Domain 1 Post Test

Sarah works at an auto shop. She performs car repairs and maintenance while abiding by the safety guidelines outlined at the shop. Sarah also ensures that all work she performs adheres to company policies. She is paid an hourly wage. Which best describes the role Sarah plays in the auto shop?

Employee

Dylan owns a small grocery store. The store has not been receiving a lot of business during the last few months and has been making a low profit. Dylan has a meeting scheduled to discuss these issues with other employees of the grocery store. In which business life cycle stage is Dylan?

Pivot or Persist

Critical Thinking

Solving problems in the best way by considering a variety of potential solutions to the problem

Creativity and Innovation

Bringing new and unconventional ideas to the table and finding creative and new solutions to the way things are done

Collaboration

Working with others towards a common goal

Problem-solving

Coming up with solutions to solve a problem

Personal Agency

Working toward achieving a goal without someone directing and ensuring it is being done

Ethical Practices

Decision-making based on morals and doing the right thing

Social Responsibilities

preventing and removing any corruption and unethical behavior that could harm a business, the community, or the environment.

Sharon owns a law firm. She has recently begun earning more money, and the firm's finances are doing well. In which business life cycle stage is Sharon?

Success

It is becoming more and more common to sell products and services __________.

Online

Korryn works at a convenience store. When she was hired, she was told that she would be working 40 hours per week and receive $15 per hour of work. In addition to this, the company gives all employees partial ownership of the company in the form of shares. Which two forms of compensation does Korryn receive for her work?

Equity & Hourly

Network marketers make their money through __________.

Commissions

Billie manages the budget for a toy manufacturing company. In addition to this, she also negotiates financial matters with other companies on collaborative projects. Which best describes the role Billie plays in the toy manufacturing company?

Chief Financial Officer (CFO)

Copyright

used to protect creative works

Patent

used to protect an invention from being copied for a limited time

Trademark

used to protect brand names, logos, and business names

Trade secret

used to protect a company’s practice, process, or formulas from being shared with other competitors

Entrepreneurs should…

legally protect their intellectual property

Which is a characteristic of a business opportunity?

The seller is required to help the buyer find an ideal location for the business

To use materials that have a copyright or a trademark, one must get permission. Which two things are they required to do before legally using the material?

Sign a licensing agreement and pay a licensing fee

Sole Proprietorship

easy to create but comes with unlimited liability

S corporation

A for-profit corporation with a lower tax rate that prevents the company from being double taxed

C corporation

profits are taxed when earned and then the shareholders’ dividends are taxed after they are distributed. this legal structure is best for international businessess

Limited liability company (LLC)

allows the owner to pay taxes on their profits or losses through their own taxes using a personal tax rate. this legal structure is ideal for a single owner seeking low risk

Partnership

shared financial banking

Non-profit

has no ownership and pays no federal taxes

Which is a disadvantage of S corporations?

There are very strict qualification requirements for becoming an S corporation

What must happen before one can use someone else's patent?

They must obtain ownership of the patent

Milestones

Talk about the traction that a company has gained, such as crowdfunding

Problem

Discuss what customer problem the products or services solve

Vision and Value proposition

A brief overview of a business that talks about the company's mission and the value provided to its customers

Business Model

Discuss how a business works, how it makes money, and talk about some of the marketing strategies

Competition

Discuss what the competition is doing and how a company could improve upon what the competition is doing without being disrespectful toward the competing companies

Team

Highlight key team members' skills, expertise, and experience and how these qualities work together to contribute to the management and growth of the company

Ask

Specify how the investors' money will be used and why the funds are necessary to grow the company while using data to back up the stated information

What are the two disadvantages of entrepreneurship?

not having a promised paycheck and may not get paid or have enough to pay employees

Joey has opened a restaurant. He paid a large amount of money up front to get the business started. He only sells products that are licensed by someone else. What type of business opportunity is Joey a part of?

Franchise

Rose ordered a package of macaroons from an out-of-state bakery. She received the cookies the following week. What type of e-commerce product did Rose order?

Physical

Define

Analyze observations and information to identify the core problem

Test

The design team identifies any additional problems and refines the final solution before the final product is produced and released to customers

Prototype

The design team creates multiple inexpensive versions of the product, known as minimum viable products (MVPs)

Ideation

The design team comes up with solution ideas

Empathize

Spend time gaining an understanding by observing, engaging, and empathizing with customers to understand their experiences and their needs better

Demetri is implementing the design thinking process into his business. In what order should the steps be taken?

1. Empathize

2. Define

3. Ideate

4. Prototype

5. Test

Factors that aid in determining whether or not a business opportunity is viable include market size, __________, manage of cash flow, management skillsets, and passion.

relationships

Brandon is in a band. His band has recently produced a new song. Which intellectual property law best protects the band's song from being stolen or reproduced by others?

copyright

Founder

The individual that developed or created the company or organization

Chief Operating Officer

Oversees the business's day-to-day operational and administrative functions

Stakeholder

The individuals or groups that have an interest in the success of a company

Partnership role in company

One or more people share the business's financial responsibility, including record keeping, paying taxes, distributing profits, marketing, and the company's day-to-day functions

Employee

Responsible for completing specific assigned tasks while adhering to the company's safety and ethical guidelines and policies

Chief Executive Officer

Makes major decisions for the company, oversees operations and resources, comes up with the company's vision, strategies, and mission, and reports to the board of directors

Stockholder

Votes on the management of the company and whether to remove the CEO should the occasion arise

Chief Financial Officer

Manages and plans the cash flow, creates budgets, and forecasts whether the company will meet the set budget requirements

What are the two advantages of selling digital products?

not needing physical storage, inventory, or additional employees & delivery is instantaneous and inexpensive

Business life cycle in the correct order.

1. Existence

2. Survival

3. Success

4. Take-off

5. Resource maturity

6. Pivot or persist

7. Exit plan

When considering the reliability of the management for a business opportunity, what else should one consider at this time?

One's own skillset

Franchises will generally have higher __________, but they offer ongoing support and training.

start-up costs

Sarah works at an auto shop. She performs car repairs and maintenance while abiding by the safety guidelines outlined at the shop. Sarah also ensures that all work she performs adheres to company policies. She is paid an hourly wage. Which best describes the role Sarah plays in the auto shop?

employee

Dylan owns a small grocery store. The store has not been receiving a lot of business during the last few months and has been making a low profit. Dylan has a meeting scheduled to discuss these issues with other employees of the grocery store. In which business life cycle stage is Dylan?

pivot or persist

Marketing plan

Determines the size of a market with marketing analysis and describes potential customers to provide a customized plan to reach them.

Financial plan

Includes a budget, a 12-month profit and loss projection, cash flow statements, a breakeven analysis, and capital requirements to show investors how their money will be spent. 

Organizational structure/management bios

Provides an overview of the employees and others that are part of a business.

Executive summary

Summarizes what one wants to accomplish with a business, the products and services one sells, financial outlook, the funding needed, one's goals, and one's achievements.

Success

A business owner is generating a consistent income, and the business is economically healthy

Existence

A business owner gets a business up and running

Exit Plan

The business owner decides to sell their ownership of the company

Take-off

The business owner needs to decide if they want their company to become a big business and, if so, how they will create rapid growth and finance it

Pivot or persist

Exhausting all efforts and avenues with the current strategy before deciding to change strategy

Resource maturity

The owner has separated financially and operationally

Survival

Having a reliable amount of customers to stay open

Examples of products

Clothing, pet toys, sandwich

Examples of services

tutoring, computer repair, car detailing

Kelly has decided to purchase a new rug for her home. She visits a local home décor store and purchases a rug there. What type of transaction is this?

Business-to-consumer (B2C)

Small business

Owned and managed by one individual or sometimes a small group of people with a focus on generating profits

Entrepreneur

An individual with an idea to offer an innovative product or service about which they are passionate

Franchise

A business where the owner licenses their operations, products or services, branding, and knowledge for a royalty fee

Business plan

A written document that details how a business will be structured, managed, run, and grown.

Lean canvas

Covers problems and solutions, value propositions, marketing channels, key metrics, costs, and revenue without all of the business plan details.

Pitch deck

A brief overview of a business plan, the products and services that will be provided, the funding needed, and financial projections.

Hourly

Payment for the hours an employee has worked

Salary

Fixed payment amount for each pay period

Commission

A fee paid to an employee for completing a task

Piece work

Compensation for the number of units an employee produces

Equity

Non-cash compensation, including an investment vehicle, ownership in the company, restricted stocks, or shares

Growth mindset

Believing that one can accomplish anything if one works hard

Risk tolerance

The amount of loss one is willing to take when making investment decisions

Resiliency

Adapting to change, loss, and disappointment

Self-reliance

Trusting one's self, one's goals, and one's progress

Forward-thinking mentality

Thinking about and planning for the future

Grit

Tackling goals with courage and perseverance, even when it is challenging

Initiative

Turning one's ideas into action or bringing in new ideas to generate more or better business

Opportunity recognition

The way one approaches new ideas and ventures

A non-profit has a __________ status.

tax-exempt

Knowing a process has been tested and works well is valuable to companies as they can assume it would work just as successfully for their company. As a result, companies may want to use __________ materials.

trade secret