FBLA Entrepreneurship Test Questions With 100% Correct Answers 2024, Exams of Advanced Education

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FBLA Entrepreneurship Test Questions

With 100% Correct Answers 2023

Most startup companies can expect to need _____ capital than they anticipate. - Correct Answer-More The primary cause of small business failures is: - Correct Answer-Management Mistakes Entrepreneurs tend to be overly ______ and misjudge the ______ requirements to start a new business. - Correct Answer-Optimistic; Financial The ability to develop new ideas is known as: - Correct Answer-Creativity Which one of the following is usually included on the cover page of the business plan? - Correct Answer-Disclaimer Which one of the following management skills should a prospective team member possess? - Correct Answer-Prepared to Recruit High-Quality People Which one of the following is not true regarding a business plan? - Correct Answer-A business plan is a document that describes the success factor of an ongoing business. Which one of the following is not a part of the executive summary section of the Business Plan? - Correct Answer-Competition Information Which one of the following is an overview of the business plan intended to capture reader interest? - Correct Answer-Executive Summary Which one of the following should be included in the environmental and industry analysis section of the business plan? - Correct Answer-Trends at the national and international levels that could influence the business. Which one of the following should be identified form among the main competitors to the planned business? - Correct Answer-Quality Leader Which one of the following is not a part of the marketing research and evaluation section of the business plan? - Correct Answer-Potential for Long Term Growth All business plan information includes assumptions based on information available. How should this be addressed in the business plan? - Correct Answer-The differing results if and when results differ from projections should be included.

Every business plan contains forecasts that include risk. What is one positive way to address risk? - Correct Answer-The business plan should present alternatives. Developing a business plan is a good way to: - Correct Answer-Prevent costly oversights in the creation of a business. Which one of the following is true concerning the product/service description section of the business plan? - Correct Answer-Plans to expand the product line or service. Which one of the following would be the most relevant important consideration in the selection of the right geographic location for a service business. - Correct Answer- Proximity to Customers Which one of the following benefits to the community in which the business is or will be located should be addressed in the business plan? - Correct Answer-Job Creation Which one of the following risks can be controlled or at least adequately prepared for? - Correct Answer-Unexpected Development Costs The financial plan section of the business plan is an important component. Which one of the following is not required? - Correct Answer-Statement of Changed in Equity Which one of the following would not be a recommended attribute for the business management team member? - Correct Answer-Someone Whom the Owner Knows Personally Which stage of the creative process involved viewing similarities and differences in the information collected? - Correct Answer-Transformation _____ is a process in which a small group of people interacts to produce a large quantity of imaginative ideas. - Correct Answer-Brainstorming A _______ is any distinctive word, phrase, symbol, name, or log a firm uses to distinguish itself or its products. - Correct Answer-Trademark Because of technology, entrepreneurs now have access to _______ opportunities. - Correct Answer-International GAAP stands for which one of the following? - Correct Answer-Generally Accepted Accounting Principles Which one of the following allows a firm to plan its short-term cash needs? - Correct Answer-Cash Budget

Management Accounts Receivables does not include which one of the following? - Correct Answer-Providing incentives for customers to make larger purchases by reducing the prices. Which one of the following is not a factor in managing Accounts Receivable? - Correct Answer-Paying creditors for purchases timely. Which one of the following is an example of a single-entry accounting? - Correct Answer-Checkbook When a financial statement is depicted in percentages for each item it is: - Correct Answer-Common-Sized An accounting system should have the following characteristics. - Correct Answer-Easy to use, accurate, and consistent Establishing ________ will aid a business in developing key operational areas such as service and innovation. - Correct Answer-Core Competencies _______ is a road map of the tactics and actions an entrepreneur draws up to fulfill the company's mission, goals, and objectives. - Correct Answer-Strategy When determining the initial capital requirements for a business, what is the differentiation made regarding assets? - Correct Answer-Identifying assets as short- term or long-term. The small business can fail for a variety of reasons. There are actions that management can take to avoid most through careful planning. Which one is management least able to take action to avoid or recover from? - Correct Answer-Industry Weakness One way to reduce the need for a business to borrow is to carry little to no inventory and order items from the suppliers when they are sold to the customer. Which one of the following is not a risk related to this policy? - Correct Answer-Increased carrying costs to store inventory. Conditions are one of the five Cs of credit. Which one of the following phrases defines conditions? - Correct Answer-Current economic, industrial, and firm-specific prospects for the loan period. Capital is one of the five Cs of credit. Which one of following phrases defines capital? - Correct Answer-Borrower's financial net worth. Collateral is one of the five Cs of credit. Which one of the following phrases defines collateral? - Correct Answer-Resale value of the secure items if repossession becomes a reality.

Character is one of the five Cs of credit. Which one of the following phrases defines character? - Correct Answer-Customer's integrity, willingness, and potential ability to repay the loan Capacity is one of the five Cs of credit. Which one of following phrases defines capacity? - Correct Answer-Ability to repay the debt from ongoing business operations. The five forces model includes potential entrants, suppliers, buyers, substitutes, and: - Correct Answer-Rivalry between existing firms. Which one of the following is not a source of primary data in marketing research? - Correct Answer-Census Reports Which one of the following describes customer-oriented pricing strategies? - Correct Answer-Focused on target markets and demands. A(n) ________ represents clients who buy or sell specialized goods or seasonal products. - Correct Answer-Broker A ________ is what a customer gains from the product or service feature. - Correct Answer-Benefit A _________ sells products to the ultimate consumer. - Correct Answer-Retailer Large companies primarily use a 1960s strategy called ________ as a way to encourage people to buy their products. - Correct Answer-Mass Marketing Which segmentation variable would be less productive regarding the 15-18 age group?

• Correct Answer-Political Party Preference Which one of the following is not a source of secondary data in marketing research? - Correct Answer-Interviews Marketing research cannot help you identify which one of the following? - Correct Answer-Markets for products that do not exist yet There are four major components to inventory cost. Which one will cost you more if you order large quantities that you will eventually use? - Correct Answer-Holding/Carrying Costs A joint venture is different from a partnership in that the joint venture can be formed: - Correct Answer-Only by two individuals. The preparation of an organizational chart of current employees and documented job descriptions helps in the planning of the: - Correct Answer-Workflow

The most valuable assets in a business are the: - Correct Answer-Employees What is the most efficient method-- because of its low cost and the fact that it allows a maximum amount of information to be covered in a short amount of time-- to use if you need to train a large number of employees on general company policy? - Correct Answer-Lectures If you need to train one or only a few employees concerning the details of a job, it is best to utilize: - Correct Answer-On-The-Job-Training Employee recruitment through the use of _________ will normally get a large number of responses, but many of these are unqualified or under qualified. - Correct Answer-Help- Wanted Ads Which one of the following questions is acceptable to ask when interviewing a perspective employee? - Correct Answer-Have you ever been convicted of a felony? Which one of the following is included as a component of an incentive-pay program? - Correct Answer-Bonuses Your _______ are not part of your "benefit" package. - Correct Answer-Wages Which part of the job description should include the "outcomes or results of the job?" - Correct Answer-Task Statement Some franchisers offer __________ including exclusive geographical distribution rights.

• Correct Answer-Territorial Protection One of the major trends in franchising is the __________ of American franchise systems. - Correct Answer-Internationalization What is it called when a taxpayer reports and pays taxes dividends received from a corporation? - Correct Answer-Double Taxation Corporations are not allowed to pay for certain benefits for their employees and they are not considered income for the employees for tax purposes. Which one of the following is not of these benefits? - Correct Answer-Stock Options What will happen when a corporation lowers or eliminates its profit by paying out as much as they reasonably can to its owners? - Correct Answer-The owners will pay individual income tax, but the corporation will avoid paying on its income. What are the tax consequences of incorporating under subchapter S of the IRS code? - Correct Answer-The income is passed though to the stockholders essentially as if the corporation was a partnership.

Which corporate form can provide pass-through tax treatment for shareholders? - Correct Answer-LLC When stock is transferred to an individual in exchange for services, how is the transaction treated? - Correct Answer-Taxable income for the individual. Which one of the following taxes is paid by business employers? - Correct Answer- Unemployment Taxes Why are business required to get a Federal Employer Identification Number? - Correct Answer-Identifies the business for tax purposes Which one of the following taxes is collected by business, but not an expense to them? - Correct Answer-Sales Taxes Social responsible is the obligation to have a positive effect on the four levels of society. Which level is the most important? - Correct Answer-Economic If a company decides to go green, which area of legal obligations is it attempting to satisfy? - Correct Answer-Environmental Protection The environmental analysis also is often called the _________ analysis. - Correct Answer-SWOT The formal statement of what a business expects expects in the way of ethical behavior is: - Correct Answer-Code of Ethics One measure of a company's level of social responsibility is the degree to which it encourages its employees to engage in: - Correct Answer-Volunteer Service If a small business contributes resources to the community which improves the quality of life, it is fulfilling which area of social responsibility? - Correct Answer-Philanthropic The highest, or ultimate, level of the pyramid of social responsibility is: - Correct Answer-Philanthropic What is an ethical perspective that deals with the consequences of one's own actions called? - Correct Answer-Utilitarianism Ralph Nader's "Nader's Raiders" were fighting to provide: - Correct Answer-Consumer Protection Employee stock options are required by law to meet a number of requirements. Which one of the following is one of the requirements of an incentive stock option? - Correct Answer-The exercise price must be the fair market value of the stock at the time of issuance.

What laws control what a business can sell and where it can operate? - Correct Answer- Zoning Laws What is the term that makes a business entity responsible for any actions of the employee that are within the scope of his/ her employment? - Correct Answer- Respondent Superior Which one of the following is not a basis of prohibited employment discrimination under the federal laws related to discrimination? - Correct Answer-Sexual Orientation Many states require businesses to apply for a __________ to conduct business which is then renewed at specified intervals. - Correct Answer-License When the financial condition of a business becomes insolvent, what often occurs? - Correct Answer-Bankruptcy Congress passed an act in 1970 that has set workplace safety standards. What is this act called? - Correct Answer-Occupational Safety and Health Act (OSHA) Which one of the following insurances specifically covers job-related injuries? - Correct Answer-Workers Compensation Insurance ____________ are at the very heart of the financial market for small businesses. - Correct Answer-Commercial Banks Which one of the following forms of business carries the least risk to the owner? - Correct Answer-Corporation The number of partners in a business organized as a partnership is limited by which of the following? - Correct Answer-There is no limit to the number of partners a partnership business can have. Which one of the following is not an example of the failure of the owners to treat the corporation as a separate entity from themselves? - Correct Answer-The owners borrow startup capital using donated assets as collateral. The debts of the business are ultimately the debts of the owners if the business cannot pay under which business form? - Correct Answer-Partnership What is the term for when an officer or director of a business identifies a business opportunity that would be valuable to his or her company, and uses that information for his or her own benefit or the benefit of a competitor? - Correct Answer-Corporate Opportunity

The requirement that the employee not knowingly take action designed to harm the employer's business is an aspect of the duty of: - Correct Answer-Loyalty Which one of the following does not extend beyond the employment relationship (after termination)? - Correct Answer-Duty not to Compete Which one of the following is considered a break of loyalty? - Correct Answer-Soliciting or introducing fellow employees to leave their jobs to join in a newly formed corporation.