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Activity 22:
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 2 (in Activities 11 and 22). Then you will be able to compare your scores and see how much you learned by participating in Track 2 of 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. Complete the survey and print prior to leaving to avoid having to re-answer the questions.

1. What are some good ways to improve your business skills?

Choice 1A. Learn by trial and error
Choice 2B. Take a business course
Choice 3C. Read books and do Internet research
Choice 4D. All of the above
2. If money is NOT the prime motivator of most entrepreneurs, what is?
Choice 1A. Telling others what to do; being the boss
Choice 2B. The self-actualization and self-expression related to
                   starting a business

Choice 3C. Helping others who are less fortunate
Choice 4D. Being famous; getting on the 6pm news
3. Which of the foloing is NOT an ingredient of a winning business concept?
Choice 1A. Adequate operating capital
Choice 2B. A distinctive product or service
Choice 3C. Creative marketing that sets you apart from competitors
Choice 4D. A business name and logo that grabs customers' attention
4. "Strong customer demand" means that:
Choice 1A. Customers are rude and inconsiderate
Choice 2B. The business makes strong demands on customers
Choice 3C. There are lots of customers who want to buy what you're selling
Choice 4D. It takes a strong customer to lift this product
5. Percentage of "market share" tells you: Of all the...
Choice 1A. ...sales you make, the percentage given to charity
Choice 2B. ...shares of stock in your compeny, the percentage you own
Choice 3C. ...potential market segments, the percentage you control
Choice 4D. ...customers buying products like yours, the percentage
                     that buy from you

6. When the company increases its market share, it is an indication that the company is increasing...
Choice 1A. ...its productivity
Choice 2B. ...its penetration of the market
Choice 3C. ...it's dividends on shares
Choice 4D. ...its profit margins
7. In a business, "seed capital" is money...
Choice 1A. ...raised when the business goes public
Choice 2B. ...used to buy seeds at the beginning of a growing season
Choice 3C. ...that comes from sales
Choice 4D. ...used for the startup of the company
8. What does it mean to "bootstrap" a business?
Choice 1A. To accomplish your goals using your own strength and resources
Choice 2B. To kick and scream until your staff works harder
Choice 3C. To walk a mile in someone else's shoes (or boots)
Choice 4D. To hold the business down so it won't grow
9. In business, what is an "angel" investor?
Choice 1A. Someone who anonymously donates money to help
                   women-owned companies

Choice 2B. A private busienss person who invests in small
                   start-up companies

Choice 3C. A venture capital firm who invests in growing companies
Choice 4D. A government official who grants money to
                   minority-owned compaies

10. The government agency that approves your registration for an IPO is:
Choice 1A. The IPO Commission
Choice 2B.  The Stock Exchange Commission
Choice 3C.  The IPO Registration Commission
Choice 4D.  The Securities and Exchange Commission
11. In a business start-up, break-even point is when:
Choice 1A. Sales revenue covers all the expenses
Choice 2B. Sales revenue covers cost of goods
Choice 3C. The company is nearing bankruptcy
Choice 4D. The company has no debts
12. A company's intellectual property:
Choice 1A. Should be kept in a locked safe at all times
Choice 2B. Should be protected by copyrights, trademarks and patents
Choice 3C. Should be protected by the SEC  
Choice 4D. Should be protected by password
13. Who is required to audit financial reports included in an IPO registration statement?
Choice 1A. The company's staff accountants
Choice 2B. The company's CFO
Choice 3C. An independent certified public accountant (CPA)
Choice 4D. All of the above
14. 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 venture capital firm that originally funded the company
Choice 4D. The financial printer who typesets/designs the IPO prospectus
15. Who usually organizes and leads the "all hands" meeting?
Choice 1A. Your lawyers
Choice 2B. The investment banker
Choice 3C. Your public relations expert
Choice 4D. The auditors
16. A prospectus is a document that discloses:
Choice 1A. Key information about the company's financial condition
Choice 2B. Potential risk factors associated with investing in the company
Choice 3C. Important facts about the structure and operations of the business
Choice 4D. All of the above
17. If a company distrubutes a "red herring," it means they:
Choice 1A. Failed to conduct an audit and issued incorrect financial statements
Choice 2B. Sent out the initial prospectus that has red type on the front page indicating missing or incomplete information
Choice 3C. Tried to fool investors by putting out rumors in the media
Choice 4D. Sent out the final prospectus that contains all important information, including the price of shares
18. What happens after the SEC declares that a registration statement is "effective?"
Choice 1A. The IPO team gets together and determines the best
                     price for the shares

Choice 2B. The underwriter goes on TV and declares innocence
                     of all wrong doing

Choice 3C. The stock is allowed to begin trading the next day
Choice 4D. The company is allowed to start delivering the road show
19. Who is in the audience at most IPO road shows?
Choice 1A. Institutional investors
Choice 2B. Market analysts
Choice 3C. Portfolio managers
Choice 4D. All of the above
20. How long does a road show presentation typically last?
Choice 1A. No more than an hour
Choice 2B. At least half of a day
Choice 3C. Only ten minutes
Choice 4D. Until the referee blows the whistle
 
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