question

A ___________ is someone who creates and runs his or her own business.

answer

Entrepreneur

question

A small business is one that has fewer than ____ employees.

answer

100

question

A program that provides on-the-job training is called a(n) _______ or a(n) _____________.

answer

Internship/ apprenticeship

question

Before starting your business weigh the _______ vs. the __________.

answer

rewards(or pros)/ risks(or cons)

question

Entrepreneurs can affect the economy, the ______, and the world.

answer

Community

question

One of Edison's achievements that changed the world was the ______.

answer

Light Bulb

question

Maggie Lena Walker's philosophy that made her a success was "______".

answer

nickles into dollars

question

Businesses that protect or improve the environment are called ______.

answer

Green companies

question

Today, the ____ is a primary resource for business.

answer

Internet

question

T/F An employee works in a business owned by someone else.

answer

true

question

Small firms employ 90% of US workforce.

answer

false

question

More than half of all businesses started in the US each year fail.

answer

true

question

Making money is the major reward of being an entrepreneur.

answer

false

question

All entrepreneurs want their businesses to become big.

answer

false

question

Serial entrepreneurs have one business, but many locations.

answer

false

question

Becoming an entrepreneur is best tried when one is young.

answer

false

question

Anoyone can become an entrepreneur.

answer

true

question

Entrepreneurs need to pay attention to social trends to be successful.

answer

true

question

The US Census Bureau reports that __ of business owners had some college education when they stated the business.

answer

64%

question

An ______ is an evaluation of your strengths and weaknesses.

answer

self-assessment

question

Entrepreneurs typically have ____ attitudes.

answer

positive

question

Courage is a willingness to take ___ in spite of possible _____.

answer

risks/losses

question

A skill is learned through ____ and _____.

answer

training and practice

question

An entrepreneur that listens carefully to people and also speak and writes well has good ________.

answer

Communcation skills

question

Thinking like an _______ helps a person be a better employee.

answer

entrepreneur

question

Volunteering in the community is one of the six ways to increase one's entrepreneurial _____.

answer

potential

question

T/F An attitude is a natural ability to do well at a task or activity.

answer

false

question

Enthusiastic entrepreneurs can see problems as opportunities

answer

true

question

Creativity is a characteristic needed to be a sucessful entrepreneur.

answer

true

question

"People skills" help entrepreneurs analyze financial statements.

answer

false

question

Business knowledge can increase your entrepreneurial potential

answer

true

question

Most entrepreneurs work less than 40 hours per week.

answer

false

question

People, both young and old, can become entrepreneurs.

answer

true

question

Only entrepreneurs, not employees, need to study entrepreneurship.

answer

false

question

An economic system is used by society to allocate ______ for its people and to cope with ____.

answer

goods and services, scarcity

question

The equilibrium point is the point on a supply and demand curve where supply and demand are ____.

answer

balanced/equal

question

An important aspect of a market economy is ____ exchange.

answer

voluntary

question

The _________ economic system is also called capitalism or free enterprise

answer

market

question

Competition between entrepreneurs selling the same goods or services pushes prices _____/

answer

downward

question

Entrepreneurs make a profit when the amount of money coming into a business is _____ than the business's expenses.

answer

greater

question

A nonprofit organization operates solely to serve the good of ___

answer

society

question

The command system is the best economic system for entrepreneurs

answer

false

question

People play the central role in an economy

answer

true

question

Consumers buy more of a product when its price is low

answer

true

question

the supply and demand curve is a tool used by entrepreneurs

answer

true

question

Suppliers often charge higher prices when demand is low

answer

false

question

the profit motive encourages entrepreneurs to start businesses.

answer

true

question

Earning a profit is the only reason that people start businesses

answer

false

question

non-profit organizations are not allowed to make a profit

answer

false

question

The global economy involves trading between people from different __

answer

nations

question

a country that ____ products buys them from foreign sellers

answer

imports

question

a country that ___ products sells them to foreign buyers

answer

exports

question

a trade ____ is governmental restriction on international trade

answer

barrier

question

The value of a country's currency in relation to another country's currency is the ______

answer

foreign exchange rate

question

The goal of fair trade is for producers in poor nations to earn sufficient_____

answer

profit

question

entrepreneurs can benefit their local economies by hiring _____ employees

answer

local

question

the goal of sustainability is to improve human life and the ______

answer

environment

question

global trade provides opportunities for entrepreneurs

answer

true

question

importing and exporting are business activities

answer

true

question

services can not be exported

answer

false

question

the internet makes it easier to participate in international trade

answer

true

question

cultural customs are the same in every country around the world

answer

false

question

fair trade helps entrepreneurs in developing countries

answer

true

question

trade barriers make it easier for entrepreneurs to import and export

answer

false

question

sustainable economic development is bad for the global economy

answer

false

question

the two typical types of manufactured goods are ____ and ____

answer

industrial and consumer

question

wholesalers provide a link between _____ businesses and ____ businesses

answer

manufacturing and retailing

question

Stores, shops, and boutiques are examples of _____ businesses

answer

retailing

question

Wholesaling and retailing businesses are also known as ____ businesses

answer

trade

question

Babysitting and music lessons are examples of ____ businesses

answer

service

question

in many states retailers must have a ___ permit to purchase goods tax-free from wholesalers and collect sales tax from the end buyers

answer

reseller's

question

between the 1950s and the 2000s ______ businesses became much less dominant and ____ businesses became much more dominant

answer

manufacturing and service

question

a _____ is a business that purchases the right to use an established company's name and operating plan to sell products or services

answer

franchise

question

Most wholesalers sell directly to the public

answer

false

question

a retailer might sell products from a store or over the internet

answer

true

question

large manufacturing companies typically sell products to wholesalers

answer

true

question

retailers resell products purchased from wholesaling businesses

answer

true

question

most service businesses are also manufacturers

answer

false

question

manufacturing is the dominant business type in america today

answer

false

question

most business start-ups in recent years have baeen service businesses

answer

true

question

McDonald's resturants are maufacturing businesses

answer

false

question

A business owner with ____ liability might have to pay off business debts using his or her personal money and possessions

answer

unlimited

question

Liability is a ____ obligation

answer

legal

question

the ________ is the simplest option for business ownership

answer

sole proprietorship

question

Partners share the management, profits, and liability of their business based on terms of their _______

answer

partnership agreement

question

shareholders or stockholders are the owners of a ______

answer

corporation

question

to __________ means to set up a corporation in accordance with the laws of the state in which the business is located

answer

incorporate

question

a cooperative is a business owned by its ____

answer

members

question

entrepreneurs with limited liability put their personal assets at risk

answer

false

question

The level of liability depends on the type of business ownership

answer

true

question

A sole proprietorship provides limited liability to the business owner

answer

false

question

in a general partnership all partners have unlimited liability

answer

true

question

a corporation is easier to set up than a sole proprietorship

answer

false

question

C corporations and S corporations differ in how they are taxed

answer

true

question

Farmers often form cooperatives to buy farming equipment

answer

true

question

a limited liability company is owned by its stockholders

answer

false

question

a business plan for a for-profit business typically focuses on the entrepreneur's ______ goals

answer

financial

question

one example of a quick-summary type of a business plan includes a colorful ______

answer

slideshow

question

A business plan for a for-profit business typically focuses on the entrepreneur's ____ goals.

answer

financial

question

One example of a quick-summary type of business plan is called an ______ pitch

answer

elevator

question

The oral-presentation type of business plan includes a colorful _____

answer

slideshow

question

The purpose of the oral presentation is to interest potential ____ in reading the detailed business plan

answer

investors

question

A quick-summary type of business plan lasts not more than ___ minutes

answer

3

question

A written business plan should be no more than ____ typed pages

answer

20

question

The executive summary of a written business plan should be ___ pages or less

answer

2

question

It is better to discover that a business won't work on _____ before you invest significant time and money

answer

paper

question

A well written business plan never needs to be revised

answer

false

question

the quick-summary type of business plan is a written plan

answer

false

question

an operational business plan is for use within the business only

answer

true

question

potential investors will reject a poorly written business plan

answer

true

question

a well-written business plan should take at least three hours to read

answer

false

question

Developing a business plan is not a simple, straightforward process

answer

true

question

a business plan describes the goals of the business

answer

true

question

an investor's business plan is a brief synopsis of the business idea

answer

false

question

A business should fill a ____ or _____ that is not currently being met

answer

need/want

question

a business must provide a product or service at a price that will attract customers but still earn a reasonable _____

answer

profit

question

critical thinking works well for generating ____ and recognizing _____

answer

ideas/opportunities

question

an _____ cost analysis compares the benefits of one opportunity with the benefits of any opportunities you will be losing or postponing

answer

opportunity

question

Buying an _______ business usually requires a much larger initial investment than starting a ___ business

answer

existing/new

question

Some sources estimate that a franchise has a ___ or better chance of success

answer

90%

question

every business idea is a good opportunity

answer

false

question

trade associations exist for nearly every industry

answer

true

question

a cost/benefit analysis evaluates the benefits of other opportunities

answer

false

question

challenging the usual involves asking "why?" and "what if?" questions

answer

true

question

creative thinking must be done alone, not in a group

answer

false

question

buying an existing business usually requires a large amount of money

answer

true

question

inventors create new products or significantly change existing products

answer

true

question

two pizza restaurants would be ___ competitors

answer

direct

question

your competitors are any businesses that fill the same customer ___ or ___ as your business

answer

needs/wants

question

when analyzing your indirect competition you should consider which groups will compete most ___ and most ____ with your business

answer

often/strongly

question

a competitive matrix is a useful tool for analyzing _____ competitors

answer

direct

question

competition may exist in nearby stores or on the ___ or in direct-mail _____

answer

internet/catalogs

question

a differentiator can be a ___ product or service that only your business offers

answer

unique

question

one or more ____ can be the competitive advantage that puts your business ahead of the competition

answer

differentiators

question

three of the steps in researching a market are to gather data, ____ the data, and ____ the data

answer

organize/analyze

question

only companies that sell the same products as yours are you competitors

answer

false

question

a sandwich shop and a seafood resturant are indirect competitors

answer

true

question

you will probably have more indirect competitors than direct competitors

answer

true

question

direct competitors should be analyzed in groups rather than indiviually

answer

false

question

your competitive advantage could consist of one or more differentiators

answer

true

question

differentiators are characteristics that businesses have in common

answer

false

question

once you have a competitive advantage you will always have it

answer

false

question

step 1 of market research is identifying what you want to accomplish

answer

true

question

The purpose of the EOU is to determine the amount of profit a business makes every time it sells _____ item.

answer

one

question

The unit of sale for a retailer selling shoes is _______ of shoes.

answer

one pair

question

the economics of one unit is calculated by subtracting the _____ of the unit from the ____ of the unit.

answer

variable expenses/selling price

question

the contribution margin is the amount per unit a product contributes towards the company's ______ before the _____ are subtracted.

answer

profitability/fixed expenses

question

the Cost of Goods Sold for manufacturing business includes the cost for ____ and _____/

answer

materials/labor

question

a typical EOU for a line of similar products could be calculated based on the average ______ of the products.

answer

cost

question

a service business uses the cost of ____ sold to calculate its EOU

answer

serivces

question

COGS and COSS are both ______ expenses

answer

variable

question

Labor costs are included in the EOU calculation for a retailer

answer

false

question

a unit of sale for a wholesaler could be a carton containing many items

answer

true

question

the contribution margin considers variable and fixed expenses

answer

false

question

the supplies used to provide a service are a variable expense

answer

true

question

labor costs are included in the EOU calculation for a wholesaler

answer

false

question

a unit of sale is the largest unit that the customer can actually buy

answer

false

question

labor cost are included in the EOU calculation for a manufacturer

answer

true

question

a franchisee uses the company's name and operation to run the same business in another ___

answer

location

question

a franchise disclosure document must typically be given to a potential franchisee at least ___ days before the franchisee signs a franchise agreement or pays the franchise fee

answer

10

question

a business can expand geographically by opening multiple company-owned units or by ____ the business

answer

franchising

question

franchising builds ____ awareness for the franchisor's products or services

answer

brand

question

a licensee may have to provide regular samples of branded products so the licensor can make sure they meet ___ -control standards

answer

quality

question

a franchisor is the owner of an established comapny

answer

true

question

a franchinse fee is typically only a few hundred dollars

answer

false

question

a franchise agreement typically has a term limit, for example, 10 years

answer

true

question

a franchise operations manual must be detailed and precise

answer

true

question

a franchisor is liable for accidents in a franchise location

answer

false

question

a business owner with a struggling business should franchise it

answer

false

question

a potential brand licensee wants a brand with a poor reputation

answer

false

question

a brand licensor maintains ownership of the brand name

answer

true

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