Business/Entrepreneurship Exam – Flashcards
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A grocery store is an example of a retailing business.
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True
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The innovations and technological changes developed by large corporations have led to a greater number of small businesses.
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False
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Although entrepreneurs make a lot of money, they cannot choose a business that interests them.
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False
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Performing a self-assessment can help you determine if entrepreneurship is right for you.
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True
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Running your own business isn't difficult, and most companies are successful.
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False
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The Small Business Administration can help entrepreneurs set non-financial goals.
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False
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At the end of a face-to-face business meeting with a supplier or customer, you should thank the person.
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True
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Good business writing gets results by being negative and persuasive.
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False
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Although it is more formal than a personal letter, a business letter does not need to be keyed.
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False
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Multiplicaiton can be used to figure the average monthly sales of a specific item.
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False
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The cash drawer is balanced by adding opening cash to total receipts and then subtracting refunds.
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False
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The demand curve shows that individuals are willing to consume more of a product or service at a lower price.
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True
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A business must pay its fixed costs regardless of the quantity of goods or services it produces.
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True
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Marginal cost measures the advantages of producing one additional unit of a good or service.
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False
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Opportunity cost is the cost of choosing one opportunity or investment over another.
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True
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OSHA inspects factories to be sure conditions are safe for workers.
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True
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Redistributing income by the government is widely agreed to be unnecessary and causes an undue burden on entrepreneurs.
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False
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A business plan is necessary only if you need to convince suppliers to extend credit to your company.
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False
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The goals and objectives section describes your vision of where you want your company to be in the future.
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True
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The most important info in the form of ownership section is the exact location of your business.
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False
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If the business will be a partnership, the form of ownership section should include the background and experience of the partners.
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False
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The marketing section of a business plan should list your company's advantages over the competition.
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True
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A business that must meet legal restrictions or regulations should include that info in a special section.
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True
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Every business plan should begin with a cover sheet.
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True
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The executive summary is an outline of the main body of the business plan and resembles a table of contents.
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False
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An employee...
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works for someone else
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Which of the following is a service business?
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travel agency
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Entrepreneurs in the field of transportation were...
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Olive Beech and Henry Ford
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Characteristics of successful entrepreneurs include...
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self-confidence
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An evaluation of your strengths and weaknesses
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self-assessment
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Aptitude is the ability to...
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none of these
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Your suitability for entrepreneurship is based on...
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your commitment to the business
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Info about business opportunities is available from
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the library
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Setting specific financial goals before starting a business...
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ensures the business is able to earn profits you want
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To determine if a business opportunity is realistic, you should...
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find out what risks are associated with the business
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Business letters are written to...
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respond to customer queries
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Which of the following is NOT an important tip to keep in mind when conducting a business conversation on the telephone?
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thank the person at the end of the conversation
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Problems in business often occur because people...
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fail to listen to each other
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The unit cost of an item is $63.50, the customer purchased three of these items, and sales tax is 6.5%. Total amount due is...
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$202.88
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To determine the average monthly growth rate...
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divide the total monthly growth by the number of months of data.
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Which of the following loans has the lowest yearly interest?
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30,000 loan at rate of 6.25
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An item that had an original price of $84.95 is on sale at 25% off. What is the sale price?
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$63.71
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Which of the following is NOT a step in the decision-making process?
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identify the action
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A problem-solving method of generating fresh ideas is called...
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brainstorming
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To help them make decisions and solve problems, entrepreneurs often use...
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all of these
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The demand curve shows that the quantity consumed of a good or service...
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increases as price decreases
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A company that competes for business...
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cannot charge prices that are much higher than its competitors
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In a market economy...
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individuals are usually able to obtain exactly what they want
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Supply, the quantity of a good or service a producer is willing to produce at different prices,...
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increases as price increases
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Marginal benefit measures the advantages of...
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producing one additional unit of a good or service
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If an entrepreneur decides to buy new equipment rather than increase advertising, the cost of the new equipment is...
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an opportunity cost
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Variable costs of a business...
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are based on the quantity of goods produced
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The government regulates some businessses by requiring them to obtain
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licenses
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Government influences production in a market economy by...
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purchasing goods and services
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In a market economy, the government may serve as a...
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all of these
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Short-term goals for a business might include...
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lease a facility
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Identification of risks and your plan to deal with them should be in...
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none of these
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The cover letter of a business plan should...
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tell how much capital you need
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A business plan...
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all of these
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The executive summary...
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should be convincing and persuasive
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A business plan is important because...
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lenders will not finance a business without one
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The products or services section of your plan should...
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explain how your product or service differs from those already on the market
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In the financial section, a new business must include...
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pro forma financial statements
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Documents that might be included in the appendix include all of the following except...
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projected financial statements
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In researching all the parts of your business, you can...
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find specific ideas for starting up your company
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evaluation of your strengths and weaknesses
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self-assessment
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people who work for someone else
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employees
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entrepreneur who developed packaged frozen foods
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birdseye
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how much money you will earn
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financial goal
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people who own, operate, and take risk of a business venture
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entrepreneurs
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the ability to learn a particular kind of job
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aptitude
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special meetings at which companies display their products
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trade show
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the process of running a business of one's own
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entrepreneurship
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serve a community in need
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non-financial goal
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working long, irregular hours
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disadvantage of entrepreneurship
