Flexibility - ANSWER Ability to adapt, willingness to change
Courage - ANSWER Takes risks in spite of possible losses
Empathy - ANSWER Sensitive to thoughts and feelings of others
What are three characteristics of entrepreneurs? - ANSWER Creativity, Determination,
Enthusiasm
After a self-assessment, a potential entrepreneur has learned that she has a very low risk tol-
erance. Based upon this finding, which approach might be less stressful for the entrepreneur
to have her own business? - ANSWER Buy an existing business that is already successful.
An entrepreneur moves into a small town and notices several stores selling guns and ammu-
nition. The entrepreneur loves to compete in competitive shooting events. Based on the sce-
nario provided, what should be emphasized in marketing to attract customers? - AN-
SWER Location
An entrepreneur has been working for a flooring business in a neighboring town. He feels he
is ready to open his own flooring business in his local community. Which should be empha-
sized in marketing to attract customers to his new business? - ANSWER Lower Prices
Which is one of the greatest benefits of entrepreneurship? - ANSWER Being your own
boss
1
,Which are three risks of entrepreneurship? - ANSWER Long hours, potential business fail-
ure, financial insecurity
Gabe has worked as a journeyman electrician for an employer for the past 16 years. He is
paid a good salary. His only dissatisfaction is the hours are long and often when he requests
time off he is denied because of customer workload.
Which benefit of entrepreneurship will Gabe most enjoy? - ANSWER Autonomy
What is a primary benefit of starting a new business without purchasing a franchise or buy-
ing an existing business? - ANSWER Developing your own rules
A mechanic just graduated from motorcycle repair school and wants to start a business be-
cause there is a lack of motorcycle repair shops in the local town. Given the facts provided,
which opportunity would be the best choice for the motorcycle mechanic to open a busi-
ness? - ANSWER Start a new business and invest $50,000 in modern diagnostic tools.
An entrepreneur who has a hobby in leathercraft wants to turn it into a business. She wants
to sell purses, belts, and other leathercrafts from her home. Which opportunity for starting a
leathercraft business would have the highest probability of success? - ANSWER Build an
online storefront
Based upon the education and skills gained from the years of vocational training as an auto
mechanic, as well as having grown up in a family of entrepreneurs, a young adult decides to
open an auto mechanic shop. Which customer group will this new auto mechanic business
support? - ANSWER Businesses
The owner of a pizza delivery business is seeking new customers. The owner has identified a
group of potential customers that have moved into some new housing within reaches of his
drivers. Which method of segmentation is the owner using? - ANSWER Geographic
A child daycare center needs to identify a value of proposition that will help parents feel se-
cure about using their services. Which two initiatives meets this objective? - ANSWER
2
, Providing live web cams parents can access from the Internet by using a secure logon. Offer-
ing a list of references from other parents
The owner of a pet daycare is presenting a plan to investors to expand the facility and prom-
ises the center will meet the needs of customers with a variety of schedules. What is a legiti-
mate value proposition for potential customers? - ANSWER Providing extended hours to
pickup and drop off pets before and after work
Which two groups benefit most from a well-written business plan? - ANSWER Business
owner
Investors
Which of the following should be addressed in the description section of a business plan? -
ANSWER Target Markets
Easy to setup, but has unlimited liability. - ANSWER Sole Proprietorship
Terminates upon death of a partner - ANSWER General or Limited Partnership
Double-taxed, but best for international businesses - ANSWER C Corporation
Similar to a C Corporation, but taxed at a lower rate - ANSWER S Corporation
Owned by no one; pays no U.S federal tax - ANSWER Nonprofit Corporation
Best for a single member seeking low risk - ANSWER Limited Liability Company
The partners of an awning repair shop are assessing the amount of money needed to start a
business at a new location. The partners have calculating that the business will generate
more than enough revenue to cover monthly expenses after its second month in operation.
3
Courage - ANSWER Takes risks in spite of possible losses
Empathy - ANSWER Sensitive to thoughts and feelings of others
What are three characteristics of entrepreneurs? - ANSWER Creativity, Determination,
Enthusiasm
After a self-assessment, a potential entrepreneur has learned that she has a very low risk tol-
erance. Based upon this finding, which approach might be less stressful for the entrepreneur
to have her own business? - ANSWER Buy an existing business that is already successful.
An entrepreneur moves into a small town and notices several stores selling guns and ammu-
nition. The entrepreneur loves to compete in competitive shooting events. Based on the sce-
nario provided, what should be emphasized in marketing to attract customers? - AN-
SWER Location
An entrepreneur has been working for a flooring business in a neighboring town. He feels he
is ready to open his own flooring business in his local community. Which should be empha-
sized in marketing to attract customers to his new business? - ANSWER Lower Prices
Which is one of the greatest benefits of entrepreneurship? - ANSWER Being your own
boss
1
,Which are three risks of entrepreneurship? - ANSWER Long hours, potential business fail-
ure, financial insecurity
Gabe has worked as a journeyman electrician for an employer for the past 16 years. He is
paid a good salary. His only dissatisfaction is the hours are long and often when he requests
time off he is denied because of customer workload.
Which benefit of entrepreneurship will Gabe most enjoy? - ANSWER Autonomy
What is a primary benefit of starting a new business without purchasing a franchise or buy-
ing an existing business? - ANSWER Developing your own rules
A mechanic just graduated from motorcycle repair school and wants to start a business be-
cause there is a lack of motorcycle repair shops in the local town. Given the facts provided,
which opportunity would be the best choice for the motorcycle mechanic to open a busi-
ness? - ANSWER Start a new business and invest $50,000 in modern diagnostic tools.
An entrepreneur who has a hobby in leathercraft wants to turn it into a business. She wants
to sell purses, belts, and other leathercrafts from her home. Which opportunity for starting a
leathercraft business would have the highest probability of success? - ANSWER Build an
online storefront
Based upon the education and skills gained from the years of vocational training as an auto
mechanic, as well as having grown up in a family of entrepreneurs, a young adult decides to
open an auto mechanic shop. Which customer group will this new auto mechanic business
support? - ANSWER Businesses
The owner of a pizza delivery business is seeking new customers. The owner has identified a
group of potential customers that have moved into some new housing within reaches of his
drivers. Which method of segmentation is the owner using? - ANSWER Geographic
A child daycare center needs to identify a value of proposition that will help parents feel se-
cure about using their services. Which two initiatives meets this objective? - ANSWER
2
, Providing live web cams parents can access from the Internet by using a secure logon. Offer-
ing a list of references from other parents
The owner of a pet daycare is presenting a plan to investors to expand the facility and prom-
ises the center will meet the needs of customers with a variety of schedules. What is a legiti-
mate value proposition for potential customers? - ANSWER Providing extended hours to
pickup and drop off pets before and after work
Which two groups benefit most from a well-written business plan? - ANSWER Business
owner
Investors
Which of the following should be addressed in the description section of a business plan? -
ANSWER Target Markets
Easy to setup, but has unlimited liability. - ANSWER Sole Proprietorship
Terminates upon death of a partner - ANSWER General or Limited Partnership
Double-taxed, but best for international businesses - ANSWER C Corporation
Similar to a C Corporation, but taxed at a lower rate - ANSWER S Corporation
Owned by no one; pays no U.S federal tax - ANSWER Nonprofit Corporation
Best for a single member seeking low risk - ANSWER Limited Liability Company
The partners of an awning repair shop are assessing the amount of money needed to start a
business at a new location. The partners have calculating that the business will generate
more than enough revenue to cover monthly expenses after its second month in operation.
3
