12 Entrepreneurship Certification Study Guide 12

Choose 3 elements of the Product Market Fit hypothesis.

• Determine Target Market

• Define your UVP (Unique Value Proposition)

• Know your customer's needs.

• Obtain Financing

• Advertise your product or service.

Which of the following are part of a marketing plan?

• Budget & Action plan

• Management Description

• Executive Summary

• Define Target Market

• Profit Margin

During the Maturity stage of the Business Life Cycle a company usually experiences reduced sales, constant costs and reducing profits.

• True

• False

Operating expenses include COGS (Cost of goods sold).

• True

• False

Which 3 are functions of advertising and/or marketing?

• UVP

• Promotion

• Selling

• Profit Margins

• Product Management

Your sales have been decreasing lately. You need to determine why. In what order would you do the following:

• 2

• Develop a Research Plan

• 4

• Present Findings

• 1

• Collect Data

• 3

• Identify Objective

• 5

• Analyze Data

Organize these options into the right categories

Groups:

(a) Qualitative Performance

,

(b) Quantitative Performance

• CAC (Customer Acquisition Cost

• Customer Feedback

• Churn Rate

You work at a coffee shop that has monthly fixed costs of $6000, and the average variable cost of each drink sold is $4.50, if the average price per cup is $8.50, how many do you need to sell to break even?

Answer explanation

$8.50 - $4.50 = $4

$6000/$4 = 1500 items you need to sell to cover monthly costs.

Which 3 are types of compensation?

• Stock Options

• Bonuses

• Commission

• Gross Profits

• Subscription Fees

Answer explanation

Compensation refers to any payment given by an employer to an employee during their period of employment. It can be in the form of a salary, wage, benefits, bonuses, paid leave, pension funds, and stock options, and more . . .

Your company has a beginning cash balance on June 1st of $7500. The company has $3000 in accounts receivable on June 15th and $2500 in accounts payable on June 15th. What is the cash balance at the end of day on June 15th at the close of business. Be sure to include a dollar sign $ in your answer.

Answer explanation

Accounts payable is the money owed to vendors and suppliers that results in cash outflow (a liability).  Accounts receivable is the money you receive from selling goods and services that leads to revenue (an asset).  When one company transacts with another on credit, one will record an entry to accounts payable on their books while the other records an entry to accounts receivable.