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Entrepreneurship - Chapter 3 Flashcards | StudBud
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Entrepreneurship - Chapter 3
Entrepreneurship - Chapter 3
20 terms
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Creating Business from Opportunity
Flashcards
20 cards
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Practice quiz
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Questions
20
Answers
1
The COGS and COSS are equivalent mathematically.
True
False
2
What is the average unit of sale for a restaurant that serves $3,250 per day in meals to 200 customers per day?
A) $32.50
B) $20.00
D) $15.84
C) $16.25
3
Average gross profit per customer is ________.
D) average sale per consumer + average sale per wholesaler
B) average cost of tangible product - average cost of intangible product
C) average sale per customer - average cost of sale per customer
A) average cost of sale - average sale per customer
4
The business definition has three elements: ________.
B) offer, target market, and production/delivery capability
C) offer, acceptance, and consideration
D) business definition, target market, and market analysis
A) target market, potential customers, and production capability
5
A ________ is a group of people who would be interested in buying a given product or
C) customer
A) market
D) target
B) consumer
6
In analyzing competitive advantage, you will need to ask three questions. Among these are:
B) What is your unique selling proposition? competitors cannot match?
A) Cost structure - are you at a cost advantage or disadvantage?
C) Competitive offers - how do you compare with competitors?
D) All of the above.
7
When you start your business your ________ will guide the business operations and decisions.
B) track record
C) guiding light
A) core beliefs
D) competitive offers
8
The six factors of competitive advantage are quality, price, location, selection, service, and speed/turnaround.
True
False
9
A
record store that sells $1,500 worth of CDs per day to 75 customers per day. the average unit of sale?
20
12
18
15
10
Gross profit is a business’s profit before which other costs are subtracted?
None above
after fixed operating costs are subtracted.
before fixed operating costs are subtracted.
before variable operating costsare subtracted.
11
Business definition answers the questions of who, what, and ________.
D) None of the above.
A) how
B) when
C) why
12
Which item below is not a competitive advantage?
A) process that reduces manufacturing costs by 25%
B) offering free samples during a two week promotion
D) reducing operating costs by 7%
C) consistently providing better customer service than the competition
13
Which of the following is
not
an element of business definition?
A) the offer
C) target market
B) the acceptance
D) production and delivery capability
14
Business definition + competitive advantage is ________.
A) competitive tactics
D) business plan success
C) business mission
B) competitive strategy
15
The cost of selling one unit of a product is called ________.
A) cost of materials
C) cost of services sold
B) cost of goods sold
D) marginal cost
16
________ is the core values of an organization in action.
A) Mission
B) Culture
D) None of the above.
C) Vision
17
A target market of every adult in the United States is too ________.
A) narrow
D) limiting
B) broad
C) specific
18
Your company's vision defines the work environment.
True
False
19
Total gross profit = ________.
B) cost of goods sold - total revenue
D) revenue - operating costs
A) profit - cost of goods sold
C) revenue - cost of goods sold
20
Your ________ is a concise communication of your strategy including your business definition, purpose, and your comp
B) business plan
A) target market analysis
C) values statement
D) mission statement
