 $13, 900 $13,500
$13,700
Jake owns a garden supply store. His revenue at the end of last month was $12,200. What is Jake's run rate? $146,400 $73,800 $96,400 $101.100
$146,400
Larry owns a shoe store. His starting balance last month was $17,300. His ending balance was $14,700. What is Larry's burn rate? $2,600 $4,300 -$4,300 -$2,600
$2,600
Barry owns a small business. He spent $15,000 on marketing expenses and $5,000 in sales costs last year. He obtained 1,000 new customers. What is his customer acquisition cost (CAC)? $10 $12 $8 $20
$20
manda is the owner of a flooring company. Her assets include $15,000 in cash, $10,000 in inventory, and $5,000 in equipment. Her liabilities include a $6,000 credit card balance and $800 in long-term debt. What is Amanda's equity? $23.400 $23.200 $20.400 $36,800
$23.200
A local restaurant prides itself in having a high number of return customers. To build loyalty, the owner of the restaurant offers a free Prime Rib dinner (value $20) to any customer who purchases a meal during 10 previous visits. Meals purchased are tracked by stamps on a Loyalty Card. At the end of a month, the owner decides to calculate the customer retention cost. The data is the following: • Number of Customers at Start of Month = 100 • Number of Customers at End of Month = 120 • Number of New Customers = 40 • Value of Free Dinners Redeemed = $240 What was the Customer Retention Cost? $6 $12 $2 $3
$3
John's company acquired 5,000 new customers last year. They spent $20,000 in marketing costs and $15,000 in sales costs. What is John's customer acquisition cost (CAC)? $6 $5 $8 $7
$7
What formula is used to determine a company's customer retention rate? (The number of new customers during the period + the number of customers at the end of that period) / the number of customers at the start of the period x 100 (The number of new customers during the period - the number of customers at the end of that period) x the number of customers at the start of the period x 100 (The number of new customers during the period - the number of customers at the end of that period) / the number of customers at the start of the period / 100 (The number of customers at the end of the period - the number of new customers acquired during the period) / the number of customers at the start of the period x 100
(The number of customers at the end of the period - the number of new customers acquired during the period) / the number of customers at the start of the period x 100
Place the Elements of a Sales Process in the correct order. Prospecting Preparation Approach Presentation Handling Objections Closing Follow-up
1.Prospecting 2.Preparation 3.Approach 4.Presentation 5.Handling Objections 6.Closing 7.Follow-up
When must equipment and inventory loans through the Small Business Administration (SBA) be paid back? 20 years 25 years 10 years 15 years
10 years
The owner of an organic pet food store would like to analyze the sales data to determine if the business is growing, declining or remaining flat. The owner has the following data: • Sales Revenue Last Year = $350,000 • Sales Revenue Current Year = $402,500 What is the sales growth? 10% 15% 13% 17%
15%
Danny sells skateboards. One skateboard sells for $55, and the cost to produce a skateboard is $35. What is Danny's return on investment (RO)? 56% 55% 57% 58%
57%
Harvey owns a restaurant. He had 425 customers at the end of the second quarter, 455 customers at the beginning of the second quarter, and 17 new customers in the second quarter. What is his customer retention rate for the second quarter? 90% 92% 93% 91%
90%
Jonas owns a pizza shop. He had 300 customers at the end of June, 310 customers at the beginning of June, and 20 new customers in June. What is his customer retention rate for June? 80% 90% 85% 95%
90%
Jean owns a printing company. She had 100 customers at the end of the third quarter, 101 customers at the beginning of the third quarter, and five new customers in the third quarter. What is her customer retention rate for the third quarter? 90% 96% 95% 94%
94%
Which outside agencies might set quality control standards in some industries? A government regulatory agency A company's department head Local health and safety inspectors CEOs Industry leaders
A government regulatory agency Local health and safety inspectors Industry leaders
What should marketing plans include? Actions that need to occur to reach the desired marketing results People involved in marketing strategies Customer data and purchase history New inventory items
Actions that need to occur to reach the desired marketing results
A rancher is preparing to retire. He is considering selling half of his land and giving the other half to his children. He hears that development for a ski resort was just approved on land adjacent to his property. Which viable business opportunity does the retiring rancher foresee? A decrease in land value An Increase in cattle sales A decrease in local home sales An increase in land value
An increase in land value
What should happen after one determines a company's quality control process meets the company's quality standards? Each member of the quality control team must confirm that the process is effective before the process can become permanent An internal team should review the results of product testing and look for ways to refine and improve upon the quality control process An internal team should review the results of product testing and sign off on the process to confirm it is effective The process should not be revised again
An internal team should review the results of product testing and look for ways to refine and improve upon the quality control process
Which two are benefits of using Angel investors to help start a business? (Choose two) Angel investors typically do not expect to be paid until the business begins making money. Angels do not share in the profits of the business. Payback of the loan is predictable. Angels often accept a lower return on investment compared to other sources of equity capital. Angels have no say in the management of the business No need for collateral
Angel investors typically do not expect to be paid until the business begins making money. Angels often accept a lower return on investment compared to other sources of equity capital.
Which three tips are suggested for dealing with negative customer feedback? Inform the customer of who is at fault for the situation Apologize to the customer Offer unlimited free products to the customer for their trouble Empathize with the customer Address the customer by name
Apologize to the customer Empathize with the customer Address the customer by name
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? Ask the customers in the area if they are interested in adding a water feature to their gardens. Determine if there is a supply chain available. Perform a financial audit to determine if there is enough money available to add the new service. Contact the water department to see if they can support the extra demand for water.
Ask the customers in the area if they are interested in adding a water feature to their gardens.
Which two types of Sales Channels sell primarily to other businesses? (Choose two) Direct-to-Consumer Retail Online B2B Wholesale
B2B Wholesale
Demetri is implementing the design thinking process into his business. In what order should the steps be taken? Stage 1 - Empathize Stage 2 - Define Stage 3 - Ideate Stage 4 - Prototype Stage 5 - Test
Stage 1 - Empathize Stage 2 - Define Stage 3 - Ideate Stage 4 - Prototype Stage 5 - Test
Which three are segments in a Marketing Plan? (Choose three) Behavioral Demographic Employment Rate Geographic Income Loyalty
Behavioral Demographic Geographic
Match the data type to its description.
Behavioral data - Allows companies to anticipate their custoners' needs and behaviors and is collected by observing customers' behaviors to understand their buying habits. Geographic data - Provides companies with their customers' locations to see the areas with high or low sales volumes. Demographic data - Is statistical information about customers like their age, gender, ethnicity, income, and employment. Psychographic data - Provides companies with information about their customers' values, personality traits, motivations, and how they view the world.
Match the funding option to its description.
Bootstrapping - An owner uses their own savings to fund the business Small Business Administration (SBA) loans - Loans must be paid back with interest. The maturity terms differ depending on the type of loan Small Business Administration (SBA) grants - Free money given to small business owners to help with the launching and development of their business. They do not have to be paid back Investor - Helps fund a business or a specific project, usually for some kind of stake in the company Crowdfunding - Sharing a startup business on an online platform where one can pre-sell products. The money from the pre-sale orders can be used as capital to build the products
Match the business element to its description.
Business plan - A written document that details how a business will be structured, managed, run, and grown. Pitch deck - A brief overview of a business plan, the products and services that will be provided, the funding needed, and financial projections. Lean canvas - Covers problems and solutions, value propositions, marketing channels, key metrics, costs, and revenue without all of the business plan details.
Kelly has decided to purchase a new rug for her home. She visits a local home décor store and purchases a rug there. What type of transaction is this? Digital Business-to-consumer(B2C) Business-to-business(B2B) Physical
Business-to-consumer(B2C)
You need a photograph to use in a commercial presentation. You decide to use a photo with a Creative Commons license and implement the intellectual property guidelines for reusing the author's work. Match each Creative Commons license type to its useage quideline. To answer, drag each Creative Commons type from the column on the left to its description on the right Note: You will receive partial credit for each correct answer. CC - Identifies it is a Creative Commons license BY - Credit must be given to the creator SA - Adaptations must be shared under the same terms NC - Only noncommercial uses of the work are permitted ND - No derivatives or adaptations of the work are permitted
CC - Identifies it is a Creative Commons license BY - Credit must be given to the creator SA - Adaptations must be shared under the same terms NC - Only noncommercial uses of the work are permitted ND - No derivatives or adaptations of the work are permitted
Which tool is most useful in helping Customer Service support sales strategies? Remote Desktop Website CRM Contact List
CRM
Which two are benefits of equity funding? (Choose two) Can be used to raise working capital. Investors have no say in the management or direction of the business. Loan payments are predictable; they do not change with the fortunes of the business. Loan payments can be set up so they match seasonal sales of the business. Investors do not get paid if the business does not make a profit.
Can be used to raise working capital. Investors do not get paid if the business does not make a profit.
Which is the primary characteristic of all physical and digital sales channels? B2B Branding Market dominance Closing sales
Closing sales
Brandon is in a band. His band has recently produced a new song. Which intellectual property law best protects the band's song from being stolen or reproduced by others? Trade secret Trademark Patent Copyright
Copyright
Which of the following is an example of Primary Data? A list of your business competitors compiled by the Chamber of Commerce Information collected from a poll of your company Facebook followers An series of Industry reports The United States Census
Information collected from a poll of your company Facebook followers
What might one have to do when listening to feedback from customers? Choose two answers. Create completely new products Offer free promotional products Change markets Communicate with investors regarding the funding of the products
Create completely new products Change markets
What is the purpose of customer service? Choose two answers. Creates customer satisfaction Increases a marketing budget Generates business through word-of-mouth referrals Ensures a company's growth
Creates customer satisfaction Generates business through word-of-mouth referrals
Match the characteristic with its definition.
Critical thinking - Solving problems in the best way by considering a variety of potential solutions to the problem Creativity and innovation - Bringing new and unconventional ideas to the table and finding creative and new solutions to the way things are done Collaboration - Working with others towards a common goal Problem-solving - Coming up with solutions to solve a problem Personal agency - Working toward achieving a goal without someone directing and ensuring it is being done Ethical practices - Decision-making based on morals and doing the right thing Social responsibilities - Preventing and removing any corruption and unethical behavior that could harm a business, the community, or the environment" could harm a business, the community, or the environment.
What is the formula for determining run rate? Current revenue for one month + 12 Current revenue for one month / 12 Current revenue for one month - 12 Current revenue for one month x 12
Current revenue for one month x 12
What are the benefits of physical sales channels? Choose two answers. Customers can often receive the purchased product at the time of purchase Ease of shopping for customers Customers can interact with the product Broader selling range for businesses
Customers can often receive the purchased product at the time of purchase Customers can interact with the product
Which features are drawbacks of digital sales channels? Choose two answers. Customers must rely on images, reviews, and product descriptions to determine whether or not they will purchase a product Smaller selling range for businesses Higher cost of products Some products will have shipping costs to have the product delivered
Customers must rely on images, reviews, and product descriptions to determine whether or not they will purchase a product Some products will have shipping costs to have the product delivered
What is a Target Market? Sales to customers who use archery products. Marketing with a bullseye goal. Advertising based on bullet points. Customers to whom a company wants to sell its products and services.
Customers to whom a company wants to sell its products and services.
Which two are segments in a Marketing Plan? (Choose two) Loyalty Demographic Income Psychographic
Demographic Psychographic
What is a primary benefit of starting a new business without purchasing a franchise or buying an existing business? Less record keeping. Developing your own rules You can apply your own experience Lower financial risk
Developing your own rules
What are the two main types of distribution channels? Direct Physical Indirect Digital
Direct Indirect
Which Sales Channel has been opened to manufacturers because of digital tools? Distribution Wholesale Direct-to-Consumer B2B
Direct-to-Consumer
Which two sources are considered secondary data? Statistical data Internet articles Company newsletters Focus groups
Internet articles Company newsletters
Which of these is a characteristic of a successful entrepreneur mindset? Lives in a dreamworld Likes to argue Doesn't give up easily Makes friends quickly
Doesn't give up easily
Which are two examples of direct distribution channels? Wholesaler sales Door-to-door sales Retail sales E-commerce sales
Door-to-door sales E-commerce sales
_______ marketing usually occurs when customers have subscribed to receive promotional materials. Email newspaper Mail Television
Match the design thinking stage to its description.
Empathize - Spend time gaining an understanding by observing, engaging, and empathizing with customers to understand their experiences and their needs better Define - Analyze observations and information to identify the core problem Ideation - The design team comes up with solution ideas Prototype - The design team creates multiple inexpensive versions of the product, known as minimum viable products (MVPs) Test - The design tean; identifies any additional problems and refines the final solution before the final product is produced and released to customers
What is the formula for determining ending cash balance? Ending cash balance = Total cash - Total costs Ending cash balance = Total cash x Total costs Ending cash balance = Total cash + Total costs/ Ending cash balance = Total cash / Total costs
Ending cash balance = Total cash - Total costs
Your company is manufacturing a new product. You need to establish a Product Quality Control Process What are three things you must do to create establish your Product Quality Control Process? (Choose three) Establish the method to use for testing product quality. Developing the product website and social media compaign. Determine what standards have to be met based on the product and industry. Setting up your test marketing strategy. Publish your test results in a popular professional journal. Review the results of internal quality assurance testing,
Establish the method to use for testing product quality. Determine what standards have to be met based on the product and industry. Review the results of internal quality assurance testing,
Match the marketing plan element to its description.
Executive summary and business description - An overview and summary of the marketing plan. It should cover what is going to be discussed in greater detail later in the plan Situation analysis - Details a company's marketing efforts and the factors that sway marketing strategies Define the target market - Details who the target market is and its specific characteristics Delivery plan - Outlines how the products and services will be sold and delivered to customers The marketing mix - Discusses a company's four Ps: product, price, place, and promotion in-depth Strategies and tactics - Discusses the approaches a company plans to use and the actions that need to occur during the execution Offer or message - Details an offer or message a company is sending to customers Budget - Outlines how much a company has to spend on marketing costs and how it plans on spending the money
Which two types of information can be found on a profit and loss statement? Expenses Liabillities Assets Revenues
Expenses Revenues
A value hypothesis explains the reasons why a customer may choose not to use a product. True False
False
Fixed costs change depending on the volume of production. True False
False
Product/market fit automatically results in high-volume sales. True False
False
Using a product once is an indicator of product/market fit. True False
False
Which is one of the greatest risks of being an entrepreneur? Damage to reputation No control over schedule Loss of experience Financial instability
Financial instability
You create a new strategy for lawncare services that involves assessing lawn health, applying the correct herbicides and pesticides and other necessary solutions to quickly bring a lawn back to health. What are three things you will need to consider regarding the mass delivery of your service? (Choose three) Finding a source of materials to support your service. Establishing quality control measures and accountability. Creating an effective demonstration of your service for potential customers. Training employees with the knowledge to consistently deliver the service. Developing the product website and social media campaign. Setting up your test marketing strategy.
Finding a source of materials to support your service. Creating an effective demonstration of your service for potential customers. Training employees with the knowledge to consistently deliver the service.
Which two are offline marketing platforms? (Choose two) Flyers and Pamphlets Social Media TV ads Google ads Email
Flyers and Pamphlets TV ads
Joey has opened a restaurant. He paid a large amount of money up front to get the business started. He only sells products that are licensed by someone else. What type of business opportunity is Joey a part of? Licensing Network marketing Franchise Dealership
Franchise
Which are two characteristics of fulfillment centers differ from direct distribution? (Choose two) A fulfillment center is a zero level channel. The manufacturer controls all aspects of distribution. Fulfilment centers pack and ship for a manufacturer. Warehousing is a primary role. Inventory is created on-demand rather than stored.
Fulfilment centers pack and ship for a manufacturer. Warehousing is a primary role.
Which channels are examples of digital sales channels? Choose two answers. Retail stores General marketplaces Auction marketplaces Wholesalers
General marketplaces Auction marketplaces
What are two benefits of entrepreneurship? Lower income tax Setting one's own hours Getting to work with like-minded people Having a set pay
Getting to work with like-minded people
Which three components are characteristic of a Pitch Deck? (Choose three) Highly Visual 10-20 slides Highly Text-Based Used to Get Investor Buy-In Used to Get Investors Attention 10-100 Pages
Highly Visual 10-20 slides Used to Get Investors Attention
Which expense is a variable cost? Monthly rent on a store Insurance payments Purchase of a new copy machine Hourly wages for an office employee
Hourly wages for an office employee
You have an idea for a new service. Market research suggests 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? Launch a marketing campaign Pre-sale the service for funding Create a social media following Identify knowledge required
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? Launch a marketing campaign Pre-sale the product for funding Create a social media following Identify materials
Identify materials
Refer to the image. In what region should this company focus future sales efforts to improve sales in the area with low sales numbers based on this data? In the south In the north On the east coast In the midwest
In the midwest
Which two documents summarize the business plan of a company? (Choose two) Balance Sheet Lean Canvas Marketing Plan Pitch Deck Business Plan
Lean Canvas Pitch Deck
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? Distribute Flyers Social Media Local Television Ad Email
Local Television Ad
A sandwich shop wants to send out a coupon to people and plans to utilize the United States Postal Service age and income demographics to determine who will receive a coupon. Which marketing method is the sandwich shop using? Mail marketing Television advertising Internet marketing Newspaper marketing
Mail marketing
What formula is used to determine a company's customer acquisition cost (CAC)? Marketing expenses + sales expenses / the number of new customers for the period Marketing expenses + sales expenses + the number of new customers for the period Marketing expenses - sales expenses / the number of new customers for the period Marketing expenses - sales expenses x the number of new customers for the period
Marketing expenses + sales expenses / the number of new customers for the period
What are the two disadvantages of entrepreneurship? May not get paid or have enough to pay employees Having to work around employees' schedules Not having a promised paycheck Higher income tax
May not get paid or have enough to pay employees Not having a promised paycheck
Which two ways can Customer Service and Support affect sales? (Choose two) Closing the deal with rapid engagement Distributing marketing information More Sales through Customer Evangelists Coordinating shipping Increased Sales through Responsiveness and Personalization
More Sales through Customer Evangelists Increased Sales through Responsiveness and Personalization
what is the formula for determining net income? Net income = Income x Cost of goods sold x Expenses Net income = Income - Cost of goods sold - Expenses Net income = Income + Cost of goods sold + Expenses Net income = Income - Cost of goods sold x Expenses
Net income = Income - Cost of goods sold - Expenses
Elizabeth sells makeup and has a team of distributors that she has recruited to sell makeup with her. She earns a percentage from all of the sales that the distributors make. What type of business opportunity is Elizabeth a part of? Dealership Network marketing Franchise Licensing
Network marketing
When considering the reliability of the management for a business opportunity, what else should one consider at this time? The employees' skillset One's own skillset The cost of the product The cost of management
One's own skillset
What are indirect competitors? Other businesses that sell the same or similar products or services that a company sells Other businesses that sell products that are different from a business but are similar enough that their products could satisfy the same need Businesses that have the same or similar revenue Businesses that have the same or similar investors
Other businesses that sell products that are different from a business but are similar enough that their products could satisfy the same need
To use materials that have a copyright or a trademark, one must get permission. Which two things are they required to do before legally using the material? Sign a trade agreement Pay a licensing fee Become the copyright or trademark owner Sign a licensing agreement
Pay a licensing fee Sign a licensing agreement
_______ marketing lets marketers place ads on websites within search engines. Search engine optimization (SEO) Pay-per-click(PPC) Email Social media
Pay-per-click(PPC)
Which two should be included when calculating start-up costs for a business? (Choose two) Permits, licenses, and incorporation fees Utilities Rent Business cards Payroll
Permits, licenses, and incorporation fees Business cards
Rose ordered a package of macaroons from an out-of-state bakery. She received the cookies the following week. What type of e-commerce product did Rose order? Market Physical Digital Wholesale
Physical
Arrange the phases of product/market fit in the correct order.
Position 1 - Idea Position 2 - Prototype Position 3 - Launch Position 4 - Traction Position 5 - Monetization Position 6 - Growth
Abe is a business owner developing a quality control testing process for his products. Arrange the steps of creating a quality control process in the correct order. Position 1 - Set quality standards Position 2 - Establish the method of testing product quality Position 3 - Review the internal quality testing results Position 4 - Refine and improve quality methods and measures as needed
Position 1 - Set quality standards Position 2 - Establish the method of testing product quality Position 3 - Review the internal quality testing results Position 4 - Refine and improve quality methods and measures as needed
Match the pitch deck component to its description.
Problem - Discuss what customer problem the products or services solve Vision and value proposition - A brief overview of a business that talks about the company's mission and the value provided to its customers Team - Highlight key team members' skills, expertise, and experience and how these qualities work together to contribute to the management and growth of the company Milestones - Talk about the traction that a company has gained, such as crowdfunding Business model - Discuss how a business works, how it makes money, and talk about some of the marketing strategies Competition - Discuss what the competition is doing and how a company could improve upon what the competition is doing without being disrespectful toward the competing companies Ask - Specify how the investors' money will be used and why the funds are necessary to grow the company while using data to back up the stated information
Match the sales process steps to their description.
Prospecting - Finding potential customers Preparation - Developing a presentation tailored to a potential client and their specific needs Approach - Contacting a client or potential client Presentation - Demonstrating to the customer how a product or service meets their needs Objection - Alleviating concerns presented by the customer Closing - Getting a client's decision to purchase or not to move forward Follow-up - Maintaining a relationship with customers to obtain repeat business and potential referrals
You downloaded several of your favorite songs and used them in an ad to promote your product on social media sites. The ad was rejected because of the songs you chose. You are told that you violated Fair Use copyright. Which three are factors used to evaluate Fair Use copyright? (Choose three) Purpose of your use, Effect of your use on the potential market of the work copied. If it is for use by a teacher or student. Copied from a work purchased by a friend Obtained from a subscription website Amount of the work copied.
Purpose of your use, Effect of your use on the potential market of the work copied. Amount of the work copied.
_______ is measured by how well the product or service successfully serves its users' purpose. Performance Viability Quality Reliability
Quality
Successful entrepreneurs have mindsets that typically possess which three characteristics? (Choose three) Responsible Tenacious Argumentive Adaptable Nervous
Responsible Tenacious Adaptable
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. Note: You will receive partial credit for each correct answer.
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. 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, Statistics B2B - Businesses that sell to other businesses who are the intended end user of the product.
What might the design team need to do during the design thinking process? Revisit previous stages Discuss other problems that need to be solved Conduct surveys to ensure that customers believe the finished product will solve the outlined problem Create less viable prototype ideas to ensure that they will not solve the outlined problem
Revisit previous stages
Which is one of the greatest benefits of being an entrepreneur? Paying less taxes Meeting new people Schedule control Quick return on investment
Schedule control
_______ marketing is accomplished by companies using specific technical elements to ensure that search engine crawlers easily find and index the content, placing their article in the top search results. Social media Pay-per-click (PPC) Email Search engine optimization (SEO)
Search engine optimization (SEO)
Match the characteristic with its definition.
Self-reliance - Trusting one's self, one's goals, and one's progress Forward-thinking mentality - Thinking about and planning for the future Opportunity recognition - The way one approaches new ideas and ventures Initiative - Turning one's ideas into action or bringing in new ideas to generate more or better business Initiative Resiliency - Adapting to change, loss, and disappointment Grit - Tackling goals with courage and perseverance, even when it is challenging Risk tolerance - The amount of loss one is willing to take when making investment decisions Growth mindset - Believing that one can accomplish anything if one works hard
Which three characteristics help identify a business opportunity? (Choose three) Service Price Size Branding Quality Marketing
Service Price Quality
Your company manufactures 72 hr. emergency kits and sells them for a 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? Email Distribute Flyers Local Television Ad Social Media
Social Media
________ which are used in digital advertising, are heavily used to market and sometimes utilize influencers. Mail marketing Email marketing Television advertising Social media platforms
Social media platforms
You create a new type of electric shaver that is light-weight, portable, and holds a longer charge. What are three things you will need to consider regarding the mass production of your electric shaver? (Choose three) Note: You will receive partial credit for each correct answer. Developing the product website and social media compaign. Sourcing materials needed for the components of the products. Setting up your test marketing strategy. Establishing quality control measures and accountability. Finding a manufacturer. Creating your prototype to demonstrate the product's function to potential customers.
Sourcing materials needed for the components of the products. Finding a manufacturer. Creating your prototype to demonstrate the product's function to potential customers.
What do fulfillment centers do? Strategically store a company's products so that the product can be picked up by the customer Strategically store a company's products so that the product can be quickly picked up and sent out Temporarily store products for retail stores Store products indefinitely but have slow shipping times
Strategically store a company's products so that the product can be quickly picked up and sent out
Which three elements are required to have a Trade Secret? (Choose three) Subject to reasonable efforts to maintain its secrecy A unique logo or brand names Original work must be in a tangible form Others cannot legitimately obtain the information Must be a service Information has economic value not generally known
Subject to reasonable efforts to maintain its secrecy Others cannot legitimately obtain the information Information has economic value not generally known
What is value engineering? Engineering products that are not meant to be replaced but have a high cost Substituting low-cost components with high-quality components that still meet the product's lifetime duration and basic purpose Engineering products that are meant to be replaced frequently but have a low cost Substituting high-quality components with low-cost components that still meet the product's lifetime duration and basic purpose
Substituting high-quality components with low-cost components that still meet the product's lifetime duration and basic purpose
Which are options for determining what a customer's service needs are? Choose three answers. Survey customers in the area Place phone calls Send out surveys in local newspapers Talk with individuals interested in the service Survey companies that perform similar services
Survey customers in the area Place phone calls Talk with individuals interested in the service
ADJ wants to analyze market reactions to the new music selections played at his dance last weekend. He advertises his weekly dances using social media and email. Which would be the most effective way to gather reactions from those who attended the dance? Personal Interviews Focus Groups Observation Surveys
Surveys
Beth is the chief marketing officer for a big law firm. After looking at the company's sales data, she recognizes that most of the cases her company represented were to clients who lived in the neighboring city. She decides she will boost advertisements in the neighboring city to increase their case numbers. What did Beth determine by looking at her company's sales data? Target market Value proposition Pricing Revenue
Target market
Which form of advertising is the most dominant medium? Mail marketing Newspaper marketing Television advertising Internet advertising
Television advertising
Match the distribution type to its description.
Temporary storage - Distribution center Long-term storage - Fulfillment center
Kevin owns a toy company. How should he ensure that his customers are receiving a high-quality product? Repair products that have been sold to customers and are broken Survey customers and ask for suggestions Test a prototype Offer a discount on future purchases to customers
Test a prototype
Which are eligibility requirements for a Small Business Administration (SBA) grant? Choose three answers. The business must operate for profit The business must be a non-profit organization The owners must have responsible owner equity to investment The business must achieve a minimum profit of $5,000 within its first year The company must do business within the United States or its territories
The business must operate for profit The owners must have responsible owner equity to investment The company must do business within the United States or its territories
Which two aspects of a company's customers could a high customer acquisition cost (CAC) indicate? The demographic has shifted The marketing is ineffective The customers are unreliable in terms of purchases The marketing is effective
The demographic has shifted The marketing is ineffective
Which are two characteristics of direct distribution that differ from fulfillment centers? (Choose two) The manufacturer controls all aspects of distribution. Inventory is stored for longer periods of time. Packing and shipping is done by a third-party Warehousing is outsourced. Direct distribution is also known as a zero level channel.
The manufacturer controls all aspects of distribution. Direct distribution is also known as a zero level channel.
Which is a characteristic of a business opportunity? The seller is required to help the buyer find an ideal location for the business The buyer only pays the buyer fee after 5,000 products have been sold The initial buyer fee is at least $1000 The buyer has a guaranteed profit of at least 10% of the seller's original price for the product
The seller is required to help the buyer find an ideal location for the business
Which is a disadvantage of S corporations? There is a limited number of allowed S corporations They are subject to double-taxation They have high taxation rates There are very strict qualification requirements for becoming an S corporation
There are very strict qualification requirements for becoming an S corporation
What must happen before one can use someone else's patent? They must sign a confidentiality agreement or non- disclosure agreement (NDA) They must get written approval from the owner of the patent They must apply for permission to use the patent through legal channels They must obtain ownership of the patent
They must obtain ownership of the patent
Ronda owns a food truck where she is known for her hot sauce. Which intellectual property law best protects Ronda's recipe from being stolen or replicated by other competitors? Trademark Trade secret Copyright Patent
Trade secret
Product/market fit occurs when a business continues to grow due to customer demand True False
True
What should one research before creating a product? What is required to make the product The number of products that will need to be produced How much money investors are willing to invest in the product How much it will cost to compensate employees
What is required to make the product
Which two channels are examples of physical sales channels? Wholesalers General marketplaces Retail stores Auction marketplaces
Wholesalers Retail stores
A common financial risk that entrepreneurs encounter is _________ high taxes high maintenance costs high insurance costs bankruptcy
bankruptcy
Anytime someone wants to use a _______ on their products, they must obtain a license to use them. logo design generic name brand name
brand name
Network marketers make their money through _______ salary hourly pay commissions equity
commissions
Match the legal protection to its description.
copyright - used to protect creative works. patent - used to protect an invention from being copied for a limited time. trademark - used to protect brand names, logos, and business names. trade secret - used to protect a company's practice, process, or formulas from being shared with other competitors. entrepreneurs - should legally protect their intellectual property.
Including ________ in a sales strategy is important. customer rewards employee suppor employee feedback customer support
customer support
A key example of a prebuilt _______ service many companies use is a Software as a Service (SaaS) platform. manual digital automatic physical
digital
Match the business plan component to its description.
executive summary - Summarizes what one wants to accomplish with a business, the products and services one sells, financial outlook, the funding needed, one's goals, and one's achievements. marketing plan - Determines the size of a market with marketing analysis and describes potential customers to provide a customized plan to reach them. organizational structure/manager bios - Provides an overview of the employees and others that are part of a business. financial plan - Includes a budget, a 12-month profit and loss projection, cash flow statements, a breakeven analysis, and capital requirements to show investors how their money will be spent.
Variable costs ______ depending on production. decrease stay the same fluctuate increase
fluctuate
One should know if there is _______ for a product before taking on a business opportunity. high demand high production cost buyer fees high taxes
high demand
Buying office space is _______ in the long run in comparison to leasing. more expensive less difficult less expensive more difficult
less expensive
When it comes to setting one's own quality standards, one must ensure they are _______ written measurable profitable reviewed
measurable
Indirect distribution channels use ________ to sell their products to the end customers. the internet advertisements middlemen door-to-door sales
middlemen
One should separate ______ costs from one-time costs when starting a new business. labor expensive monthly inexpensive
monthly
With _________ it is easy to target a specific geographic location. internet marketing newspaper marketing television advertising mail marketing
newspaper marketing
A lean canvas should only be ________ page long, discussing key information, without all the details one would see in a business plan. three four two one
one
It is becoming more and more common to sell products and services ______ at markets through storefronts online through wholesaling
online
Investors use customer acquisition costs (CAC) to determine if a company is _______ growing declining costly profitable
profitable
An operating budget is a projection of ________ and expenses for a specified period such as a quarter or a year. goals sales taxes revenues
revenues
Franchises will generally have higher ______ but they offer ongoing support and training. bankruptcy rates start-up costs taxes training costs
start-up costs
Match the product/market fit stage to its description.
traction stage - Sales gain momentum and a business starts to grow prototype stage - Identify how a product or service solves customers' problems monetization stage - A business starts to earn revenue idea stage - Develop an idea for a product or service growth stage - See growth and continue to grow the business launch stage - The business is legally formed, and sales start to occur
Knowing a process has been tested and works well is valuable to companies as they can assume it would work just as successfully for their company. As a result, companies may want to use ________ materials. trade secret patented copyrighted trademarked
trade secret
One value of using ________ material is that they are usually well-recognized, which may help to boost sales. patented trade secret trademarked copyrighted
trademarked
In general, which two characteristics define a "small" business ? (Choose two ) • Between 500 and 2,500 employees • No more than $200,000 in sales • Less than $35.5 million revenue • Non-profit • Fewer than 1, 500 employees
• Less than $35.5 million revenue • Fewer than 1, 500 employees
Match each Stage of the Business Life Cycle to its corresponding description . To answer , move each stage from the list on the left to its description on the right.
• 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.
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 • Limited Liability Company • Sole Proprietorship • C- Corporation
• S-Corporation
Tommy was hired to help boost a startup company's sales and marketing strategies. The startup company does not have enough cash to continue paying Tommy his full salary. Tommy is passionate about the company's vision and has agreed to receive some of his pay in company stocks. Which two forms of compensation is Tommy receiving for his work? • Salary • Hourly • Piece work • Equity
• Salary • Equity
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? • Salary • Commission • Piece work • Equity • Hourly
• Salary • Hourly
What is Entrepreneurship? • Marketing and selling products. • Acquiring leadership and managerial skills. • Setting up a business with the aim to make a profit. • Quickly advancing in positions within a corporation
• Setting up a business with the aim to make a profit.
Jane is an investor in a full-detail carwash that opened several years ago. She has been very pleased with the company's management after helping select a new CEO two months ago. Which best describes the role Jane plays in the full-detail carwash? • Chief Operating Officer (COO) • Stakeholder • Human resource manager • Stockholder
• Stockholder
Mike is the owner of a doggy daycare and grooming business. The business is economically healthy, and he is looking for ways to finance future growth. In which business life cycle stage is Mike? • Success • Existence • Take-off • Survival
• Take-off
What is the main drawback of a sole proprietorship? • They have unlimited personal liability • They are easy to create • They require a partner • They are responsible to shareholders
• They have unlimited personal liability
When an employee is hired, they sign a contract that outlines the employee's and the employer's _________ and the terms of employment. • obligations • union rights • job descriptions • desired salary
• obligations
A barber charges $20.00 per haircut. The total cost for running his home-based business is $4,000.00 per month, which includes his salary of $3,000 per month. The minimum number of haircuts he must do to cover all of these expenses and his salary is 200 per month. The barber wants to increase his salary to $4,000 per month, making his total monthly expenses $5,000. What is the minimum price he must charge for each of the 200 haircuts so he can cover this increased salary? $25 $30 $20 $15
$25
Devin owns a clothing store. He recently purchased jeans to sell in his store. He paid $23 for each pair of jeans, and his desired profit margin is 18%. What is Devin's selling price? $28.23 $27.07 $27.14 $26.54
$27.14
Lauren owns a restaurant. She had a beginning cash balance of $2,500, $57,250 in total cash sales, $5,300 for utilities, $7,500 in loan payments, and $3,200 for marketing costs. What is Hailey's ending cash balance for the year? $16.000 $59.750 $43.750 $75.750
$43.750
Tina owns a car dealership. She just received a shipment of luxury sports cars. She paid $50,000 for each vehicle and wants to make 25% on each car sale. What is Tina's selling price? $62,500 $72,500 $37,000 $65,500
$62,500
James owns a sporting goods store. He just manufactured his own bicycle brand and needs to figure out what the selling price should be. The manufacturing cost per bike is $65, and his desired profit margin is 15%. What is James's selling price? $75.50 $75.75 $74.75 $76.25
$74.75
Jerry owns an ice cream parlor. His starting balance last month was $1,900. His ending balance was $2,200. What is Jerry's burn rate? -$300 $300 -$4.100 $4.100
-$300
Melody owns a dog grooming business. Her total monthly cost is $2,750. She charges $25 per grooming service. How many dogs must Melody groom to break even each month? 115 105 110 100
110
Match the business type to its description.
Small business - Owned and managed by one individual or sometimes a small group of people with a focus on generating profits Entrepreneur - An individual with an idea to offer an innovative product or service about which they are passionate Franchise - A business where the owner licenses their operations, products or services, branding, and knowledge for a royalty fee
Match each Pricing Strategy to its corresponding description. To answer, move each strategy from the list on the left to its description on the right.
Economy pricing - Prices that targeting customers looking to save as much money as possible Bundle pricing - Pair several products together and selling them for less money than each would be individually Market penetration - Setting prices low until after a reliable customer base is established, then raising prices Price skimming - Setting high prices when a product is introduced and then gradually lowering the price Premium pricing - High quality products marketed to high-income individuals
What is a value proposition? A statement that explains the estimated value of a company A statement that explains to customers why they should do business with a company A statement that explains the estimated value of a product or service A statement that explains to investors why they should do business with a company
A statement that explains to customers why they should do business with a company
Which statement best describes opportunities in a SWOT analysis? Areas in which a company is lacking Anything that could increase sales and grow a company Anything that poses a risk to a company's success and growth Things a company does well
Anything that could increase sales and grow a company
What are SWOT analysis threats? Areas in which a company is lacking Anything that poses a risk to a company's success and growth Things a company does well Anything that could increase sales and grow a company
Anything that poses a risk to a company's success and growth
Which statement best describes weaknesses in a SWOT analysis? Anything that poses a risk to a company's success and growth Areas in which a company is lacking Anything that could increase sales and grow a company Things a company does well
Areas in which a company is lacking
What is the formula for determining a break-even point? Break-even point = Total cost / Product or service sales price Break-even point = Total cost + Product or service sales price Break-even point = Total cost - Product or service sales price Break-even point = Total cost x Product or service sales price
Break-even point = Total cost / Product or service sales price
What is the formula for determining burn rate? Burn rate = Month starting balance + Month ending balance Burn rate = Month starting balance x Month ending balance Burn rate = Month starting balance / Month ending balance Burn rate = Month starting balance - Month ending balance
Burn rate = Month starting balance - Month ending balance
Sarah works at an auto shop. She performs car repairs and maintenance while abiding by the safety guidelines outlined at the shop. Sarah also ensures that all work she performs adheres to company policies. She is paid an hourly wage. Which best describes the role Sarah plays in the auto shop? Chief Financial Officer (CFO) Chief Operating Officer (COO) Employee Stakeholder
Employee
Korryn works at a convenience store. When she was hired, she was told that she would be working 40 hours per week and receive $15 per hour of work. In addition to this, the company gives all employees partial ownership of the company in the form of shares. Which two forms of compensation does Korryn receive for her work? Salary Equity Piece work Hourly
Equity Hourly
Match the business role to its description.
Chief Executive Officer (CEO) - Makes major decisions for the company, oversees operations and resources, comes up with the company's vision, strategies, and mission, and reports to the board of directors Chief Financial Officer (CFO) - Manages and plans the cash flow, creates budgets, and forecasts whether the company will meet the set budget requirements Chief Operating Officer (COO) - Oversees the business's day-to-day operational and administrative functions Founder - The individual that developed or created the company or organization Stakeholder - The individuals or groups that have an interest in the success of a company Partnership - One or more people share the business's financial responsibility, including record keeping, paying taxes, distributing profits, marketing, and the company's day-to-day functions Stockholder - Votes on the management of the company and whether to remove the CEO should the occasion arise Employee - Responsible for completing specific assigned tasks while adhering to the company's safety and ethical guidelines and policies
Billie manages the budget for a toy manufacturing company. In addition to this, she also negotiates financial matters with other companies on collaborative projects. Which best describes the role Billie plays in the toy manufacturing company? Chief Operating Officer (COO) Employee Stakeholder Chief Financial Officer (CFO)
Chief Financial Officer (CFO)
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? Conduct onscreen pop-up quizzes Ask the sales team if demand increased Email an evaluation a week after the course Form a focus group
Conduct onscreen pop-up quizzes
Match the business life cycle stage to its description.
Existence - A business owner gets a business up and running Survival - Having a reliable amount of customers to stay open Success - A business owner is generating a consistent income, and the business is economically healthy Take-off - The business owner needs to decide if they want their company to become a big business and, if so, how they will create rapid growth and finance it Resource maturity - The owner has separated financially and operationally Pivot or persist - Exhausting all efforts and avenues with the current strategy before deciding to change strategy Exit plan - The business owner decides to sell their ownership of the company
What is the formula for determining gross profit? Gross profit = Income x Cost of goods Gross profit = Income - Cost of goods Gross profit = Income + Cost of goods Gross profit = Income / Cost of goods
Gross profit = Income - Cost of goods
Match the compensation type to its description.
Hourly pay - Payment for the hours an employee has worked Salary - Fixed payment amount for each pay period Commission - Afee paid to an employee for completing a task Piece work - Compensation for the number of units an employee produces Equity - Non-cash compensation, including an investment vehicle, ownership in the company, restricted stocks, or shares
What are the two advantages of selling digital products? Digital products are not taxed Not needing physical storage, inventory, or additional employees Delivery is instantaneous and inexpensive Digital products tend to have a higher value
Not needing physical storage, inventory, or additional employees Delivery is instantaneous and inexpensive
What is the formula for determining income tax expense? Income tax expense = Gross profit / Tax rate Income tax expense = Gross profit + Tax rate Income tax expense = Gross profit - Tax rate Income tax expense = Gross profit x Tax rate
Income tax expense = Gross profit x Tax rate
Which two sources are considered primary data? Interviews Academic journals Surveys A census
Interviews Surveys
Which three types of information can be found on a balance sheet? Liabilities Equity Manufacturing costs Assets Investment funds
Liabilities Equity Assets
Match each Asset or Liability to its corresponding category on a Balance Sheet. To answer, move each Asset or Liability from the list on the left to its Category on the Balance Sheet on the right.
Long-Term Assets - Equipment Current Assets - Inventory Current Liabilities - Bank Loans Long-Term Liabilities - Mortgage Payments
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 how customers respond to the packaging. Measure sales of the new bread after customers have sampled it. Ensure the ingredients are all organic. Test the ingredients for freshness Observe customer reactions while they taste the product.
Measure sales of the new bread after customers have sampled it. Observe customer reactions while they taste the product.
Deidre owns a pet store. Last month, her income was $5,500, her cost of goods was $800, and her total expenses were $2,600. What are Deidre's net income and gross income for last month? Net income = $2,100 and Gross income = $4,200 Net income = $3.100 and Gross income = $4.700 Net income = $2,100 and Gross income = $4,700 Net income = $4,700 and Gross income = $2,100
Net income = $2,100 and Gross income = $4,700
Ben owns a print shop. Last quarter's income was $8,000, his cost of goods was $650, and his total expenses were $4,300. What are Ben's net income and gross income for the last quarter? Net income = $3,050 and Gross income = $7,530 Net income = $7,350 and Gross income = $3,050 Net income = $3,050 and Gross income = $7,350 Net income = $3,500 and Gross income = $7,350
Net income = $3,050 and Gross income = $7,350
What is the formula for determining net profit? Net profit = Value of investment x Cost of investment Net profit = Value of investment - Cost of investment Net profit = Value of investment / Cost of investment Net profit = Value of investment + Cost of investment
Net profit = Value of investment - Cost of investment
What are direct competitors? Other businesses that have the same or similar investors Other businesses that sell the same or similar products or services that a company sells Other businesses that sell products that are different from a business but are similar enough that their products could satisfy the same need Other businesses that have the same or similar revenue
Other businesses that sell the same or similar products or services that a company sells
Dylan owns a small grocery store. The store has not been receiving a lot of business during the last few months and has been making a low profit. Dylan has a meeting scheduled to discuss these issues with other employees of the grocery store. In which business life cycle stage is Dylan? Exit plan Pivot or persist Survival Resource maturity
Pivot or persist
Which three statements help define a Market/Fit Hypothesis? (Choose three) A rapid growth hypothesis ensures market/fit. Product/market fit can be predicated with direct-to- customer sales. When you receive a positive response to a huge marketing campaign that includes giving away free product. 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 they tell other people to use it.
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 they tell other people to use it.
You operate a small insurance office with a partner. Which expense is a fixed cost? Water bill for an office Paycheck for an hourly administrative assistant. Property lease for the office Cost of paper supplies.
Property lease for the office
What is the formula for determining a return on investment (ROI)? ROI = (Net profit / Cost of investment) / 100 ROI = (Net profit - Cost of investment) x 100 ROI = (Net profit / Cost of investment) x 100 ROl = (Net profit + Cost of investment) x 100
ROI = (Net profit / Cost of investment) x 100
Match each Element of the Design Thinking Process to its corresponding description. To answer, move each element from the list on the left to its description on the right . Note: You will receive partial credit for each correct answer .
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
Match the legal structure to its description.
S corporation - Afor-profit corporation with a lower tax rate that prevents the company from being double taxed C corporation - Profits are taxed when earned, and then the shareholders' dividends are taxed after they are distributed. This legal structure is best for international businesses Limited liability company (LLC) - Allows the owner to pay taxes on their profits or losses through their own taxes using a personal tax rate. This legal structure is ideal for a single owner seeking low risk Sole proprietorship - Easy to create, but comes with unlimited liability Partnership - Shared financial backing Non-profit - Has no ownership and pays no US federal taxes
What is the formula for determining selling prices? Selling price = (Cost x Desired profit margin) + Cost Selling price = (Cost x Desired profit margin) - Cost Selling price = (Cost - Desired profit margin) / Cost Selling price = (Cost / Desired profit margin) + Cost
Selling price = (Cost x Desired profit margin) + Cost
A photographer wants to do a SWOT Analysis with the characteristics identified.
Setup a SWOT analysis with the characteristics provided about this business by matching the company characteristic with the appropriate SWOT element. To answer, drag the company characteristic 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 (T) - COVID pandemic restrictions disallow large family gatherings
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. Note: You will receive partial credit for each correct answer.
Stage 1 Existence Stage 2 Survival of the Fittest Stage 3 Success Stage 4 Take-off Stage 5 Manurity
Sharon owns a law firm. She has recently begun earning more money, and the firm's finances are doing well. In which business life cycle stage is Sharon? Success Take-off Survival Existence
Success
Which statement best describes strengths in a SWOT analysis? Things a company does well Anything that could increase sales and grow a company Areas in which a company is lacking Anything that poses a risk to a company's success and growth
Things a company does well
In addition to identifying the problem a product or service solves, a value hypothesis should promote things like product features, pricing, and the ______ as a means of enticing potential customers to purchase the product. buyer fees business model materials production cost
business model
Arrange the stages of a business life cycle in the correct order.
first stage - Existence second stage - Survival third stage - Success fourth stage - Take-off fifth stage - Resource maturity sixth stage - Pivot or persist seventh stage - Exit plan
A company's _____ may play a role in pricing. stock value revenue sales target market
target market
A non-profit has a _____ status. tax-exempt tax liable non-exempt low-tax
tax-exempt
A minimum viable product is a prototype used to test ease-of-use and _______ performance viability functionality cost
viability
Match each business management role to its corresponding description. To answer, move each role from the list on the left to its description on the right.
• (CEO) The highest -ranking employee in the companyreports to the board of directors. • (CFO ) Creates budgets , analyzes financial data , and forecasts company profits . • (CIO) Develops policies and structures to protect company data . • (COO) Oversees the day -to-day administrative functions of a business ; second in command .
Jeff works for Green Grass Mowing Company. He is paid a fixed amount for each lawn he completes during the day. In addition to mowing lawns, Green Grass Mowing Company offers its customers a fertilization treatment for an additional cost. For every fertilization treatment Jeff secures, he receives an additional $7 in pay. Which two forms of compensation does Jeff receive for his work? • Hourly • Commission • Equity • Piece work
• Commission • Piece work
What are the three disadvantages of selling physical products? • Physical products tend to have a lower value • Having more competitors than digital products(x • Shipping and packaging costs • Needing storage space • Needing employees to track the supply
• Shipping and packaging costs • Needing storage space • Needing employees to track the supply
What is the difference between small businesses and entrepreneurs? • Small business owners are more willing to take on unknown risks • Entrepreneurs are focused on generating profits • Entrepreneurs are not always interested in taking on new business opportunities • Small business owners are not always interested in taking on new business opportunities
• Small business owners are not always interested in taking on new business opportunities