Entrepreneurship Midterm
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50 Terms
Quantity refers to…
The number of units produced or sold.
Quality is best described as…
The standard or excellence of a product or service.
Why is quality important in business?
It helps build customer loyalty and trust.
Which of the following is an example of quantity over quality?
Producing thousands of low-cost pens that break easily.
Businesses that focus only on quantity often risk…
Lower product durability.
Market segmentation means…
Dividing a market into groups with similar needs or traits.
Which of the following is NOT a basis of market segmentaion?
Profit margin.
Segmenting by age, gender, income, or education is known as…
Demographic segmentation.
Segmenting customers by their hobbies, values, or lifestyle is…
Psychographic.
Which is an example of geographic segmentation?
Selling snow shovels in northern states.
Targeting customers who buy coffee daily is an example of…
Behavioral segmentation.
Why is market segmentation important?
It helps businesses meet specific customer needs.
A high-end luxury car brand advertising in wealthy neighborhoods is using…
Geographic segmentation.
A company selling sports equipment to athletes uses which segmentation type?
Behavioral.
If a company identifies “teen gamers” as its market, it has…
A target market.
The 4 P’s of marketing are…
Product, Price, Place, Promotion.
Which P focuses on the design, features, and quality of what is being sold?
Product.
Which P refers to how customers learn about a product?
Promotion.
Which P deals with where and how a product is distributed?
Place.
Which P involves setting the right cost for customers while ensuring profit?
Price.
A company lowers prices to compete with rivals. This is an example of…
Price strategy.
When a business advertises on social media, it is focusing on…
Promotion.
Choosing to sell through online platforms instead of physical stores is an example of…
Place decision.
Adding a new flavor to a soda brand relates to which P?
Product.
If a business gives coupons to encourage purchases, this is part of…
Promotion.
Primary research involves…
Collecting new data firsthand.
Which of the following is an example of primary research?
Conducting a customer survey.
Secondary research means…
Using existing information that already exists.
Which of the following is NOT secondary research?
Focus groups.
Conducting a focus group is…
Primary research.
A start-up looking at competitors’ websites is using…
Secondary research.
One disadvantage of primary research is…
It may be costly and time-consuming.
One advantage of secondary research is…
it saves time and is easily accessible.
Collecting data through interviews is an example of…
Primary research.
Which is the BEST research method for finding customer opinions about a new product?
Customer surveys.
An entrepreneur is…
Someone who creates and runs a business.
Which of the following is a common trait of entrepreneurs?
Someone who creates and runs a business.
Entrepreneurs take risks because…
They want to maximize profits and opportunities.
Which is an example of entrepreneurship?
A student starting a tutoring business.
Which is an advantage of being an entrepreneur?
Freedom and independence.
Gross profit is calculated as…
Revenue - Cost of goods sold.
Net profit is…
Profit after all expenses, including taxes.
Operating profit is…
Profit after operating expenses but before taxes and interest.
A company makes $200,000 in sales and has $120,000 in cost of goods sold. Gross profit is…
$80,000.
If gross profit is $100,000 and operating expenses are $40,000, operating profit is…
$60,000.
If net profit if low despite high sales, it mean means…
All of the above (listed on paper).
Which of the following best shows a company’s financial health?
Net profit.
If a business increases sales revenue but expenses rise faster, net profit will…
Decrease.
A bakery sells $10,000 worth of cakes. Cost of ingredients are $4,000, operating expenses are $3,000, and taxes are $1,000. What is the net profit?
$2,000.
Which type of profit is calculated before deducting interest and taxes?
Operating profit.