31 Questions
What is one advantage of buying an existing business?
Leverage the experience of the previous owner
What is the primary purpose of promotion in marketing?
To inform consumers about a product or service and influence them to make a purchase
What is one common disadvantage of buying an existing business?
Paying for 'ill will'
Which factor differentiates a small business from its competitors and gives it a unique position in the market?
Competitive advantage
What are the three types of information commonly used in data mining?
Geographic, Demographic, and Psychographic
What does a partnership legally share among co-owners according to the terms of an established partnership agreement?
Assets, liabilities, and profits
What does UPA stand for in the context of business and entrepreneurship?
Uniform Partnership Act
Which type of competitors offer the same products and services as a business?
Direct competitors
What is a corporation called if it conducts business in the state where it is incorporated?
Domestic corporation
Which of the following methods are used for preparing an advertising budget?
Affordable, competitor matching, percentage of sales, objective-and-task
Which factors are important in determining the right price for a product or service?
Cost structure, market assessment, desired image
What is a key consideration for a company when selecting advertising media?
Trading area size and customer characteristics
Which business structure features elements of both a partnership and a corporation?
Limited liability company (LLC)
What is a natural part of the creative process?
Innovation
Which area should be covered in a business plan presentation?
The problem your product or service solves
What type of distinction is made for federal income tax purposes but is legally no different from any other corporation?
S corporation
What does an entrepreneur draw up as a roadmap for a company's mission, goals, and objectives?
Business plan
What method is used for determining the value of a business by using the price/earnings ratios of similar businesses?
Earnings approach
Which pair of terms correctly describes thinking new things and doing new things?
Creativity, Innovation
What does the term 'Small business' refer to?
Startup
Which statement is NOT correct regarding the benefits of owning a small business?
Opportunity to be more stressed.
What form of business ownership is designed for a business owned and managed by one individual?
Sole proprietorship
What does 'Intellectual capital' refer to in a company's context?
Intellectual capital
What is one of the goals of the seller when negotiating a deal for selling a business?
Avoid unreasonable contract terms that might limit future opportunities
Serial entrepreneurs are individuals who:
Run more than one business simultaneously
What distinguishes scalable entrepreneurs from social entrepreneurs?
Social entrepreneurs prioritize social impact over financial gain, while scalable entrepreneurs focus on profitability
When negotiating a deal, what is NOT a goal of the seller?
Ensure a smooth transition for employees
Which type of entrepreneur creates multiple companies and is involved in running more than one business simultaneously?
Serial entrepreneurs
In the context of negotiating a business sale, what does it mean to avoid unreasonable contract terms?
Preventing terms that could restrict future opportunities
What characterizes scalable startups?
They aim for significant growth and expansion
What distinguishes social entrepreneurs from scalable entrepreneurs in their business approach?
Social entrepreneurs prioritize social impact over financial gain, while scalable entrepreneurs focus on profitability
Prepare for your IT364 Entrepreneurship and Innovation midterm exam with this quiz containing multiple-choice and true/false questions. Test your knowledge on topics such as partnerships, business structures, and legal acts.
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