Entrepreneurship & Small Business v.2 - U.S. Practice Exam 2 with 100% correct answers

What are 2 characteristics that define a "small business"? Fewer than 1,500 employees. Less than $35.5 million in revenue What is the difference between a physical and a digital business? A physical business sells their goods and services on site. A digital business sells their goods and services online. What are the stages of a business life cycle? 1. Existence: Intro finally exists 2. Survival: Focus shifts to money 3. Success: Stable and profitable 4. Take-off: Expansion happens 5. Maturity: Business separates What are the elements of a design thinking process? 1. Empathize: Research your users needs 2. Define: State the needs 3. Ideate: Create Ideas 4. Prototype: Create solutions 5. Test: Try Solutions _____ multipage document. Answers choices: Pitch Deck, Lean Canvas, or Business Plan Business Plan _____ slide presentation Answers choices: Pitch Deck, Lean Canvas, or Business Plan Pitch Deck _____ single page summary Answers choices: Pitch Deck, Lean Canvas, or Business Plan Lean Canvas What are the Components of a Pitch Deck? Used to get Investors Attention 10-20 Slides Highly Visual What are 3 Factors used to Evaluate Fair Use Copyright? purpose of use effect of your use on the potential market of the work copied Amount of the work copied What is Direct competition? Same thing that your selling What is Indirect competition? Different selling but could work How do you find Sales Growth Percentage? revenue from last year - revenue from current year divided by sales revenue last year = __________ _________ x 100 = Sales Growth Percentage How do you find Customer Retention Cost? Customer at end - new customer acquired = number of retained customers bought/redeemed divided by Retained Customers What are the Segments in Marketing Plan? Demographic Psychographic Behavioral Geographic What are the Elements of a Sales Process? 1. Prospecting 2. Preparation 3. Approach 4. Presentation 5. Handling Objectives 6. Closing 7. Follow-up What does includes Product Quality Control Process? Reviewing the results of internal quality assurance testing Establish the method to use for testing product quality Determine what standards have to be met based on product and industry How do you find Projected Cash Ending Balance? (Initial Balance + Projected Revenue) - Projected Cash Balance What is start-up costs? Start-up is before the business is running. What is operating costs? Operating is to keep the business is running What is are 2 Benefits of an Angel Investor? Doesn't expect to be paid until the business makes money. Accept lower return on investment compared to other sources of equity capital What is a Characteristic of an Entrepreneur? Doesn't Give up What is a Risk of an Entrepreneur? Financial Instability What is a Product/Market Fit? Startups should determine and test their value hypothesis before they move on to growth hypothesis A fit exists when people need your product rather than just seeing a benefit of using the product When users love your product so much they tell other people to use it, you have product/market fit What is a example of a long term assets? Equipment What is a example of a short term assets? Inventory What is a example of a current liabilities? bank Loans