Entrepreneurship Test Review 2012

1 Buildings, equipment, tools, and other goods needed to produce a product, or the money used to purchase these items. Capital

2 What does ROI stand for? Return On Investment

1 A market that only has one producer, and has no competition. A company that has a monopoly is able to charge higher prices because consumers have nowhere else to go. Monopoly

1 Buying goods from other countries to sell in your own country Importing

2 The process used to test a business concept. Feasibility Analysis

1 The money leftover after all the expenses of a business have been deducted from the income. Profit

2 Point at which supply equals demand, neither leaving a surplus or a shortage. Equilibrium

1 When demand is higher than supply. It allows businesses to increase prices. Scarcity

2 The quantity of goods or services that consumers are willing and able to buy Demand

1 Legal agreement to market a company’s products or services in a particular area. Franchise

1 The process of getting into and operating one’s own business. Entrepreneurship

2 Making goods in your own country and sending them to other countries Exporting

1 When several businesses strive for the same customer or market. Competition

2 Watchdog for consumers over products that may be hazardous. Consumer Product Safety Commission

1 Protects the rights of employees age, race, color or national origin, religion, gender or physical challenge. Equal Employment Opportunity Commission

1 Minimum wage and maximum working hours are identified. Children under 16 cannot work full-time except if employed by parents. Fair Labors Standard Act

2 Ensures safe and healthy working conditions for employees. Occupational Safety & Health Act

2 Requires manufacturers truthfully label products, showing all raw materials used in the production process. Fair Packaging and Labeling Act

1 The specific market segment where all of a business’s activities are directed. Target Market

2 Statistical data that describes a given market by criteria such as age, gender, and income. Demographics

1 Statistical data that describes a given market by criteria such as personality, opinions, and lifestyle. Psychographics

2 Study of the market based on where customers live by region, state, city, and/or area. Geographic's

1 Customers will purchase products or services from companies they know or have experience with. Customers have knowledge of and personal experiences with the actual goods or services. Buying Characteristics

2 Expresses specific goals for the company. Mission Statement

2 This Association helps assist Americans in starting a business. Small Business Association (SBA)

1 Businesses respond to scarcity in the marketplace by doing what? Increasing Prices

2 This Act makes it illegal for businesses to create monopolies. Sherman Anti-Trust Act

1 If you invested $20,000 and you want a 20% return on your investment, what would that amount be? $4,000

2 Provides legal rights to market a large chain & company’s products in a specific geographic area. Franchise

1 When new competitors enter a market and the supply of goods increases what happens to the price of that good? Price Decreases

2 Individuals who undertake the creation, organization and ownership of a business. Entrepreneur

1 Primary reason people start a business? Profit Motive

2 It is important that when business owners are participating in business overseas that they watch the: Currency Exchange Rate

1 Pricing that happens when consumers buy all products supplied leaving neither a surplus nor a shortage. Equilibrium Pricing

2 It is considered what when you let your friends sneak into the movie for free if you are working at the movie theater. Unethical

1 Consists of consumers commitment to repurchase or otherwise continue using the brand and can be demonstrated by repeated buying of a product. Brand Loyalty

2 Evaluating a competitors product selection, quality, promotional activities and pricing policies provides info about their? Strengths and Weaknesses

1 What a company must identify in order to sell goods or services. Target Market

2 Data already collected Secondary Data

1 Research collected for the first time and relates directly to the collector’s study. Primary Data

2 A group of people whose opinions are studied to determine the opinions/buying preferences of a larger population. Focus Group

2 2 women of different ages, different income levels & different levels of education buy the same coffee. What is this an example of? Niche Marketing

1 Inventory used to keep storage space to a minimum and costs low. Perpetual Inventory

2 No matter what type of inventory system a company uses they should periodically conduct a ? Physical Inventory count

1 Picture of prospective customers Customer Profile

1 Cheapest way to advertise a school event Flyers

2 Advertising and Promotional activities are all considered what kind of expenses? Operating Expenses

1 1 st Step in Market Research Identify Your Information Needs

2 When people buy based on others’ opinions. What is this called? Buying Motives

1 Joe is a manufacturer who exports 90% of his products overseas. When considering a location for his new site he needs to consider: Accessibility of distribution methods

2 Tool used to show potential leaders your business idea Business Plan

1 This is the amount added to the cost of items to cover expenses and ensure a profit Markup

1 Government Agencies that assist entrepreneurs in starting their own businesses include all of the following except: A OSHA B Chamber of Commerce C State Governments D SBA A OSHA

2 Expenses that change with each unit produced. Variable Expenses

1 Of the 5 C’s of credit, which one refers to a business owner’s reputation for fair and ethical practices? Character

2 What is 16% of $80,000? $12,800

1 Shows a company what they are worth at a given time. Balance Sheet

2 Jackie spent $130,000 on her goods and had net sales of $200,000 and expenses of $40,000. What is her Gross Profit? $200,000 - $130,000 - $40,000 = $30,000 Gross Profit

1 If you sell designer handbags at $300 and you want to give a customer a 20% discount how much would you take off the price? $60

2 Legal Entity that makes money for a reason other than the owners profit Non- Profit Organization

1 If you invest $20,000 and want a return of 25% what would that be? $20,000 x.25 = $5,000

2 Breaking down market into smaller groups Market Segmentation

1 Marking up a product from $5 to $8 is what % markup? A.40% B.60% C.106% D.16% 60%

1 You borrow $50,000 at 8% interest for 5 years. How much is your monthly payment? $50,000 x.08 = $4,000 interest per year $4,000 x 5 years = $20,000 $50,000 + $20,000 = $70,000 total to repay over 5 years 5 years = 60 months $70,000 / 60 = $1, monthly payment

2 If a company has more assets than liabilities what does it have? Net Income

1 The part of the marketing mix (4 Ps) that deals with getting the product to the consumer is: Place

1 All of the following give money to an entrepreneur BUT: A - Venture Capitalist B - Personal Savings C – Federal Reserve Bank D – Family & Friends C – Federal Reserve Bank

2 Evaluating a competitors product selection, quality, promotional activities & pricing policies gives you information about their? A.Intent to sell B.Income Statement C.Strengths & Weaknesses D.Buying Characteristics C. Strengths & Weaknesses

1 Easiest form of business to create: A. Limited Partnership B. Corporation C. Subchapter C D. Sole Proprietorship

2 If a company owes $100,000 on its building, what section of a balance sheet do you put that on? Liabilities Section

1 What is a disadvantage of owning your own business? You could lose your investment if the business fails.

2 A Golf course and a Movie Theater compete for the same customers dollar. What kind of competition is this? Indirect Competition

1 Entrepreneurs do not: Collect taxes from the government

2 Wholesale cost of shoes is $50. What would they cost if you marked them up 100%? $100

2 If a business owner wants to protect their personal assets what kind of business ownership should they have? LLC (LIMITED LIABILITY COMPANY)

1 Cabinet business selling to retailers should probably locate their business in a? Industrial Park

2 Government’s role in business does everything EXCEPT: A. Provide subsidies to select groups B. determine supply & demand in the marketplace C. purchase large amounts of goods & services D. collect retail sales taxes