ELECO 3
  • 1. What is opportunity cost?
A) Choosing with the advantage
B) Going with the first option
C) Going with the easiest option
D) Choosing the best alternative
  • 2. This economy is about personal choice. individuals decide what, how, and for whom products and services are produced?
A) Market
B) Operations
C) Command
D) Strategy
  • 3. Outlines personal history of the principals and show how their work experiences relates to the ventures and state the duties and responsibilities as well as the compensation outline.
A) The Business
B) Management
C) The market
D) Labor
  • 4. The following are the positive characteristics of a good business plan EXCEPT:
A) Emphasize the target market
B) Capture the customers interest
C) Prepare an objectively long plan
D) Always consider pitfalls
  • 5. All of the following are important parts of the marketing plan EXCEPT:
A) Cost control
B) Advertising and promotion
C) Pricing
D) Distribution
  • 6. Refers to actions which satisfy a particular need or solve a particular problem.
A) New service
B) New product
C) New relationship
D) Improved service
  • 7. This means offering additional service element to the product.
A) Improved service
B) New service
C) New relationship
D) New means of production
  • 8. Which of the following statement about Entrepreneurship is TRUE?
A) Entrepreneurs des by creating and managing organizations to give long term benefits to the investors.
B) An Entrepreneurs need bosses to motivate them.
C) Entrepreneurs requires specific know how in the ventures day to day operations.
D) Entrepreneurs must take divided control and direct the venture towards a maximum position.
  • 9. One of the part of business plan wherein the venture can achieve the sales indicated in the financial forecast.
A) The Business
B) The Management
C) The Industry
D) The Market
  • 10. To an Entrepreneur, relevant competitive strategy generally falls into three categories EXCEPT:
A) Meeting the competition
B) Beating the competition
C) Assessing the competition
D) Countering the competition
  • 11. A group of products that have similar characteristics and uses.
A) Product mix
B) Product strategy
C) Product line
D) Product segmentation
  • 12. Despite all the benefits, there are a number of disadvantages to franchise such as:
A) The time consumed by the management training and support the franchisor provides
B) Territory limitations
C) The cost of national advertising
D) Strict adherence to standardized operations
  • 13. The success of Franchising is largely due to:
A) The mutual benefits it provides to the franchisor and franchisee
B) The economic growth in the commercially developed market
C) More job hunters choose to work for franchise firm rather that big corporations
D) None of these
  • 14. The word "Franchising" derived from the French word that means:
A) Free from standardization
B) Free from independent business
C) Free from competition
D) Free from government
  • 15. The following are the advantages when an Entrepreneur engages in Franchising EXCEPT:
A) Less advertising cost
B) Customer loyalty and preference
C) Low risk
D) Controlled operations
  • 16. A little type of franchising whereby the wholesaler is the franchisor that grants the retailer the right to retail the product but use the wholesaler's name, trademark, logo, and other identifying marks.
A) Manufacturer-Retailer Franchise
B) Retailer-Wholesaler Franchise
C) Manufacturer-Wholesaler Franchise
D) Wholesaler-Retailer Franchise
  • 17. All of the following are the benefits of Franchiser EXCEPT:
A) Lower operating cost
B) Guarantees faster expansion
C) Wider brand recognition and promotion
D) Greater market penetration
  • 18. Which component of the business plan requires considerable time and external research?
A) Market analysis
B) Product analysis
C) Strategic analysis
D) SWOT analysis
  • 19. XYZ ko Company is interested in developing, producing, and selling a new product. Before it does so, the company spends six months conducting marketing research.
    What are the primary advantages of this course of action?
A) To determine customer mindset
B) To discover customer comfort
C) None of the above
D) To determine customer preferences and minimize losses
  • 20. What is one reason that it is easier than ever for small businesses to engage in international trade?
A) Free trade
B) Integrated marketing mix
C) Lower tariffs
D) Technological advances
  • 21. Why are all small businesses important to a country's economy? EXCEPT
A) They can influence the market prices and trends
B) They give an outlet for Entrepreneurs
C) They can be innovators of new products and services
D) They can provide specialist support to larger companies
  • 22. Which of the following is the reason for business failure? I. Lack of market research II. Poor financial control III. Poor
    management
A) Both I, II and III
B) Both I and II
C) Both I and III
D) Both II and III
  • 23. Which of the following statements is FALSE?
A) A benefit is the value of a product feature to a customer.
B) It is a good idea for small businesses to compete solely in price.
C) Selling is essentially a matching process.
D) Market segmentation is a useful process for small businesses to undertake.
  • 24. Which is NOT a disadvantage of Entrepreneurship?
A) You are the boss
B) Work long hours
C) Uncertain income
D) Risk taker
  • 25. According to Joseph Schumpeter (an Economist), innovative Entrepreneurs would:
A) Get absorb within non-innovative businesses
B) Not survive and disappear from the market
C) Thrive in the market
D) Get absorb within larger innovative businesses
  • 26. Which of the following is the least likely to influence the timing of new business births?
A) Weather conditions
B) Consumer expenditures
C) Government policies
D) Profitability
  • 27. A new venture's business plan is important because:
A) It helps to persuade others to commit funding to the venture
B) All of the above
C) Provide a guide for business activities by defining objectives
D) Can help demonstrate the viability of the venture
  • 28. Why firm's Vision Statement is important? EXCEPT
A) Help motivate employees to work toward shared goals
B) Serves as a strategic plan for success
C) Helps to prioritize tasks, focus energy, and maximize impact on target customers
D) Building a strong organizational culture
  • 29. This is refers to the lists of general tasks, functions and responsibilities of a position.
A) Job requirements
B) Job descriptions
C) Job catalogue
D) Job specifications
  • 30. The idea and actions that explain how a
    firm will make its profits refers to:
A) Strategy
B) Goal
C) Mission
D) Objective
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