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Activity 10:
Knowledge Assessment Survey

This multiple-choice survey measures your current understanding and knowledge of entrepreneurship and business development. You will take this survey twice in Track 1 (in Activities 1 and 10). Then you will be able to compare your scores and see how much you learned by participating in this online course.

Select the correct answer for each of the following multiple-choice questions or statements. Click "Score My Survey" to reveal your score If you are taking this course for a grade or for credit, you will print and turn in this survey to your advisor or teacher.

NOTE: Moving away from this screen will reset the survey. Print prior to leaving to avoid having to re-answer the questions.

 

1. Three of the four types of businesses in the world are
Choice 1A. Wholesalers, manufacturers, and service providers
Choice 2B. Retailers, wholesalers, and corporations
Choice 3C. Wholesalers, manufacturers, and consumers
Choice 4D. Retailers, sole proprietorships, and partnerships
2. A business concept or idea that is said to be feasible is:
Choice 1A. A bad idea
Choice 2B. Setting fees too high
Choice 3C. Able to be carried out; workable
Choice 4D. Approved as an SRO
3. The most important thing a successful entrepreneur does before starting a business is:
Choice 1A. Hire a staff
Choice 2B. Write a business plan
Choice 3C. Register with the SEC
Choice 4D. Open a bank account
4. The three main subjects or topics covered in a business plan are:
Choice 1A. Manufacturing, billing, and customer service
Choice 2B. Financing, start-up costs, and core values
Choice 3C. Organization, marketing, and finances
Choice 4D. Income, assets, and liabilities
5. The cash investment necessary to launch a business is called:
Choice 1A. Operating expense
Choice 2B. Asset financing
Choice 3C. Start-up cost
Choice 4D. Variable cost
6. Monthly rent and phone bills are typically considered:
Choice 1A. Cost of goods
Choice 2B. Variable expenses
Choice 3C. Start-up expenses
Choice 4D. Operating expenses
7. One main reason someone under 18 might need an adult for a business partner is:
Choice 1A. To have someone to sign necessary legal paperwork
Choice 2B. To give better customer service
Choice 3C. To impress the SBA
Choice 4D. To audit the financial records
8. Which of the following is not one of the “5 Ps” of marketing?
Choice 1A. Product
Choice 2B. Practice
Choice 3C. Price
Choice 4D. People
9. Three types of business financing available to entrepreneurs are:
Choice 1A. Public, asset, and equity financing
Choice 2B. Debt, derivative, and delisted financing
Choice 3C. Asset, debt, and equity financing
Choice 4D. Start-up, public, and private financing
10. A venture capitalist is a person who:
Choice 1A. Gives private loans to small companies and charges
                  high interest rates

Choice 2B.  Tries to take a business venture away from a sole proprietor
Choice 3C.  Approves your venture for listing on a stock exchange
Choice 4D.  Makes money investing in smaller companies with
                   potential to grow bigger

11. The abbreviation IPO stands for:
Choice 1A. Initial public offering
Choice 2B. Interest price option
Choice 3C. Initial private offering
Choice 4D. Investors public offering
12. A strategy for raising money that involves selling part of the business is called:
Choice 1A. Debt financing
Choice 2B. Equity financing 
Choice 3C. Asset management  
Choice 4D. Liquidation
13. Raising start-up money through asset financing involves:
Choice 1A. Borrowing money from friends and relatives
Choice 2B. Finding an investor to help you get started
Choice 3C. Using things you own or possess as a means to
                  finance the start-up

Choice 4D. All of the above
The entity that is considered the “underwriter” of an IPO is:
Choice 1A. The investment banking firm
Choice 2B. The Securities and Exchange Commission
Choice 3C. The stock exchange where the company is being listed
Choice 4D. The auditing firm that approves the company’s financial statements
15. The primary goal of an IPO is to:
Choice 1A. Audit the company’s income statements
Choice 2B. Raise as much capital as possible by selling stock
Choice 3C. Qualify for listing on a major stock exchange
Choice 4D. Raise start-up money to launch the business
16. An "all hands meeting" for the IPO team is when:
Choice 1A. Everyone on the company’s staff gets together for goal setting
Choice 2B. The whole IPO team plans the timing and details of the IPO process
Choice 3C. The whole IPO team goes to a meeting with the SEC
Choice 4D. The CEO and the IPO team get together with potential investors
17. The abbreviation SEC stands for:
Choice 1A. The Stock Exchange Commission
Choice 2B. The Securities Evaluation Committee
Choice 3C. The Securities and Exchange Commission
Choice 4D. The Stock Evaluation Committee
18. When investors feel a company is not performing well, it is very likely they will:
Choice 1A. Decide to sell their stock and invest their money somewhere else
Choice 2B. File charges against the CEO for insider trading
Choice 3C. Want to buy more stock in the company right away
Choice 4D. Hire someone to install surveillance cameras in all the offices
19. An example of an SRO is:
Choice 1A. NASDAQ
Choice 2B. New York Stock Exchange
Choice 3C. American Stock Exchange
Choice 4D. All of the above
20. Which securities act set up the SEC?
Choice 1A. Securities Act of 1934
Choice 2B. Insider Trading Act of 1943
Choice 3C. Sarbanes-Oxley Act of 2002
Choice 4D. Truth in Securities Act of 1933
 
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