Entrepreneurship and Small Business (ESB) Pre-test Already Passed

Entrepreneurship and Small Business (ESB) Pre-test Already Passed A head chef conducts a survey of other restaurants in the area. The chef notices that most customer complaints primarily come from takeout order being ...

Entrepreneurship and Small Business (ESB) Pre-test Already Passed A head chef conducts a survey of other restaurants in the area. The chef notices that most customer complaints primarily come from takeout order being delayed. The chef believes that having a short-order cook dedicated to primarily come from takeout orders being delayed. The chef believes that having a short-order cook dedicated to primarily come from takeout orders being delayed. The chef believes that having a short-order cook dedicated to preparing carryout orders will make his restaurant the fastest and most dependable place for takeout customers. By spending scare resources on hiring a short-order cook, what competitive advantage factor is the chef trying to achieve at his/her restaurant? ✔✔Service What is considered to be primary risk for an entrepreneur who is launching a start-up company? ✔✔Personal Financial Insecurity What is a key benefit of buying an existing small business versus launching a start-up? ✔✔Easier to finance a business purchase than a business start-up A travel agent wants to start-up a new travel company. He pays a market research company to survey 100 frequent affluent vacation travelers about luxury travel options. The market research responses: Which luxury travel service would contribute the most to the profitability of the start-up business? ✔✔Hotels A new auto mechanic business wants to grow revenues. What are marketing methods that promise to create new customers? Pick the two best answer. ✔✔A) Sending discount coupons to car owner who lives within 5 miles of the shop B) Giving current customers a loyalty discount A fitness trainer is presenting a business plan for a new studio to investors. The trainer envisions a studio with equipment and features that will meet the needs of customers with a variety of personal and work schedules. What studio feature would appeal to customers with demanding schedules? ✔✔Providing 24 hour member access When entrepreneur convinces outside investors to contribute equity to the new venture, which is true? ✔✔Investors do not earn a return (dividends or increased stock price) if the business does not make a profit Whats is a consequence for a real estate agent who violates confidentiality by discussing the client's personal income after work at a party? ✔✔Probable loss of current and future clients Identify the skills needed Write the job profile Post the advertisement Review qualifications of applicants ✔✔First Second Third Last The owner of a growing landscaping company with 30 employees has decided to outsource the payroll and payroll-related functions of the business. Which responsibility would be in this outsourcing? ✔✔Benefits administration An independent insurance agent on average receives $150 in commissions per policy underwritten. ("Underwritten" is the term for "a policy sold" in the insurance industry.) the agent's overhead is $3,000 per month. Through experience, he finds that 25% of active prospects buy within 30 days. How money prospects should the agent have in the pipeline at all times to have a good probability of generating enough in commissions to cover his overhead expenses? ✔✔80 A successful bakery on street with lots of foot traffic is introducing a new line of animal cupcakes. The bakery already has a large number of loyal customers who follow the bakery's "What's New Sweetie?" blog. While the bakery is an active user of social media, like most small businesses it doesn't have lot of available cash to spend on paid advertising. What sales and marketing steps might prompt current and new customers to try new cupcakes? ✔✔B) Indicate on the blog that the fire 50 customers who visit when the bakery opens the next day will get "buy two, get one free" on the new cupcakes C) Give out free samples during high-traffic times when the store has the staff to handle a crush of customers Areal estate agent who works exclusively with business clients looking for office space (call a "commercial real estate agent") wants to use a form of personal communication to contact local business leaders. Because office space leases are signed for large sums of money every few years, it's important that the commercial real estate agent build a long-term relationship with potential clients. That way, when the moment comes to seek new office space, the clients can turn to someone they know and trust to help on this major financial decision. Which form of communication should the agent used? ✔✔Networking A young entrepreneur has launched a new product line on her website. Her business is already successful-the website has lots of traffic. The goal of this marketing campaign is to determine whether customers who love the company's current product will be willing to buy this new product line. Which one of the following metrics will best measure success? ✔✔Sales (in units) of the new product line Current Assets Long-Term Assets Current Liabilities Long-Term Liabilities ✔✔Inventory Manufacturing Equipment Bank revolving line of credit 20 year loan on company property Which expense is variable? ✔✔Shipping costs A gourmet chef sells high-priced, high-profit chocolates out of a very expensive store location in a very wealthy area. The store's fixed cost are $300,000 per year. The variable costs to make a box of chocolates averages $10, including costs of ingredients, packaging and labor. Because the chocolate are so delicious, the store can sell them for $35 per box. How many boxes does the store need to sell to cover its fixed costs? ✔✔12,000 Which are two traits of successful entrepreneurs? ✔✔Determined, Proactive Why do some entrepreneurs choose to purchase franchises rather than launch their own start-up? ✔✔They believe they will have more success with a proven concept A competitor launches a new product that reduces your revenues. A competitor sues your company for stealing their new product idea A customer finds a dead mouse in a box of your chocolates ✔✔Business Risk Legal Risk Reputational Risk Financial Risk