Gmetrix Entrepreneurship & Small Business Practice Exam 1 Questions and Answers

What is Entrepreneurship? - Setting up a business with the aim to make a profit. You need to create a legal structure for your small business. You would like some of the benefits enjoyed by large corporations, but do not want to be taxed twice. You have four partners who will be shareholders. None of you plan to sell your ownership shares to the public, but do not want to be protected from business liabilities. Which legal structure should you set up for your business? - S-Corporation Successful entrepreneurs have mindsets that typically possess which three characteristics? - Responsibility, Adaptivity, and Tenacity Which is one of the greatest benefits of being an entrepreneur? - Schedule Control Which three characteristics help identify a business opportunity? - Service, Branding, and Quality The owner of a landscaping business has noticed that none of his competitors are including ponds or other water features in the gardens they create. The landscaper wants to determine the viability of his business opportunity. - Ask the customers in the are if they are interested in adding a water feature to their gardens. Which two documents summarize the business plan of a company? - Lean Canvas and a Pitch Deck Which three elements are required to have a trade secret? - Information has economic value not generally known, others cannot legitimately obtain the information, and subject to reasonable efforts to maintain it's secrecy. What is a target market? - Customers to whom a company wants to sell its products and services. Which two are offline marketing platforms? - TV ads and Flyers and Pamphlets Your company manufactures 72 hr. emergency kits and sells them for a low profit margin. You want to expand your customer base to increase your sales volume, but you have a limited budget. What marketing method would be the best choice? - Social Media A DJ wants to analyze reactions to the new music selections played at his dance last weekend. He advertises his weekly dances using social media and email. - Surveys A hair salon acquired 100 new customers last year. Costs in the marketing and sales areas were the following: Marketing Costs = $1,000 Sales Costs = $10,000 Salaries = $96,000 - $10