What is the definition of market share?

The percentage of sales earned by a company over a specific period of time

What is the purpose of networking with other businesses?

To create a supportive system of sharing information and resources

Which could be good sources of information for entrepreneurs?

Websites, webinars, and message boards

For a business to make a profit which of the following has to be true?

Total revenues > Total expenses

Which is more important when doing planning for your business?

Both short and long-term planning

Why is it a good idea to match a specific product to a target market?

To ensure a strong customer base for the product

Why is it important for entrepreneurs to identify customers' wants and needs as they plan their businesses?

To understand how to make money fulfilling those wants and needs

What is a benefit of starting a new business from scratch?

You are creating something that is uniquely your own

Identifying the target market for a product allows an entrepreneur to _____.

market the product to specific people

What is marginal cost?

Change in total production cost when quantity produced changes by one unit.

Why is collecting feedback from customers important?

To better understand what customers like and dislike about your business.

Which is an advantage of owning a franchise?

The company has wide-spread name and brand recognition

What is most important for entrepreneurs with home-based businesses to remember?

You need to work hard to build your business and make it successful.

Which is the best definition of "marginal benefit?"

The satisfaction a person gets from buying one more product or service.

What does total revenue minus total expenses indicate?

The profit or loss made by the business.

What is a target customer?

The ideal customers a business should try to attract

When making a business decision between several options, what are you determining when you estimate opportunity cost?

The benefits missed when choosing one option over another

If you owned a flower shop what kinds of businesses would you network?

A wedding chapel, a funeral home and a hospital

Which of the following is an example of a market segment?

Realtors selling homes under $130,000

The definition of an entrepreneur is a person who...

Is willing to take a risk in the hunt for new business opportunities.

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Entrepreneurship (iCEV)

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Questions 28

Answers

1
A national coffee chain is an example of what kind of business opportunity?
A franchise
Corporate freelance business
An internet-based business
An existing business
2
What is the definition of market share?
Sharing business resources with another business to keep costs down
A subgroup of a larger market that shares at least one characteristic/need
Sharing the responsibility for grocery shopping
The percentage of sales earned by a company over a specific period of time
3
What is the purpose of networking with other businesses?
To develop a group that is beneficial while remaining exclusive/competitive
To create a supportive system of sharing information and resources
Have businesses outside the network understand the benefits of being in it.
To create stronger and more stable internet access
4
Which could be good sources of information for entrepreneurs?
Reality television shows
Local universities
Corporate human resources departments
Websites, webinars, and message boards
5
A person goes on an amusement park ride 5X in a row. Which ride do you think produced the highest marginal benefit?
None of the rides
The fifth ride
The first ride
The third ride
6
For a business to make a profit which of the following has to be true?
Total revenues > Total expenses
Total revenues = Total expenses
None of the above
Total revenues < Total expenses
7
During one month your total expenses are $5,250, total revenue $5,750. Which expresses how the business did?
It was neutral
It was in the red
None of the above
It was in the black
8
Which is more important when doing planning for your business?
Long-term planning
Neither short nor long-term planning
Short-term planning
Both short and long-term planning
9
Why is it a good idea to match a specific product to a target market?
To create an organized look and feel for the product
To more easily create advertising for the product
To produce a better year-end report for the product
To ensure a strong customer base for the product
10
Why is it important for entrepreneurs to identify customers' wants and needs as they plan their businesses?
To create something no other business has ever created
To understand how to make money fulfilling those wants and needs
To better obtain start-up funding from an investor
To tell their customers what they really want and need
11
What is a benefit of starting a new business from scratch?
The business will have name and brand recognition
Your start-up costs will be small
You are creating something that is uniquely your own
The business will make profits quickly
12
Identifying the target market for a product allows an entrepreneur to _____.
develop plans for expanding their business
market the product to specific people
worry less about the future of their business
better budget their time and money
13
What is marginal cost?
The cost of total overhead due to changes in production levels
The change in the cost of producing one more unit of product
Change in total production cost when quantity produced changes by one unit.
None of the above
14
Why is collecting feedback from customers important?
All of the above
To better understand what customers like and dislike about your business.
To generate ideas for the business's marketing campaigns.
So your customers think you care about what they think.
15
What might be a motivation to become an entrepreneur?
Risk of financial ruin
Doing paperwork
Be your own boss
Lack of responsibility
16
Which is an advantage of owning a franchise?
Owners are locked into franchise rules, food, menu, uniforms, etc
Owners spend a lot of time in the beginning getting things up and running
Owners pay a large franchise fee up-front to "buy-in"
The company has wide-spread name and brand recognition
17
What is most important for entrepreneurs with home-based businesses to remember?
You need to clearly define your "work" time and your "home" time.
You should schedule lunches out of the house as a tax write-off.
You shouldn't wear your pajamas all day just because you can.
You need to work hard to build your business and make it successful.
18
What are successful entrepreneurs willing to do?
Get a loan
Take risks
Play it safe
Hurt people
19
Which of the following is the best long-term strategy to reach profitability?
Expand into different markets
Cut store hours
Find new vendors with lower prices
Lay off employees
20
Which is the best definition of "marginal benefit?"
The satisfaction a person gets from a substitute product or service.
None of the above
The benefit a person gets to their quality of life from buying a product.
The satisfaction a person gets from buying one more product or service.
21
How can a business get involved in its community?
Donating products or services to non-profit organizations
All of the above
Sponsor community events.
Organize special events.
22
What does total revenue minus total expenses indicate?
The total cost to keep the business open.
All of the above
The total cost to run the business.
The profit or loss made by the business.
23
What is a target customer?
The ideal customers a business should try to attract
The customers marketed to by competitors
The customers a business should avoid
The possible customers for a business
24
When making a business decision between several options, what are you determining when you estimate opportunity cost?
None of the above
The benefits missed when choosing one option over another
The benefits of choosing the best option
The benefits of pursuing a new opportunity
25
If you owned a flower shop what kinds of businesses would you network?
A wedding chapel, a funeral home and a hospital
A comic book shop, a sea food shop and a greeting card shop
A high school, nail salon and a burger restaurant
A pet store, a tire store and cell phone store
26
Which is the best short-term option to reach profitability?
Cut total expenses
Open new locations
Create a new product
Develop new markets
27
Which of the following is an example of a market segment?
Students attending college
Adults living in a city
Realtors selling homes under $130,000
Married women
28
The definition of an entrepreneur is a person who...
Is willing to take a risk in the hunt for new business opportunities.
Provides entertainment to people in a variety of ways.
Is active in their community and encourages business owners.
Works for a large company creating new products.

Entrepreneurship (iCEV) Flashcards | StudBud