3. a great business idea is
a. the beginning of a great business.
b. all you need to succeed.
c. something that comes along once in a lifetime.
d. an idea that no one else has ever thought of.
student d
incorrect
reference: pgs 12-13
4. the price for predictability is often
a. long hours.
b. stress and insecurity.
c. long-term boredom.
d. increased self-confidence.
student d
incorrect
reference: pg 1
5. one of the advantages of starting your own business is
a. lack of responsibility.
b. no hassles.
c. profit.
d. free time.
student b
incorrect
reference: pg 7
9. when you first started your new business, you were so excited about the large volume of orders you had. one year later, you find that your orders are less than half of what they were in the beginning. what is the most probably cause of this decrease in order?
a. your price is too high for the market.
b. you failed to continue your marketing efforts.
c. you have too much competition.
d. you've limited yourself to a small number of products.
student d
incorrect
reference: pages 9,10
10. of all new businesses, how many make it through their second year?
a. 50 percent
b. 60 percent
c. 80 percent
d. 20 percent
student b
incorrect
reference: pg 12
11. the best way to avoid cash flow problems is
a. regular saving.
b. constant marketing.
c. downsizing.
d. borrowing less.
student a
incorrect
reference: pg 9
12. one of the most common mistakes new business owners make is
a. getting advice from a consultant.
b. not establishing a good relationship with a financial institution.
c. always knowing what the customer wants.
d. setting unrealistic goals.
student b
incorrect
reference: pg 25
15. which of the following is an advantage of starting a new business?
a. you don't have to reinvent the wheel.
b. you have the security of following in someone else's footsteps.
c. you don't have to compensate for someone else's mistakes.
d. you can expect a regular paycheck.
student b
incorrect
reference: pg 14
16. one of the main disadvantages of buying a franchise is that you may end up
a. hiring a large staff.
b. feeling like an employee.
c. paying too much for operating costs.
d. choosing a poor location.
student a
incorrect
reference: pg 15-16