Unit 2 Test Review

A legal document in which a person or group agrees to keep certain information confidential is:

• A non-disclosure agreement

• A franchise agreement

• A partnership agreement

• A royalty agreement

What is a con for buying a franchise instead of starting a new business?

• Proven system

• Customer awareness

• Easier Financing

• Less entrepreneurial freedom

Every business idea is a good business opportunity

• True

• False

Entrepreneurs should not look at their own hobbies or interests for opportunities

• True

• False

Match the key terms with its definition:

• How possible or worthwhile it is to pursue an idea, to see if it is actually an opportunity

• Opportunity Cost

• Process of adding up all the expected benefits of an opportunity and subtracting all of the expected costs

• Calculated Risk

• Risk in which potential costs and benefits are carefully considered before starting a business

• Feasibility

• Business evaluation method that draws its name from the four areas it evaluates: Strengths, Weaknesses, Opportunities, and Threats

• Cost/Benefit Analysis

• Value of what you will give up to get something

• SWOT Analysis

Thinking critically about a business ideas means to be negative.

• True

• False

An organized way to gather and analyze information needed to make business decisions is called

• Focus group

• Market research

• UE testing

• Census

A small number of people who are brought together to discuss a particular problem, product, or service

• Canvas

• Market

• Focus group

• UE testing

A type of primary data source includes:

• Government and local community

• Trade groups and journals

• Interviews and surveys

• Business magazines and reports

When collecting secondary data, the entrepreneur could use the US Census Data.

• True

• False