Take This Quiz To Learn About Business & Entrepreneurship Strategies

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Dibyendu007

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| Attempts: 13,122 | Questions: 30

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1. The Bolton Committee excluded franchises from its review of the UK small business sector. True / False?

True

False

The Bolton Committee, officially known as the Committee of Inquiry on Small Firms, which was established in 1971 to investigate the state of small firms in the UK, indeed excluded franchises from its review. The committee focused on independently owned and operated small businesses, distinguishing them from franchise operations which, while possibly small in size, operate under a larger parent company's brand and business model. This exclusion was based on the unique business structures and challenges faced by franchises compared to traditional independent small businesses.

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About This Quiz

Take This Quiz To Learn About Business & Entrepreneurship Strategies - Quiz

Entrepreneurship can be tough, but it needs lots of inspiration. If you want to learn more, we suggest you take this quiz to learn about business & entrepreneurship... see morestrategies. There're 30 questions covering the entire topic of the Entrepreneurship Development Course. All the questions are compulsory, so please attempt them very carefully. Your scores will be reflected once you've completed the quiz. We are confident that our quiz can help you learns something new. So, don't hesitate to share it with your friends and family. Sharing is caring!
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2. In the list below, there are four types of potential liabilities in a business, and one type of potential asset. Which is the potential asset?

Creditors

Intellectual property

Tax

Bank loan

Hire purchase agreement

The potential asset in a business from the given list is intellectual property. Intellectual property refers to intangible assets such as patents, trademarks, copyrights, and trade secrets that provide a competitive advantage and have the potential for generating income or value for the business. The other options mentioned, such as creditors, tax, bank loan, and hire purchase agreement, are all potential liabilities that the business may owe or have to pay.

Explanation

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3. Someone legally appointed to sell off the assets of a bankrupt firm is called

A Liquidator

An Auctioneer

A Terminator

A Management consultant

A Lawyer

A liquidator is someone who is legally appointed to sell off the assets of a bankrupt firm. They are responsible for distributing the proceeds from the sale of these assets to the firm's creditors. This process is known as liquidation, and the liquidator's role is to ensure that the assets are sold in a fair and transparent manner, maximizing the value for the creditors. They also handle any legal and administrative tasks related to the liquidation process. Therefore, a liquidator is the correct answer for someone appointed to sell off the assets of a bankrupt firm.

Explanation

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4. Innovation is really not much different from invention. True/False

True

False

Innovation and invention are not the same thing. While invention refers to the creation of something new or original, innovation refers to the process of implementing new ideas or improving existing ones to create value. Invention is the initial step in the innovation process, but innovation involves more than just coming up with new ideas. It involves the successful implementation and commercialization of these ideas to bring about positive change. Therefore, innovation and invention are distinct concepts.

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Property

Stock

Fixtures and fittings

Goodwill

Equipment

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6. The dominant design is always the best design available. True / False

True

False

The explanation for the answer "False" is that the dominant design is not necessarily always the best design available. While a dominant design may be widely adopted and accepted in a particular industry or market, it does not guarantee that it is the most optimal or innovative design. There may be alternative designs that offer better performance, efficiency, or user experience, but they have not yet gained widespread acceptance. Therefore, it is incorrect to assume that the dominant design is always the best design available.

Explanation

The explanation for the answer "False" is that the dominant design is not necessarily always the best design available. While a dominant design may be widely adopted and accepted in a particular industry or market, it does not guarantee that it is the most optimal or innovative design. There may be alternative designs that offer better performance, efficiency, or user experience, but they have not yet gained widespread acceptance. Therefore, it is incorrect to assume that the dominant design is always the best design available.

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7. Which of the following factors does the ‘macro-environment’ not include:

Political and regulatory factors

Customer needs in a given market

Social and demographic factors

Technological changes

Economic conditions

The macro-environment refers to external factors that impact an organization's business environment. These factors are beyond the control of the organization and include political and regulatory factors, social and demographic factors, technological changes, and economic conditions. Customer needs in a given market, however, are considered a part of the micro-environment, which includes factors that are more specific to the organization and its immediate market. Therefore, customer needs in a given market are not included in the macro-environment.

Explanation

The macro-environment refers to external factors that impact an organization's business environment. These factors are beyond the control of the organization and include political and regulatory factors, social and demographic factors, technological changes, and economic conditions. Customer needs in a given market, however, are considered a part of the micro-environment, which includes factors that are more specific to the organization and its immediate market. Therefore, customer needs in a given market are not included in the macro-environment.

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8.

Reputation

Customer base

Personal loan

Skill base

Experience

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Explanation

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9.

An administrator

A predator

An auditor

A turnaround consultant

A lawyer

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Explanation

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10.

A ‘white elephant’

A young buyer

A management buy-in

A management buy-out

A buy-in management buy-out

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11. Which of the following is a recognized disadvantage of setting up as a start-up as compared with other routes to market entry?

Less satisfaction of the owners

Less help from various agencies

The business starts with a clean sheet

There are more funds required

There is a high failure rate

Setting up a start-up compared to other routes to market entry has a recognized disadvantage of a high failure rate. This means that start-ups have a higher likelihood of not succeeding compared to other methods of entering the market.

Explanation

Setting up a start-up compared to other routes to market entry has a recognized disadvantage of a high failure rate. This means that start-ups have a higher likelihood of not succeeding compared to other methods of entering the market.

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12. Which of the following is least likely to influence the timing of new business births?

Government policies

Profitability

Interest rates

Consumer expenditure

Weather conditions

Weather conditions are least likely to influence the timing of new business births. While government policies, profitability, interest rates, and consumer expenditure can all have significant impacts on the business environment and affect the decision to start a new business, weather conditions are generally not a determining factor. Business births are more likely to be influenced by economic factors, market demand, and regulatory conditions rather than weather conditions.

Explanation

Weather conditions are least likely to influence the timing of new business births. While government policies, profitability, interest rates, and consumer expenditure can all have significant impacts on the business environment and affect the decision to start a new business, weather conditions are generally not a determining factor. Business births are more likely to be influenced by economic factors, market demand, and regulatory conditions rather than weather conditions.

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13.

The longer the franchise contract, the smaller the initial fee

The greater the reliance on the franchisor’s efforts and support, the higher the fee

Where ongoing fees are absent, it is usually the case that mar-ups or rebates on products supplied to franchisees substitute... Where ongoing fees are absent, it is usually the case that mar-ups or rebates on products supplied to franchisees substitute them.

Some ‘special’ fees may also be charged by the franchisor for services such as training in the use of new... Some ‘special’ fees may also be charged by the franchisor for services such as training in the use of new software

Well known brands tend to have higher minimum initial investments than other franchises

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Explanation

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14.

Franchising is a way of expanding a small business into a big business in a relatively short time

Franchisees tend to be under-motivated individuals not prepared to accept rewards in line with the results of their business

Franchising inevitably means loss of control compared to a conventional branch outlet

Failure of a single franchisee can do considerable damage to the reputation of the franchisor

5. Franchisees are becoming more organized as groups in their dealings with franchisors, Wimpy was the first major franchise in the... 5. Franchisees are becoming more organized as groups in their dealings with franchisors, Wimpy was the first major franchise in the UK, developed by J.Lyons and Company from 1956.

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15. Which of the following is not a legitimate way of bringing a new business idea to market?

A start-up

A business plan

A franchise

A buy-out

Buy-in

A business plan is not a legitimate way of bringing a new business idea to market. While a business plan is an essential tool for outlining the goals, strategies, and financial projections of a business, it is not a direct method of bringing the idea to market. Instead, a business plan is used to attract investors, secure funding, and guide the operations of the business once it is established. To bring a new business idea to market, one would typically choose options such as starting a new venture (start-up), purchasing an existing business (buy-out), or partnering with an established brand (franchise or buy-in).

Explanation

A business plan is not a legitimate way of bringing a new business idea to market. While a business plan is an essential tool for outlining the goals, strategies, and financial projections of a business, it is not a direct method of bringing the idea to market. Instead, a business plan is used to attract investors, secure funding, and guide the operations of the business once it is established. To bring a new business idea to market, one would typically choose options such as starting a new venture (start-up), purchasing an existing business (buy-out), or partnering with an established brand (franchise or buy-in).

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16.

Percentage of debt

Percentage of assets

Percentage of long term finance

Number of company vehicles

Number of company overheads

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Explanation

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17.

The generation of new ideas

The evolution of new ideas

The opposite of creativity

The successful exploitation of new ideas

The setting up of a new business

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Explanation

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18. Which of the following is not one of Peter Drucker’s ‘Seven Sources of Opportunity’:

The unexpected

The incongrous

Process need

New knowledge

Imagination

Imagination is not one of Peter Drucker's 'Seven Sources of Opportunity'. The seven sources of opportunity, according to Drucker, are the unexpected, the incongruous, process need, industry and market structure changes, demographic changes, changes in perception, and new knowledge. Imagination, although important for generating ideas and innovation, is not specifically mentioned as one of the sources of opportunity in Drucker's framework.

Explanation

Imagination is not one of Peter Drucker's 'Seven Sources of Opportunity'. The seven sources of opportunity, according to Drucker, are the unexpected, the incongruous, process need, industry and market structure changes, demographic changes, changes in perception, and new knowledge. Imagination, although important for generating ideas and innovation, is not specifically mentioned as one of the sources of opportunity in Drucker's framework.

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19.

Training consultancy

Vocational training

NGO

Agricultural smallholding

Manufacturing firm

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Explanation

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20.

Joint venture

Cooperative

Sole trader

Private limited company

Public limited company

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Explanation

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21.

Large firms are more likely to attract highly skilled specialists, often for R&D

Large firms are more able to employ patent and legal specialists

Large firms are more able to raise venture capital and spread risk

Large firms are more able to market existing products with comprehensive distribution and servicing networks

Large firms are more likely to come up with better ideas than small businesses

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22. What is the minimum total investment required for starting a McDonald’s franchise?

£10,000

£50,000

£100,000

£150,000

£250,000

The minimum total investment required for starting a McDonald's franchise is £150,000. This amount is necessary to cover the initial franchise fee, equipment costs, and other expenses associated with setting up a McDonald's restaurant. It is important to note that this is the minimum investment required and the actual cost may vary depending on factors such as location and size of the restaurant.

Explanation

The minimum total investment required for starting a McDonald's franchise is £150,000. This amount is necessary to cover the initial franchise fee, equipment costs, and other expenses associated with setting up a McDonald's restaurant. It is important to note that this is the minimum investment required and the actual cost may vary depending on factors such as location and size of the restaurant.

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23.

True

False

Somewhat true

Somewhat False

Not relevant

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24. Which of the following is not one of the ways in which an entrepreneur causes distinct changes in the market through the introduction of innovations:

The introduction of new products or services

The opening of a new market

The reverse-engineering of an existing product line

The carrying out of the new organisation of any industry

The introduction of a new method of production

The reverse-engineering of an existing product line is not one of the ways in which an entrepreneur causes distinct changes in the market through the introduction of innovations. Reverse-engineering involves analyzing and understanding an existing product to create a similar or improved version, but it does not necessarily lead to distinct changes in the market. The other options, such as introducing new products or services, opening new markets, organizing industries differently, and implementing new methods of production, all have the potential to bring about significant changes and innovations in the market.

Explanation

The reverse-engineering of an existing product line is not one of the ways in which an entrepreneur causes distinct changes in the market through the introduction of innovations. Reverse-engineering involves analyzing and understanding an existing product to create a similar or improved version, but it does not necessarily lead to distinct changes in the market. The other options, such as introducing new products or services, opening new markets, organizing industries differently, and implementing new methods of production, all have the potential to bring about significant changes and innovations in the market.

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25. There is more than one way to value a business. Which of the list below is not commonly used?

Market value of the assets

Wealth of the owner

Multiple of profits

Employee numbers

Legal cases against entreprenuer

The wealth of the owner is not commonly used to value a business because it is subjective and can vary greatly depending on the owner's personal financial situation and assets outside of the business. Valuing a business based on the market value of its assets, multiple of profits, or employee numbers provides more objective and standardized measures of the business's value. Legal cases against the entrepreneur are also not commonly used to value a business as they are specific to the individual and do not directly reflect the value of the business itself.

Explanation

The wealth of the owner is not commonly used to value a business because it is subjective and can vary greatly depending on the owner's personal financial situation and assets outside of the business. Valuing a business based on the market value of its assets, multiple of profits, or employee numbers provides more objective and standardized measures of the business's value. Legal cases against the entrepreneur are also not commonly used to value a business as they are specific to the individual and do not directly reflect the value of the business itself.

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26. Which of the following statements most accurately describes innovation:

Innovation is an absolute not a relative concept

Innovation is easy to measure

Innovation is much more important to small busineses than to large businesses

Innovation is a relative not an absolute concept

Innovation is nothing but thinking innovatively

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Explanation

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27.

Store retailing

Hotels and catering

Property services

Transport and vehicle services

Personal services

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Explanation

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28. The list below gives three possible advantages of buying a business and one potential disadvantage. Which is the potential disadvantage?

Overcomes barriers to entry

Not all my own work

Track record

Buys market share

All people are not recruited by me

The potential disadvantage of buying a business is that not all the work involved in running the business is done by the buyer. This means that the buyer may have to rely on existing employees or processes that they did not personally select or create.

Explanation

The potential disadvantage of buying a business is that not all the work involved in running the business is done by the buyer. This means that the buyer may have to rely on existing employees or processes that they did not personally select or create.

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29.

Market segmentation is a useful process for small businesses to undertake

Selling is essentially a matching process

A benefit is the value of a product feature to a customer

It is a good idea for small businesses to compete solely on price

Entrepreneurs usually care about the products or services they are producing and selling

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30.

Less likely than manufacturer innovation

More difficult to manage than other types of innovation

When the developer expects to benefit by using it

When the developer expects to benefit by selling it

Very unusual in small businesses

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Jan 01, 2010

Quiz Created by
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The Bolton Committee excluded franchises from its review of the UK...

In the list below, ...

Someone legally ...

Innovation is really not much different from invention. True/False

The dominant design is always the best design available. True / False

Which of the following factors does the ‘macro-environment’ not ...

Which of the ...

Which of the following is least likely to influence the timing of new ...

Which of the following is not a legitimate...

Which of the following is not one of Peter Drucker’s ‘Seven...

What is the minimum...

Which of the following is not one of the ways in which an...

There is more than ...

Which of the following statements most accurately describes...

The list below gives three possible advantages of buying a business...