EEE 2023 - Introduction to
Entrepreneurship Chapter 6-10 Exam
2026 Questions and Answers
ASSUMPTIONS SHEET - Correct answer-An explanation in a new firm's
business plan of the sources of the numbers for its financial forecast and the
assumptions used to generate them.
BOARD OF ADVISORS - Correct answer-A panel of experts asked by a firm's
management to provide counsel and advice on an ongoing basis.
BOARD OF DIRECTORS - Correct answer-A panel of individuals who are elected
by a corporation's shareholders to oversee the management of the firm.
BUSINESS PLAN - Correct answer-A written document describing all the aspects
of a business venture, which is usually necessary to raise money and attract high
quality business partners.
COMPETITOR ANALYSIS - Correct answer-A detailed evaluation of a firm's
direct, indirect, and future competitors.
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,CONTRIBUTION MARGIN - Correct answer-The amount per unit of sale that is
left over and is available to contribute? to covering the firm's fixed costs and
producing a profit.
EXECUTIVE SUMMARY - Correct answer-A quick overview of the entire
business plan that provides a busy reader everything that he or she needs to know
about the distinctive nature of the new venture.
FIXED COSTS - Correct answer-The costs that a company incurs in operating a
business whether it sells something or not (e.g., overhead).
FULL BUSINESS PLAN - Correct answer-A document that spells out a company's
operations and plans in much more detail than a summary business plan; the format
that is usually used to prepare a business plan for an investor.
MARKET ANALYSIS - Correct answer-An analysis that breaks the industry into
segments and zeros in on the specific segment (or target market) to which the firm
will try to appeal.
MARKET SEGMENTATION - Correct answer-The process of studying the
industry in which a firm intends to compete to determine the different potential
target markets in that industry.
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,MARKETING STRATEGY - Correct answer-A firm's overall approach for
marketing its products and services.
MILESTONE - Correct answer-In a business plan context, a noteworthy event in
the past or future development of a business.
MISSION STATEMENT - Correct answer-A statement that describes why a firm
exists and what its business model is supposed to accomplish.
OPERATING LEVERAGE - Correct answer-An analysis of the firm's fixed costs
versus its variable costs.
OPERATIONAL BUSINESS PLAN - Correct answer-A blueprint for a company's
operations; primarily meant for an internal audience.
ORGANIZATIONAL CHART - Correct answer-A graphic representation of how
authority and responsibility are distributed within a company.
POSITION - Correct answer-How the entire company is situated relative to its
competitors.
PRODUCT PROTOTYPE - Correct answer-The first physical manifestation of a
new product, often in a crude or preliminary form.
PRO FORMA (OR PROJECTED) FINANCIAL STATEMENTS - Correct answer-
Statements that are at the heart of the financial section of a business plan.
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, RATIO ANALYSIS - Correct answer-Ratios showing the relationships between
items on a firm's financial statements that are used to discern whether a firm is
meeting its financial objectives and how it stacks up against industry peers.
SOURCES AND USES OF FUNDS STATEMENT - Correct answer-A document,
usually included in the financial section of a business plan, that lays out
specifically how much money a firm needs, where the money will come from, and
what the money will be used for.
SUMMARY BUSINESS PLAN - Correct answer-A business plan, 10 to 15 pages
long, that works best for companies very early in their development that are not
prepared to write a full plan.
TAGLINE - Correct answer-A phrase that is used consistently in a company's
literature, advertisements, promotions, stationery, and even invoices to develop and
to reinforce the position the company has staked out in its market.
VIRTUAL PROTOTYPE - Correct answer-A computer generated 3-D image of an
idea.
ARTICLES OF INCORPORATION - Correct answer-Documents forming a legal
corporation that are filed with the secretary of state's office in the state of
incorporation.
©COPYRIGHT 2025, ALL RIGHTS RESERVED 4
Entrepreneurship Chapter 6-10 Exam
2026 Questions and Answers
ASSUMPTIONS SHEET - Correct answer-An explanation in a new firm's
business plan of the sources of the numbers for its financial forecast and the
assumptions used to generate them.
BOARD OF ADVISORS - Correct answer-A panel of experts asked by a firm's
management to provide counsel and advice on an ongoing basis.
BOARD OF DIRECTORS - Correct answer-A panel of individuals who are elected
by a corporation's shareholders to oversee the management of the firm.
BUSINESS PLAN - Correct answer-A written document describing all the aspects
of a business venture, which is usually necessary to raise money and attract high
quality business partners.
COMPETITOR ANALYSIS - Correct answer-A detailed evaluation of a firm's
direct, indirect, and future competitors.
©COPYRIGHT 2025, ALL RIGHTS RESERVED 1
,CONTRIBUTION MARGIN - Correct answer-The amount per unit of sale that is
left over and is available to contribute? to covering the firm's fixed costs and
producing a profit.
EXECUTIVE SUMMARY - Correct answer-A quick overview of the entire
business plan that provides a busy reader everything that he or she needs to know
about the distinctive nature of the new venture.
FIXED COSTS - Correct answer-The costs that a company incurs in operating a
business whether it sells something or not (e.g., overhead).
FULL BUSINESS PLAN - Correct answer-A document that spells out a company's
operations and plans in much more detail than a summary business plan; the format
that is usually used to prepare a business plan for an investor.
MARKET ANALYSIS - Correct answer-An analysis that breaks the industry into
segments and zeros in on the specific segment (or target market) to which the firm
will try to appeal.
MARKET SEGMENTATION - Correct answer-The process of studying the
industry in which a firm intends to compete to determine the different potential
target markets in that industry.
©COPYRIGHT 2025, ALL RIGHTS RESERVED 2
,MARKETING STRATEGY - Correct answer-A firm's overall approach for
marketing its products and services.
MILESTONE - Correct answer-In a business plan context, a noteworthy event in
the past or future development of a business.
MISSION STATEMENT - Correct answer-A statement that describes why a firm
exists and what its business model is supposed to accomplish.
OPERATING LEVERAGE - Correct answer-An analysis of the firm's fixed costs
versus its variable costs.
OPERATIONAL BUSINESS PLAN - Correct answer-A blueprint for a company's
operations; primarily meant for an internal audience.
ORGANIZATIONAL CHART - Correct answer-A graphic representation of how
authority and responsibility are distributed within a company.
POSITION - Correct answer-How the entire company is situated relative to its
competitors.
PRODUCT PROTOTYPE - Correct answer-The first physical manifestation of a
new product, often in a crude or preliminary form.
PRO FORMA (OR PROJECTED) FINANCIAL STATEMENTS - Correct answer-
Statements that are at the heart of the financial section of a business plan.
©COPYRIGHT 2025, ALL RIGHTS RESERVED 3
, RATIO ANALYSIS - Correct answer-Ratios showing the relationships between
items on a firm's financial statements that are used to discern whether a firm is
meeting its financial objectives and how it stacks up against industry peers.
SOURCES AND USES OF FUNDS STATEMENT - Correct answer-A document,
usually included in the financial section of a business plan, that lays out
specifically how much money a firm needs, where the money will come from, and
what the money will be used for.
SUMMARY BUSINESS PLAN - Correct answer-A business plan, 10 to 15 pages
long, that works best for companies very early in their development that are not
prepared to write a full plan.
TAGLINE - Correct answer-A phrase that is used consistently in a company's
literature, advertisements, promotions, stationery, and even invoices to develop and
to reinforce the position the company has staked out in its market.
VIRTUAL PROTOTYPE - Correct answer-A computer generated 3-D image of an
idea.
ARTICLES OF INCORPORATION - Correct answer-Documents forming a legal
corporation that are filed with the secretary of state's office in the state of
incorporation.
©COPYRIGHT 2025, ALL RIGHTS RESERVED 4
