ENT 101- EXAM 1 QUESTIONS AND
ANSWERS 100% CORRECT
Mice - ANSWER-20 people or less
Elephant - ANSWER-500 people or less
Gazelle - ANSWER-At least 20% sales growth every year with a starting base of at least
$100,000
Dogs - ANSWER-greater than 1% annual employment losses over 3 years
What constitutes a small business? - ANSWER-determined by the business' industrial
classification, maybe numbers of employees or revenues
Capital - ANSWER-money or property owned or used in business
Voluntary exchange - ANSWER-a transaction between two parties who agree to trade
money for a product or service
Opportunity cost - ANSWER-the value of what must be given up in order to obtain
something else
diversification - ANSWER-the addition of product or service offerings beyond a
business's core product or service
Exit strategies - ANSWER-Acquisition, Earn-out, Debt/equity exchange, merge
Licensing - ANSWER-renting your brand to increase sales
replication strategy - ANSWER-a way for a business to obtain money by letting others
copy its success formula for free
SBA classification - ANSWER-less than 500 employees or $6 million in average annual
receipts
Business success is one that: - ANSWER-profitable (now and in the future), maximize
shareholder wealth, creates and delights customers
Infancy - ANSWER-Getting doors open
ANSWERS 100% CORRECT
Mice - ANSWER-20 people or less
Elephant - ANSWER-500 people or less
Gazelle - ANSWER-At least 20% sales growth every year with a starting base of at least
$100,000
Dogs - ANSWER-greater than 1% annual employment losses over 3 years
What constitutes a small business? - ANSWER-determined by the business' industrial
classification, maybe numbers of employees or revenues
Capital - ANSWER-money or property owned or used in business
Voluntary exchange - ANSWER-a transaction between two parties who agree to trade
money for a product or service
Opportunity cost - ANSWER-the value of what must be given up in order to obtain
something else
diversification - ANSWER-the addition of product or service offerings beyond a
business's core product or service
Exit strategies - ANSWER-Acquisition, Earn-out, Debt/equity exchange, merge
Licensing - ANSWER-renting your brand to increase sales
replication strategy - ANSWER-a way for a business to obtain money by letting others
copy its success formula for free
SBA classification - ANSWER-less than 500 employees or $6 million in average annual
receipts
Business success is one that: - ANSWER-profitable (now and in the future), maximize
shareholder wealth, creates and delights customers
Infancy - ANSWER-Getting doors open
