DECA EMT - Practice Test #1

True or False: In general, opportunities can arise from someone else's missed chances or from new developing innovations.

True

Describe the relationship between innovation and entrepreneurship.

Innovation creates new avenues to solve consumer problems in entrepreneurship

Define entrepreneurship

The willingness to assume risks in business for the rewards which may be found within the opportunities.

What is an activity entrepreneurs do that comes with a risk?

Obtaining funding from friends or family to start the business

How is entrepreneurship related to economic activity?

involves the operation of an enterprise with the goal of creating value or wealth by ensuring optimal use of scarce resources, creations of jobs, and may involve the direct sales of goods.

Entrepreneurship is continuously in the midst of a(n) _____ business environment.

Uncertain

Economic activity, innovation, potential for profit, and risk-bearing characterize which of the following?

Entrepreneurship

The ABC Company specializes in promoting businesses on social media. What industry or business segment is the ABC Company operating in?

Marketing

What is a trend?

A movement with a sustained momentum

What is the gig economy?

Workers who comprise the sharing economy or who are freelancers.

Penny is an entrepreneur who has just started a local restaurant. Since her restaurant just opened, she's often assuming many roles to ensure success. She's been a cook, waiter, dishwasher, and back office manager just in her first week of business. What skill is Penny utilizing?

Multi-tasking

The owner of ABC Company recently conducted a survey on current market trends. They found 67% of their target market would prefer to buy products online. What role is the owner practicing?

Conducting research

Leonard created and has begun to implement a plan to make store-bought water bottles reusable. What word best describes Leonard?

Innovator

Bernie is exploring the possibility of opening a new location of his company in an urban area. He is weighing his options based on the information he has. What skill is Bernie practicing?

Decision-making

Decision-making, planning, multi-tasking, and problem-solving are categorized as ____ skills and are important for an entrepreneur to possess.

Practical skills

Leadership, negotiation, communication, and listening are categorized as ____ skills and are important for an entrepreneur to possess.

People skills

A _________ is a formal analysis of a prospective business idea.

Feasibility study

A feasibility study should be completed _______ the development of a business plan.

Before

This type of research includes data previously collected by someone else.

Secondary

Name 3 forms of primary research for a feasibility study.

Interviews, surveys, focus groups

A ___________ consists of a set of customers or consumers with distinct characteristics such as similar demographics or psychographics.

Market segment

What is a minimally viable product?

An offering that is good enough to satisfy early customers.

An opportunity to do business internationally comes from __________, which occurs when a company seeks to obtain goods or a services from an outside or foreign supplier.

Outsourcing

A food company wants to sell its ice cream treats globally with the name's of professional baseball teams. What opportunity does the company need to engage in?

Licensing

The franchisee is responsible for all business _____ but agrees to operate according to a business ____ established by the franchiser. Select the correct answer to fill in the blanks in the order they fall within the sentence.

Operations, model

What is the definition of globalization?

The movement of products, capital, people, and technology across borders

____ is international trade left to its natural course without tariffs, quotas, or other restrictions?

Free trade

What is the exchange of good and services among countries?

International trade

What are serious external challenges which may be difficult to overcome for small businesses who consider doing business internationally?

tariffs, financial risks, and steep competition

When a company is looking for stability and predictability, what source of financing could be most attractive?

Bank loan

This is the area of management focused on defining goals and allocating necessary resources to achieve an objective:

Planning

What is the term for the product a company releases for the first time to early adopters in order to receive feedback, so they know what changes need to be made?

Minimally viable product (MVP)

What is a great tool for an entrepreneur to use to gather information inside and outside the business?

SWOT analysis

Tom is an entrepreneur. He would like to know more about his competitors including their strengths, weaknesses, products, and ways of carrying out business. What would be the best way for Tom to figure out all this information?

Competitive analysis

Describe the difference between start-up requirements for a software company and a restaurant?

The software company will likely require less human capital to remain competitive

Which of the following would not be a start-up requirement for a new clothing store?

A fully developed branding plan

________ are/is often said to be the lifeblood of a company and lack of this could devastate new businesses.

Cash flow

True or False: Entrepreneurs often do not receive a steady paycheck.

False. Entrepreneurs are always the first to get paid.

Who could an entrepreneur hire if he/she would like to hear professional feedback to develop a concept from multiple angles and to consider potential alternatives?

Consulting Firm

What is NOT a way to get professional expertise through face-to-face communication?

Software

A(n) ________ is a set of exclusive rights for a product granted by a government to an inventor.

Patent

A(n) ________ is a recognizable sign, design, or expression which identifies products or services as being from a particular entity.

Trademark

True or false: copyright protects only the original expression of ideas, not the underlying ideas themselves.

True

What is the purpose of a buisness plan?

To lay out a vision for a company including goals, strategies, and tactics

A popular version of a business plan is a business model ________, which is a one-page summary of the business's most important components and often includes nine elements.

Canvas

In what type of business would a venture capitalist be most likely to invest?

Software startup

In the context of financing a business, what is bootstrapping?

When an entrepreneur uses their own money to fund their operation

What is crowdfunding?

When an entrepreneur allows anyone to invest, via a website, in exchange for a perk.

What area(s) typically fall under the domain of human resources?

Employee engagement, professional development, discipline

Laws prohibit employers from asking candidates certain questions. Which of these is not one of those?

Work history

A job ________ is someone who has been recommended to the company by another source or person.

Referral

Is the following statement an example of a "sales pitch" for young startups when trying to hire new employees? "Get in on the ground floor of this opportunity. All the work will be worth it!"

Yes

When hiring new employees, a company wants to locate the best candidate(s) who will fit into the company's mission, and they want the hiring process to go smoothly and successfully. In order for this to happen, a company should have an effective

Recruitment plan

What are the factors of production?

Land, labor, capital, entrepreneurship

In economics, capital refers to what?

Money, machinery, buildings

True or false: Capital is always the most important factor of production for startups.

False

_________ are the activities involved in the day to day functions of the business conducted for the purpose of generating profits.

Operations

Marketing has a ton of tasks to undertake including:

Establishing brand identity and creating a website

What is NOT a risk entrepreneurs take?

Taking steady paychecks

A(n) _____ is a series of steps required to complete a task.

Process

These are considered a measuring tool for assessing quality.

Standards

True or False: operating systems and procedures can help ensure consistent quality and efficiency.

True

What is a bottleneck?

The part of a process that decreases the capacity of the entire list of activities

Which of the following is a viable strategy for managing workflow?

Delegation

A(n) _____ startup practices iterative and incremental product development, using minimally viable products.

Lean

What is the main purpose of product management?

Maximizing a product's profit over its life cycle.

A good is ________ whereas a service is ________.

Tangible; intangible

What is divergent thinking?

Generating a large number of ideas

What is convergent thinking?

Evaluating and narrowing options and then making decisions

Which of the following best describes creative problem-solving?

An unusual solution is presented to a challenge that has a realistic chance of providing a solution

What is the formula for productivity?

Outputs / Inputs

Which of the following is NOT one of the main factors of production?

Budget

Name 3 benefits of expanding within the company's current space?

Deepen existing base of human capital, protect and improve the company's reputation, Expand on the company's work and foundation

What is not a benefit of expanding to a new or adjacent market?

Guaranteeing steady cash flow

Name 3 pros in improving current products.

Unsatisfactory, familiarity, reputation

What is a con to creating new products.

Talent Acquisition

________ modeling is a forecasting methodology that predicts quantities at certain periods in the future.

Time-series

_________ modeling estimates the relationship between variables and produces a forecasted number.

Regression

What is the best definition of business continuation planning?

A process laying out steps to ensure that employees and assets are protected in the case of a disaster.

What is the first step of business continuation planning?

Identifying possible threats or events that could harm the company