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1.The plan  developed by the entrepreneurial

business to specify who the customers are and how they will be attracted to the company:

Product Development Plan

Financial Plan

Operational Plan

Marketing Plan

2.A contractual agreement whereby the business receives some amount of money that must be repaid over a specified period of time at a specified interest rate is a(n):





3.This provides a verbal snapshot of your business plan: 


target market

marketing strategy

competitive advantage

4.The principal governing mechanism of the franchisor-franchisee relationship is the:

Uniform Franchise Offering Circular

founder's agreement

partnership agreement

mission statement

5.A product that performs a similar function or achieves the same result, but is not a precise imitation is a(n):



raw material


6.Which is not true regarding supplier credit

It can tie you to a supplier making it difficult to switch.

It is a form of non-equity funding.

It may be used for both physical assets and actual supplies for the business.

It is a form of equity funding.

7.According to your text, which of the following is one of the three critical elements for success that an entrepreneur must have:

Being properly financed

An effective sales generation model

Sustaining operating profit margins

All of the above are critical to the success of a business.

8.This refers to the individuals who build and maintain relationships with customers, as well as to the methods and means by which they do this.

sales management


angel investors


9.Every state has this law which was put into place to provide financial assistance for some period of time to those people who lose their jobs through no fault of their own.


unemployment compensation

Americans with Disabilities Act

Fair Labor Standards Act

10.According to your text, a typical business plan for a small business startup would be:

over 50 pages long

100 pages long

there is never a need for a business plan.

15-25 pages long

11.During the gap analysis, the entrepreneur should be concerned with the hours of operation, the time you can dedicate to this new venture, and other commitments you have made. 



12.The benefit of gaining customer loyalty by being the first firm to the market is known as:


first mover advantage



13.This is a chart that provides a detailed understanding of a firm's production process.

chart of accounts


competitive map

production chart

14.Which is not true regarding a sole proprietorship?

It is easy to form and dissolve.

Debts of the business are treated as debts of the owner.

There may be more than one owner.

The person and the business are treated as one entity.

15.The difference between when the money comes in and when it goes out of a business is called:





16.Threats to profit margin, threats to sales generation schemes, and threats to operating financing are all:

business risks

nonfinancial resources

personal risks

not important when starting a business

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