Exploring Entrepreneurship Study Guide (End of Course Test)All Objectives (Unit A and Unit B) Objective 1.01 Understanding the Purpose and Functions of Business 1. ____________________ is the desire to make money. 2. People are motivated to start business because they want to meet the ___________ and _______________ of the consumers, _______________ competition, and get involved in __________________ opportunities. 3. The ____________________ function uses technology to share knowledge, facts and data to others. 4. The ____________________ function is considered the “back office”, involves the behind the scenes paper work, and ensures a business that flows in an organized manner. 5. The ____________________ function records and reports financial data, activity and transactions. Objective 1.02 Compare the Main types of Business Organizations 1. A _________________ is owned by one person. 2. This business organization is owned by many people (stockholders), but treated as one entity. They must obtain a charter from the state in which the headquarters is located, and they are taxed on their profits. This business organization is a ______________________. 3. A _________________ is owned by two or more people. 4. A __________________ requires a fee to be paid by future owners, it is easy to start, and with the help of the parent company, guidance and support are provided to ensure a smooth operating business. Objective 1.03 Classify Businesses 1. With this type of business one can earn a profit, but cannot be run for the sole purpose of earning a profit. Profits must be used to benefit the purpose of the organization. What type of business is this? ___________________ 2. This type of business sells products and offers a service. What type of business is this? _________________________ 3. A _________________ business sells goods to consumers and other businesses. Retailers and distributors would be considered this type of business. 4. A __________________ business’ sole purpose is to make money. Examples of this type of business would be Domino’s Pizza and The Gap. 5. A Barber Shop or Nail Salon would be considered a ____________________ business. Objective 2.01 The Economic System 1. The _______________ economic system offers few choices, if any to their people and they make all of the decisions. One advantage about this economic system is that they offer equal standard of living for everyone, there is less crime and poverty and needs are provided through the government. Example: China and Cuba. 2. The ______________ economic system is a combination of the market and command economy. In some cases the government takes care of people’s needs and in other cases the marketplace takes care of people’s needs. Example: USA and England. 3. The ______________ economic system makes decisions based on customs and centered around the family or ethnic unit. Technology is not used in this type of economic system. Objective 2.02 Supply and Demand 1. The point at which the supply and demand curves meet is the ___________________ price. 2. An individual’s needs or desire for a good or service is ____________________. 3. How much of a good or service a producer is willing and able to produce at different prices is ___________________. 4. In the _______________________, consumers determine the demand of a product; entrepreneurs see the demand and make more of the product. More supply causes the price to decrease as the demand is filled. 5. People draw a supply and demand __________________ to see the relationship between the supply and demand. It also shows the changes in a product’s demand or supply, which can help predict the performance of the product over time. 6. When the price is above the equilibrium price ______________ people are willing to buy; the price is too high. 7. When the price is below the equilibrium price ______________ people are willing to buy; the price is low, which affects the supplier. Objective 2.03 Explain How the Federal Reserves, Stock Market, and E-Commerce Impact the United States Economic System. 1. The ____________________ is the central bank of the Unites States. It raises and lowers the discount interest rate, puts money into circulation and removes money from circulation. Think about the movie Mad Money. 2. If the Federal Reserves raises the discount rate, consumer credit becomes ______________________; which means consumers buy fewer large goods (cars, boats, refrigerators) because the price is too high (higher taxes on the goods). 3. If the Federal Reserves lowers the discount rate, consumer credit becomes ______________________; which means consumers buy more large and expensive goods (cars, boats, refrigerators) because the price is low (lower taxes on the goods). 4. __________________ are shares of ownership in a corporation. 5. __________________ are permitted to sell __________________ to raise capital. 6. The ______________________ market is where shares of stocks, bonds, and futures are bought and sold (or traded). 7. _____________________ are loans made by the investor to the issuer; the investor is repaid with interest. Example: Grandparents usually give these to their newborn grandchildren (Treasury, Savings). 8. _____________________ is an agreement made to buy or sell commodity (oil, gold, etc.) 9. The _____________________Exchange is the physical location where stocks are listed and traded. 10. __________________ allows consumers to purchase goods on the Internet. It increases global competition among businesses. Fewer salespeople are needed in stores but more employees are needed to fulfill the orders of consumers in a timely manner. 11. The stock market is labeled a ______________________ market when stock prices are falling and consumers are pessimistic and reluctant to buy stock. Investors sell stock to prevent loss of money and consumers buy fewer goods which affects business owners (lose money) and employees (lose jobs). 12. The stock market is labeled a ______________________ market when stock prices are rising and consumers are optimistic, buying stocks hoping to make money. Consumers buy goods and employees keep their jobs. Objective 2.04 The U.S. Economy 1. In the U.S. _________________ economy, competition leads to greater choices for consumers, consumer wants and needs are addressed; entrepreneurs have private property ownership and freedom of enterprise and choice. One disadvantage is that there is a tremendous gap between the poor and the wealthy. 2. In the U.S. ________________ economy, privately owned businesses and the government both play important roles. (Buying and selling goods, healthcare, government regulations, etc.) 3. The U.S. economy is the _____________ national economy in the world. Objective 3.01 Characteristics of a Successful Entrepreneur 1. A ____________________ person asks a number of questions to ensure a successful outcome. 2. A ___________________ person designs and generates new ideas. 3. A ___________________ person can be depended on. 4. A ___________________ person never gives up; they keep trying until they get it right. 5. A ___________________ person sets long-term and short-term goals. 6. When you are able to speak, write and listen well, you possess ________________________ skills. 7. When you are able to work well with others, you possess __________________ skills. 8. When you are able to use various applications, fix things, and organize files you possess __________________________ skills. 9. A person with ________________________ skills knows how to do everything from accounting to answering telephones; anything pertaining to business. Objective 3.02 Entrepreneurship and the Entrepreneurial Process 1. The ________________ process is when the business in is operation. Example: Grand Opening, Daily Business Operation, In Operation for two years, etc. 2. The __________________ process is the idea that initiates the business. Surveys are done and samples of products are distributed to analyze whether the product or service will be successful. 3. The _________________ process describes the growth of a business. Example: Opening a second store, starting an online sector of the business, etc. 4. The ____________________ process of the business is the actual business plan. The detailed plan that displays how the business will obtain funding, will market, and operate. 5. The ____________________ process of the business the process of obtaining funding and hire employees. Tapping into your ___________....... Objective 3.03 Starting a Business 1. A ___________________ is a detailed proposal that describes a new business. 2. A ___________________ summary is a brief on – to two-page description of the key points of each section of the business plan. 3. A __________________ plan lists the businesses philosophy and policies. 4. A __________________ plan describes the businesses expansion plan. 5. A __________________ plan describes the product and/or service that the business is promoting or offering. 6. A __________________ plan describes how the business is going to obtain funding to run and operate the business. 7. A __________________ plan describes the qualifications of the actual entrepreneur, the partners involved in the business, and other employees. 8. A __________________ plan describes the target market, future competition, and demographics of the business. 9. A __________________ plan describes how the business will flow; the process of producing and delivering goods. 10. A __________________ plan describes how the business will promote goods and/or services. 11. A ____________________ is an agreement between partners. 12. A ________________ permits barbers, cosmetologists and builders to operate/exist. 13. ______________ laws prevent builders to building in specific areas to prevent possible flooding issues, traffic problems or other problems for future owners of the land. 14. A _____________________ prevents theft of inventions. 15. A _____________________ protects any literary works, music or artistic work from being stolen. 16. A _____________________ the logo of a business. Objective 4.01 Accounting and Finance 1. _________________________ is reporting and recording financial activity and transactions. 2. Money that a business owes is a ____________________. 3. Anything of value owned by the business is _________________. 4. Assets = Liabilities + Owner’s Equity is the __________________. 5. The _____________________ sheet reports assets, liabilities, and owners’ equity. 6. The _____________________ statement reports the revenue, expenses and net income (loss) of the business. 7. The ________________ reports any changes occurred in the business (Balance Sheet) during the fiscal period. 8. Opening up an account is a ________________ activity. 9. Counseling investors and selling insurance is a ______________ activity. 10. Paying Bills and auditing financial records is a ________________ activity. 11. An __________________ verifies the accuracy of an organization’s financial records. 12. The ________________period is a specific period of time covered by an accounting statement or report (1 month or year). Objective 4.02 Management 1. A ____________________level manager is a CEO. 2. The four functions of business are _________________, ___________________, __________________________, and ______________________ 3. Setting company goals is the ________________function. 4. Coordinating activities and assigning tasks is the _______________ function. 5. Setting standards, providing guidance and resolving conflict is the ________________________ function. 6. Keeping the company on track is the ________________________ function. 7. List two types of education that can be obtained. 1) ______________________ and 2) _________________________________. 8. List two management careers. 1) __________________ and 2) _________________________ Objective 4.03 Information Technology 1. A ______________________ is a device that receives processes and stores data. 2. Two types of software are ______________ and _________________. 3. A digital camera is an _______________ device and _______________. 4. ___________________ is a system of computers that are linked together by communication lines. 5. The help desk technicians are also known as _______________________. 6. Someone who writes codes for computer software is a __________________. 7. ________________ is modifying computer systems to improve production and workflow. Objective 4.04 Marketing 1. __________________ is the cost of the product or service. 2. __________________ is advertising the product or service. 3. __________________ is where the product is displayed in the store, and the store location. 4. ___________________ is the good being sold in stores. Objective 4.05 Small Business Management 1. _____________________ Management understands the process and systems implemented to facilitate daily business operations. 2. _____________________ Management understands tools needed to access, process and maintain information for business decision-making. 3. _____________________ Management understands the processes strategies and systems needed to guide the overall business organization. 4. _____________________ Management understands tools needed to access, process and maintain information for business advertising. 5. _____________________ Management understands the financial concepts and tools used in making business decisions. 6. _____________________ Management understands the concepts and strategies needed to acquire, motivate, develop, and terminate staff. 7. _____________________ understands the concepts, strategies, and systems that businesses implement and enforce to minimize loss. Objective 5.01 Understanding Appropriate Business Etiquette 1. ____________________ is the established behavior in a polite society or in official or professional life. 2. ___________________ describes good Internet behavior. 3. Four forms of communication that everyone must remember to practice professionally are _____________________, _______________________, ______________________, and ________________________. 4. I create a ___________________ when it’s a brief message that is sent to those that work within the company. 5. I create a ___________________ when it’s a detailed document with researched facts, graphs and charts and presented during a business meeting. 6. I create a ___________________ when it’s going to a business from me or business to business. 7. I type a __________________ when I need to send a quick communication due to being out of town or running out of time. Objective 5.02 Understanding Ethics and Ethical Decision Making 1. _______________ is setting of moral principles by which people must conduct themselves personally, socially, and/or professionally. 2. _______________________ is a division of the Department of Labor that sets and enforces work related safety laws. 3. _______________________ is a policy that user must agree to follow in order to be provided access (login, username, password) to a network or to the Internet. Objective 6.01 Understanding Procedures for Seeking Employment 1. Skills that are already developed are ______________________. 2. The potential a person has for learning a skill is ________________. 3. Activities that one likes to do are ________________________. 4. The ability to perform a task due to training or experience is a ________________. 5. Attending a Career Fair or keeping a contact list is ____________________. 6. Viewing classified ads, researching on the internet, and visiting employment agencies is ___________________________. 7. ___________________ is the act of following a person on the job for a few days to learn about a career. 8. ______________________ is a position that involves hands-on learning while under the guidance of a skilled worker in a registered program. 9. ___________________ is a temporary paid or unpaid position that involves direct work experience in a career field. 10. ____________________ is a paid work experience that combines school studies. 11. A _____________ is a work history of one or more jobs in the same or related field of interest. 12. A ________________ is work that a person does for pay unlike a trade which is a skilled profession. Objective 6.02 Understanding Procedures for Gaining Employment 1. A __________________provides a summary of the applicant’s qualifications, stimulating the interest of the employer; saving time during the interview process. 2. List the order of the contents of a resume: ___________________, ________________, ______________________, __________________, ___________________________, ______________________, ____________________. 3. The __________________ is sent in response to want ads in the paper (the first page of the resume – for this purpose only). 4. The educational experience on the resume should be type in _____________________ order. 5. ______________________ should be used when describing tasks accomplished on the resume (work experience). 6. A __________________________ is filled out when interested in a position at a business in hopes to get a call back for an interview. 7. The application displays a person’s ____________________, and how well a person can follow _______________________. 8. On an interview you should not ____________________, _______________, or _________________________. 9. Following an interview you should send a ______________________ to the interviewee. Object 6.03 Understanding Behaviors Required for Maintaining Employment 1. Working together collaboratively is _____________________. 2. The drive to do something for the reward of feeling satisfied when it’s done is _________________________. 3. The willingness to do what needs to be done without being told is _____________________. 4. Arriving on time is ___________________. 5. Working with others to reach a common goal is __________________. 6. The ability to change in order to fit circumstances is __________________. Objective 7.01 Understanding Leadership 1. Leadership skills can be learned by being ____________________. 2. CTSO’s are _____________________________________________. 3. A leader is a person who _____________, ____________, and/or ____________. Objective 7.02 Understanding Team Building 1. Teambuilding enables a group to work _______________________. 2. Teambuilding success occurs when a team ________________________________________. 3. Effective team building requires a team with ____________________ and ___________________________. 4. When one has the ability to ____________________, ________________________, ________________________, ____________________, _________________________, and _____________________ they possess team building skills.