1. Entrepreneurship Test Review 2012

2. 1 Buildings, equipment, tools, and other goods needed to produce a product, or the money used to purchase these items.

3. 1 Capital

4. 2 What does ROI stand for?

5. 2 Return On Investment

6. 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.

7. 1 Monopoly

8. 1 Buying goods from other countries to sell in your own country

9. 1 Importing

10. 2 The process used to test a business concept.

11. 2 Feasibility Analysis

12. 1 The money leftover after all the expenses of a business have been deducted from the income.

13. 1 Profit

14. 2 Point at which supply equals demand, neither leaving a surplus or a shortage.

15. 2 Equilibrium

16. 1 When demand is higher than supply. It allows businesses to increase prices.

17. 1 Scarcity

18. 2 The quantity of goods or services that consumers are willing and able to buy

19. 2 Demand

20. 1 Legal agreement to market a company’s products or services in a particular area.

21. 1 Franchise

22. 1 The process of getting into and operating one’s own business.

23. 1 Entrepreneurship

24. 2 Making goods in your own country and sending them to other countries

25. 2 Exporting

26. 1 When several businesses strive for the same customer or market.

27. 1 Competition

28. 2 Watchdog for consumers over products that may be hazardous.

29. 2 Consumer Product Safety Commission

30. 1 Protects the rights of employees age, race, color or national origin, religion, gender or physical challenge.

31. 1 Equal Employment Opportunity Commission

32. 1 Minimum wage and maximum working hours are identified. Children under 16 cannot work full-time except if employed by parents.

33. 1 Fair Labors Standard Act

34. 2 Ensures safe and healthy working conditions for employees.

35. 2 Occupational Safety & Health Act

36. 2 Requires manufacturers truthfully label products, showing all raw materials used in the production process.

37. 2 Fair Packaging and Labeling Act

38. 1 The specific market segment where all of a business’s activities are directed.

39. 1 Target Market

40. 2 Statistical data that describes a given market by criteria such as age, gender, and income.

41. 2 Demographics

42. 1 Statistical data that describes a given market by criteria such as personality, opinions, and lifestyle.

43. 1 Psychographics

44. 2 Study of the market based on where customers live by region, state, city, and/or area.

45. 2 Geographics

46. 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.

47. 1 Buying Characteristics

48. 2 Expresses specific goals for the company.

49. 2 Mission Statement

50. 2 This Association helps assist Americans in starting a business.

51. 2 Small Business Association (SBA)

52. 1 Businesses respond to scarcity in the marketplace by doing what?

53. 1 Increasing Prices

54. 2 This Act makes it illegal for businesses to create monopolies.

55. 2 Sherman Anti-Trust Act

56. 1 If you invested $20,000 and you want a 20% return on your investment, what would that amount be?

57. 1 $4,000

58. 2 Provides legal rights to market a large chain & company’s products in a specific geographic area.

59. 2 Franchise

60. 1 When new competitors enter a market and the supply of goods increases what happens to the price of that good?

61. 1 Price Decreases

62. 2 Individuals who undertake the creation, organization and ownership of a business.

63. 2 Entrepreneur

64. 1 Primary reason people start a business?

65. 1 Profit Motive

66. 2 It is important that when business owners are participating in business overseas that they watch the:

67. 2 Currency Exchange Rate

68. 1 Pricing that happens when consumers buy all products supplied leaving neither a surplus nor a shortage.

69. 1 Equilibrium Pricing

70. 2 It is considered what when you let your friends sneak into the movie for free if you are working at the movie theater.

71. 2 Unethical

72. 1 Consists of consumers commitment to repurchase or otherwise continue using the brand and can be demonstrated by repeated buying of a product.

73. 1 Brand Loyalty

74. 2 Evaluating a competitors product selection, quality, promotional activities and pricing policies provides info about their?

75. 2 Strengths and Weaknesse

76. 1 What a company must identify in order to sell goods or services.

77. 1 Target Market

78. 2 Data already collected

79. 2 Secondary Data

80. 1 Research collected for the first time and relates directly to the collector’s study.

81. 1 Primary Data

82. 2 A group of people whose opinions are studied to determine the opinions/buying preferences of a larger population.

83. 1 Focus Group

84. 2 2 women of different ages, different income levels & different levels of education buy the same coffee. What is this an example of?

85. 2 Niche Marketing

86. 1 Inventory used to keep storage space to a minimum and costs low.

87. 1 Perpetual Inventory

88. 2 No matter what type of inventory system a company uses they should periodically conduct a ?

89. 2 Physical Inventory count

90. 1 Picture of prospective customers

91. 2 Customer Profile

92. 1 Cheapest way to advertise a school event

93. 1 Flyers

94. 2 Advertising and Promotional activities are all considered what kind of expenses?

95. 2 Operating Expenses

96. 1 1 st Step in Market Research

97. 1 Identify Your Information Needs

98. 2 When people buy based on others’ opinions. What is this called?

99. 2 Buying Motives

100. 1 Joe is a manufacturer who exports 90% of his products overseas. When considering a location for his new site he needs to consider:

101. 1 Accessibility of distribution methods

102. 2 Tool used to show potential leaders your business idea

103. 2 Business Plan

104. 1 This is the amount added to the cost of items to cover expenses and ensure a profit

105. 1 Markup

106. 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

107. 1 A OSHA

108. 2 Expenses that change with each unit produced.

109. 2 Variable Expenses

110. 1 Of the 5 C’s of credit, which one refers to a business owner’s reputation for fair and ethical practices?

111. 1 Character

112. 2 What is 16% of $80,000?

113. 2 $12,800

114. 1 Shows a company what they are worth at a given time.

115. 1 Balance Sheet

116. 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?

117. 2 $200,000 - $130,000 - $40,000 = $30,000 Gross Profit

118. 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?

119. 1 $60

120. 2 Legal Entity that makes money for a reason other than the owners profit

121. 2 Non- Profit Organization

122. 1 If you invest $20,000 and want a return of 25% what would that be?

123. 1 $20,000 x.25 = $5,000

124. 2 Breaking down market into smaller groups

125. 2 Market Segmentation

126. 1 Marking up a product from $5 to $8 is what % markup? A.40% B.60% C.106% D.16%

127. 1 60%

128. 1 You borrow $50,000 at 8% interest for 5 years. How much is your monthly payment?

129. 1 $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 = $1,166.67 monthly payment

130. 2 If a company has more assets than liabilities what does it have?

131. 2 Net Income

132. 1 The part of the marketing mix (4 Ps) that deals with getting the product to the consumer is:

133. 1 Place

134. 1 All of the following give money to an entrepreneur BUT: A - Venture Capitalist B - Personal Savings C – Federal Reserve Bank D – Family & Friends

135. 1 C – Federal Reserve Bank

136. 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

137. 2 C. Strengths & Weaknesses

138. 1 Easiest form of business to create: A. Limited Partnership B. Corporation C. Subchapter C D. Sole Proprietorship

139. 1

140. 2 If a company owes $100,000 on its building, what section of a balance sheet do you put that on?

141. 2

142. 1 What is a disadvantage of owning your own business?

143. 1 You could lose your investment if the business fails.

144. 2 A Golf course and a Movie Theater compete for the same customers dollar. What kind of competition is this?

145. 2

146. 1 Entrepreneurs do not:

147. 1 Collect taxes from the government

148. 2 Wholesale cost of shoes is $50. What would they cost if you marked them up 100%?

150. 2 If a business owner wants to protect their personal assets what kind of business ownership should they have?

151. 2 Corporation

152. 1 Cabinet business selling to retailers should probably locate their business in a?

153. 1 Industrial Park

154. 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

155. 2