Entrepreneurs
Which of these are characteristics of a successful entrepreneur mindset?
A. Likes to argue
B. Passive decision maker
C. Can tolerate risk
D. Poor record keeper
C. Can tolerate risk
What is an unmet consumer need?
A market gap
Which three characteristics help identify a business opportunity?
A. Marketing
B. Branding
C. Service
D. Price
E. Size
F. Quality
C. Service
D. Price
F. Quality
What is the equation for the balance sheet?
Assets = Liabilities + Stock Holders Equity
Define limited liability
a legal structure protecting business owners (shareholders or members) from being personally responsible for company debts or lawsuits
Which is one of the greatest benefits of being an entrepreneur?
A. Schedule Control
B. Quick Return on Investment
C. Meeting new people
D. Paying less taxes
A. Schedule Control
What is the division of a market into smaller segments?
Market Segmentation/ market segments
What is subject to reasonable efforts to maintain its secrecy, others cannot legitimately obtain the information, and information has economic value not generally known?
Trade Secret
If I have $500 Assets, and $200 in equity, how much do I have in liabilities?
$300
Assets = Liabilities + Equity
$500 = Liabilities + $200
$300 = Liabilities
You need to create a legal structure for your small business. You would like some of the benefits enjoyed by large corporations, but do not want to be taxed twice. You have four partners who will be shareholders. None of you plan to sell your ownership shares to the public, but do want to be protected from business liabilities. Which legal structure should you set up for your business?
A. Sole Proprietorship
B. C-Corporation
C. Limited Liability Company
D. S-Corporation
D. S-Corporation
You are weighing possible risk in becoming an entrepreneur. Which situation is a risk of being an entrepreneur?
A. Long hours
B. Financial instability
C. No control over schedule
D. Lack of initiative
B. Financial instability
A specific market segment you are focusing on for sales/marketing?
Target Market
Formula for revenue?
Revenue = Price X Quantity Sold
What is the equation for Profit?
Profit = Total Revenue - Total Expenses
What is a primary benefit of starting a new business without purchasing a franchise or buying an existing business?
A. Less record keeping
B. Developing your own rules
C. Lower financial risk
D. Less upfront capital
B. Developing your own rules
A computer training business needs to hire a consultant for a project to revamp the training courseware. Once the courseware is revamped, the consultant's services are complete. Which business compensation structure will pay the consultant and lead to the smallest payroll tax liability for the business?
A. Contract
B. Commission
C. Salary
D. Hourly
A. Contract
Niche Market
Which three components are characteristic of a Pitch Deck? (Choose three)
A. 10-100 pages
B. Used to get investor buy-in
C. Used to get investor attention
D. Highly text based
E. 10-20 slides
F. Highly visual
C. Used to get investor attention
E. 10-20 slides
F. Highly visual
What is the document that shows your ability to meet your obligations?
Cash Flow Statement
You need to create a legal structure for your small business. You have plans for it to grow and hope in the future to sell shares to the public. Your startup partners are citizens of Mexico and Japan. You do not want to be personally responsible for business liabilities. Which legal structure should you set up for your business?
A. LLC
B. S-Corporation
C. C-Corporation
D. Sole Proprietorship
C. C-Corporation
Which are two characteristics of direct distribution that differ from fulfillment centers? (Choose two)
A. Direct distribution is also known as zero level channel
B. The manufacturer controls all aspects of distribution
C. Packing and shipping is done by a third-party
D. Warehousing is outsourced
E. Inventory is stored for longer periods of time
A. Direct distribution is also known as zero level channel
B. The manufacturer controls all aspects of distribution
A cooking company wants to identify a target market for a new, AI-enabled toaster oven. Which types of behaviors are analyzed when defining a target market? (Choose two)
A. Organizational
B. Marketing
C. Geographic
D. Demographic
C. Geographic
D. Demographic
A nail salon pays $2500 in rent per month and each nail technicians get paid $20 per client visit. Supplies cost $500 per month. At 150 client visits per month, how much does the salon have to mark up each visit, percentage-wise, for to break even at the end of the month.
A. 25%
B. 200%
C. 100%
D. 50%
C. 100%
Expenses = $2500(rent) + $500(supplies) + (150*$20) = $6000
150 clients X price = $6000
price = $40
$40 is twice the technician cost of $20 so it's a 100% markup
Which statement shows your overall worth?
Balance Sheet
Franchise