Entrepreneurship And Small Business Management Unit 1 Quiz
This quiz assesses key concepts in Entrepreneurship and Small Business Management, including roles of entrepreneurs, export processes, profit calculations, franchise operations, market demographics, and freight forwarding. It's designed to enhance understanding and application of business management principles.
Questions and Answers
- 1.
An individual who undertakes the creation, organization and ownership of a business is called (an):
- A.
Investor
- B.
Business broke
- C.
Role model
- D.
Entrepreneur
Correct Answer
D. EntrepreneurExplanation
An entrepreneur is an individual who takes on the responsibility of creating, organizing, and owning a business. They are often driven by a desire to innovate and take risks in order to achieve success. Unlike an investor who typically provides financial support but may not be involved in the day-to-day operations of the business, an entrepreneur actively manages and leads their venture. A business broker, on the other hand, is someone who facilitates the buying and selling of businesses but does not necessarily create or own them. A role model is someone who serves as an inspiration or example to others, but does not necessarily undertake the creation and ownership of a business.Rate this question:
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- 2.
Selling and shipping products to another country is called:
- A.
Importing
- B.
Trade barriers
- C.
Trade missions
- D.
Exporting
Correct Answer
D. ExportingExplanation
Exporting refers to the act of selling and shipping products to another country. This involves sending goods or services produced within one country to be sold in another country's market. Exporting allows businesses to expand their customer base and reach international markets, thereby increasing their sales and profits. It is an essential part of international trade and helps in fostering economic growth and development.Rate this question:
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- 3.
Money left over after all expenses of running a business have been deducted from income revenue is:
- A.
Investment
- B.
Profit
- C.
Capital
- D.
Enterprise
Correct Answer
B. ProfitExplanation
Profit refers to the money that is left over after deducting all expenses from the income revenue of a business. It is the financial gain that a business earns and is an indicator of its success and profitability. Profit is an essential aspect of running a business as it allows for growth, reinvestment, and distribution to shareholders. It is different from investment, which refers to the allocation of funds into assets or projects, and capital, which refers to the financial resources available to a business. Enterprise, on the other hand, refers to the organization and management of a business.Rate this question:
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- 4.
The seller of a franchise is called a:
- A.
Partner
- B.
Competitor
- C.
Entrepreneur
- D.
Franchiser
Correct Answer
D. FranchiserExplanation
A franchiser is the correct answer because they are the seller of a franchise. A franchise is a business model where the franchiser grants the rights to another party (the franchisee) to operate a business using their brand, products, and systems. The franchiser typically provides support, training, and ongoing assistance to the franchisee in exchange for fees or royalties. Therefore, the term "franchiser" accurately describes the seller in this context.Rate this question:
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- 5.
To identify consumer markets, you have to be aware of:
- A.
Services
- B.
Demographc changes
- C.
Technology
- D.
Investors
Correct Answer
B. Demographc changesExplanation
To identify consumer markets, being aware of demographic changes is crucial. Demographic changes refer to shifts in the characteristics of a population, such as age, gender, income, and ethnicity. These changes can significantly impact consumer behavior and preferences. By understanding demographic trends, businesses can tailor their marketing strategies and product offerings to effectively target specific consumer segments. For example, an aging population may require products and services that cater to their specific needs, while a younger demographic may be more interested in technology-driven products. Therefore, being aware of demographic changes is essential for businesses to successfully identify and tap into consumer markets.Rate this question:
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- 6.
A company that handles overseas shipments for a fee is called a(n):
- A.
Business broker
- B.
Franchiser
- C.
Freight forwarder
- D.
Joint venture
Correct Answer
C. Freight forwarderExplanation
A company that handles overseas shipments for a fee is called a freight forwarder. Freight forwarders are responsible for coordinating and organizing the transportation of goods from one country to another. They handle the logistics, documentation, and customs clearance associated with international shipments. Unlike business brokers, franchisers, or joint ventures, freight forwarders specialize specifically in the transportation of goods across borders.Rate this question:
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- 7.
A partnership created by two or more companies for a specific purpose over a set period of time is called a(n):
- A.
Franchise
- B.
Joint venture
- C.
Investment
- D.
Strategic alliance
Correct Answer
B. Joint ventureExplanation
A joint venture refers to a partnership formed by two or more companies for a specific purpose and a defined period of time. In a joint venture, the participating companies collaborate and pool their resources to achieve a common goal. This arrangement allows the companies to share risks, costs, and expertise while maintaining their individual identities. Unlike a franchise, which involves one company granting another the right to operate under its brand, a joint venture involves a temporary collaboration between multiple companies. It is different from an investment, which typically involves one company providing funds to another without actively participating in its operations. A strategic alliance is a broader term that encompasses various forms of partnerships, including joint ventures.Rate this question:
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- 8.
If a small change in the price of an item causes a significant change in the quantity demanded, we say that the demand for the item is:
- A.
Inelastic
- B.
Scarce
- C.
High
- D.
Elastic
Correct Answer
D. ElasticExplanation
If a small change in the price of an item causes a significant change in the quantity demanded, we say that the demand for the item is elastic. This means that consumers are highly responsive to changes in price, and a small increase in price will result in a large decrease in quantity demanded, and vice versa. Elastic demand indicates that the demand for the item is sensitive to price changes, and consumers are likely to switch to alternatives if the price increases.Rate this question:
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- 9.
The amount of money one puts into a business is called a(n):
- A.
Market
- B.
Investment
- C.
Profit
- D.
Capital
Correct Answer
B. InvestmentExplanation
The amount of money one puts into a business is commonly referred to as an investment. This term implies that the money is being used to generate future returns or profits. It signifies the act of allocating funds with the expectation of gaining a financial return or benefit from the business venture. The other options provided (market, profit, capital) do not specifically refer to the act of putting money into a business, making them incorrect choices.Rate this question:
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- 10.
The point at which consumers buy all of a product that is supplied is called:
- A.
Equilibrium
- B.
Profit
- C.
Capital
- D.
Investment
Correct Answer
A. EquilibriumExplanation
Equilibrium refers to the point where the quantity of a product demanded by consumers matches the quantity supplied by producers. At this point, there is no excess supply or demand, resulting in a stable market condition. It represents a balance between the buyers and sellers, where the market price is set and all available units of the product are sold. Therefore, equilibrium is the appropriate term to describe the point at which consumers buy all of a product that is supplied.Rate this question:
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- 11.
One of the risks of being in business for yourself is:
- A.
Being your own boss
- B.
Competition
- C.
Uncertain income
- D.
Loss of prestige
Correct Answer
C. Uncertain incomeExplanation
Being in business for yourself comes with the risk of uncertain income. Unlike a regular job with a fixed salary, entrepreneurs often face fluctuations in their earnings. This uncertainty can arise due to various factors such as market conditions, customer demand, and the success of their business ventures. The lack of a stable and predictable income can make financial planning and budgeting challenging, adding an additional layer of risk to being self-employed.Rate this question:
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- 12.
The _ _ _ _ _ _ _ _ is a large computer network that links smaller computer networks worldwide.
Correct Answer
Internet
internet
INTERNETExplanation
The correct answer is "Internet,internet,INTERNET" because it accurately identifies the large computer network that connects smaller networks globally. The Internet is a global system of interconnected computer networks that enables communication and the sharing of information across the world. It is written in different cases (capitalized or not) depending on the context, but all variations refer to the same network.Rate this question:
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Mar 21, 2023Quiz Edited by
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Sep 27, 2009Quiz Created by
Sandra Taylor
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