Test on Entrepreneur's Business Planning Guide
Entrepreneur's Business Planning Guide: Startup Success
Test: Starting a business, Personal development, Business planning risks, Strategic business planning, Small Business Entrepreneurship, Branding & marketing — Brand Strategy, Operations — Facilities & Location, Operations — People & HR, Operations — Finance & Pricing, Branding & marketing — Marketing Operations, Branding & marketing — Market Research & Targeting, Finance for Startups, Small Business Finance, Business plan creation, Legal & structure
20 questions
Question 1: Market research must identify the trading area of your target customers.
A. Ano
B. Ne
Explanation: The study materials state that one of the questions market research must answer is: "Where do my target customers come from – that is, what’s my trading area – my community, my town, surrounding towns, online, etc?"
Question 2: According to the study materials, which of the following best describes 'stealth competition'?
A. Businesses that offer the same product or service as you and compete in the same market.
B. Businesses that offer a different product or service but compete in the same market to satisfy similar customer needs.
C. Competitors who serve the same customers but in different and often unexpected ways, with their product or service usually serving as alternatives to yours.
D. Businesses that are your biggest threat because they are new to the market and offer lower prices.
Explanation: The study materials define stealth competition as 'competitors who serve the same customers but in different and often unexpected ways. Their product/service usually serves as alternatives to yours.' Option 0 describes direct competition. Option 1 describes indirect competition. Option 3 is not an accurate description of any competitor type mentioned in the materials.
Question 3: Venture capitalists generally provide a smaller investment than an angel investor would.
A. Ano
B. Ne
Explanation: Venture capitalists put in a considerable amount of money – generally a larger investment than an angel investor would provide.
Question 4: According to the study materials, why is developing money management skills essential for entrepreneurs?
A. It helps in identifying potential investors for funding.
B. Money is considered the most valuable business resource, and a lack of this skill can lead to a short entrepreneurial career.
C. It is necessary for accurately estimating variable costs.
D. It primarily assists in negotiating better terms with suppliers.
Explanation: The study materials state that 'Your most valuable business resource is money Managing your money is a skill you should develop before you start up anything. If you lack this skill, you’ll have a short career as an entrepreneur.' This directly links money management skills to the value of money as a resource and the duration of an entrepreneurial career.
Question 5: For the 'Capital' C of credit, lenders primarily focus on the borrower's personal credit history and scores.
A. Ano
B. Ne
Explanation: The study materials define 'Capital' as the cash you put toward starting your business, which demonstrates seriousness about success. Lenders want to see your investment in the business, not primarily your personal credit history and scores for this specific C.