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Foods 2 Entrepreneurship and Small Business Management 4.01-4.02 Flashcards | StudBud
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Foods 2 Entrepreneurship and Small Business Management 4.01-4.02
Foods 2 Entrepreneurship and Small Business Management 4.01-4.02
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Questions pertaining to the study of entrepreneurship and small business management.
Flashcards
28 cards
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Questions
28
Answers
1
There are no coffee shops in town. Sue thinks a coffee shop has commercial value; this idea is:
a Partnership
an Opportunity
a Mission
a Corporation
2
What does an income statement show the business owner?
Amount of profit or loss
Break-even point
Total production costs
Stock turnover rate
3
What are marketing objectives?
Sales
Products
Goals
Strategies
4
What is the process used to test a business idea or concept?
Business plan
Market survey
Business concept
Feasibility analysis
5
Who are the people most likely to buy a specific product or service?
Customers
Target customers
Consumers
Buyers
6
What is NOT used to construct a cash flow statement?
Expenses
Revenue
Net income (or loss)
Inventory
7
The result of making several products before choosing which one to sell is called a:
Prototype
Profile
Mock
Carrier
8
The XYZ Company decided to sell stock to raise capital. This form of business organization is:
Corporation
Partnership
Sole Proprietorship
Franchise
9
What is net income to a business?
Profit
Costs
Loss
Inventory
10
What is the amount added to the cost of an item to cover expenses and ensure profit?
Price Skimming
Profit
Markup
Prestige Pricing
11
Using 100% markup & a 1 cent deduction; what's RETAIL price on an item that cost wholesale $20?
$39.99
$40
$30
$29.99
12
A feasibility analysis determines if:
A business plan is necessary
An idea is practical
Customers will buy the product
The money is available to start a new business
13
What financial statement tells an owner what the business is worth at a given time?
Profit and Loss statement
Cash flow statement
Balance sheet
Ledger
14
What must a company know in advance to predict when it will make a profit?
Net profit income
Credit card sales
Break-even point
Turnover rate
15
What is a working model of a product?
Prototype
Production model
Target product
Sample
16
System for maintaining product or service standards?
Inspection
Quality control
Quality circle
Automation
17
Who are the people to whom a business plans to sell its products?
Target customers
Sales staff
Consumers
Administrators
18
What is the covering, wrapper or container in which merchandise is placed for retail sale?
Labeling
Boxing
Wrapping
Packaging
19
Why is sole proprietorship the most common form of business ownership?
Legal assistance is needed for start up in this form
Limited liability for sole proprietorships is a benefit
The government assumes little control over them
Money can be raised easily by issuing shares of stock
20
The inability to interpret financial records demonstrates a lack of:
image development
product service planning
management planning
competence of the entrepreneur
21
If a price is reduced; what must happen to continue to break even?
Sell more items
Sell fewer items
Sell to new customers
Conduct a market feasibility study
22
Which is a major advantage to buying a franchise?
freedom in making decisions
management training and technical support provided
guaranteed profit on all goods sold
high cost of supplies and equipment
23
Conception, pricing, promotion and distribution of a prod/svc to satisfy customer want/need is:
Entrepreneurship
Target market
Marketing concept
Marketing
24
Product standards are developed to benefit the:
Consumer
Entrepreneur
Small business owner
Investor
25
Before offering a service or product for sale, determine that there is:
A niche in the market
Enough inventory available
Opportunity for sales
A demand for the product
26
What expenses will stay constant with the number of items produced?
Fixed costs
Break even point
Variable costs
Liabilities
27
Sue asks questions and does research when she solves problems related to her business; she is:
Persistant
Creative
Responsible
Inquisitive
28
Of the major factors in small business success, what's affected by lack of working capital?
Planning
Image
Financing
Management
