Gmetrix certification practice test 2|42 Questions with Verified Answers,100% CORRECT

Gmetrix certification practice test 2|42 Questions with Verified Answers In general, which two characteristics define a "small" business? - CORRECT ANSWER Fewer than 1,500 employees & Less than $35.5 million revenue Classify each of the following businesses as either Physical or Digital - CORRECT ANSWER Physical: - Bakery in your community - Hair salon that makes appointments online Digital: - Online store that dropships caming gear - Bookstore on Amazon that sells eBooks You need to create a legal structure for your small business. You have plans for it to grow and hope in the future to sell shares to the public. Your startup partners are citizens of Mexico and Japan. You do not want to be personally responsible for business liabilities. *Which legal structure should you set up for your business?* - CORRECT ANSWER C-corporation Match each business management roles to its. corresponding description - CORRECT ANSWER CEO — The highest-ranking employee in the company; reports to the board of directors. CFO — Creates budgets, analyzes financial data, and forecasts company profits. CIO — Develops policies and structures to protect company data. COO — Oversees the day-to-day administrative functions of a business; second in command. You own a lawn care business. You have employees who work long hours laboring in good weather, often exceeding 40 hours per week. They also work short hours when the weather is bad, sometimes they can't work at all. You do all of the sales for your business. *Which two types of compensation would be appropriate for these landscape employees?* - CORRECT ANSWER Salary and Hourly Match each Stage of Business Life Cycle to its corresponding description - CORRECT ANSWER Maturity -- The business is separate from the owner with responsibilities delegated to staff. A business in this stage usually commands a considerable share of the market and may even be a household name. Success -- Company is stable and profitable. Takeoff -- Expansion strategies are implemented, and investment is balanced with potential. Survival of the Fittest -- Focus shifts to revenue, expenses, and growth. Cashflow is the major issue. Existence -- The business introduces itself to the market and attempts to catch the attention of potential customers. For each statement about the Design Thinking Process, select true or false - CORRECT ANSWER True: - Assumptions are challenged and ideas are created in the ideate phase - Problem statements are written in the Define phase False: - The Emphasize phase tests solutions to users' problems - Building prototypes is the final phase of the Design Thinking Process Which of these is a characteristic of a successful entrepreneur mindset? - CORRECT ANSWER Doesn't give up easily Which is one of the greatest risks of being an entrepreneur? - CORRECT ANSWER Financial instability What is a primary benefit of starting a new business without purchasing a franchise or buying an existing business? - CORRECT ANSWER Developing your own rules A rancher is preparing to retire. He is considering selling half of his land and giving the other half to his children. He hears that development for a ski resort was just approved on land adjacent to his property. *Which viable business opportunity does the retiring rancher foresee?* - CORRECT ANSWER An increase in land value Complete the sentence about business documents by selecting the court option from each dropdown list - CORRECT ANSWER *Business plan* is a multi-page document describing and detailing a business. A slide presentation for potential investors that summarizes of the key items of a business is called a *Pitch Deck* A *Lean Canvas* is a single-page business summary template that was created by Ash Maurya. Which three components are characteristics of a Pitch Deck? - CORRECT ANSWER Used to Get Investors Attention 10-20 slides Highly Visual For each statement about trademarks, trade secrets, copyrights, and patents, select True or False - CORRECT ANSWER True: - Trade secrets are confidential information which may be sold or licensed - A trademark protects a brand name False: - A copyright is used to protect a company logo - A patent is used to protect an original work, like music You downloaded several of your favorite songs and used then in an ad to promote your product on social media sites. The ad was rejected because of the songs you chose. You are told that you violated Fair Use copyright. *Which three are factors used to evaluate Fair Use copyright?* - CORRECT ANSWER Purpose of your use. Effect of your use on the potential market of the work copied. Amount of the work copied. Match each Pricing Strategy to its corresponding description - CORRECT ANSWER Economy Pricing -- Prices that targeting customers looking to save as much money as possible Bundle Pricing -- Pair several products together and selling them for less money than each would be individually Market Penetration -- Setting prices low until after a reliable customer base is established, then raising prices Price Skimming -- Setting high prices when a product is introduced and then gradually lowering the price Premium Pricing -- High quality products marketed to high-income individuals Which of the following is an example of Primary Data? - CORRECT ANSWER Information collected from a poll of your company Facebook followers You own a mobile Taco Truck. You have a short list of competitors. Classify the following competition as either Direct Competition or Indirect competition - CORRECT ANSWER Direct Competition: - A local Taco Bell franchise - Walk-up Mexican Food stand Indirect Competition: - A local Burger King franchise - Mobile Fish and Chips Truck For each statement about SWOT Analysis, select True or False - CORRECT ANSWER True: - Threats identified in a SWOT Analysis are the most difficult element to mitigate - Acting on weakness identified in a SWOT Analysis can be challenging but often necessary to grow a business False: - Opportunities identified in a SWOT analysis are not meant to be a actionable - Strengths identified in a SWOT analysis are new actions a business should implement Which three are online marketing platforms? - CORRECT ANSWER Email, Google ads, Social Media You have opened a for-profit adult technical school and you want to advertise it to potential students throughout your state. *What marketing technique would be most appropriate?* - CORRECT ANSWER Local Television Ad The owner of an organic pet food store would like to analyze the sales data to determine if the business is growing, declining, or remaining flat. The owner has the following data: Sales revenue last year= $350,000 Sales revenue current year= $402,000 *What is the sales growth?* - CORRECT ANSWER 15% *402,000 - 350,000 = 52,000 52,000/350,000 = 0.15 0.15 x 100 = 15%* A local restaurant prides itself in having a high number of return customers. To build loyalty, the owner of the restaurant offers a free Prime Rib dinner (value 20%) to any customer who purchases a meal during 10 previous visits. Meals purchased are tracked by stamps on a Loyalty Card. At the end of the month, the owner decided to calculate the customer retention cost. The data is the following: Number of customers at start of month: 100 Number of customers at end of month= 120 Number of new customers= 40 Value of Free Dinners Redeemed= $240 *What was the Customer Retention Cost?* - CORRECT ANSWER $3 *120 customers at end of month - 40 new customers = 80 retained customers $240 Free Dinners Redeemed/ 80 retained customers = $3 customer retention cost* Which two are segments in a Marketing Plan? - CORRECT ANSWER Psychographic and Demographic Place the Elements of a Sales Process in the correct order - CORRECT ANSWER 5. Handling objections 1. Prospecting 6. Closing 2. Preparation 7. Follow-up 3. Approach 4. Presentation Which is the primary characteristic of all physical and digital sales channels? - CORRECT ANSWER Closing sales Which two types of Sales Channels sell primarily to other businesses? - CORRECT ANSWER Wholesale and B2B Which tool is most useful in helping Customer Service support sales strategies? - CORRECT ANSWER CRM (Customer Relationship Managment) For each statement about Product/Market Fit, select true or false - CORRECT ANSWER True: - A fit exists when people need your product rather than iust seeing a potential benefit of using it. - Before hypothesizing a solution, first determine if there is a problem worth solving - Startups should develop a growth hypothesis before testing their value hypothesis. When users love your product so much they tell other people to use it, you have product/market fit False: - Startups should develop a growth hypothesis before testing their value hypothesis. A bakery has developed a new artisan bread. The staff are giving away taste samples to customers as they enter the store. *What are two criteria the bakery can use to determine the quality of their new product?* - CORRECT ANSWER Measure sales of the new bread after customers have sampled it. Observe customer reactions while they taste the product. You have an idea for a new service. Market research suggests the service in needed to solve a problem and will be enthusiastically embraced by customers. *What is one of the first steps you must do before offering a new service?* - CORRECT ANSWER Identify knowledge required You create a new strategy for lawncare services that involves assessing lawn health, applying the correct herbicides and pesticides and other necessary solutions to quickly bring a lawn back to health. *What are three things you will need to consider regarding the mass delivery of your service?* - CORRECT ANSWER Finding a source of materials to support your service. Training employees with the knowledge to consistently deliver the service. Creating an effective demonstration of your service for potential customers. Your company is manufacturing a new product. You need to establish a Product Quality Control Process *What are three things you must do to create establish your Product Quality Control Process?* - CORRECT ANSWER Review the results of internal quality assurance testing. Determine what standards have to be met based on the product and industry. Establish the method to use for testing product quality. For each statement about the Selection of Distribution Channels, select true or false - CORRECT ANSWER True: - Products that are bulky or large in size are usually sold directly by the company to their customers - Technical and complex products are best sold through direct distribution False: - Product prices has no affect on the length of a distribution channel - The geographic location of customers does not require different distribution channels Which are two characteristics of fulfillment centers differ from direct distribution? - CORRECT ANSWER Warehousing is a primary role. Fulfilment centers pack and ship for a manufacturer. A barber charges $20.00 per haircut. The total cost for running his home-based business is $4,000.00 per month, which includes his salary of $3,000 per month. The minimum number of haircuts he must do to cover all of these expenses and his salary is 200 per month. The barber wants to increase his salary to $4,000 per month, making his total monthly expenses $5,000. *What is the minimum price he must charge for each of the 200 haircuts so he can cover this increased salary?* - CORRECT ANSWER $25 Match each Asset or Liability to its corresponding category on a Balance Sheet. - CORRECT ANSWER Long-Term Assets — Equipment Current Assets — Inventory Current Liabilities — Bank Loans Long-Term Liabilities — Mortgage Payments Which expense is a variable cost? - CORRECT ANSWER hourly wages for an office employee You have a handyman services business. You have the following financial information for the month. • Initial cash balance: $1,500 • Projected revenue based on exisiting clients: $2,500 • Gas: $100 • Equipment maintenance fees: $300 • Truck payment: $400 • Payroll: $3,000 • Insurance: $120 *What is your projected ending cash balance for the month?* - CORRECT ANSWER $80 For each statement about Start-Up Costs and Operating Costs, select True or False. - CORRECT ANSWER True: - Logo and website design are examples of start-up costs - Operating costs include payroll. - Building improvements should be calculated into start-up costs. False: - Business insurance is a startup cost. - Operating costs include your down payment on rental property Which two are benefits of using angel investors to help start a business? - CORRECT ANSWER Angels often accept a lower return on investment compared to other sources of equity capital Angel investors typically do not expect to be paid until the the business begins making money For each statement about Requirements to Obtain Funding , select True or False. - CORRECT ANSWER True: - Bootstrapping requires the owner(s) of the company to provide all of the funding. False - Equity financing requires a business owner to give up control of the business to obtain fundina. False: - Lenders do not require owners to identify the purpose of the loan. - The business owner's personal credit score does not affect their ability to qualify for a loan.