NAF Entrepreneurship Exam

Shares of ownership that entrepreneurs sell in their companies in exchange for funding/advice

The formal group of elected advisors that shape the business's operations

An advanced university degree in business studies.

Promoting a business by generating favorable publicity by communicating w/ news & other media.

Set of rules/behaviors governing an organization’s practices based on its values and standards.

Law stating companies must pay overtime, minimum wage, limit of 40 hours a week, & child labor.

Law enacted in 2008 requiring safety testing for children’s toys & products

A question phrased in a way that suggests the answer that an interviewer wants to hear.

Money borrowed from banks, institutions, or individuals that must be paid back (with fees)

The choice of stakeholders, officers and directors of a corporation to behave ethically

Set of rights given to a person/company for manufacturing & selling a unique process/invention.

Expertise acquired through experience or education; understanding a specific subject.

Funds invested in new companies by businesses that contribute advice, guidance, and/or funding.

Data that separates people by characteristics; age, race, gender, education, or income level.

The value of the owner’s investment in a company.

The process of dividing customers into different groups to understand their product preferences

A preference/subjective background that prevents someone from considering an issue objectively.

Data that separates & distinguishes people by their lifestyle choices, behavior, or personality

Developing variants of existing products or service offerings, trying to gain new customers.

The act of minimizing risks by reducing or avoiding them, or planning a strategy for recovery.

Insurance policy that guarantees a fee to beneficiaries in case of insurance holder’s death.

Funds that businesses obtain to help pay start-up and operating costs.

The US law of 2002 enforcing transparency and accountability for public companies.

A fixed cost for an insurance policy paid to an insurance company by the policyholder.

A company’s plan for going out of business

Companies that buy and sell merchandise in retail or wholesale, and require a sales tax ID.

The ability to continue to work enthusiastically, even when things are going badly.

The government organization that provides resources to new and small businesses.

The tax form (US Return of Partnership Income) for partnerships filing business income taxes.

The amount of money that results from subtracting the cost of merchandise sold from net sales.

Type of competitive advantage; distinguishes a company’s product/service, it is more desirable.

The practice of making fair choices guided by integrity, honesty, and reasonable judgment.

Creating, communicating, delivering, & exchanging offerings for customers, clients, & society

An informal group of advisors that guides and provides direction to the entrepreneurs.

Forming social & business relationships that provide insight, guidance, & support

The practice of applying entrepreneurial skills and approaches within an established company.

The practice of starting new organizations/businesses or revitalizing mature organizations

Insurance required by law that provides coverage for employees injured on the job, covers bills

Weighing benefits of a project to costs & determining if the project is worthwhile.

The four major aspects of marketing: price, promotion, product, and place (distribution).

A category used to describe a company’s primary business activity.

A cost or risk of damages, fiscal losses, or lawsuits.

The process of identifying business risks

An idea or product that has benefits or features that a customer / group of customers will buy.

To impose or collect a fine or tax.

Buying space in a publication for companies to promote materials to reach its customers.

The tax form (US Corporation Income Tax Return) for corporations filing business income taxes.

Research conducted by entrepreneurs to learn about the customers’ needs, preferences, etc.

A plan for replacing company founders or officers with new representatives

The increase in worth of a product or service as a result of a particular activity.

Financial statement that measures a company’s financial performance over a specific period.

Online service where people can meet & socialize / where businesses can publicize their message

Someone who invests $ in a business venture for start-up/expansion, for a higher rate of return

Converting potential customers or prospects into customers by personally speaking with them...

Diversions that occupy one’s time and thoughts.

Reaching new markets by developing a new customer base

Taxes levied for sales of items like cigarettes, alcoholic beverages, and gasoline

An academic degree typically requiring four years of study.

Legal protection for creative works such as writing, art, music, software, images, and video.

1972; Established a commission that made standards for products to be safely made in the US

License that allows you to use works more freely than a traditional copyright would allow

The US social system for providing medical insurance coverage to people aged 65 and over.

The theory and system of setting up, maintaining, and auditing the books of a firm

The name of a business venture

An advantageous position that a company occupies in relation to its competition.

Tax form for individuals & sole proprietors to report annual financial information to the IRS

An agreement where an author of protected work allows others to use the work for compensation.

The money that’s spent by a company to continue its business activities and operations.

Type of insurance that some businesses have to give to employees to cover medical/dental/etc.

Charitable actions that benefit important causes

Developing new product or service offerings that complement existing offerings.

A company’s ability to sell a product/ service at a lower cost than competitors.

A small, nontraditional segment of the market, defined by more specific characteristics

Actual profit, calculated by subtracting expenses from revenue in a specific financial period.

An initial reflection that identifies the possible risks of entering a business

The system for rules, regulations, and standards that direct and control the ethical actions.

Insurance that protects businesses from lawsuits, provides payment for damages & court defense.

A type of insurance that covers damage or loss of physical property and assets.

A probability or likelihood of being exposed to danger, injury, or loss.

Going into a business / not-for-profit whose goal is to help people and forward social causes.

Reaching existing markets by convincing customers to buy more frequently or just buy more.

Number of respondents in a survey giving a specific response.

The US organization that regulates taxation and collects tax filings.

A document detailing a new business’s operations,goals,management,costs, &financial projections

Creative works that can be used commercially; protected with a copyright, patent, or trademark

A first model of a new product that shows its style and capabilities

A business strategy that identifies potential risks & how the business will respond

Relative growth and decline of profit over the course of a business’s existence.

Something that is possible to achieve; realistic; viable.

Law that created the Social Security tax system that funds retirement accounts for US workers.

Shifting preferences in the market.

An official written statement sent to the news media so that it can be publicized.

Filtering survey respondents to ensure only those who match the customer profile are surveyed.

A type of insurance against loss of income due to becoming unable to work.

A list of the characteristics of one group of customers or potential customers.

To use intellectual property illegally w/o permission / license from the property rights owner.

A type of trademark used for designating a service company.

A strategy for returning to normal business operations after a risk event has occurred.

Collection of results from market research representing the opinions of the survey takers.

Public ownership of creative works, allowing anyone to use and modify the works freely.