What does total revenue minus total expenses indicate?

profit or loss made by the business

Which is more important when doing planning for your business?

both short and long term planning

Identifying the target market for a product allows an entrepreneur to

market the product to specific people

What is the definition of market share?

the percentage of sales earned over a period of time

What is marginal cost?

change in production cost when quantity changes by 1 unit.

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

ensure a strong customer base for the product

When making a business decision, what are you determining when estimating the opportunity cost?

the benefits missed when choosing one option over another

What is a target customer?

ideal customers a business should try to attract

Why is it important for entrepreneurs to identify customers' wants and needs?

to understand how to profit fulfilling those wants and needs

Which is an advantage of owning a franchise?

company has wide-spread name and brand recognition

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

You are creating something that is uniquely your own.

which is an example of a market segment?

realtors selling homes under $130,000

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

total revenues > total expenses

which is the best definition of "marginal benefit"?

added satisfaction a person gets from buying product/service

The definition of an entrepreneur is a person who

Is willing to take a risk for new business opportunities

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Entrepreneurship Module Test

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Questions 19

Answers

1
What does total revenue minus total expenses indicate?
total cost to keep the business open
total cost to run the business
profit or loss made by the business
2
Which is more important when doing planning for your business?
long term planning
both short and long term planning
neither short nor long term planning
short term planning
3
Identifying the target market for a product allows an entrepreneur to
market the product to specific people
better budget their time and money
worry less about the future of the business
develop plans for expanding their business
4
What is the definition of market share?
sharing responsibility of grocery shopping
a subgroup that shares at least one characteristic or need
the percentage of sales earned over a period of time
Sharing resources with another business to keep costs down
5
A national coffee chain is an example of what kind of business opportunity?
existing business
corporate freelance business
internet-based business
franchise
6
Which is the best short term option to reach profitability?
create a new product
open new locations
cut total expenses
develop new markets
7
which of the following is the best long term strategy to reach profitability?
Find new vendors with lower prices
cut store hours
lay off employees
expand into different markets
8
What is marginal cost?
change in production cost when quantity changes by 1 unit.
cost of overhead due to change in production levels
change in cost of producing one more unit of product
9
Why is it a good idea to match a product to a target market?
more easily create advertising for the product
ensure a strong customer base for the product
produce a better year-end report for the product
create an organized look and feel for the product
10
When making a business decision, what are you determining when estimating the opportunity cost?
the benefits of pursuing a new opportunity
the benefits of choosing the best option
the benefits missed when choosing one option over another
11
What are successful entrepreneurs willing to do?
Play it safe
Get a loan
Take risks
hurt people
12
What is a target customer?
The customers marketed to by competitors
customers a business should avoid
ideal customers a business should try to attract
possible customers for a business
13
Why is it important for entrepreneurs to identify customers' wants and needs?
to better obtain start up funding
to understand how to profit fulfilling those wants and needs
to create something no other business has ever created
To tell customers what they really want and need
14
Which is an advantage of owning a franchise?
Owners spend a lot in the beginning to get going
owners are locked into franchise rules, food, menu, etc.
owners pay a large franchise fee up front to "buy-in"
company has wide-spread name and brand recognition
15
What is a benefit of starting a new business from scratch?
You are creating something that is uniquely your own.
It will have name and brand recognition
Start up costs will be small
The business will make profits quickly
16
which is an example of a market segment?
married women
realtors selling homes under $130,000
adults living in a city
students attending college
17
For a business to make a profit which of the following has to be true?
total revenues <total expenses
total revenues = total expenses
total revenues > total expenses
18
which is the best definition of "marginal benefit"?
Added benefit to a person's life from buying product/service
added satisfaction a person gets from buying product/service
Added benefit a person gets from substitute product/service
19
The definition of an entrepreneur is a person who
provides entertainment to people in a variety of ways
works for a large company creating new products
is active in their community and encourages business owners
Is willing to take a risk for new business opportunities

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