Q&A Hero

Q: Once you know your ________ you can calculate gross profit. A) cost of goods sold B) gross cost C) unit of sale D) net profit

Q: Tray has a T-shirt business that buys shirts from a wholesaler for four dollars each and sells them to retailers for eight dollars each. He imprints each shirt with a picture of a musical artist that costs him two dollars. He also pays his cousin to do the printing at five dollars an hour. LaShawn prints five shirts per hour. A retailer offers to buy 1000 shirts at seven dollars each. Should Tray agree to the deal? A) Yes, Tray will make a profit of one dollar per shirt. B) No, Tray will not make a profit at this price. C) Yes, Tray will make a marginal profit at this rate. D) Yes, even though he may lose money he can make up for it in volume.

Q: The foreign exchange rate is ________. A) the relative value between one currency and another B) the rate at which countries do business C) the relative value between the dollar and foreign currencies D) the relative value of last year's currency to this year's

Q: If the Foreign Exchange rate between the Japanese yen and the Euro is 190 : 1, how many yen will equal 10 euros? A) 1900 B) 100 C) 1910 D) 1901

Q: What is the average unit of sale for a restaurant that serves $3,250 per day in meals to 200 customers per day? A) $32.50 B) $20.00 C) $16.25 D) $15.84

Q: Business leaders create wealth by ________. A) avoiding the cost of hiring employees B) reducing their gross margins C) hiring employees in order to sell more units and generate more profit D) charging high prices to customers

Q: Total cost of goods sold per unit consists of ________. A) volume cost + labor cost B) labor cost - volume discount per unit C) materials cost per unit + labor cost per unit D) selling price per unit + gross profit per unit

Q: Average gross profit per customer is ________. A) average cost of sale - average sale per customer B) average cost of tangible product - average cost of intangible product C) average sale per customer - average cost of sale per customer D) average sale per consumer + average sale per wholesaler

Q: A typical unit of sale for a wholesaler would be ________. A) one item B) one dozen C) a block of time devoted to a task D) one hour of work

Q: Total gross profit = ________. A) profit - cost of goods sold B) cost of goods sold - total revenue C) revenue - cost of goods sold D) revenue - operating costs

Q: To help determine whether your business will be profitable, calculate the ________. A) difference between the costs and profits for one unit B) economics of one unit C) cost of goods sold D) marginal cost of one unit

Q: The cost of selling one unit of a product is called ________. A) cost of materials B) cost of goods sold C) cost of services sold D) marginal cost

Q: Briefly describe a product or service idea, e.g., a bookstore, and describe how you might create a competitive advantage.

Q: How do you decide if your competitive advantage is strong enough, and give an example?

Q: Describe the six factors of competitive advantage.

Q: The six factors of competitive advantage are quality, price, location, selection, service, and speed/turnaround.

Q: Entrepreneurs tend to be ________. A) risk averse B) negative C) optimistic D) dispassionate

Q: In analyzing competitive advantage, you will need to ask three questions. Among these are: A) Cost structure - are you at a cost advantage or disadvantage? B) What is your unique selling proposition? What do you have that competitors cannot or will not match? C) Competitive offers - how do you compare with competitors on a feature-by-feature basis? D) All of the above.

Q: For your business to be successful you will need a strategy for beating the competition, i.e., your ________. A) competitive advantage B) customer analysis C) target market D) market analysis

Q: A competitive advantage can be based on any of six factors. Which factor below is not one of the six? A) opportunity B) selection C) service D) quality

Q: For a business to be successful, a competitive advantage must be ________. A) expensive B) legal C) sustainable D) profitable

Q: Business definition + competitive advantage is ________. A) competitive tactics B) competitive strategy C) business mission D) business plan success

Q: Which item below is not a competitive advantage? A) using a new patented manufacturing process that reduces manufacturing costs by 25% B) offering free samples during a two week promotion C) consistently providing better customer service than the competition D) reducing operating costs by 7%

Q: Your company's vision defines the work environment.

Q: Which of the following is not a strong method of identifying business opportunities? A) Searching through a process of identification and selection beginning with self- developed (or group-developed) ideas. B) A person has a talent for making something and decides that he or she should go into business. C) Searching through a process of identification and selection starting with research on "hot" businesses or growth areas. D) A person has an idea for a product or service and searches for a market.

Q: Your ________ is a concise communication of your strategy including your business definition, purpose, and your competitive advantage. A) target market analysis B) business plan C) values statement D) mission statement

Q: When you start your business your ________ will guide the business operations and decisions. A) core beliefs B) track record C) guiding light D) competitive offers

Q: ________ is the core values of an organization in action. A) Mission B) Culture C) Vision D) None of the above.

Q: Production and Delivery Capability - How will you provide your offer to your targeted customers?

Q: Target Market - Which segment of the consumer market are you aiming to serve?

Q: The Offer - What will you sell to your customers?

Q: Before you can start your business, you must define it. Describe the questions the business definition answers and its three elements.

Q: A solid business definition has three elements: 1) the offer, 2) target market, 3) production and delivery capability.

Q: The business definition has three elements: ________. A) target market, potential customers, and production capability B) offer, target market, and production/delivery capability C) offer, acceptance, and consideration D) business definition, target market, and market analysis

Q: A ________ is a group of people who would be interested in buying a given product or service. A) market B) consumer C) customer D) target

Q: Business definition answers the questions of who, what, and ________. A) how B) when C) why D) None of the above.

Q: A target market of every adult in the United States is too ________. A) narrow B) broad C) specific D) limiting

Q: Which of the following is not an element of business definition? A) the offer B) the acceptance C) target market D) production and delivery capability

Q: What is the importance of having a professional, polished business plan?

Q: In a business plan, it is important to demonstrate that you have "skin in the game."

Q: Business plan and venture competitions for students are held worldwide. Many of them include ________. A) oral presentations B) prizes C) travel D) All of the above.

Q: When you make an in-person presentation to prospective investors you should ________. A) be prompt B) establish rapport with the audience C) use clear visual aids D) All of the above.

Q: A(n) ________ is a 30-second to a 2-minute summary of your business. A) story B) advertisement C) elevator pitch D) executive summary

Q: Which of the following is not a best practice? A) Write for your audience. B) Use technical language and jargon. C) Show that you are emotionally, intellectually and financially invested in the business. D) Explain why the business will be successful.

Q: What are the types of financial information to include in a business plan and why are they important?

Q: Describe mission, vision and culture.

Q: Discuss the significance of the management section of the business plan and what it should contain.

Q: The marketing plan is based on the marketing mix of product, price, place, and packaging.

Q: What a business owns is called ________. A) liabilities B) assets C) net worth D) owner's equity

Q: If a company does not have ________, it will fail. A) property B) cash C) advertising D) advanced technology

Q: An IPO is a(n) ________ exit strategy for entrepreneurial ventures. A) extinct B) rare C) common D) alternative for a buyout plan

Q: Ratio analysis can help business owners ________. A) secure funding B) manage operations C) understand their performance relative to peers D) All of the above.

Q: Income statement projections realistically ________ in the first few months of operations. A) show losses B) show profits C) break even D) show marginal profits

Q: Cash flow ________ be negative before debt and equity infusions and ________ be negative after them. A) can, cannot B) cannot, cannot C) cannot, can D) can, can

Q: A factor to consider when selecting a physical location is ________. A) nearby university B) wage rates C) work force availability D) All of the above.

Q: Resumes and position descriptions should be included in business plans for ________. A) all employees B) key managers C) Both of these. D) Neither of these.

Q: Which of the following is not needed in all business management teams? A) operations B) outside directors C) marketing D) accounting

Q: Telemarketing is a form of ________. A) advertising B) publicity C) direct marketing D) None of the above.

Q: Advertising is ________ promotion through media outlets. A) paid B) free C) discounted D) personal

Q: Price should reflect the organization's ________. A) policy B) vision C) strategy D) All of the above.

Q: The four factors that form marketing mix are ________. A) product, price, promotion, and place B) product, place, politics, and price C) product, packaging, promotion, and price D) product, price, promotion, and public opinion

Q: A competitive analysis is an important component of ________. A) a mission statement B) opportunity analysis C) a vision statement D) All of the above.

Q: Target market segments are defined by common factors such as ________. A) psychographics B) geography C) demographics D) All of the above.

Q: The ________ addresses the roles of the community, region, nation, and world in a business. A) business analysis B) environmental analysis C) industry analysis D) proof of market

Q: One section of the business plan that is often neglected is the ________. A) Marketing Plan B) Opportunity Analysis and Research C) Executive Summary D) Financial Projections

Q: Making the beliefs, values, and behavioral norms explicit and intentional builds the ________ of an organization. A) culture B) vision C) mission D) All of the above.

Q: The Executive Summary contains the ________. A) inspired enthusiasm for success B) story of the business C) funding request D) All of the above.

Q: The ________ section of the business plan should be written last. A) Cover Page B) Mission, Vision, Culture C) Executive Summary D) Financial Statements

Q: Your business plan projections should be ________. A) incredible and impossible to reach B) optimistic and a bit of a stretch C) practical and easy to reach D) realistic and attainable

Q: Explain 3 reasons why a start-up organization would have a written business plan.

Q: A business plan is the key to raising capital.

Q: It is best to wait to write a business plan until you find lenders or investors.

Q: A(n) ________ can be a front line of defense against a poor idea. A) goal B) mission C) objective D) business plan

Q: Writing a business plan can ensure that you ________. A) achieve your expense projections B) figure out how to make your business work C) meet your target revenue goals D) make a profit

Q: Bankers and other potential investors will often refuse to see an entrepreneur who does not have a ________. A) complete business plan B) sales forecast C) resum D) marketing plan

Q: The Business Model Canvas has ________ core building blocks that are intended to supply answers to critical questions. A) 3 B) 9 C) 6 D) 8

Q: A feasibility analysis is a study to assist in making a go/no go decision based upon a close examination of product/service, market, industry, and financial data in a sufficient degree of detail to ensure confidence in the results.

Q: A(n) ________ is a company's plan to generate revenue and make a profit from operations. A) business plan B) marketing plan C) analysis D) business model

Q: What are the seven rules for building a successful business?

Q: Profits result from customer choices, not the entrepreneur's choices.