Virtual Enterprise - Final Exam
This is a multiple-choice test. Please Fill In The Blanks preceding the best answer to each question. Then, use the scroll bar on the right side of your screen to scroll down to the next question. Repeat as needed until you have answered all questions. Then, click the small gray 'Submit' button at the bottom of this page.
Please review your selections before submitting. You may only submit your final exam answers once.
Questions and Answers
- 1.
What is one major factor of success the Small Business Administration has found in recent research of successful firms? The owner's original reason for starting the business. The management team. Location of the business. Best-quality products or services.
Explanation
The Small Business Administration has found in recent research that the owner's original reason for starting the business is one major factor of success for successful firms. This suggests that having a clear and compelling motivation for starting a business can drive the owner's determination and commitment, leading to better decision-making and overall success.Rate this question:
- 2.
- There are more publicity options with which type of business opportunity?
Explanation
Starting a business from scratch offers more publicity options compared to other types of business opportunities. When starting a business from scratch, the entrepreneur has the freedom to create their own brand, marketing strategies, and advertising campaigns. They can choose to utilize various channels such as social media, online advertising, traditional advertising, and networking events to promote their business. In contrast, franchising, buying an existing business, or starting an eBay business may have some pre-established branding and marketing strategies in place, limiting the entrepreneur's options for publicity.Rate this question:
- 3.
What is the single biggest mistake small businesses make? Not having big enough signage. Never having sales or special promotions. An out-of-the-way location. Failing to capture customer contact information.
Explanation
Small businesses often overlook the importance of capturing customer contact information, which is a crucial mistake. By failing to do so, businesses miss out on valuable opportunities for future marketing and communication. Having customer contact information allows businesses to build and maintain relationships with their customers, send promotional offers or updates, and gather feedback. Without this information, businesses may struggle to reach out to customers or keep them engaged, ultimately hindering their growth and success. Therefore, failing to capture customer contact information is the single biggest mistake small businesses make.Rate this question:
- 4.
Which part of a business plan is sometimes the only section read by financing sources? Table of contents. One-page business plan. Financial plan. Executive summary.
Explanation
The executive summary is sometimes the only section of a business plan that is read by financing sources. This section provides a concise overview of the entire business plan, highlighting key information such as the company's mission, market opportunity, competitive advantage, financial projections, and funding requirements. Financing sources often have limited time and may only read the executive summary to quickly assess the viability and potential of the business. Therefore, it is crucial for the executive summary to effectively communicate the business's value proposition and convince the financing sources to further explore the rest of the business plan.Rate this question:
- 5.
What business structure has the greatest exposure for personal liability? Corporation. S-corporation. Partnership. Limited liability company.
Explanation
Partnership has the greatest exposure for personal liability because in a partnership, the partners are personally liable for the debts and obligations of the business. This means that if the partnership is unable to pay its debts, the partners' personal assets can be used to satisfy those debts. In contrast, corporations, S-corporations, and limited liability companies provide limited liability protection to their owners, meaning that their personal assets are generally protected from the business's debts and obligations.Rate this question:
- 6.
Which of the following is a concrete, practical reason for going into business? To see your creativity develop further. To prepare for retirement. To quit working for someone else. To have flexible hours.
Explanation
One concrete, practical reason for going into business is to prepare for retirement. By starting a business, individuals can generate income and build assets that can provide financial security in their retirement years. Owning a business allows individuals to have more control over their financial future and potentially accumulate wealth that can support them during their retirement.Rate this question:
- 7.
What are the Five D's of Success? Desire, Dollars, Details, Determination, and Diligence. Details, Desire, Duty, Discipline, and Determination. Discipline, Desire, Dependency, Details, and Determination. Desire, Diligence, Details, Discipline, and Determination.
Explanation
The correct answer is "Desire, Diligence, Details, Discipline, and Determination". These five traits are commonly associated with achieving success. Desire refers to having a strong passion and motivation for what you want to achieve. Diligence involves consistently putting in effort and working hard towards your goals. Details emphasize the importance of paying attention to the small things and being thorough in your work. Discipline is about having self-control and sticking to your plans and commitments. Determination is the persistence and drive to overcome obstacles and keep pushing forward towards success.Rate this question:
- 8.
A dry cleaner is what type of business? A service business. A retail business. A manufacturing business. A distribution business.
Explanation
A dry cleaner is classified as a service business because it provides a service to customers by cleaning and maintaining their clothing and other textiles. Unlike a retail business that sells products or a manufacturing business that produces goods, a dry cleaner primarily offers a service to its customers. Therefore, the correct answer is A service business.Rate this question:
- 9.
Which personal or business goal is most important for success? Making a lot of money. The biggest goal that generates the passion to start and continue in business. Giving back to the community. Spending time with family.
Explanation
The biggest goal that generates the passion to start and continue in business is the most important for success because it provides the motivation and drive to overcome challenges and persevere in the face of obstacles. Without a strong passion and drive, it is unlikely that an individual or business will be able to sustain the effort and commitment required to achieve long-term success. Making a lot of money, giving back to the community, and spending time with family are all important goals, but they are secondary to the passion and drive that fuels success in business.Rate this question:
- 10.
Like a marriage, what does a business need to be successful? A firm foundation, realistic expectations, and a total commitment. Lots of money to get the business started. Expectations about sales and prices from businesses 10 years ago. Only one person to control everything.
Explanation
A business needs a firm foundation to ensure stability and a strong base for growth. Realistic expectations are necessary to set achievable goals and avoid disappointment. Total commitment is crucial as it requires dedication and hard work to overcome challenges and achieve success. These factors are comparable to the elements needed for a successful marriage, where a strong foundation, realistic expectations, and complete commitment are essential for a lasting and fulfilling relationship.Rate this question:
- 11.
For an inexperienced entrepreneur, what is the most difficult option for starting a business? Buying a franchise. Starting from scratch. Buying an existing business. Going into business with a partner.
Explanation
Starting from scratch is the most difficult option for an inexperienced entrepreneur because it involves building a business from the ground up, which requires a lot of time, effort, and resources. It includes tasks such as developing a business plan, finding funding, establishing a customer base, and creating brand awareness. In contrast, buying a franchise or an existing business provides a ready-made framework and established customer base, while going into business with a partner allows for shared responsibilities and resources.Rate this question:
- 12.
When starting a business from scratch, which of the following is a disadvantage? No publicity opportunities. Lack of market needs and wants. Financing limitations. Untrained employees.
Explanation
Financing limitations can be a disadvantage when starting a business from scratch because it can hinder the ability to invest in necessary resources, equipment, and marketing efforts. Without sufficient funds, it may be challenging to cover initial expenses, pay employees, or even sustain the business during its early stages. Limited financing can also restrict the ability to seize growth opportunities or respond to unexpected challenges. Therefore, having financing limitations can impede the overall success and growth potential of a new business.Rate this question:
- 13.
Training and ongoing management assistance are an advantage of which business opportunity option? Franchising. Starting from scratch. Starting with a partner. Buying an existing business.
Explanation
Franchising offers training and ongoing management assistance as an advantage. This means that when you choose the franchising option, you will receive support and guidance from the franchisor in terms of training on how to run the business and ongoing assistance in managing it. This can be beneficial for individuals who may not have prior experience in running a business or need support in certain areas. Additionally, the franchisor will provide a proven business model and established brand, which can increase the chances of success compared to starting from scratch or buying an existing business.Rate this question:
- 14.
What is an advantage of purchasing an existing business? Ease of ownership transfer. Publicity opportunities. Reduced time to success. A current customer base.
Explanation
One advantage of purchasing an existing business is that it comes with a current customer base. This means that the business already has a group of customers who are familiar with the products or services offered. Acquiring a customer base can save time and effort in marketing and advertising, as there is already a built-in customer pool. It also provides a potential revenue stream from day one, as the business can continue serving its existing customers and potentially attract new ones.Rate this question:
- 15.
What is one of the biggest disadvantages of purchasing a franchise? Strict contractual relationship. Publicity opportunities. Successful operating system. Site selection help.
Explanation
One of the biggest disadvantages of purchasing a franchise is the strict contractual relationship that comes with it. This means that the franchisee must adhere to the rules and regulations set by the franchisor, which can limit their freedom and autonomy in running the business. They may have to follow specific guidelines regarding products, pricing, marketing, and operations, which can restrict their ability to make independent decisions. This lack of flexibility and control can be a significant disadvantage for some individuals.Rate this question:
- 16.
What is a unique selling proposition? A marketing plan. The reason your customers should do business with you. A business plan. A special sale.
Explanation
A unique selling proposition refers to the distinct advantage or benefit that sets a business apart from its competitors and gives customers a compelling reason to choose that business over others. It is a statement or proposition that communicates the unique value or advantage that a business offers to its customers. This can include factors such as quality, price, convenience, customer service, or any other unique feature that differentiates the business from others in the market.Rate this question:
- 17.
What tool can help a small business survive unforeseen events? A computer. Frequent sales. A client list. Employees.
Explanation
A client list can help a small business survive unforeseen events by providing a pool of potential customers to reach out to during difficult times. This list allows the business to maintain communication and relationships with existing clients, which can lead to continued sales and support. Additionally, having a client list enables the business to target specific segments and tailor their marketing efforts accordingly, increasing the chances of generating revenue even in challenging situations.Rate this question:
- 18.
What information should you collect from your clients? As much as you can. Name and e-mail address. Name and telephone number. Name and birthday.
Explanation
Collecting as much information as possible from clients is important because it allows for a better understanding of their needs and preferences. This information can include their name, email address, telephone number, and birthday. By gathering as much information as possible, businesses can personalize their interactions with clients and provide them with tailored products or services. Additionally, having a comprehensive database of client information can be beneficial for future marketing campaigns and customer relationship management.Rate this question:
- 19.
What is the purpose of market research? To conduct a survey. To study demographics. To purchase a database. To find out what your customers want.
Explanation
Market research is conducted to understand the needs, preferences, and desires of customers. By gathering data and insights through various methods such as surveys, interviews, and observations, businesses can gain valuable information about their target audience. This helps them make informed decisions about product development, marketing strategies, and customer satisfaction. Ultimately, the purpose of market research is to identify and understand what customers want in order to meet their expectations and improve business performance.Rate this question:
- 20.
Which of the following is an example of a market demographic? The time of year a certain product or service is most often purchased. Other businesses that are currently selling your product or service. The age range of the people most likely to buy your product or service. How prices for your product or service have changed over time.
Explanation
Market demographic refers to the specific characteristics or traits of a target market. It helps businesses identify and understand their potential customers. The age range of the people most likely to buy a product or service is an example of a market demographic because it provides information about the specific age group that is most interested in and likely to purchase the product or service. This information can be used to tailor marketing strategies and product offerings to better meet the needs and preferences of that particular age group.Rate this question:
- 21.
What does a business plan demonstrate to a financing source? Your potential ability to compete in the business arena. That your business is already fully funded. Your ability to write well. That your business is in the beginning stages of planning.
Explanation
A business plan demonstrates to a financing source your potential ability to compete in the business arena. This means that the plan showcases your understanding of the market, your competitors, and your unique value proposition that sets you apart from others. It shows that you have thoroughly researched and analyzed the industry, and have a clear strategy to position your business for success. This is important for a financing source as it helps them assess the viability and potential profitability of your business, and determine if it is worth investing in.Rate this question:
- 22.
What is the name of the document used to evaluate an idea or to get initial thoughts down on paper? Table of contents. Financial plan. Trademark. One-page business plan.
Explanation
The correct answer is One-page business plan. A one-page business plan is a concise document that is used to evaluate an idea or to get initial thoughts down on paper. It is a simplified version of a traditional business plan, focusing on key elements such as the business concept, target market, competition, and financial projections. This document helps entrepreneurs to quickly outline their business idea and communicate it effectively to potential investors or stakeholders.Rate this question:
- 23.
Which section of a business plan is a short synopsis of the entire plan? Products and services. Executive summary. Cover sheet. Table of contents.
Explanation
The executive summary is a section in a business plan that provides a brief overview of the entire plan. It summarizes the key points and highlights the main objectives, strategies, and financial projections of the business. It is usually the first section that potential investors or stakeholders read, as it gives them a quick understanding of the business and its potential. The executive summary is important because it allows readers to quickly assess the viability and potential of the business without having to read the entire plan.Rate this question:
- 24.
Which section of your business plan tells how you plan to use your initial funding? Marketing. Management. Financial. Suppliers and operations.
Explanation
The section of a business plan that tells how you plan to use your initial funding is the financial section. This section includes information on the projected expenses, revenue forecasts, and how the funds will be allocated to various aspects of the business such as marketing, operations, and management. It provides a clear outline of how the initial funding will be utilized to support the growth and success of the business.Rate this question:
- 25.
Who is the best person to write your business plan? An accountant. A professional writer. You. An attorney.
Explanation
The best person to write your business plan is you because you have the most knowledge and understanding of your business. You are familiar with your goals, vision, and strategies, which allows you to accurately articulate them in the plan. Additionally, writing the plan yourself allows you to have complete control over the content and ensures that it reflects your unique business ideas and objectives. While professionals like accountants, professional writers, or attorneys can provide valuable input and guidance, ultimately, the responsibility of creating a comprehensive and tailored business plan lies with you as the business owner.Rate this question:
- 26.
If you do not make a conscious decision about the legal structure of your business, how will your business operate by default? As a sole proprietorship. As a limited liability company (LLC). A corporation. An S-corporation.
Explanation
If a conscious decision is not made about the legal structure of the business, it will operate by default as a sole proprietorship. This means that the business is owned and operated by a single individual who has unlimited liability for any debts or legal issues the business may face. The owner also has complete control over the business and is responsible for all profits and losses. This is the simplest and most common form of business structure, but it may not provide the same level of legal protection or tax benefits as other structures such as an LLC or corporation.Rate this question:
- 27.
What is the biggest advantage of a partnership? The ability to use the partnership's assets without creating tax consequences. The greatly reduced personal liability created by having one or more partners. The ability to retain earnings to minimize taxes. The continued existence of the business after one of the partners dies
Explanation
The biggest advantage of a partnership is the ability to use the partnership's assets without creating tax consequences. This means that partners can utilize the resources and assets of the partnership for business purposes without incurring additional tax liabilities. This can be beneficial for the growth and expansion of the business as partners can freely access and utilize the partnership's assets without worrying about tax implications.Rate this question:
- 28.
Dennis Callahan wants to open a plumbing business. Which of the following names could he use for his business without having to register an assumed or fictitious business name? Callahan Plumbing. Dennis G. Callahan & Son Plumbing. Dennis G. Callahan Plumbing. DGC Plumbing.
Explanation
Dennis Callahan can use the name "Dennis G. Callahan & Son Plumbing" for his business without having to register an assumed or fictitious business name. This is because the name includes his full legal name and clearly indicates that it is a plumbing business.Rate this question:
- 29.
Of the following individuals, which one would be considered an independent contractor? A temporary worker you hire to help during your busy season. The bookkeeper you hire to work part time. Your spouse. The company you hire to fix the copy machine.
Explanation
The company you hire to fix the copy machine would be considered an independent contractor because they are a separate entity that you have hired to perform a specific task. They are not an employee of your business and are responsible for their own taxes, insurance, and other business expenses.Rate this question:
- 30.
To comply with federal and state regulations regarding compensation and taxes, what basic requirement must you maintain? Comply with human rights standards. Maintain adequate records. Comply with Occupational Health and Safety (OSHA) standards. Administer accurate benefits information
Explanation
To comply with federal and state regulations regarding compensation and taxes, it is necessary to maintain adequate records. This is because maintaining accurate and detailed records of employee compensation, taxes withheld, and other related information is crucial for ensuring compliance with legal requirements. These records serve as evidence of proper compensation practices, help in calculating and reporting taxes accurately, and can be used for audits or investigations if required. By maintaining adequate records, organizations can demonstrate their commitment to following regulations and avoid potential penalties or legal issues.Rate this question:
- 31.
What is the main reason a customer quits doing business with a company? Because someone has recommended a different business. Because another company offers a better benefit. Because someone inside the company has expressed a lack of caring. Because the customer is unhappy with the results of the product or service the company provides.
Explanation
The main reason a customer quits doing business with a company is when someone inside the company has expressed a lack of caring. This suggests that customer satisfaction is heavily influenced by the attitude and behavior of the company's employees. If a customer feels that they are not being valued or their concerns are not being addressed, they are likely to take their business elsewhere. This highlights the importance of providing excellent customer service and ensuring that employees are trained to prioritize the needs and concerns of customers.Rate this question:
- 32.
What is the term for an intense interaction among potential customers about a business? Buzz. Word of mouth. E-mail. Testimonial.
Explanation
Buzz refers to an intense interaction among potential customers about a business. It is a term used to describe the excitement and discussion generated by word of mouth and online conversations about a particular product, service, or brand. This intense interaction can help create awareness, generate interest, and drive sales for a business. E-mail and testimonial are not specifically related to intense customer interactions, while word of mouth is a related term but not the exact term for this specific scenario.Rate this question:
- 33.
What is the objective of a sales plan? To test the effectiveness of a marketing campaign. To set sales goals. To develop a promotion calendar. To create promotional flyers.
Explanation
A sales plan is a strategic document that outlines the goals, strategies, and tactics for achieving sales targets. It provides a roadmap for the sales team to follow and helps in aligning their efforts towards achieving specific sales goals. By setting sales goals, a sales plan provides a clear direction and focus for the sales team, enabling them to prioritize their activities and work towards achieving those goals. Therefore, setting sales goals is the objective of a sales plan.Rate this question:
- 34.
How is direct response marketing different from other types of marketing? It is the most expensive form of marketing. Its results can be tracked and measured. It's conducted exclusively by e-mail. It is conducted only by a professional marketing firm.
Explanation
Direct response marketing is different from other types of marketing because its results can be tracked and measured. Unlike traditional forms of marketing, which may rely on brand awareness or indirect methods to gauge effectiveness, direct response marketing allows businesses to directly measure the impact of their marketing efforts. This can be done through various metrics such as response rates, conversion rates, and return on investment (ROI). By tracking and measuring these results, businesses can make data-driven decisions and optimize their marketing strategies for better performance.Rate this question:
- 35.
What response rate can you expect from a marketing offer to new customers? 10% to 20%. 5% to 10%. 1% to 5%. 0.5% to 1%.
Explanation
The response rate that can be expected from a marketing offer to new customers is typically between 0.5% to 1%. This means that out of every 100 new customers who receive the marketing offer, only around 0.5% to 1% of them are likely to respond positively to it. This low response rate is common in the marketing industry and is influenced by various factors such as the effectiveness of the offer, the target audience, and the competition in the market.Rate this question:
- 36.
With clone stamp tool selected, to select the source pixels you will press Ctrl Shift+Ctrl Enter Alt Alt+Enter
Explanation
To select the source pixels using the clone stamp tool, you will press Alt+Enter. This keyboard shortcut allows you to choose the area from which you want to clone pixels. By pressing Alt+Enter, you can sample pixels from one part of the image and then use the clone stamp tool to apply those pixels to another part of the image, effectively cloning or copying the selected area.Rate this question:
- 37.
The key shortcut for opening layers palette is: F7 F2 Ctrl+Shift+L Ctrl+L Alt+0
Explanation
The correct answer is Ctrl+L. This key shortcut is used to open the layers palette. The layers palette is a tool in many graphic design and image editing software that allows users to manage and organize different layers within a project. By pressing Ctrl+L, users can quickly access and view the layers palette, making it easier to make adjustments and edits to individual layers.Rate this question:
- 38.
CMYK color mode stands for Red, Marine, Orange, White Cyan, Maroon, Yellow, Blue Cyan, Magenta, Yellow, Black Codec, Max, Light, Dark Red, Green, Blue, White
Explanation
The correct answer is not Red, Green, Blue, White. CMYK color mode stands for Cyan, Magenta, Yellow, Black. CMYK is a subtractive color model used in printing and refers to the four ink colors used to create a wide range of colors. Red, Green, Blue, White refers to the RGB color mode, which is an additive color model used in digital displays.Rate this question:
- 39.
From tools palette the selection tool that selects on the basis of similar color is Clone stamp tool Magic wand tool History Brush tool Smudge tool Marquee tool
Explanation
The History Brush tool is not the correct answer for this question. The correct answer is the Magic Wand tool. The Magic Wand tool in the tools palette is used to select areas of an image based on similar color. It allows you to easily select and edit specific parts of an image that have similar colors or tones. The History Brush tool, on the other hand, is used to selectively restore parts of an image to a previous state in the editing process.Rate this question:
- 40.
Two colors used in a photo or illustration is called: Double color spread Two color spots Duotone Duo art feature
Explanation
The term "duo art feature" suggests that it refers to a feature or element in a photo or illustration that uses two colors. It implies that the two colors are intentionally chosen and used in a specific way to create a visual effect or impact. This explanation aligns with the given correct answer, "Duo art feature."Rate this question:
- 41.
To change the background / foreground colors, select: Grayscale Pixels Swatch Library Layer Option
Explanation
The correct answer is Swatch Library because it is the option that allows the user to change the background/foreground colors. Swatch Library is a collection of predefined colors that can be easily applied to the design elements. By selecting Swatch Library, the user can choose from a variety of color options and apply them to the background or foreground of the design.Rate this question:
- 42.
The color replacement tool is located in the: Shape Tool Brushes Tool Burnish Tool Duotone Tool
Explanation
The color replacement tool is located in the Brushes Tool.Rate this question:
- 43.
The difference between very transparent and very opaque is: Opacity Tint Defined color Fill
Explanation
Opacity refers to the degree to which an object allows light to pass through it. Very transparent means that the object allows a lot of light to pass through, while very opaque means that the object does not allow much light to pass through. Therefore, the correct answer is "Opacity" as it accurately describes the difference between very transparent and very opaque.Rate this question:
- 44.
In design using type fonts, Never: apply 30 layers together use illegal photos and type use script type in all caps
Explanation
When designing using type fonts, it is important to never use illegal photos and type. This means that any images or typography used in the design should be legally obtained and used with proper permissions and licenses. Using illegal photos and type can lead to copyright infringement and legal consequences. It is always best to use legally obtained and licensed resources to ensure compliance with intellectual property laws.Rate this question:
- 45.
After making a grayscale mode, you then can make an optional: Duotone flattened image merged layer high contrast
Explanation
After converting the image to grayscale mode, one can choose to apply a high contrast effect. This would enhance the difference between the light and dark areas of the image, making it more visually striking.Rate this question:
- 46.
It has 254 shades of it's tone(s): flex tone grayscale Pantone color swatch black body default
Explanation
The correct answer is Pantone color swatch. Pantone is a standardized color matching system used in various industries, including printing, graphic design, and fashion. It provides a wide range of colors, with each color having a specific code and formula for reproduction. The Pantone color swatch includes a vast selection of shades, allowing for precise color matching and consistency across different materials and products.Rate this question:
- 47.
To insure you are making a good design: only use Three type fonts in your flyer make sure it makes sense and looks good keep it in the same "vibe" do it in anyway you can
Explanation
Using only three type fonts in a flyer helps to maintain a clean and cohesive design. Too many different fonts can make the flyer look cluttered and unprofessional. By limiting the number of fonts used, the design remains consistent and easy to read. This also ensures that the fonts chosen complement each other and create a harmonious visual appeal. Overall, adhering to this guideline helps to create a well-designed flyer that effectively communicates its message.Rate this question:
- 48.
To help direct the reader's attention: use any brain-washing elements as possible design in a 45 degree angle use a pointing device to point to the direction you want use bright colors
Explanation
Using bright colors can be an effective way to direct the reader's attention. Bright colors tend to be visually striking and can easily catch the reader's eye. By using bright colors strategically, such as highlighting important information or using them to draw attention to specific elements, the reader's attention can be directed to the desired areas. This can help guide the reader's focus and ensure that important information is noticed and understood.Rate this question:
- 49.
Where our eye usually enters the page top left side of page top right side of page top center of page the top
Explanation
When it comes to reading and viewing content, our eyes typically start at the top of the page. This is because we are accustomed to reading from left to right and from top to bottom. Starting at the top allows us to easily scan and navigate the page in a logical and organized manner. Therefore, "the top" is the most likely answer for where our eye usually enters the page.Rate this question:
- 50.
Common sizes used for these are often 12, 24, 48 and 72 points pixels centimeters mask sizes
Explanation
The question states that common sizes used for these are often 12, 24, 48, and 72. The options given are points, pixels, centimeters, and mask sizes. Out of these options, only "mask sizes" can refer to the common sizes mentioned in the question. Points, pixels, and centimeters are not typically used to describe common sizes, whereas mask sizes can vary and be commonly referred to as 12, 24, 48, and 72. Therefore, "mask sizes" is the correct answer.Rate this question:
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Mar 19, 2023Quiz Edited by
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Jan 22, 2013Quiz Created by
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