Midterm Examination for Entrepreneurship

Name: _______________________________Year & Section: ______________ Date: _______________

Read the question carefully and answer it correctly.

1. Frank is an entrepreneur and has opened his first retail business. Frank has to take on many different positions
such as a manager, a salesperson, and an accountant. Which of the following skill sets BEST describes Frank's skill
set in this scenario?
A. Organizational Skills C. Creativity
B. Problem solving D. Risk-taking

2. Becky has a created a new product for her new business. Becky has launched this product to help improve the
existing hair care products that are currently out. Which of the following is Becky known as?
A. A business partner C. A scientist
B. An inventor D. An entrepreneur

3. Penny just opened a small restaurant. While she has had some customers in her restaurant, it is not enough to
pay employees and make a profit. Most small businesses fail because of the same reason. Which of the following is
this an example of?
A. Hiring C. Inadequate cash flow
B. Employee turnover D. Forecasting Growth

4. Entrepreneurship is concerned with not only having an idea and starting a business, but which of these things?
A. Creating value C. Solving problems
B. Implementing creativity D. All answers are correct

5. Which one of the entrepreneurial skills would fall under marketing and sales?
A. Opening the doors early C. Creating Events
B. Paying bills on time D. ordering the right inventory

6. What is initiative?
A. The drive to solve many problems in a timely manner
B. The drive to delegate as many responsibilities as necessary and possible
C. The drive to oversee a variety of business-related details
D. The drive to do whatever is necessary to make a business successful

7. Why is multi-tasking a key entrepreneurial skill?

A. Small businesses usually involve tasks that must be completed immediately
B. Small businesses usually involve delegating tasks to employees.
C. Small businesses usually involve hiring a large staff to get them off the ground.
D. Small businesses may start out as one-person operations.

8. What types of risks should entrepreneurs take?

A. Risks that are extreme
B. Risks that are not researched or understood
C. Risks that have little chance of success
D. Risks that will expand the market and create new opportunities

9. One of the most frequent reasons an entrepreneur forms a joint venture is to share the_____.
A. cost C. profit
B. resources D. cost and risk of a project

10. Why entrepreneurs are not always the best manager for their business?
A. Entrepreneurs are lazy.
B. Managers are better at coming up with fresh ideas for new business than entrepreneurs
C. Entrepreneurs tends to be creative type who get bored with the day-to-day details of running a business.
D. all of the above

11. Which of the following is NOT recognized an important component to organizational vision?
A. the vision should be built on a foundation of an organization’s core values and beliefs
B. The vision should elaborate a purpose for the organization.
C. The vision should include a brief summary of what the organization does.
D. The vision should be specify detailed and short -term goals.
12. Which of the following is the main purpose for writing a business plan?
A) The plan helps the company develop a "road map" to follow.
B) The plan introduces potential investors and other stakeholders to the business opportunity.
C) Both A and B are equally important.
D) Neither A nor B captures the true purpose of a business plan.

13. The document that does the best job of introducing potential investors and other stakeholders with the business
opportunity the firm is pursuing and how it plans to pursue it is the:
A) business plan C) opportunity analysis
B) feasibility analysis D) industry analysis

14. A financial statement is a(n):

A) set of ratios which depict relationships between a firm's financial items
B) estimate of a firm's future income and expenses
C) hybrid statement of cash flows
D) written report that quantitatively describes a firm's financial health

15. Which of the following is an example of an internal growth strategy?

A) licensing B) merger C) new product development D) strategic alliance

16. Which of the following is an example of an external growth strategy?

A) strategic alliances and joint ventures
B) improving an existing product or service
C) increasing the market penetration of an existing product or service
D) extending product lines

17. According to the textbook, beyond their own funds, the second source of funds for many new ventures is:
A) government grants B) business angels C) friends and family D) banks

18. Which of the following is not an element of the marketing mix?

a. Price b. Place c. Profit d. Promotion

19. The first step in the market research process is to

a. collect data. b. define the problem. c. design the research, d. determine the relevant
information.

20. A marketing plan should,

a. determine customer needs and wants through market research.
b. pinpoint specific target markets the company will serve.
c. analyze the firm's competitive advantages and build a marketing Strategy around them.
d. create a marketing mix that meets customer needs and wants.

21. Which of the following questions should be in the marketing strategy section of the business plan addresses?
a. Who are my target customers?
b. How many potential customers are in my company's trading area?
c. What should be the basis for differentiating my business from its competitors in my customers' minds?
d. All of the above

Questions 22 and 23 refer to the following information

Describing her company's revolutionary design for a bottle cap, Kyoto says. "It has a special locking mechanism
that you know is engaged when a red panel is showing through this little window on top of the cap. If you want to
keep unauthorized hands, for instance, those of children from opening the bottle, you engage the locking
mechanism. Unlike other childproof caps, however, this design does not frustrate adults who might have arthritis
and elderly people whose grip may not be as strong as it once was." Removing the cap from the bottle in no time
with just a few turns, Kyoto says, "They can open the cap quite, easily by disengaging the locking mechanism this
way... see? You get the safety of a childproof cap without the problems most adults have getting them off."

22. The fact that with Kyoto's new cap "you get the safety of a childproof cap without the problems most adults
have getting them off" is a,
a. feature. b. trait. c. benefit. d. none of the above.

23. Which of the following would be considered a feature of Kyoto's new cap?
a. The special locking mechanism
b. The red panel showing through the little window on top of the cap signaling that the locking mechanism is
engaged
c. The fact that you get the safety of a childproof cap without the problems most adults have getting them off
d. a and b

24. Which of the following is not a characteristic of the typical entrepreneur?

a. confidence, in their ability to succeed
b. value of money over achievement
c. desire for immediate feedback
d. a future orientation

25. ( _ ) is an entrepreneur's best insurance against launching a business destined to fail or mismanaging a
pertentially successful company.
a. Bankrolling the business with plenty of startup capital
b. Creating a solid business plan
c. Spending lots of money on marketing and advertising
d. Hiring a team of accountants and attorneys as advisors

26. ( _ ) define a company's overall direction and answer the fundamental question, "Why am I in business"?
a. Goals b. Strategies c. Objectives d. Key performance factors

27. ( _ ) are short term, specific targets which are attainable, measurable, and controllable.
a. Objectives b. Policies c. Goals d. Standard operating procedures

28. Johnson's Baby Oil is advertised as a skin softener for babies and as a makeup remover for women. This is an
example of:
A) Finding new users C) Increasing use by existing customers
B) Creating new use situations D) Modifying the product

29. Minute Maid squeeze-fresh OJ concentrate: advertising and packaging did not educate on how to use the
product and as a result consumers did not know how to use it. Which of the reasons below is most likely the
reason for this product failure?
a. Insignificant “point of difference”
b. Incomplete market and product definition
c. Too little market attractiveness (size and growth of mkt)
d. Poor execution of the marketing mix

30. Which of the following is not true about marketing mix

A. It is one of the most famous marketing terms.
B. The marketing mix is the tactical or operational part of a marketing plan.
C. The marketing mix is also called the 4Ps and the 7Ps. The 4Ps are price, place, product and promotion.
D. The services marketing mix is also called the 7Ps and includes the addition of process, people and physical
evidence.

31. The set of controllable tactical marketing tools – product, price, place, and promotion – that the firm blends to
produce the response it wants in the target market.
A. Production Management B. 4P’s / 7P’s C. Marketing Mix D. 4M’s

32. buildings, equipment, signs and logos, annual accounts and business reports, brochures, your website, and
even your business cards
A. Maketing mix B. Physical evidence C. Place D. Promotion

33. What is true about financial statement?

A. It represent a formal record of the financial activities of an entity.
B. These are written reports that quantify the financial strength, performance and liquidity of a company.
C. Financial Statements reflect the financial effects of business transactions and events on the entity.
D. All the statements are correct

34. To deliver products that solve your target customers’ problems, you must first identify ______.
A. market problems B. target market C. place D. product

35. While doing market research, a major TV manufacturer uncovered the problem that people regularly misplace
their TV remote control. Customers did not identify this as a problem that needed solving, but it was a common
issue. As a entrepreneur what product will you make or innovate?
A. a “remote-control finder” button on the TV itself
B. Every TV sets will have 5 remote control
C. A remote control that is not movable
D. Universal remote that is available in the market.

36. It contains the essence of the enterprise in a concise but powerful manner. It stresses the value of the product
offering to the target customers who would most likely buy it.
A. Objective B. Goals C. Business Concept D. Business model

37. Which of the following questions does not assure of solving a problem for your target market?
A.What problem does this solution solve?
B.Is this a problem experienced by my target market?
C.What would my target market do if I didn’t solve this problem?
D. What product is not needed by the market

38. When examining the Methods you now have in place, what is the ideal number of people it will take to
perform these methods and what positions should they be in? How will the personnel be trained and measured
for performance. - This information talks about?
A. Methods B. Manpower C. Machine D. Measuring Production

39. If a business is not making a profit, the entrepreneur knows that

A. He is not making of good use of scarce resources
B. People are willing to buy products / services at high price
C. No one wants to buy the product or service
D. All of the above

40. Which business function do experts agree you should focus on first when preparing to start a business?
A. Financing B. Marketing Vision C. Operations D. Expertise

______________0______________

Be honest even if no one is looking.

Goodluck!!!!