Entrepreneurship Final Exam

What is the primary purpose of conducting a market analysis for a new business?

• To determine the legal structure of the business

• To understand the target market and competition

• To create a financial plan

• To hire employees

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DOK Level 3: Strategic Thinking

Which component of the Business Model Canvas focuses on the channels through which a company delivers its value proposition to customers?

• Key Activities

• Customer Segments

• Channels

• Revenue Streams

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DOK Level 3: Strategic Thinking

In a SWOT analysis, which of the following would be considered an internal factor?

• Opportunities

• Threats

• Strengths

• Market Trends

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DOK Level 3: Strategic Thinking

How can a company create a strong value proposition?

• By copying competitors' strategies

• By identifying and addressing customer pain points

• By reducing product quality to lower costs

• By focusing solely on profit margins

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DOK Level 3: Strategic Thinking

What is a competitive advantage?

• A temporary increase in sales

• A unique feature that sets a company apart from its competitors

• A high employee turnover rate

• A large number of product returns

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DOK Level 3: Strategic Thinking

Which of the following is a key component of strategic planning?

• Daily operational tasks

• Long-term goals and objectives

• Employee attendance records

• Office layout design

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DOK Level 3: Strategic Thinking

What is one of the main benefits of forming a Limited Liability Company (LLC)?

• Unlimited personal liability

• Simplified tax filing

• Protection of personal assets from business debts

• Requirement to issue stock

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DOK Level 3: Strategic Thinking

Which of the following is a common characteristic of a small business?

• Operates in multiple countries

• Employs a large number of people

• Has a limited market reach

• Generates billions in revenue

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DOK Level 3: Strategic Thinking

How can a business achieve product and market fit?

• By ignoring customer feedback

• By continuously iterating based on customer needs and preferences

• By focusing solely on product features

• By reducing marketing efforts

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DOK Level 3: Strategic Thinking

What is a potential risk of starting a new business?

• Guaranteed profits

• Market saturation

• High employee morale

• Strong brand recognition

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DOK Level 3: Strategic Thinking