entrepreneurship final exam study guide

What is the first step to starting a business?

Ideation.

What is a business plan?

A written description of a new business venture that describes all aspects of the business.

Which of the 4 P's of marketing involves advertising and marketing?

Promotion.

What are some difficult aspects of being an entrepreneur?

Challenges include maintaining a work-life balance, facing uncertain incomes, and taking financial risks.

What is a target market?

A group of people identified as the most likely potential customers for a product because of their shared characteristics.

What is business ethics?

The standards for morally right and wrong conduct in business.

What are business assets?

Items of value owned by a company, which can be tangible or intellectual.

What is competitive analysis?

An evaluation of information about competitors, including strengths and weaknesses.

What is the main motive of business?

To generate profit.

What is the difference between primary and secondary data?

Primary data is collected for the first time for a specific purpose, while secondary data is previously collected information.

What is the significance of social media marketing compared to traditional marketing?

Social media marketing has distinct advantages, such as broader reach and engagement with existing customers.

What are short-term goals for a business?

Goals that might include increasing sales or improving customer service.

What is the role of an entrepreneur?

Individuals who start, grow, and run their own business.

What is a disadvantage of a partnership?

Partners share profits and responsibilities, which can lead to conflicts.

What are some common mistakes when writing a business plan?

Poor research and lack of clarity.

What is innovation in a business context?

A process involving multiple activities to uncover new ways to complete tasks.

What does it mean to have a competitive advantage?

Having unique strengths that allow a business to outperform its competitors.

What is the importance of understanding financial start-up requirements?

It helps ensure that the business is financially viable from the beginning.

What is the role of marketing in a business?

The action of promoting and selling products or services.

What are some characteristics of an entrepreneur?

Enthusiasm, goal-oriented mindset, and strong decision-making skills.

What is the purpose of a competitive analysis?

To gather information about competitors to inform business strategy.

What is the significance of maintaining a work-life balance for entrepreneurs?

It helps prevent burnout and improves overall productivity.

What are variable expenses in a business?

Expenses that change every month, such as utilities and inventory costs.

What is the role of integrity in business ethics?

Integrity is a fundamental characteristic of an ethical business.

What is the impact of poor management on a business?

It can lead to lower productivity, poor work quality, and high turnover.

What is the definition of demographics in a business context?

Data that describes a group of people by characteristics such as age, gender, and income.

What is the significance of market research?

It helps businesses understand their customers and market trends.