Business Fundamentals Quiz
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Questions and Answers

Venture capital is an internal source of finance.

False

A break-even analysis is used to determine the point at which revenue exceeds total fixed and variable costs.

False

The marketing mix includes the element of 'People' which refers to the sales team and customer service.

True

Primary market research involves analyzing existing data from internal and external sources.

<p>False</p> Signup and view all the answers

Entrepreneurs are typically risk-averse and like to maintain the status quo.

<p>False</p> Signup and view all the answers

Lifestyle entrepreneurs focus on rapid expansion and growth.

<p>False</p> Signup and view all the answers

Study Notes

Finance

Sources of Finance:

  • Internal sources:
    • Retained profits
    • Sale of assets
  • External sources:
    • Loans (short-term and long-term)
    • Shares (equity and preference)
    • Venture capital
    • Grants
    • Crowdfunding

Importance of Cash Flow:

  • Cash flow is the lifeblood of a business
  • Helps to pay bills and debts on time
  • Enables business to take advantage of opportunities
  • Can lead to insolvency if not managed properly

Break-Even Analysis:

  • A calculation to determine the point at which revenue equals total fixed and variable costs
  • Helps to determine profitability and inform business decisions

Marketing

Marketing Mix:

  • Product: What the business sells
  • Price: The amount charged for the product
  • Promotion: Advertising, sales promotions, and public relations
  • Place: Distribution and logistics
  • People: Customer service and sales team
  • Process: Systems and processes in place
  • Physical Evidence: The atmosphere and environment in which the product is sold

Market Research:

  • Primary research: Collecting original data through surveys, focus groups, and experiments
  • Secondary research: Analyzing existing data from internal and external sources
  • Importance of market research:
    • Identifies customer needs and preferences
    • Helps to identify market gaps and opportunities
    • Informs business decisions and strategies

Entrepreneurship

Characteristics of Entrepreneurs:

  • Risk-takers
  • Innovative and creative
  • Opportunity-seekers
  • Flexible and adaptable
  • Good communicators and leaders
  • Resilient and persistent

Stages of Entrepreneurship:

  • Idea generation
  • Feasibility study
  • Business planning
  • Start-up
  • Growth and development

Types of Entrepreneurs:

  • Lifestyle entrepreneurs: Focus on maintaining a work-life balance
  • Growth entrepreneurs: Focus on rapid expansion and growth
  • Social entrepreneurs: Focus on creating social impact and value

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Test your knowledge of business basics, including sources of finance, cash flow, marketing mix, and entrepreneurship. Learn key concepts and principles to succeed in business.

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