ECBM-805 Challenges of Starting a Business-Final Exam Final Exam for ECBM 805: Challenges of Starting a Business Your First-Name (required) Your Last-Name (required) Student Number (required) Your Email (required) ECBM 805: Challenges of Starting a Business Enter date here: To pass the exam you will need to provide a minimum of 18 correct answers. Q01. A(n) _____ is someone who identifies a business opportunity and assumes the risk of creating and running a business to take advantage of it. a. executive b. marketer c. entrepreneur d. small business owner ---A.B.C.D. Q02. Entrepreneurs usually start _____, beginning with _____ resources. a. at the bottom / limited b. small / limited c. independently / specialized d. small / patented ---A.B.C.D. Q03. Which of the following is not a characteristic of an entrepreneur? a. Is confident in their innovation or business idea b. Is willing to work under a certain degree of uncertainty c. Avoids risk d. Has the flexibility to adjust to changing situations ---A.B.C.D. Q04. Which of the following is not a reason that prevents some people from starting a business? a. Don’t want to sacrifice a steady income b. Don’t have the money to start a business c. Lack of a good business idea d. To enjoy creative freedom ---A.B.C.D. Q05. The majority of small businesses are owned by ____. a. white females b. black males c. white males d. black females ---A.B.C.D. Q06. Owners of small businesses are responsible for much of the _____ of U.S. business. a. short-term debt b. healthcare shortfall c. wage escalation d. product innovation ---A.B.C.D. Q07. _____ tend to offer environments that appeal to individuals with the talent to invent new products or improve the way things are being done. a. Small businesses b. Free markets c. Family-owned businesses d. Sole proprietorships ---A.B.C.D. Q08. Many small firms provide _____ services to large firms—that is, they hire themselves out to help with special projects or to handle certain business functions. a. franchising b. entrepreneurial c. supplemental d. outsourcing ---A.B.C.D. Q09. To understand where _____ businesses are concentrated, you need to divide them into the goods-producing sector and the service-producing sector. a. struggling b. small c. profitable d. innovative ---A.B.C.D. Q10. Manufacturing is primarily the domain of _____ businesses. a. professional b. midsize c. large d. multinational ---A.B.C.D. Q11. A local bakery is acting as a _____ when it sells desserts to a restaurant. a. wholesaler b. retailer c. franchiser d. franchisee ---A.B.C.D. Q12. A small business that buys goods from other firms and sells them to consumers is known as a _____. a. wholesaler b. retailer c. distributor d. franchiser ---A.B.C.D. Q13. Which of the following is an advantage of buying an existing business? a. You can identify competitors. b. You have access to current cash flow. c. You can identify suppliers. d. You will inherit employees. ---A.B.C.D. Q14. As a business owner, you’re in charge and can decide when and where you want to work. This managerial freedom best reflects the _____ advantage of small business ownership. a. financial b. intellectual c. time-management d. lifestyle ---A.B.C.D. Q15. A survey conducted by the Wall Street Journal indicates that _____ have a more satisfying business experience. a. top-level executives b. small business owners c. franchise owners d. team members ---A.B.C.D. Q16. Which of the following is an advantage to starting a business? a. Financial security b. Avoidance of unpleasant work tasks c. Opportunity to gain an understanding of all aspects of a business d. Lower stress level ---A.B.C.D. Q17. If you purchase a business, it is lawful for the previous owner to set up a competing business that draws its former and your current customers away from you _____. a. only by paying a stipulated fee b. any time he or she wants c. only after a stipulated time d. only in a mutually agreed-upon location ---A.B.C.D. Q18. Which of the following is the most common but riskiest option in becoming a small business owner? a. Marketing an unknown product b. Starting from scratch c. Obtaining a franchise d. Buying an existing business ---A.B.C.D. Q19. The monthly fee that a franchisee must pay to keep the company’s trade name is called a(n) _____. a. royalty fee b. advertising fee c. franchise fee d. trade fee ---A.B.C.D. Q20. In her business plan, Shelia Pataki has included a two-page overview called the _____. a. “Executive Summary” b. “Production Overview” c. “Business Summary” d. “Mission Statement” ---A.B.C.D. Q21. Which of the following topics is/are included in the “Marketing” section of the business plan? a. Target market b. Pricing c. Promotion d. All of these ---A.B.C.D. Q22. The _____ section of your business plan tells the reader where you will purchase products for resale. a. “Goods, Services and the Production Process” b. “Industry Analysis” c. “Management Plan” d. “Financial Plan” ---A.B.C.D. Q23. To succeed in a business, a new owner must understand _____. a. the basics of business management b. the principles of cash flow c. the essentials of time management d. all of these ---A.B.C.D. Q24. Accounting, finance, management, marketing, and production are the _____ areas of business. a. decision-making b. functional c. bottom-line d. distribution ---A.B.C.D. Q25. The startup phase of a business usually lasts for more than _____. a. 6 months b. 3 years c. 5 years d. 1 year ---A.B.C.D.