QUESTION The comprehensive analysis required in preparing a business plan can help an entrepreneur identify what critical factor related to success or failure in business? A) keeping good records B) adequate management skills C) credit D) government paperwork E) hiring good employees ANSWER Answer: B Explanation: B) Because a business plan requires detailed thinking […]
QUESTION In which type of business support do tax credits play a significant role? A) public stock offerings B) Small Business Administration loan guarantees C) enterprise zones D) supplier bartering arrangements E) peer-to-peer lending networks ANSWER Answer: C Explanation: C) In enterprise zones, governments try to encourage businesses to locate in a designated area […]
QUESTION Which of the following is NOT part of the business model for a proposed enterprise? A) the business operations B) anticipated revenues and expenses C) business components and functions D) market need to be filled E) qualifications of the owner ANSWER Answer: E Explanation: E) A business model defines the basic idea behind […]
QUESTION Which of the following funding sources is LEAST likely to require a business plan to make a decision on investing in a proposed business? A) venture capitalists B) banks and credit unions C) friends and associates D) angel investors E) peer-to-peer lending groups ANSWER Answer: C Explanation: C) Friends and associates are considered […]
QUESTION Tuan is eager to get his green toy manufacturing business started. But he is a very deliberate person and wants to be sure his strategy is sound. What is Tuan’s best option to accomplish this before going forward? A) join a toy manufacturing trade association B) map out his business model C) meet with […]
QUESTION Which source of financing often requires a business owner to put up a substantial amount of his or her personal funds to demonstrate commitment to the success of the operation? A) angel investors B) peer-to-peer lenders C) venture capitalists D) banks E) friends and family ANSWER Answer: D Explanation: D) Lenders often insist […]
QUESTION Which of the following is NOT covered in the business plan for a proposed service company? A) legal plan B) marketing plan C) management team D) manufacturing plan E) financing plan ANSWER Answer: D Explanation: D) Because a company that sells services does not create any tangible products, information on manufacturing is not […]
QUESTION What is the primary distinguishing characteristic of an ultralight startup? A) fewer than five employees B) low initial investment C) home-based operation D) Web-based operation E) bedouin management ANSWER Answer: B Explanation: B) Ultralight startups require very little initial capital and can help owners recoup their investment very quickly.
QUESTION Which of the following terms best describes the role of a mentor in starting a business? A) consultant B) coach C) employee D) investor E) trainer ANSWER Answer: B Explanation: B) A mentor is an experienced person who coaches and guides lesser-experienced people by helping them understand an industry culture or structure. Because […]
QUESTION The Dyson brand of vacuum cleaners emphasizes one key selling point in its advertisements: the product will never lose suction power over time, as other vacuums do. This reflects which of the following approaches to coming up with a business idea? A) adapt a product from one market to another market B) simplify an […]
