ENTREPRENEURSHIP AND SMALL BUSINESS TEST 3
UPDATED ACTUAL QUESTIONS AND CORRECT
ANSWERS
Question:
1. Which characteristic would be beneficial to an entrepreneur?
Answer:
Doesnt give up easily
Question:
2. What are three characteristics of entrepreneurs?
Answer:
Disciplined, honest, responsible
Question:
3. How would a perspective entrepreneur benefit from a personality self-assessment?
Answer:
It can identify strengths and weaknesses in the entrepreneurs leadership style
Question:
4. Which variable should be used by the automotive mechanic to attract these customers?
Answer:
Speed of service
Question:
5. Which choice should the entrepreneur make based on this failure?
Answer:
The entrepreneur should evaluate why the business failed and identify the strengths and weaknesses of the
business.
Question:
6. Which are the two greatest entrepreneurial risks being taken to start this business?
Answer:
Financial uncertainty, loss of free time
Question:
7. Which are three rewards of entrepreneurship?
Answer:
Doing work your way, potential for greater wealth, helping the community
Question:
8. Match each business opportunity to its associated benefit and drawback
, Answer:
Buy a franchise - benefit:branding success Start a new business - benefit:build your own way Buy and
existing business - benefit: has customers
Question:
9. Which are three reasons to buy a franchise instead of starting a business from scratch?
Answer:
Exclusive geographic area, proven system, easier financing
Question:
10. Which two questions should the painter research?
Answer:
How many competitors are in the area? What are the spending patterns of potential customers in the area?
Question:
11. Which cruise add on should be promoted from a revenue perspective?
Answer:
Shore excursions
Question:
12. Which method of segmentation is the owner using?
Answer:
Behavioral
Question:
13. Match each method of segmentation to its potential customers
Answer:
Psychographic-home owners with but lifestyles that don't have time to clean Behavioral- home owners
who are looking for promotions and discounts Demographic- home owners with higher incomes
Geographic- home owners who live in neighborhoods
Question:
14. Match each primary target audience with its type of business plan
Answer:
Investors- executive summary Investors- oral presentation Investors- investors business plan Business
owner- operational business plan
Question:
15. What is the primary drawback of a sole proprietorship?
Answer:
Unlimited liability
Question:
16. Based on he estimates provided by the entrepreneur, will the bank approve her loan?
Answer:
No, because her debt ratio is too high
UPDATED ACTUAL QUESTIONS AND CORRECT
ANSWERS
Question:
1. Which characteristic would be beneficial to an entrepreneur?
Answer:
Doesnt give up easily
Question:
2. What are three characteristics of entrepreneurs?
Answer:
Disciplined, honest, responsible
Question:
3. How would a perspective entrepreneur benefit from a personality self-assessment?
Answer:
It can identify strengths and weaknesses in the entrepreneurs leadership style
Question:
4. Which variable should be used by the automotive mechanic to attract these customers?
Answer:
Speed of service
Question:
5. Which choice should the entrepreneur make based on this failure?
Answer:
The entrepreneur should evaluate why the business failed and identify the strengths and weaknesses of the
business.
Question:
6. Which are the two greatest entrepreneurial risks being taken to start this business?
Answer:
Financial uncertainty, loss of free time
Question:
7. Which are three rewards of entrepreneurship?
Answer:
Doing work your way, potential for greater wealth, helping the community
Question:
8. Match each business opportunity to its associated benefit and drawback
, Answer:
Buy a franchise - benefit:branding success Start a new business - benefit:build your own way Buy and
existing business - benefit: has customers
Question:
9. Which are three reasons to buy a franchise instead of starting a business from scratch?
Answer:
Exclusive geographic area, proven system, easier financing
Question:
10. Which two questions should the painter research?
Answer:
How many competitors are in the area? What are the spending patterns of potential customers in the area?
Question:
11. Which cruise add on should be promoted from a revenue perspective?
Answer:
Shore excursions
Question:
12. Which method of segmentation is the owner using?
Answer:
Behavioral
Question:
13. Match each method of segmentation to its potential customers
Answer:
Psychographic-home owners with but lifestyles that don't have time to clean Behavioral- home owners
who are looking for promotions and discounts Demographic- home owners with higher incomes
Geographic- home owners who live in neighborhoods
Question:
14. Match each primary target audience with its type of business plan
Answer:
Investors- executive summary Investors- oral presentation Investors- investors business plan Business
owner- operational business plan
Question:
15. What is the primary drawback of a sole proprietorship?
Answer:
Unlimited liability
Question:
16. Based on he estimates provided by the entrepreneur, will the bank approve her loan?
Answer:
No, because her debt ratio is too high
