Take This Quiz To Learn About Business & Entrepreneurship Strategies
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 strategies. 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!
- 1.
Which of the following is not a legitimate way of bringing a new business idea to market?
- A.
A start-up
- B.
A business plan
- C.
A franchise
- D.
A buy-out
- E.
Buy-in
Correct Answer
B. A business planExplanation
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).Rate this question:
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- 2.
- A.
Joint venture
- B.
Cooperative
- C.
Sole trader
- D.
Private limited company
- E.
Public limited company
Correct Answer
A. Joint venture -
- 3.
Which of the following is a recognized disadvantage of setting up as a start-up as compared with other routes to market entry?
- A.
Less satisfaction of the owners
- B.
Less help from various agencies
- C.
The business starts with a clean sheet
- D.
There are more funds required
- E.
There is a high failure rate
Correct Answer
E. There is a high failure rateExplanation
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.Rate this question:
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- 4.
- A.
Store retailing
- B.
Hotels and catering
- C.
Property services
- D.
Transport and vehicle services
- E.
Personal services
Correct Answer
E. Personal services -
- 5.
What is the minimum total investment required for starting a McDonald’s franchise?
- A.
£10,000
- B.
£50,000
- C.
£100,000
- D.
£150,000
- E.
£250,000
Correct Answer
D. £150,000Explanation
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.Rate this question:
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- 6.
- A.
The longer the franchise contract, the smaller the initial fee
- B.
The greater the reliance on the franchisor’s efforts and support, the higher the fee
- C.
Where ongoing fees are absent, it is usually the case that mar-ups or rebates on products supplied to franchisees substitute them.
- D.
Some ‘special’ fees may also be charged by the franchisor for services such as training in the use of new software
- E.
Well known brands tend to have higher minimum initial investments than other franchises
Correct Answer
A. The longer the franchise contract, the smaller the initial fee -
- 7.
The Bolton Committee excluded franchises from its review of the UK small business sector. True / False?
- A.
True
- B.
False
Correct Answer
A. TrueExplanation
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.Rate this question:
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- 8.
- A.
Franchising is a way of expanding a small business into a big business in a relatively short time
- B.
Franchisees tend to be under-motivated individuals not prepared to accept rewards in line with the results of their business
- C.
Franchising inevitably means loss of control compared to a conventional branch outlet
- D.
Failure of a single franchisee can do considerable damage to the reputation of the franchisor
- E.
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.
Correct Answer
B. Franchisees tend to be under-motivated individuals not prepared to accept rewards in line with the results of their business -
- 9.
Someone legally appointed to sell off the assets of a bankrupt firm is called
- A.
a Liquidator
- B.
An Auctioneer
- C.
A Terminator
- D.
A Management consultant
- E.
A Lawyer
Correct Answer
A. a LiquidatorExplanation
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.Rate this question:
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- 10.
- A.
An administrator
- B.
A predator
- C.
An auditor
- D.
A turnaround consultant
- E.
A lawyer
Correct Answer
A. An administrator -
- 11.
- A.
A ‘white elephant’
- B.
A young buyer
- C.
A management buy-in
- D.
A management buy-out
- E.
A buy-in management buy-out
Correct Answer
E. A buy-in management buy-out -
- 12.
- A.
Property
- B.
Stock
- C.
Fixtures and fittings
- D.
Goodwill
- E.
Equipment
Correct Answer
D. Goodwill -
- 13.
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?
- A.
Creditors
- B.
Intellectual property
- C.
Tax
- D.
Bank loan
- E.
Hire purchase agreement
Correct Answer
B. Intellectual propertyExplanation
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.Rate this question:
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- 14.
- A.
Reputation
- B.
Customer base
- C.
Personal loan
- D.
Skill base
- E.
Experience
Correct Answer
C. Personal loan -
- 15.
There is more than one way to value a business. Which of the list below is not commonly used?
- A.
Market value of the assets
- B.
Wealth of the owner
- C.
Multiple of profits
- D.
Employee numbers
- E.
Legal cases against entreprenuer
Correct Answer
B. Wealth of the ownerExplanation
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.Rate this question:
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- 16.
- A.
Training consultancy
- B.
Vocational training
- C.
NGO
- D.
Agricultural smallholding
- E.
Manufacturing firm
Correct Answer
A. Training consultancy -
- 17.
- A.
Percentage of debt
- B.
Percentage of assets
- C.
Percentage of long term finance
- D.
Number of company vehicles
- E.
Number of company overheads
Correct Answer
B. Percentage of assets -
- 18.
The list below gives three possible advantages of buying a business and one potential disadvantage. Which is the potential disadvantage?
- A.
Overcomes barriers to entry
- B.
Not all my own work
- C.
Track record
- D.
Buys market share
- E.
All people are not recruited by me
Correct Answer
B. Not all my own workExplanation
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.Rate this question:
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- 19.
- A.
The generation of new ideas
- B.
The evolution of new ideas
- C.
The opposite of creativity
- D.
The successful exploitation of new ideas
- E.
The setting up of a new business
Correct Answer
D. The successful exploitation of new ideas -
- 20.
Innovation is really not much different from invention. True/False
- A.
True
- B.
False
Correct Answer
B. FalseExplanation
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.Rate this question:
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- 21.
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:
- A.
The introduction of new products or services
- B.
The opening of a new market
- C.
The reverse-engineering of an existing product line
- D.
The carrying out of the new organisation of any industry
- E.
The introduction of a new method of production
Correct Answer
C. The reverse-engineering of an existing product lineExplanation
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.Rate this question:
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- 22.
- A.
Less likely than manufacturer innovation
- B.
More difficult to manage than other types of innovation
- C.
When the developer expects to benefit by using it
- D.
When the developer expects to benefit by selling it
- E.
Very unusual in small businesses
Correct Answer
C. When the developer expects to benefit by using it -
- 23.
Which of the following statements most accurately describes innovation:
- A.
Innovation is an absolute not a relative concept
- B.
Innovation is easy to measure
- C.
Innovation is much more important to small busineses than to large businesses
- D.
Innovation is a relative not an absolute concept
- E.
Innovation is nothing but thinking innovatively
Correct Answer
C. Innovation is much more important to small busineses than to large businesses -
- 24.
The dominant design is always the best design available. True / False
- A.
True
- B.
False
Correct Answer
B. FalseExplanation
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.Rate this question:
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- 25.
- A.
Large firms are more likely to attract highly skilled specialists, often for R&D
- B.
Large firms are more able to employ patent and legal specialists
- C.
Large firms are more able to raise venture capital and spread risk
- D.
Large firms are more able to market existing products with comprehensive distribution and servicing networks
- E.
Large firms are more likely to come up with better ideas than small businesses
Correct Answer
E. Large firms are more likely to come up with better ideas than small businesses -
- 26.
- A.
True
- B.
False
- C.
Somewhat true
- D.
Somewhat False
- E.
Not relevant
Correct Answer
A. True -
- 27.
Which of the following is not one of Peter Drucker’s ‘Seven Sources of Opportunity’:
- A.
The unexpected
- B.
The incongrous
- C.
Process need
- D.
New knowledge
- E.
Imagination
Correct Answer
E. ImaginationExplanation
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.Rate this question:
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- 28.
- A.
Market segmentation is a useful process for small businesses to undertake
- B.
Selling is essentially a matching process
- C.
A benefit is the value of a product feature to a customer
- D.
It is a good idea for small businesses to compete solely on price
- E.
Entrepreneurs usually care about the products or services they are producing and selling
Correct Answer
D. It is a good idea for small businesses to compete solely on price -
- 29.
Which of the following factors does the ‘macro-environment’ not include:
- A.
Political and regulatory factors
- B.
Customer needs in a given market
- C.
Social and demographic factors
- D.
Technological changes
- E.
Economic conditions
Correct Answer
B. Customer needs in a given marketExplanation
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.Rate this question:
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- 30.
Which of the following is least likely to influence the timing of new business births?
- A.
Government policies
- B.
Profitability
- C.
Interest rates
- D.
Consumer expenditure
- E.
Weather conditions
Correct Answer
E. Weather conditionsExplanation
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.Rate this question:
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Quiz Review Timeline +
Our quizzes are rigorously reviewed, monitored and continuously updated by our expert board to maintain accuracy, relevance, and timeliness.
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Current Version
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Jul 10, 2024Quiz Edited by
ProProfs Editorial Team -
Jan 01, 2010Quiz Created by
Dibyendu007
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