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PREPARING FOR BUSINESS SUCCESS
1. When looking for capital, bankers and other lenders will usually feel most comfortable investing in a/an
A. really original idea for a business.
B. chain of new businesses.
C. brand new business.
D. existing business with a proven record.
2. Meeting clients in person instead of talking with them on the phone can help to reduce _______ when you own your own business.
C. cash flow
3. What percentage of new businesses fail in the first year?
A. 25 percent
B. 60 percent
C. 75 percent
D. 40 percent
4. Of all new businesses, how many make it through their second year?
A. 50 percent
B. 80 percent
C. 20 percent
D. 60 percent
5. Which one of the following businesses would be the most difficult to get funding for?
A. A business that's expanding its product line
B. An established business
C. A franchise
D. A brand new business
6. One of the unexpected drawbacks of starting your own business is
B. lack of purpose.
D. free time.
7. The best way to avoid cash flow problems is
B. constant marketing.
C. regular saving.
D. borrowing less.
8. The freedom to make your own decisions can be limited if the business you choose is a
A. wholesale business.
B. service business.
C. home-based business.
9. One of the most common mistakes new business owners make is
A. always knowing what the customer wants.
B. not establishing a good relationship with a financial institution.
C. setting unrealistic goals.
D. getting advice from a consultant.
10. One of the advantages of starting your own business is
B. free time.
C. lack of responsibility.
D. no hassles.
11. Asking yourself "What can I do to build a loyal customer base?" is an example of
B. bottom line.
12. Why are many entrepreneurs uncomfortable on a relaxing vacation?
A. They're only comfortable if they're competing.
B. They're obsessive and can't think of anything else but work.
C. They have a sense of urgency about their ideas.
D. They don't get along well with others.
13. You start a new business selling a product that's the best of its kind on the market. In addition to this product, what must you have to be successful?
A. Sales experience
B. Good marketing
C. A large staff
D. A franchise license
14. After you open your new business is not the best time to
A. make improvements to your product.
B. use your imagination and be creative.
C. build a loyal customer base.
D. conduct research on your product.
15. What is one of the advantages of buying an existing business?
A. You can get it at a bargain price.
B. You don't need to do any more advertising.
C. The previous owner will help fund the business.
D. Its track record lets you know what to expect.
16. Owning your own business allows you the freedom to
A. enjoy more free time.
B. bypass some laws and restrictions of the region in which you do business.
C. allow others to make decisions.
D. determine your own working hours.
17. Which of the following is an essential part of being an entrepreneur?
A. Taking risks
B. Being friendly
C. Having a lot of money
D. Being an expert in your field
18. A great business idea is
A. an idea that no one else has ever thought of.
B. something that comes along once in a lifetime.
C. all you need to succeed.
D. the beginning of a great business.
19. How will you save money by buying a franchise?
A. You can get a volume discount on your products.
B. Franchises require less investment than new businesses.
C. You're free to make your own decisions regarding finances and investments.
D. Your employees will be paid by the corporation.
20. Which of the following is an advantage of starting a new business?
A. You don't have to compensate for someone else's mistakes.
B. You don't have to reinvent the wheel.
C. You have the security of following in someone else's footsteps.
D. You can expect a regular paycheck.