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36. Why do many new ventures fail during the first two years?
A. Too much profit
B. Inadequate market demandand poor planning
C. High employee satisfaction
D. Overinvestment in patents
B. Inadequate market demandand poor planning
Lean operations aim to:
A. Maximize output while minimizing waste
B. Increase costs
C. Eliminate all decision-making
D. Focus only on marketing
A. Maximize output while minimizing waste
60. In the startup phase, entrepreneurs should focus on:
A. Outsourcing leadership
B. Rapid scaling
C. Validating product-market fit
D. Employee stock distribution
C. Validating product-market fit
63. What is one key benefit of cross-training employees?
A. Reduces time spent in meetings
B. Eliminates the need for hiring
C. Guarantees immediate promotion
D. Increases flexibility and efficiency
D. Increases flexibility and efficiency
64. What’s the primary role of a pitch deck?
A. To organize payroll
B. To secure funding from investors
C. To onboard customers
D. To apply for licensing
B. To secure funding from investors
95. Which of the following best represents the concept of consideration in a contract?
A. A contract being written and witnessed by a notary public.
B. A mutual agreement to theterms by all parties involved.
C. The legal ability of the partiesto enter into a binding agreement.
D. Something of value exchanged between the parties, such as money for services
D. Something of value exchanged between the parties, such as money for services
84. Which statement best represents a breakeven point?
A. Where all profits begin
B. When fixed and variable costs are recovered by revenue
C. Total expenses exceed revenue
D. Sales cover only taxes
B. When fixed and variable costs are recovered by revenue
55. What is bootstrapping in entrepreneurship?
A. Taking out loans
B. Partnering with a major bank
C. Using limited internal funds and resources
D. Selling company shares early
C. Using limited internal funds and resources
76. Which type of business ownership provides limited liability but requires more documentation?
A. Corporation
B. General partnership
C. Sole proprietorship
D. Freelancer
A. Corporation
68. Which of the following most influences a startup’s ability to scale effectively?
A. A large HR department
B. A fixed pricing model
C. Systems and automation
D. Outsourced accounting
C. Systems and automation
9. Which of the following is an advantage of the jury of executive opinion method of sales forecasting:
A. It is based on the opinion of outside experts.
B. All opinions expressed carryequal weight.
C. It is a quick and easy method to use.
D. All opinions gathered are fromsales executives.
C. It is a quick and easy method to use.
Which pricing strategy involves setting prices based on customer perception rather than production cost?
A. Cost-plus pricing
B. Psychological pricing
C. Penetration pricing
D. Demand-based pricing
D. Demand-based pricing
57. Which financial ratio would help an investor evaluate a company’s ability to meet short-term obligations?
A. Debt-to-equity
B. Current ratio
C. Profit margin
D. ROI
B. Current ratio
83. The moment a customer signs a lease agreement for an apartment advertised at a specific price, what legal element of a contract has been satisfied?
A. Consideration
B. Acceptance
C. Capacity
D. Legality
B. Acceptance
74. What is the value proposition in a business model canvas?
A. Projected sales
B. Customer list
C. The unique benefit offered to customers
D. Financial goals
C. The unique benefit offered to customers
6. Calculate a business's cash receipts if it has $12,450 in sales, earns $78 in interest, collects $625 in sales tax, and owns $5,700 worth of equipment.
A. $13,153
B. $12,528
C. $18,853
D. $17,150
B. $12,528
19. Monitoring a strategy's underlying environmental and organizational assumptions to check for validity is the purpose of:
A. Strategic surveillance.
B. Premise control.
C. Special alert control.
D. Implementation control.
B. Premise control.
22. What is one key benefit of writing a business plan before launching a company?
A. It guarantees business success
B. It helps secure financing
C. It replaces financial statements
D. It eliminates risk
B. It helps secure financing
11. To decrease its unit costs, Marti Mart has entered into long-term contracts with some of its vendors and has agreed to buy in bulk. This is an example of:
A. marginal cost.
B. a tying agreement.
C. economies of scale.
D. the law of diminishing returns
C. economies of scale.
35. A company promises “24-hour response time” in its customer policy. What concept does this represent?
A. Public relations
B. Service level agreement
C. Brand positioning
D. Crisis management
B. Service level agreement