BUSN 201 Midterm Test Questions and Answers All Correct
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BUSN 201
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BUSN 201
BUSN 201 Midterm Test Questions and Answers All Correct
business plan - Answer-1. know your customer
2. know why you will win
3. know how you will win
4. know what it will take to win
5. demonstrate why others should believe in you
Franchising - Answer-selling to a foreign organization...
BUSN 201 Midterm Test Questions
and Answers All Correct
business plan - Answer-1. know your customer
2. know why you will win
3. know how you will win
4. know what it will take to win
5. demonstrate why others should believe in you
Franchising - Answer-selling to a foreign organization the rights to use a brand name
and operating know-how in return for a lump-sum payment and a share of the profits
Franchise Advantages - Answer-brand recognition
pre-launch
purchasing power
marketing support
Franchise Disadvantages - Answer-fee
cost of the business
contributions to a national marketing fund
restricted freedom
Sources of Capital - Answer-personal savings/line of credit
angel investors/venture capital firms
government start-up grants/government-backed small business loans
seeking partners
collateral
Crowdfunding - Answer-raising money for a project or venture by obtaining many small
amounts of money from many people
Benefits of Angel Investors - Answer-advantage capital
reputation and creditability
business relationships
business expertise
management recruitment
Sole Prioprietorship - Answer-A business owned by one person
Partnership - Answer-A business in which two or more persons combine their assets
and skills
, Joint and Several Liability - Answer-A legal concept that makes each partner in a
partnership legally liable for all the debts of the partnership.
limited liability partnership - Answer-a type of partnership in which all partners are
limited partners
Corporation - Answer-A business owned by stockholders who share in its profits but are
not personally responsible for its debts
private corporation - Answer-a company that issues stock to a small group of people
public corporation - Answer-a corporation whose stock anyone may buy, sell, or trade
Initial Public Offering (IPO) - Answer-selling a corporation's stock on public markets for
the first time
over-the-counter (OTC) market - Answer-a network of dealers who buy and sell the
stocks of corporations that are not listed on a securities exchange
not-for-profit organizations - Answer-groups that do not pursue profit as a goal; they
engage in charitable, educational, humanitarian, cultural, professional, or other
activities, often with a social purpose
Business Entity - Answer-Commercial endeavours
Organizational culture and formalized decision-making structure
Employee interaction
Company-centric side - Answer-"the business system" which reflects the underlying
mechanics as to how the business is structured.
key partners (backward and forward relationships)
key resources (assets, labour, capital, and management acumen)
market-centric side - Answer-How the business is connected to the marketplace
Positioning (available customer segments)
Value proposition (primary and secondary, size, penetration potential)
Opportunity assessment
profitability - Answer-how effective and efficient an organization is in using its assets
and capital to generate a profit over a period of time
3 C's - Answer-capability, competency, capacity
Hedgehog Concept - Answer-what are you passionate about?
what can you be the best in the world at?
what drives your economic engine?
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