Establishing New Business

Contents

Results

#1. What is the first step in establishing a new business?

Marketing strategy

Business registration

Financial planning

Product development

#2. Which legal structure offers limited liability to its owners?

Sole proprietorship

Partnership

Corporation

Limited Liability Company (LLC)

#3. What does SWOT analysis stand for in the context of business planning?

Strengths, Weaknesses, Opportunities, Threats

Sales, Workforce, Operations, Technology

Strategies, Workflow, Organization, Tactics

Success, Wealth, Objectives, Targets

#4. What is the purpose of a business plan?

To outline the company's marketing strategy

To secure funding from investors

To guide daily operations

All of the above

#5. Which of the following is an internal factor affecting a business?

Economic conditions

Competitive landscape

Organizational culture

Government regulations

#6. What does ROI stand for in business?

Return on Investment

Revenue Overhead Index

Resource Optimization Indicator

Risk of Insolvency

#7. What is the primary purpose of market research in the context of a new business?

To develop new products

To understand customer needs and preferences

To set prices for products/services

To create advertising campaigns

#8. In financial planning, what does the term "break-even point" refer to?

The point at which the company starts making a profit

The point at which total revenue equals total expenses

The point at which the company reaches its sales target

The point at which investors break ties with the business

#9. What is the purpose of a Unique Selling Proposition (USP)?

To identify competitors

To differentiate a product or service from competitors

To calculate profit margins

To determine market share

#10. Which of the following is an example of a variable cost for a manufacturing business?

Rent for office space

Raw materials

Salaries of permanent staff

Insurance premiums

#11. What is a cash flow statement used for in financial planning?

To track money spent on advertising

To assess a company's ability to generate cash

To determine the market share

To analyze competitor pricing

#12. What is the purpose of a target market analysis?

To identify potential competitors

To determine the size and characteristics of the target customer group

To set financial goals

To establish the company's legal structure

#13. Which factor is considered a part of the "People" aspect in the 7Ps of the marketing mix?

Product

Price

Promotion

Personnel

#14. What is the significance of a "proof of concept" in product development?

It demonstrates the viability of a business idea

It determines the company's profit margins

It assesses the effectiveness of marketing strategies

It establishes the legal structure of the business

#15. Which of the following is an example of a macroeconomic factor?

Company culture

Interest rates

Employee salaries

Product packaging

#16. What is the purpose of a competitive analysis in business planning?

To set financial goals

To assess the strengths and weaknesses of competitors

To calculate return on investment

To identify potential customers

#17. In the context of marketing, what does the term "positioning" refer to?

Setting the price of a product

Creating a unique image for a product in the minds of customers

Identifying the target market

Conducting market research

#18. What does the acronym KPI stand for in business?

Key Performance Indicator

Key Productivity Index

Key Profitability Indicator

Key Personnel Investment

#19. Which factor is NOT typically included in the marketing mix?

Product

Price

People

Profit

#20. What is the purpose of a feasibility study in the business planning process?

assess the financial health of the company

To determine if a business idea is viable

To calculate return on investment

To set marketing objectives

#21. What does the term "bootstrapping" mean in the context of business?

Using one's own resources to start and grow a business

Hiring employees from other companies

Implementing aggressive marketing strategies

Collaborating with competitors

#22. What is the significance of a business's mission statement?

It outlines the company's financial goals

It communicates the company's purpose and values

It sets the price of the company's products

It determines the legal structure of the business

#23. What is the purpose of a cash reserve in financial planning?

To fund marketing campaigns

To cover unexpected expenses and emergencies

To pay employee salaries

To invest in research and development

#24. What is the role of a mentor in the context of entrepreneurship?

To compete with the entrepreneur

To provide guidance and support to the entrepreneur

To invest in the entrepreneur's business

To replace the entrepreneur in decision-making

#25. In the context of product development, what does the term "prototype" refer to?

The final version of a product ready for market launch

A preliminary model or version of a product

The promotional materials for a product

The legal documentation for a product

#26. What is the purpose of a non-disclosure agreement (NDA) in business?

To disclose confidential information to the public

To protect sensitive information from being shared with external parties

To set prices for products/services

To determine market share

#27. What is the role of a target audience in marketing?

To set financial goals for the company

To identify potential competitors

To determine the size and characteristics of the intended customer group

To assess the strengths and weaknesses of competitors

#28. Which factor is considered a part of the "Place" aspect in the 7Ps of the marketing mix?

Product

Price

Promotion

Distribution

#29. What is the purpose of a stakeholder analysis in business planning?

To assess the financial health of the company

To identify individuals or groups affected by the business and analyze their interests

To determine the market share

To calculate return on investment

Finish