replied 4 years ago.
1. With their flooring business now eight months old, Jesse and Ed readily admit that _______ has been both a pro and a con in their partnership.
A. raising capital
B. accurate record keeping
C. shared decision making
D. legal liability
2. What is a good way to find a business idea that'll put your talents and interests to the best use?
A. Purchase a franchise that needs to follow strict corporate guidelines.
B. Buy a local business that has been around a long time.
C. Search the Internet or the Yellow Pages for information on related subjects.
D. Open a business with a high profit margin.
3. The best way to find out if a particular business is a good fit for you is to
A. try the business for two years, then sell it if it's not right for you.
B. talk to customers to see what they expect in a service.
C. take a personality test and go with its recommendation.
D. "shadow" an owner for several days to see what's really involved.
4. Suzanne, who started a new restaurant, set up her business as a _______ in order to keep her personal and business finances legally separate.
B. close corporation
C. sole proprietorship
5. The overwhelming majority of existing businesses are
B. close corporations.
C. sole proprietorships.
6. To find out as much as you can about the market for your potential business, be sure to talk to
A. anyone who may compete with you locally.
B. potential employees.
C. the local bookstore owner.
D. potential customers.
7. The servers at Gerry Frasier's busy ice cream shop decided that putting more ice cream in the sundaes and cones would bring back more customers. After three months, Gerry was surprised to discover that his profit had
A. literally been "eaten up."
B. dropped, along with his costs.
C. increased by more than 10 percent.
D. increased, although sales had dropped.
8. Although she hates the work, Jessica has spent most weekends and the last three summers as a short-order cook; she has an associate's degree in paralegal studies; she loves to ride and spends every spare minute helping her uncle with his three horses. Now that she's planning to start a business, her best choice would probably be a
A. riding stable.
B. fast-food franchise.
C. legal research service.
9. If teamwork and support are high on your priority list, a _______ may be a poor choice for a business.
A. sole proprietorship.
B. close corporation.
10. Your beachside inn will be ready to open next spring. To get in on the summer tourist trade, it will be necessary to
A. establish a strong Web presence.
B. offer bargain rates at first.
C. give it an unforgettable name.
D. advertise heavily in local newspapers
11. Liz planned on opening a handmade quilt business in her hometown. However, after completing a/an _______, she decided to start with an online business.
A. market survey
B. course in design
D. advertising campaign
12. One of the disadvantages of a sole proprietorship is
A. danger to your personal assets.
B. lack of control for you.
C. high start-up costs.
D. large claims on profits.
13. Jim is beginning his research on franchise businesses in order to find one that meets his needs. A quick, easy way to get general information is to
A. ask a local franchise owner.
B. check the Yellow Pages.
C. call the corporate headquarters.
D. look up Internet sites.
14. Once you've chosen your business and focused on your niche, the next step is to
A. establish a Web presence.
B. write your business plan.
C. research the amount of capital you'll need.
D. research the best location for your shop.
15. An Internet search for information about franchise businesses will not help you find out
A. support you'll receive from the parent corporation.
B. start-up costs.
C. the number of hours you'll have to put in.
D. the variety of franchise businesses available
16. A _______ is legally separate from its owner, and it pays its own taxes.
B. sole proprietorship.
D. small business
17. Marla, a bookkeeper, would like to work at home in order to be with her young children. But before setting up her home-based bookkeeping service, she should
A. form a close corporation.
B. find a partner to help finance the business.
C. buy the latest computer software.
D. investigate the market.
18. Which one of the following types of businesses has the least amount of personal liability?
B. Sole proprietorship
D. Close corporation
19. Ricardo is sure he has what it takes to succeed in the food business, but because he lacks management experience, he wants one that will provide the most training and support. Which of these possibilities would be his best choice?
B. Old MacDonald's Bed and Breakfast
C. Ricardo's Café
D. Fuzzy's Tavern
20. Now that you've chosen your business and found your niche, you're in need of some advice on the practical aspects of setting up the business. A reliable resource for business information is
A. the Small Business Administration.
B. Web sites offering free legal advice.
C. a friend who has a business.
D. online business chat rooms.
1. As little as _______ percent of privately owned businesses ever move from the start-up stage to the success stage.
2. One way to make it easier to track your progress toward success is
A. to keep adapting to the changing business environment.
B. improve your product.
C. offer stock to the public.
D. to set very specific short- and long-term goals.
3. A mission statement that concentrates on how your business will affect your competitors, rather than focusing on your goals is called a/an _______ statement.
B. grand scale
C. commercial image
D. social values
4. Your business plan is a
A. strategy for opening your business.
B. selection of your best business ideas.
C. brief description of your business.
D. blueprint for the achievement of your goals.
5. Its important to keep focused on the goals of your mission statement; no one but you can measure your
A. overall growth.
B. record-setting sales.
C. success in business.
D. profit margin.
6. Your business plan is a tool that can
A. double as an office manual for new employees.
B. be useful only in the start-up stage.
C. be used to get your business license.
D. clarify your business strategy for investors.
7. "To get out the vote" is an example of what type of mission statement?
A. The social values statement
B. The grand scale statement
C. The partisan statement
D. The anti-mission statement
8. Consider this mission statement: "To make the world a bright clean place by making our products a household name worldwide." This statement is an example of a/an _______ mission statement.
A. social values
D. grand scale
9. A business usually becomes listed in the Fortune 500 during its _______ stage.
10. What is the primary purpose of a mission statement?
A. To state the reason for the existence of a business
B. To explore the options for a business
C. To list the immediate goals of the business
D. To promote the growth of a business
11. The key principle to success in business is
A. resignation to taking whatever comes along.
C. knowing the right people.
D. good planning and preparation.
12. Which of the following is an example of a grand scale mission statement?
A. "To prepare for any eventuality."
B. "To make better cars."
C. "To build a better mousetrap."
D. "To bring the world into the jet age."
13. Identifying the needs a business will address is a good example of the _______ of the organization.
14. Choosing firm goals for your business
A. allows you to diversify as opportunities develop.
B. eliminates other options.
C. allows you to be more flexible.
D. prevents you from staying focused.
15. At what stage of growth is a business profitable, with enough money to reinvest into the company?
16. What is one characteristic of a clear goal?
A. It's imaginative.
B. It's measurable.
C. It's flexible.
D. It's unique.
17. Owens Finest Mattress Co., Inc. decided to employ an anti-mission statement. Which of the following phrases did they use?
A. We'll destroy Sealy.
B. We'll make the finest even finer.
C. We'll strive to outsell every other mattress manufacturer.
D. We'll decrease production to save money.
18. What is one of the best ways to determine what kind of business you'll enjoy?
A. Get advice from a professional.
B. Create one related to what you do in your free time.
C. Buy an established business.
D. Make small investments in several diverse ideas.
19. XXXXX XXXXX is currently developing a mission statement for her boutique. In what stage of growth is Betty's business?
20. One of the goals you have set for your company is "to expand our product line." This statement is
A. a slow-growth option.
B. not clear and not measurable.
C. a short-term goal.
D. a valuable addition to your mission statement.
1. You've been introduced to Amy at a local Business and Professional Women's meeting. After you've chatted with her for a few minutes, what can you do to find out if she will be a valuable new business contact?
A. Ask yourself if Amy is someone you would want for a friend.
B. Ask questions about her business and tell her what you need.
C. Find out if she's in the same business as you are.
D. Use your gut instinct.
2. You've told Dan, a new contact, that you're looking for a qualified sales representative. Now you want to find out if there's any way you can help his business. What's an effective way to approach the question?
A. Tell him you've heard his field has some major problems and offer to help.
B. Ask him if he has any challenging problems in his business.
C. Hint that you might be willing to help him in return for referrals.
D. Give him your business card and tell him to call if he ever needs anything.
3. You've signed up for an exciting two-day workshop on small business Web design. What can you do in advance that will help you network effectively at the meeting?
A. Talk to your friends about the event, so you're energized when the day arrives.
B. Make sure your cassette recorder has batteries so you can record the sessions and listen to them later.
C. Do research on the instructors and panel members so you can talk to them about their work.
D. Study up on the jargon so you'll sound informed.
4. Holding your coffee cup in your left hand is a good way to
A. make contacts with greater poise.
B. show your sophistication.
C. keep your left hand warm.
D. eliminate embarrassing spills.
5. Exchange of information, assessment, and collaboration are important stages of making a good business connection. What comes next?
A. Following up with a phone call
B. Exchange of business cards
C. Asking about the person's family
D. Finding investors
6. A good way of remembering your newest contact's name is to
A. repeat it silently in your head.
B. make up a jingle for it.
C. repeat it at the end of every sentence as you speak to him or her.
D. write it on your hand.
7. Making a good first impression is vital, since we tend to form an opinion in about
A. two minutes.
B. thirty seconds.
C. thirty minutes.
D. ten seconds.
8. What is one thing you can do to help remember a new business contact? Write _______ on the back of his or her business card.
A. whether you liked the person or not
B. what kind of business the person is in
C. something you said you would do for the person
D. what the person had for dinner
9. At the business expo, you've introduced yourself to Andrea, a packaging supplier from your city. The next thing you should do is
A. ask her for several referrals.
B. describe your business using three or four lines you've prepared in advance.
C. ask for her phone number.
D. find out quickly whether she has anything you need.
10. If you try not to spend more than _______ minutes with each new contact, you can network easily and successfully through a large crowd.
11. You've just met Jim at a state convention for widget and sprocket manufacturers. Which of the following would be the best topic for conversation?
A. How you disapprove of the competition
B. Your interesting family history
C. Your quick success, even if it's not quite true
D. One or two things your business needs
12. Trying to help your business and others with similar goals by trading information, including contacts and referrals, is called
13. Which one of the following approaches would not make it easier to network with new business contacts at a social gathering?
A. Talking only to those you think can help you
B. Keeping business cards handy in your pocket
C. Keeping your drink in your left hand
D. Always introducing yourself in the same comfortable way
14. Estelle has 30 years of experience in your field, and has answered your questions, given you advice, and helped you make contacts. She is your
15. One of the best networking traits you can develop is
A. the ability to listen.
C. a modest attitude.
16. You, Joanne, and David have had a very valuable conversation and have exchanged business cards. The next thing you should do is
A. make notes about the meeting on the backs of their business cards.
B. move on quickly to meet the next person.
C. make a few cell phone calls to offset your nervous energy.
D. take a moment of silence to regain your composure.
17. A long-time expert in your field who will guide and advise you in your start-up phase is called a/an
B. investment counselor.
18. When choosing to use the products or services of a business, most people place the highest value on
A. impressive advertising.
C. referrals from friends.
D. extensive research.
19. A thank-you note with a business card enclosed or an e-mail saying how glad you were to meet someone are examples of
B. exchange of information.
C. contact follow-up.
20. Joan, a new contact, is describing her business to you. As you listen, what should you be thinking about?
A. What you're going to say next
B. How soon to move on to the next person
C. Whether or not she's likely to send you any referrals
D. What kind of help you can offer her
1. Questions about appearance, performance, quality, and price reflect the _______ of a potential customer.
A. education level
C. income levels
2. One of the keys to writing a successful questionnaire is to
A. use clever questions that hide your true motives.
B. ask exactly what you need to know.
C. ask yes or no questions.
D. provide multiple-choice answers for each question.
3. Which of the following is an example of secondary research?
A. Conducting trial-and-error testing
B. Observing reactions to free samples
C. Hiring a marketing firm
D. Gathering statistics online
4. A computerized spreadsheet program is useful for
A. keeping information confidential.
B. preparing telephone surveys.
C. sorting and charting data from surveys.
D. conducting primary research.
5. Once you've found your target market, your business is on track, and your customers seem satisfied, ongoing market research can
A. inform you of coming trends.
B. be a waste of money.
C. improve your product quality.
D. defeat your business goals.
6. As Jake began his market research, he discovered that there wasn't another retail boating supply business for more than 100 miles. In fact, there was no large lake or river, either. Jake concluded that
A. there was no market for his product.
B. he would have to offer lower prices.
C. his marketing should stress quality and service.
D. the competition gave up too soon.
7. West Side Medical Supply is in trouble. In the past two years, Fred Schultz, the owner, suddenly lost 26 percent of his business when two drugstores and a local hospital closed. He missed a big opportunity when his competitor got a contract at a new nursing home before Fred even knew it was being built. Fred needs to
A. better understand his customers' values.
B. do continuous research on demographic changes.
C. improve his overall customer service.
D. sell to the public instead of to other businesses.
8. Cheryl Adams is having trouble defining her target market for the bookstore she's opening in her town, which is home to a small college, a retirement community, and a year-round tourist industry. By deciding to hire a marketing firm to handle the research, Cheryl will probably
A. miss opportunities she might have taken a chance on.
B. save more money than she spends on the professional research.
C. ruin her budget because of the expense.
D. learn a lesson to go with her hunches.
9. John Chapelle wants to know if his video store customers are interested in a selection of classic, black-and-white movies. How could John simplify his survey to get them to fill out his short questionnaire before they leave the store?
A. Include only two questions, although they'd be long.
B. Make short blank lines to fill in.
C. Ask open-ended questions.
D. Provide check boxes for each choice.
10. The owner of Fido's Pet Supplies wants to know how much dry dog food to stock in her new location. On her customer questionnaire, which of the following questions would be most likely to help her estimate her needs?
A. How many pounds of dry dog food do you buy each week?
B. Does your dog prefer canned or dry food?
C. How much do you spend every week on dog food?
D. How often do you buy dry dog food?
11. Adam Kane wants to sell office supplies to as many customers as possible, in as many markets as possible. His plan is
A. a time-consuming way to find his target market.
B. a poor market strategy.
C. the best way to succeed.
D. a proven way to maximize his profit margin.
12. Gemma's music store is doing well, but her goal is to improve customer satisfaction. In order to do so, she should
A. understand her customers' values.
B. improve the quality of her products.
C. track her sales carefully.
D. lower her prices.
13. Information gained by applying someone else's survey information to your business is called
A. demographic research.
B. potential customer sourcing.
C. secondary research.
D. competitor's edge.
14. Doing personal interviews with holiday shoppers at an indoor mall is an example of _______ research.
15. One drawback of mailed marketing surveys is
A. longer response times, sometimes six to eight weeks.
B. the high cost.
C. the process is inconvenient for the respondent.
D. the lack of anonymity.
16. An effective way to encourage people to return a mail questionnaire quickly is to
A. offer a discount coupon to the first 100 who return it.
B. ask fewer than 20 questions.
C. connect it to some cause they're interested in.
D. print a bold deadline at the top.
17. Ross Bergen is considering a certain corner location for his sandwich shop. If he surveys people passing the corner at lunchtime, which of the following questions will give him the most useful information?
A. Do you often walk by this corner?
B. Wouldn't you prefer a fresh sandwich to fast food?
C. Do you prefer turkey or ham on your sandwiches?
D. Would you be interested in a new place to eat lunch?
18. Franchise statistics, national and local business growth rates, and other industry information specific to your field is easily obtainable through a
A. market research booklet.
B. mail survey.
C. personal interview.
D. marketing expert or agency.
19. Suppose you want to quickly perform a customer marketing survey, while allowing some measure of anonymity and keeping costs as low as possible. What type of survey would be a good choice for this purpose?
B. Personal interview
D. Door to door
20. Your repeat customers have made it clear that quality is more important than price. This reflects your target market's
A. distinguishing characteristics.
B. buying behaviors.
1. The main purpose of writing a business plan is to
A. meet a state requirement for new businesses.
B. have a document to file with your incorporation papers.
C. inform employees of your business philosophy.
D. prepare a "blueprint" for the development of your business.
2. You've designed the floor plan of your restaurant and an efficient traffic pattern for patrons, servers, and other staff. In your business plan, these actions are called
B. staff evaluations.
C. performance measures.
D. industry standards.
3. Caroline's Jewelry and Gifts is located between a hardware store and a sports bar. While her target market is adult women of medium income, who would be a logical secondary target market?
B. The general public
C. Men who want to buy a gift
D. Women with very high incomes
4. What is meant by the phrase "charging whatever the market will bear"?
A. Your price can't be more than customers are willing to pay.
B. Customers believe that higher prices mean better quality.
C. You have to undercut your competition.
D. You should keep raising prices until business drops off.
5. Legal requirements, suppliers and distributors, competitors, and market profiles are contained in the _______ element of your business plan.
B. business information
D. operating plant
6. When should you write the introduction and overview portion of your business plan?
A. Just before listing the business information
B. In a very detailed, wordy style
C. Last, so all of the most important points are included
D. Well in advance of the rest of the plan
7. Sarah and Stephanie are determined to make their business plan look as professional as possible. In order to make sure it's organized and presented correctly, they've decided to
A. buy a software program made for the purpose.
B. focus on their anticipated profit margin.
C. hire a reliable attorney to look it over.
D. do extra research on their target market.
8. You've begun a Web search for information on several suppliers you're considering for your business. Which of the following do you expect will have the most accessible information for your research?
A. A local business
B. A small, family-owned company
C. A publicly held company
D. A sole proprietorship
9. What helpful information can you find at a company's or distributor's Web site?
A. What public image they're trying to display
B. Which references you could ask about them
C. The facts are about how they operate their business
D. How to research and design your own business.
10. Business Plan/Legal Software, Plan Magic Business, and Ultimate Business Planner are software programs designed to help you
A. learn the basics of using a library.
B. research your business plan.
C. set up a pricing structure for your products.
D. determine the basic structural elements of your business plan.
11. Calvin and Liz have summarized several lengthy research items for their business plan. In case an investor wants more details on the research, they've also included
A. their mission statement.
B. a file of price quotes and survey results.
C. their business goals.
D. autobiographies and résumés.
12. John would like to contact several trade associations, but he's not sure where to look for information. What is the most efficient way for John to find the information he wants?
A. Contact the SBA.
B. Ask a librarian.
C. Check out hoovers.com.
D. Search the D&B Database.
13. Local zoning laws, EPA regulations, and municipal permits or registrations are requirements to be researched and listed in the _______ portion of your business plan.
B. operating plant
14. Financial papers included with your business plan before your company is open for business are called
A. financial analyses.
B. mission statements.
C. pro forma statements.
D. curriculum vitae.
15. Charles Zimmerman owns an acre of swampy land just off the interstate. He would like to pave the surface and build a gas station and truck stop on the lot. While doing research for his business plan, he will want to pay special attention to
A. oil company advertising.
B. Commerce Business Daily.
C. legal and regulatory requirements.
D. management issues.
16. Lawrence Masters submitted his business plan to a potential investor, but was disappointed when he was quickly turned down. Chances are, Lawrence failed to capture the investor's attention because of a poorly written
A. business outline.
C. profit projection.
D. financial plan.
17. Because of its importance in summarizing your strategy, the Introduction and Overview of your business plan should be
A. written last.
B. written before you begin your research.
C. lengthy and detailed.
D. repeated in a cover letter.
18. Whether you operate your business from a small office at home or in a large plant environment, it's still referred to as your
A. office building.
B. operating plant.
C. regulatory requirement.
19. Dan's plant will require two shifts of skilled workers, seven days a week. As he does his research, he will pay particular attention to
A. regulatory restrictions.
B. the labor market.
C. performance measures.
D. his target market.
20. The supporting document portion of your business plan should contain résumés of the owners, letters from lenders, and
A. letters of reference.
B. inventory information.
C. operating processes.
D. staffing requirements.