Question

3. A great business idea is

A. the beginning of a great business.
B. all you need to succeed.
C. something that comes along once in a lifetime.
D. an idea that no one else has ever thought of.
Student Answer: D
Answer: Incorrect
Reference: PGS 12-13

4. The price for predictability is often
A. long hours.
B. stress and insecurity.
C. long-term boredom.
D. increased self-confidence.
Student Answer: D
Answer: Incorrect
Reference: PG 1

5. One of the advantages of starting your own business is
A. lack of responsibility.
B. no hassles.
C. profit.
D. free time.
Student Answer: B
Answer: Incorrect
Reference: PG 7

9. When you first started your new business, you were so excited about the large volume of orders you had. One year later, you find that your orders are less than half of what they were in the beginning. What is the most probably cause of this decrease in order?
A. Your price is too high for the market.
B. You failed to continue your marketing efforts.
C. You have too much competition.
D. You've limited yourself to a small number of products.
Student Answer: D
Answer: Incorrect
Reference: PAGES 9,10

10. Of all new businesses, how many make it through their second year?
A. 50 percent
B. 60 percent
C. 80 percent
D. 20 percent
Student Answer: B
Answer: Incorrect
Reference: PG 12

11. The best way to avoid cash flow problems is
A. regular saving.
B. constant marketing.
C. downsizing.
D. borrowing less.
Student Answer: A
Answer: Incorrect
Reference: PG 9

12. One of the most common mistakes new business owners make is
A. getting advice from a consultant.
B. not establishing a good relationship with a financial institution.
C. always knowing what the customer wants.
D. setting unrealistic goals.
Student Answer: B
Answer: Incorrect
Reference: PG 25

15. Which of the following is an advantage of starting a new business?
A. You don't have to reinvent the wheel.
B. You have the security of following in someone else's footsteps.
C. You don't have to compensate for someone else's mistakes.
D. You can expect a regular paycheck.
Student Answer: B
Answer: Incorrect
Reference: PG 14

16. One of the main disadvantages of buying a franchise is that you may end up
A. hiring a large staff.
B. feeling like an employee.
C. paying too much for operating costs.
D. choosing a poor location.
Student Answer: A
Answer: Incorrect
Reference: PG 15-16

Answer 1

1. One of the unexpected drawbacks of starting your own business is:

Loneliness

2. Meeting clients in person instead of talking with them on the phone can help to reduce _______ when you own your own business.

Loneliness

3. The freedom of working for yourself is necessarily limited by

Your own skills and abilities

4. Which of the following is an example of a franchise?

Radio Shack

5. When you first started your new business, you were so excited about the large volume of orders you had. One year later, you find that your orders are less than half of what they were in the beginning. What is the most probable cause of this decrease in order?

You failed to continue your marketing efforts.

6. As a noncommissioned employee in a company, your pay rate is most likely based on

The going rate for your job

7. After you open your new business is not the best time to

Conduct research on your product

8. The best way to avoid cash flow problems is

Constant marketing

9. A great business idea is

The beginning of a great business.

10. One of the advantages of starting your own business is

Profit

11. Which of the following is an advantage of starting a new business?

You don't have to compensate for someone else's mistakes

12. The number one reason for failure of new business is

Insufficient cash

13. Of all new business, how many make it through their second year

20%

14. What is one of the advantages of buying an existing business?

Its track record lets you know what to expect

15. Of these types of businesses, which one requires the most drive and motivation?

A new business

16. What is the failure rate for a franchise?

5 percent

17. The price for predictability is often

Long-term boredom

18. How will you save money by buying a franchise?

You can get a volume discount on your products

19. Asking yourself "What can I do to build a loyal customer base?" is an example of

Creativity

20. The freedom to make your own decisions can be limited if the business you choose is a

Franchise

All of these are 100% correct answers.

Hope this helps! :)