Entrepreneurship Midterm Quiz: Exam!
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In the world today, getting an employment opportunity is a little hard, and people try to open new businesses that will give others the chance to work. The process through which one does this is called entrepreneurship, and many wrong beliefs surround it. Take this entrepreneurship and review what you have learned before the midterms. All the best!
Questions and Answers
- 1.
Small business is the foundation for all businesses.
- A.
True
- B.
False
Correct Answer
A. TrueExplanation
Small businesses are often considered the foundation for all businesses because they play a crucial role in driving economic growth and creating job opportunities. They contribute to innovation, competition, and diversity in the market. Small businesses also serve as a breeding ground for entrepreneurs who may later establish larger enterprises. Therefore, acknowledging small businesses as the foundation for all businesses is a recognition of their significant impact on the overall economy.Rate this question:
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- 2.
Fifty percent of businesses fail within the first four years.
- A.
True
- B.
False
Correct Answer
A. TrueExplanation
The statement is true because statistically, it has been found that around 50% of businesses do indeed fail within the first four years of operation. This could be due to various reasons such as lack of market demand, insufficient capital, poor management, or intense competition. Starting a business is a challenging endeavor, and many new ventures struggle to survive and sustain themselves in the initial years.Rate this question:
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- 3.
A small business start-up is designed to take advantage of the skills of the founder or founders.
- A.
True
- B.
False
Correct Answer
A. TrueExplanation
A small business start-up is typically created by individuals who possess specific skills or expertise in a particular field. These skills and expertise are often the driving force behind the start-up's success and are utilized to establish and grow the business. Therefore, it can be inferred that a small business start-up is indeed designed to take advantage of the skills of the founder or founders.Rate this question:
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- 4.
One major aspect of a small business plan, it allows the owner to put information down in writing allowing for evaluation and honest analysis.
- A.
True
- B.
False
Correct Answer
A. TrueExplanation
A small business plan is important because it provides a written document that allows the owner to evaluate and analyze their business objectively. By putting information down on paper, it becomes easier to assess the strengths, weaknesses, opportunities, and threats to the business. This written plan also helps in setting goals, making strategic decisions, and tracking progress over time. Overall, having a small business plan facilitates a more systematic and thoughtful approach to managing and growing a business.Rate this question:
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- 5.
Small-business growth is important in the United States and the world.
- A.
True
- B.
False
Correct Answer
A. TrueExplanation
Small-business growth is indeed important in the United States and the world. Small businesses play a crucial role in driving economic growth, creating jobs, fostering innovation, and contributing to local communities. They often serve as the backbone of the economy, providing opportunities for entrepreneurship and contributing to overall economic development. Therefore, it is true that small-business growth is important.Rate this question:
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- 6.
The Fortune 500 companies employ _________________ employees than ten years ago.
- A.
More
- B.
Same
- C.
Fewer
- D.
Younger
Correct Answer
C. FewerExplanation
The correct answer is "fewer" because it indicates a decrease in the number of employees compared to ten years ago.Rate this question:
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- 7.
A customer of a small business could be considered an important stakeholder to the success of a company.
- A.
True
- B.
False
Correct Answer
A. TrueExplanation
A customer of a small business is considered an important stakeholder because they have a direct impact on the success of the company. Customers provide revenue through their purchases, which is crucial for the financial stability and growth of the business. Additionally, satisfied customers can become loyal advocates, spreading positive word-of-mouth and attracting new customers. Therefore, it is important for a small business to prioritize customer satisfaction and meet their needs in order to thrive and succeed.Rate this question:
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- 8.
A small business’ harvest plan is to put the profits back into the company.
- A.
True
- B.
False
Correct Answer
A. TrueExplanation
The statement suggests that a small business intends to reinvest its profits back into the company. This indicates that the business plans to use its profits for further growth and expansion rather than distributing them to shareholders or owners. This approach is common for small businesses that are in their early stages and prioritize reinvesting in the company's operations, infrastructure, and development. By reinvesting profits, the business aims to fuel its growth and increase its chances of long-term success.Rate this question:
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- 9.
Individuals or other organizations that impact the success of a business are called:
- A.
Corporate Managers
- B.
Capitalists
- C.
Stakeholders
- D.
Owners
Correct Answer
C. StakeholdersExplanation
Stakeholders are individuals or other organizations that have an interest or influence in the success of a business. They can include employees, customers, suppliers, shareholders, and the local community. Stakeholders have a stake in the business and can affect or be affected by its actions and decisions. They may have different expectations and objectives, such as financial returns, job security, or environmental sustainability. By considering and managing the needs and interests of stakeholders, businesses can build positive relationships and enhance their long-term success.Rate this question:
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- 10.
The largest group of new business owners is ______________.
- A.
Hispanics
- B.
Retired men
- C.
Women
- D.
Asians
Correct Answer
C. WomenExplanation
The largest group of new business owners is women. This suggests that there has been a significant increase in female entrepreneurship and empowerment in recent years. Women are breaking barriers and venturing into the business world, contributing to economic growth and creating opportunities for themselves and others. This trend reflects the progress towards gender equality and the recognition of women's skills and capabilities in the business sector.Rate this question:
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- 11.
Small business resources are more ____________ than large firms.
- A.
Plentiful
- B.
Constrained
- C.
Restrianed
- D.
Inverse ratio
Correct Answer
B. ConstrainedExplanation
Small business resources are more constrained than large firms. This means that small businesses have limited access to resources such as capital, manpower, and technology compared to larger firms. Due to their limited size and scale, small businesses often face challenges in acquiring and managing resources effectively. This constraint can impact their ability to grow and compete in the market, making it harder for them to expand and succeed.Rate this question:
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- 12.
A small business owner’s relationships with key suppliers and customers are of relatively little importance in a business’ success.
- A.
True
- B.
False
Correct Answer
B. FalseExplanation
The statement is false because a small business owner's relationships with key suppliers and customers are actually very important in a business' success. Suppliers provide the necessary resources and materials for the business to operate, while customers provide the revenue and demand for the business' products or services. Building strong relationships with suppliers can ensure timely and reliable delivery of goods, while maintaining good relationships with customers can lead to repeat business and positive word-of-mouth referrals. These relationships contribute significantly to the success and growth of a small business.Rate this question:
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- 13.
The most important person in a small business is the founder.
- A.
True
- B.
False
Correct Answer
A. TrueExplanation
The founder of a small business is considered the most important person because they are the one who initially conceptualized and established the business. They are responsible for creating the vision, setting goals, and making critical decisions that shape the direction of the company. The founder's passion, dedication, and leadership are crucial in driving the success of the business and influencing its culture. Additionally, the founder often possesses the unique knowledge and expertise that contributed to the business's creation, making them an invaluable asset to the company's growth and development.Rate this question:
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- 14.
One advantage that a large firm has over a small firm is economies of scale.
- A.
True
- B.
False
Correct Answer
A. TrueExplanation
A large firm has the advantage of economies of scale, which means that as the firm produces more goods or services, the average cost of production decreases. This is because the fixed costs of production, such as machinery or infrastructure, are spread over a larger output. Therefore, a large firm can produce goods or services at a lower cost per unit compared to a small firm, giving it a competitive advantage in terms of pricing and profitability.Rate this question:
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- 15.
The owner must be aware of his own tolerance of risk and establish a business that is consistent with that tolerance.
- A.
True
- B.
False
Correct Answer
A. TrueExplanation
The statement is true because the owner's tolerance of risk is a crucial factor in determining the type and scale of business they should establish. Every business venture involves some level of risk, whether it is financial, operational, or market-related. If the owner has a low tolerance for risk, they are more likely to choose a business with stable and predictable returns, such as a franchise or a proven business model. On the other hand, if the owner has a higher tolerance for risk, they may be more inclined to pursue innovative and potentially high-growth ventures. Ultimately, aligning the business with the owner's risk tolerance increases the chances of success and reduces the likelihood of encountering undue stress or financial strain.Rate this question:
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- 16.
Starting a new business could result from a particular event or condition within an individual's environment.
- A.
True
- B.
False
Correct Answer
A. TrueExplanation
Starting a new business can indeed result from a particular event or condition within an individual's environment. This is because various factors such as market opportunities, personal aspirations, financial stability, or changes in the industry can influence someone to take the entrepreneurial path. For example, an individual may identify a gap in the market or witness a change in consumer behavior, prompting them to start a business to capitalize on these circumstances. Additionally, personal circumstances like job loss or dissatisfaction can also drive someone to start their own business. Therefore, the statement is true.Rate this question:
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- 17.
Established businesses may be hesitant about buying from a start-up small business.
- A.
True
- B.
False
Correct Answer
A. TrueExplanation
Established businesses may be hesitant about buying from a start-up small business because they may perceive it as a risk. Start-ups typically have limited resources, a shorter track record, and may not have established a strong reputation in the market. This lack of credibility and stability can make established businesses hesitant to engage in business transactions with start-ups. Additionally, established businesses may prefer to work with larger, more established companies that have a proven track record of delivering quality products or services.Rate this question:
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- 18.
Family members are in a unique position to keep an individual focused on pursuing the wrong approach to an issue.
- A.
True
- B.
False
Correct Answer
B. FalseExplanation
Family members can certainly have an influence on an individual's decisions and actions, but it is not accurate to say that they are in a unique position to keep someone focused on pursuing the wrong approach to an issue. Other people, such as friends, colleagues, or mentors, can also have a significant impact on an individual's mindset and choices. Additionally, individuals have their own agency and can make their own decisions, regardless of any external influences. Therefore, it is incorrect to say that family members are uniquely responsible for keeping someone focused on the wrong approach.Rate this question:
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- 19.
All of these are advantages for a small business except:
- A.
Respond quickly to changes
- B.
Owned and run by the same person
- C.
Economies of sale
- D.
Greater flexibility
Correct Answer
C. Economies of saleExplanation
The term "economies of sale" is not a commonly used term in business. It is likely a typo or error in the question. The correct term should be "economies of scale," which refers to cost advantages that a business can achieve as it increases production and expands its operations. Small businesses typically do not have the same level of economies of scale as larger businesses, so this is not an advantage for them.Rate this question:
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- 20.
____________________ states that individuals act to maximize their own individual benefit.
- A.
Individual benefit theory
- B.
Organizational benefit theory
- C.
Self fulfilling prophesy
- D.
Agency theory
Correct Answer
D. Agency theoryExplanation
Agency theory states that individuals act to maximize their own individual benefit. This theory suggests that individuals, known as agents, are motivated by self-interest and will act in a way that maximizes their own utility. In the context of organizations, agency theory explains the relationship between principals (such as shareholders or owners) and agents (such as managers or employees). It suggests that agents may not always act in the best interest of the principals, leading to conflicts of interest. Therefore, agency theory recognizes the importance of aligning the interests of principals and agents to achieve organizational goals.Rate this question:
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- 21.
The potential entrepreneur needs to consider ____________ when starting a new business.
- A.
Risk tolerence
- B.
Prior experience
- C.
Personality orientation
- D.
All of these answers are correct
Correct Answer
D. All of these answers are correctExplanation
When starting a new business, the potential entrepreneur needs to consider all of these factors. Risk tolerance is important as starting a business involves taking risks and being able to handle uncertainty. Prior experience is also crucial as it provides knowledge and skills that can be applied to the new venture. Additionally, personality orientation plays a role in determining the entrepreneur's ability to handle challenges, make decisions, and adapt to changes. Considering all these factors together is essential for a potential entrepreneur to increase their chances of success.Rate this question:
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- 22.
The term for when a new business has reached a level where revenue coming into the firm is sufficient to cover expenses:
- A.
Equal financial ratio
- B.
No risk level
- C.
Risk tolerance
- D.
Break-even point
Correct Answer
D. Break-even pointExplanation
The break-even point refers to the stage in a new business where the revenue generated is enough to cover all the expenses incurred. At this point, the business is neither making a profit nor incurring a loss. It signifies the point at which the business starts to become financially sustainable and can cover its costs. This is an important milestone for any new business as it indicates that it has achieved a level of stability and can potentially start generating profits in the future.Rate this question:
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- 23.
When should an owner ensure there are sufficient financial resources to operate the business?
- A.
Prior to the start
- B.
Opening day
- C.
First payroll
- D.
Six month review
Correct Answer
A. Prior to the startExplanation
An owner should ensure there are sufficient financial resources to operate the business prior to the start. This is because having enough funds from the beginning allows the owner to cover initial expenses such as setting up the infrastructure, purchasing equipment, and hiring staff. It also provides a buffer for any unexpected costs or delays that may arise during the early stages of the business. By ensuring financial resources are in place before starting the business, the owner can avoid potential financial difficulties and ensure a smooth launch.Rate this question:
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- 24.
The small business owner must have the necessary skills and must understand the marketplace.
- A.
True
- B.
False
Correct Answer
A. TrueExplanation
In order for a small business to succeed, the owner must possess the necessary skills and have a good understanding of the marketplace. Without the required skills, the owner may struggle to effectively manage and operate the business. Additionally, understanding the marketplace is crucial for identifying and targeting the right customers, adapting to market trends, and making informed business decisions. Therefore, it is true that a small business owner must have the necessary skills and understand the marketplace to be successful.Rate this question:
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- 25.
Large firms can respond more quickly to changes around them and fill niches better than small businesses.
- A.
True
- B.
False
Correct Answer
B. FalseExplanation
Large firms often have more bureaucratic structures and decision-making processes, which can slow down their ability to respond quickly to changes in the market. On the other hand, small businesses are often more agile and flexible, allowing them to adapt and take advantage of opportunities more swiftly. Additionally, small businesses can often specialize and focus on specific niches, allowing them to serve those markets more effectively than larger firms. Therefore, it can be argued that small businesses have an advantage in responding quickly to changes and filling niches better than large firms.Rate this question:
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- 26.
Many new businesses are formed as a result of an entrepreneur's previous work experience.
- A.
True
- B.
False
Correct Answer
A. TrueExplanation
It is true that many new businesses are formed as a result of an entrepreneur's previous work experience. This is because entrepreneurs often identify gaps or opportunities in the market based on their knowledge and understanding of the industry they have worked in. Their previous work experience provides them with the necessary skills, expertise, and network to start and grow a successful business. Additionally, their experience allows them to learn from past mistakes and make informed decisions, increasing the chances of their business's success.Rate this question:
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- 27.
New businesses are more likely to be successful when an entrepreneur creates a product or service before there is a need in the marketplace.
- A.
True
- B.
False
Correct Answer
B. FalseExplanation
The statement is false because new businesses are more likely to be successful when an entrepreneur identifies a need in the marketplace and creates a product or service to fulfill that need. Creating a product or service before there is a need may result in a lack of demand and potential failure. It is important for entrepreneurs to conduct market research and understand the needs and preferences of their target customers before launching a new business.Rate this question:
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- 28.
A potential owner must be realistic about its competitors in products and the volume of sales.
- A.
True
- B.
False
Correct Answer
A. TrueExplanation
Being realistic about competitors and sales volume is crucial for a potential owner because it allows them to understand the market dynamics and make informed decisions. By acknowledging the competition, they can identify their unique selling points and develop strategies to stand out. Additionally, understanding the sales volume helps in setting realistic goals, budgeting, and forecasting revenue. Ignoring these factors can lead to unrealistic expectations and poor business planning, which may result in failure. Therefore, it is important for a potential owner to be realistic about competitors and sales volume.Rate this question:
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- 29.
One of the greatest risks to a new business is fast growth.
- A.
True
- B.
False
Correct Answer
A. TrueExplanation
Fast growth can pose significant risks to a new business. While growth is typically seen as a positive outcome, it can also lead to challenges such as inadequate resources, cash flow issues, inability to meet customer demands, and increased competition. Without proper planning and management, fast growth can overwhelm a new business and potentially lead to its downfall. Therefore, it is important for entrepreneurs to carefully consider the potential risks associated with rapid expansion and ensure they have the necessary strategies in place to handle such growth effectively.Rate this question:
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- 30.
An example of an idea for a new startup from a hobby is _________________.
- A.
A sports card collector who bought and sold cards for a year to build a personal collection, deciding to become a sports card dealer.
- B.
A computer salesperson seeing the possibility of opening a new electronic store in a different part of the city.
- C.
A purposeful exploration to find a new idea.
- D.
A baker, who tosses ingredients together to see what they taste like.
Correct Answer
A. A sports card collector who bought and sold cards for a year to build a personal collection, deciding to become a sports card dealer.Explanation
The correct answer is an example of an idea for a new startup from a hobby. This is because the sports card collector started buying and selling cards as a hobby, but then decided to turn it into a business by becoming a sports card dealer. This shows that the idea for the startup came from the hobby of collecting and selling cards.Rate this question:
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- 31.
Informing a new business, the first thing a founder should do is:
- A.
Analyze the market
- B.
List their personal skill set
- C.
Obtain financial support
- D.
Hire a lawyer
Correct Answer
B. List their personal skill setExplanation
The first thing a founder should do when informing a new business is to list their personal skill set. This is important because it allows the founder to identify their strengths and weaknesses, and understand what they can bring to the business. By knowing their own skills, the founder can make informed decisions about what roles they can take on themselves and what areas they may need to hire or seek support in. This self-assessment is crucial in determining the initial direction and strategy of the business.Rate this question:
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- 32.
A small business owner must possess all of the following except:
- A.
Necessary skills
- B.
In debth understanding of the market
- C.
Passion for starting a business
- D.
Follow a sequential formula
Correct Answer
D. Follow a sequential formulaExplanation
A small business owner must possess necessary skills, an in-depth understanding of the market, and a passion for starting a business in order to be successful. However, following a sequential formula is not a requirement for success as every business is unique and may require different approaches or strategies. The ability to be adaptable and flexible in decision-making is often more important than rigidly following a predetermined formula.Rate this question:
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- 33.
Potential owners should examine all of these specific areas except:
- A.
Work Experience
- B.
Financial History
- C.
Education
- D.
Family History
Correct Answer
B. Financial HistoryExplanation
Potential owners should examine all of these specific areas except Financial History. This means that when considering someone as a potential owner, it is important to look at their work experience, education, and family history. However, their financial history should not be a determining factor in whether or not they are suitable for ownership. This suggests that financial stability or past financial issues may not be as relevant as the other areas mentioned when evaluating someone's suitability as an owner.Rate this question:
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- 34.
The process of generating new business ideas is something that occurs automatically.
- A.
True
- B.
False
Correct Answer
B. FalseExplanation
The statement suggests that the process of generating new business ideas happens automatically, but the correct answer is false. Generating new business ideas requires active effort and creativity. It involves brainstorming, market research, identifying problems or needs, and thinking outside the box to come up with innovative solutions. It is not a passive or automatic process, but rather a deliberate and intentional one.Rate this question:
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- 35.
Potential generation of new business ideas occur:
- A.
When dismissing a promissing idea
- B.
When copying existing business
- C.
Automatically
- D.
Because of the process of identifying skills and opportunities in the market.
Correct Answer
D. Because of the process of identifying skills and opportunities in the market.Explanation
Potential generation of new business ideas occurs because of the process of identifying skills and opportunities in the market. This suggests that when individuals or organizations actively seek out and analyze the skills they possess and the opportunities available in the market, they are more likely to come up with innovative and unique business ideas. By understanding their own capabilities and the demands of the market, they can identify gaps and areas where they can create value, leading to the generation of new business ideas.Rate this question:
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- 36.
Mark brings his friends together to generate ideas for his new business. This is called ________.
- A.
Business meeting
- B.
Gap analysis
- C.
Brainstorming
- D.
Focus group
Correct Answer
C. BrainstormingExplanation
Brainstorming is the correct answer because it refers to the process of gathering a group of people to generate ideas and solutions for a specific problem or project. In this case, Mark brings his friends together to generate ideas for his new business, which aligns with the concept of brainstorming.Rate this question:
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- 37.
_________ is the threat to the success of a new business related to its ability to establish and maintain a high margin product or service.
- A.
Profit margin
- B.
Sales generation scheme
- C.
Operational financing
- D.
Deficit gap
Correct Answer
A. Profit marginExplanation
Profit margin refers to the percentage of revenue that a company retains as profit after accounting for all expenses. It is a measure of the company's profitability and financial health. A high profit margin indicates that the company is able to sell its products or services at a higher price than the cost of producing them. Therefore, if a new business is unable to establish and maintain a high margin product or service, it may face a threat to its success as it will struggle to generate sufficient profits to sustain its operations and growth.Rate this question:
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- 38.
A small business owner must understand when an opportunity for a new business is truly an opportunity.
- A.
True
- B.
False
Correct Answer
A. TrueExplanation
It is important for a small business owner to be able to recognize and evaluate opportunities for a new business. Understanding whether an opportunity is truly viable and has potential for success is crucial in making informed decisions. By being able to assess and identify true opportunities, a small business owner can make strategic choices that can lead to growth and profitability.Rate this question:
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- 39.
An owner, when researching a new business, needs to be aware of all potential customers.
- A.
True
- B.
False
Correct Answer
A. TrueExplanation
When researching a new business, it is important for the owner to be aware of all potential customers because this knowledge helps in understanding the market demand and target audience. By identifying potential customers, the owner can tailor their products or services to meet their needs and preferences, ensuring a higher chance of success. Additionally, being aware of potential customers allows the owner to develop effective marketing strategies and build strong customer relationships, which are crucial for the growth and sustainability of the business. Therefore, the statement "An owner, when researching a new business, needs to be aware of all potential customers" is true.Rate this question:
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- 40.
New business owners do not need to identify customer needs because the competitors already have.
- A.
True
- B.
False
Correct Answer
B. FalseExplanation
This statement is false because new business owners still need to identify customer needs even if their competitors already have. Each business is unique and has its own target market, so understanding the specific needs and preferences of their customers is crucial for success. Additionally, identifying customer needs allows businesses to differentiate themselves from competitors and tailor their products or services accordingly. It is an ongoing process that helps businesses stay relevant and responsive to changing customer demands.Rate this question:
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- 41.
A major cause for the failure of a new business is a lack of focus on the competitive advantage.
- A.
True
- B.
False
Correct Answer
A. TrueExplanation
The given statement is true. A lack of focus on the competitive advantage can indeed be a major cause for the failure of a new business. Competitive advantage refers to the unique qualities or strengths that set a business apart from its competitors. Without a clear understanding of their competitive advantage, businesses may struggle to differentiate themselves in the market and attract customers. This can lead to difficulties in gaining market share and ultimately result in failure. Therefore, it is crucial for new businesses to identify and leverage their competitive advantage to increase their chances of success.Rate this question:
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- 42.
A small business can compete on a cost basis with a larger firm.
- A.
True
- B.
False
Correct Answer
B. FalseExplanation
A small business typically has fewer resources, economies of scale, and bargaining power compared to a larger firm. This makes it difficult for a small business to compete on a cost basis with a larger firm, as the larger firm can often achieve lower costs through bulk purchasing, streamlined operations, and other advantages. Therefore, the statement that a small business can compete on a cost basis with a larger firm is false.Rate this question:
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- 43.
An owner, when researching a new business, needs to be aware of, and be able to describe, all potential customers.
- A.
True
- B.
False
Correct Answer
A. TrueExplanation
In order for an owner to successfully research and establish a new business, it is crucial for them to have knowledge about all potential customers. This includes understanding their needs, preferences, demographics, and behaviors. By being aware of and able to describe the potential customer base, the owner can tailor their products or services to meet their specific demands, resulting in higher chances of success in the market. Therefore, the statement "True" accurately reflects the importance of being aware of and describing all potential customers in the context of researching a new business.Rate this question:
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- 44.
The first section of an external analysis is to:
- A.
Research potential substitutes d. Determine in which industry the new business will compete
- B.
Develop a competitive edge
- C.
Identify potential customers
- D.
Determine in which industry the business will compete
Correct Answer
D. Determine in which industry the business will competeExplanation
The first section of an external analysis is to determine in which industry the business will compete. This involves researching and understanding the various industries in the market and identifying the most suitable industry for the new business. By determining the industry, the business can then focus its efforts on developing a competitive edge, identifying potential customers, and researching potential substitutes. This step is crucial as it sets the foundation for the rest of the analysis and helps the business make informed decisions about its market positioning and strategy.Rate this question:
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- 45.
Companies will ___________ their knowledge if your business is not a potential competitor.
- A.
Share
- B.
Not share
- C.
Hide
- D.
Distort
Correct Answer
A. ShareExplanation
Companies will share their knowledge if your business is not a potential competitor. This means that companies are more likely to be open and willing to share their knowledge and information if they do not see your business as a threat or competition. Sharing knowledge can be beneficial for both parties involved, as it can lead to collaboration, innovation, and mutual growth.Rate this question:
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- 46.
__________ is the edge a business has over competing businesses.
- A.
Competitive advantage
- B.
Benchmarking
- C.
Criteria related advantage
- D.
Competitive map
Correct Answer
A. Competitive advantageExplanation
Competitive advantage refers to the unique qualities, resources, or strategies that a business possesses, which sets it apart from its competitors and allows it to outperform them in the market. This advantage can be achieved through various means such as offering superior products or services, lower prices, innovative technology, efficient operations, strong brand reputation, or effective marketing strategies. By having a competitive advantage, a business can attract more customers, generate higher sales, and ultimately achieve greater profitability and success in the industry.Rate this question:
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- 47.
______________ is an area of business that uses standards that are necessary for the business.
- A.
Competitive map
- B.
Benchmarking
- C.
Unorthodox practices
- D.
Orthodox practices
Correct Answer
B. BenchmarkingExplanation
Benchmarking is an area of business that uses standards that are necessary for the business. Benchmarking involves comparing a company's performance, practices, and processes against industry leaders or best practices in order to identify areas for improvement and set performance targets. It helps businesses to measure their performance, identify gaps, and implement strategies to improve their operations and achieve better results. By adopting benchmarking practices, companies can stay competitive and ensure that they are meeting industry standards and best practices.Rate this question:
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- 48.
___________ describes those areas of a business that are unique or unusual as compared to standard practices of the industry.
- A.
Competitive map
- B.
Benchmarking
- C.
Unorthodox practices
- D.
Orthodox practices
Correct Answer
A. Competitive mapExplanation
A competitive map is a tool used to analyze and compare a business's position in the market relative to its competitors. It identifies unique or unusual aspects of the business that differentiate it from industry norms and standard practices. By understanding these unique aspects, the business can develop strategies to gain a competitive advantage and stand out in the industry. Therefore, a competitive map aligns with the description provided in the question.Rate this question:
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- 49.
A competitive advantage in a business could be ____________________
- A.
Location
- B.
Product selection
- C.
Activity of the firm
- D.
All of the above
Correct Answer
D. All of the aboveExplanation
A competitive advantage in a business could be a combination of factors such as location, product selection, and the overall activity of the firm. Location plays a crucial role as it can provide access to target markets, resources, and a favorable business environment. Product selection refers to offering unique and high-quality products that meet customer needs better than competitors. The activity of the firm encompasses various aspects such as efficient operations, effective marketing strategies, and strong customer relationships. When all these factors align and contribute positively to the business's success, it can create a competitive advantage.Rate this question:
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- 50.
A(n) ___________ exists if the service or product performs a similar function.
- A.
Trade in
- B.
Substitute
- C.
Elasticity of demand
- D.
Product/service flexibility
Correct Answer
B. SubstituteExplanation
A substitute exists when a service or product performs a similar function. This means that it can be used as an alternative to fulfill the same need or purpose. For example, if someone is looking for a beverage to quench their thirst, they may choose between water, juice, or soda as substitutes.Rate this question:
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Jan 17, 2025Quiz Edited by
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Mar 06, 2016Quiz Created by
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