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EOPA ENTREPRENEURSHIP
STUDY SET QUESTIONS & ANSWERS, 100% ACCURATE.
"Design - Correct Answer An outline, sketch or plan in the form and structure of a product
to be created or constructed."
"Distribution - Correct Answer The supplying of goods and services to retailers and others so
that people's needs can be met."
"Dividends - Correct Answer A share of profits paid to stockholders of a corporation."
multiple choice/60 questions/online/no time limit/70% or higher gains certificate/you may use a
calculator - Correct Answer what is the format of the exam?"
"aptitude - Correct Answer natural ability to do a particular type of work or activity well"
"capital resources - Correct Answer goods made and used to produce other goods and services, such
as buildings, machinery, tools and equipment"
"OSHA - Correct Answer Occupational Safety and Health Act of 1970, created to assure safe and
healthful working conditions for working men and women by setting and enforcing standards and by providing training, outreach, education and assistance."
"Service Charge - Correct Answer Amount charged to borrowers by merchants or banks for servicing
an account or loan"
"Line of Credit - Correct Answer pre-established amount that can be borrowed on demand"
"break even analysis - Correct Answer is a calculation of the point at which revenues equal expenses"
"unlimited liability - Correct Answer If a small business owner (sole proprietor) is responsible for all the
debts and choices of a business, the owner is considered to have?"
"marketing plan - Correct Answer Business document created for the purpose of describing
the current market position of a business and its strategy for making the customer aware of the product or service that is being offered"
"The purpose of SWOT analysis is to examine a company's? - Correct Answer strengths, weaknesses,
opportunities, and threats"
"income statement - Correct Answer A "period-of-time" report on the profitability of business
operations is a/an"
"promotional mix - Correct Answer describes a blend of promotional variables chosen by marketers to
help a firm reach its goals"
"breakeven sales - Correct Answer calculated by dividing a company's fixed expenses by the company's
contribution margin ratio"
"trade association - Correct Answer Entrepreneurs can seek technical and general assistance in a
specific industry by joining organizations such as?"
"Deductible - Correct Answer The amount of money you agree to pay towards your losses before your
insurance coverage will begin paying"
"Probability - Correct Answer The chance of something happening or not happening within a certain
number of occurrences"
"Insurance Fraud - Correct Answer An act on the part of either the buyer or seller of an insurance
contract in an attempt to gain money illegally"
"Good credit - Correct Answer Paying bills when due"
"LIFO Method - Correct Answer inventory costing method produces lower gross margin, lower income
tax, smaller cash outflows for income tax purposes."
"LIFO (last in first out) - Correct Answer an asset management and valuation method that assumes
assets produced or acquired last are the ones used, sold or disposed of first"
"FIFO (first in first out) - Correct Answer is an asset-management and valuation method in which the
assets produced or acquired first are sold, used or disposed of first"
"attitude - Correct Answer What is reflected in every contact with customers and in completion of
work assignments?"
"word processing - Correct Answer Which application is the best choice for creating reports, tables,
letters and memos?"
"Civic - Correct Answer Of a city or citizen."
"Collateral: - Correct Answer The assets pledged to a lender to secure or support a loan."
"Common Law Rights - Correct Answer Common law is law that was developed over centuries and
based on custom and judicial opinions, as opposed to legislative acts."
"Commerce - Correct Answer Trade between states or nations."
"Competition - Correct Answer Techniques used by businesses to gain more customers and to earn
higher profits."
"Consumers - Correct Answer People whose wants are satisfied by using goods and services"
"Contract - Correct Answer A formal agreement or a promise or set of promises between two or more
parties that is legally enforceable."
"Copyright - Correct Answer The exclusive right to reproduce, sell, publish, or distribute literary or
artistic work; i.e., works of authors, composers, etc. Copyright does not protect the idea itself or the information itself. It protects the form or manner in which the idea or information is proposed."
"Corporate Mission - Correct Answer A broad statement of what business or businesses the company
should be in."
"Cost of Production - Correct Answer All resources used in producing goods and services for which
owners receive payment"
"Counterfeiting - Correct Answer Copying another's work without permission and passing off the copy
as an original. A counterfeit is an imitation, fake or "knock-off."
"Culture - Correct Answer The implied beliefs, norms, values, and customs that define a society.
Culture leads to common patterns of behavior. Like countries, businesses can have cultures also."
"Currency - Correct Answer Paper money issued by the government."
"Cyberspace - Correct Answer A link between computers with modems to access the World Wide
Web."
"Decision Maker - Correct Answer The individual in a family or business who is ultimately responsible
for the final selection of a product or service"
"Demand - Correct Answer A schedule of how much consumers are willing and able to buy
at all possible prices during some time period."
"Demographics: - Correct Answer The statisticalstudy of population characteristics. Demographics can
also refer to a list of objective characteristics about an individual consumer like age, income, occupation, marital status, education, or location."
"Deposit - Correct Answer To put money in a bank or other financial institution"
"Depreciation - Correct Answer The portion of the cost of tangible operating assets, such as
buildings or equipment, recorded as expense for the accounting period; results from spreading out the cost of long-lived assets over several years."
"Depression: - Correct Answer A time of economic crisis or bad times in commerce, finance,
and industry, characterized by falling prices, restriction of credit, low output and investment, many bankruptcies and a high level of unemployment (many people without jobs). A less severe crisis is usually known as a recession."
"Economic Systems - Correct Answer The way a society organizes the production, consumption and
distribution of goods and services."
"Economics - Correct Answer The study of choice and decision-making in a world with limited
resources."
"intellectual property - Correct Answer a work or invention that is the result of creativity, such as a
manuscript or a design, to which one has rights and for which one may apply for a patent, copyright, trademark, etc."
"Export: - Correct Answer To send and/or sell goods and services outside of one's country"
"Factors of Production: - Correct Answer Resources used by businesses to produce goods and
services."
"Family Business: - Correct Answer A business in which two or more family members have a
significant ownership interest and/or participate in the senior management, and where the ownership may be passed on to the next generation."
"Function: - Correct Answer The purpose for which something is designed or exists"
"Goods: - Correct Answer Objectsthat canbeheldortouchedthat cansatisfypeople'swant"
"Invest: - Correct Answer To commit money or capital in order to gain a financial return;
to put one's money into a business or project to make more money"
"Investment Clubs: - Correct Answer A group of people who put their money together
to make investments. After each member researches different investments, a decision is made upon the investment with a majority vote."
"Investment in Capital Resources - Correct Answer Business purchase of new facility and equipment"
"Investment in Human Resources: - Correct Answer Activities that increase the skills and knowledge of
workers."
"Invoice: - Correct Answer An itemized listing of goods or services sold; given to the buyer
for payment purposes, usually detailing costs, discounts, payment terms, freight charges, shipping dates and any other information pertinent to the sale."
"Joint Liability: - Correct Answer Where one joint debtor has the right to insist that a co-debtor be
joined in the liability. The liability is required to be apportioned among the debtors."
"Keystone: - Correct Answer A retailing term referring to doubling the cost of an item of
merchandise to determine its retail selling price."
"Liabilities: - Correct Answer Short-term and long-term debts incurred by the business and owed to
others."
"Limited Liability Company: - Correct Answer This is a new form of business entity which is a hybrid
between a partnership and a corporation. They are highly flexible, provide limited liability to their members, and avoid double taxation"
"Limited Partnership: - Correct Answer A partnership (two or more individuals jointly
owning a business) which allows for general partners and limited partners; limited partners are usually financial liable for debts only to the extent of their investment, and have limited or no control over management of the company."
"Line of Credit: - Correct Answer A pre determined amount of short-term financing (generally from a
bank) available for a business to borrow against on an "as needed" basis and repaid during the specified life of the line."
"Market: - Correct Answer Asegment of a population considered actual or potential buyers;
a gathering place for selling and buying"
"Market Economy: - Correct Answer An economic system where most goods and services
are exchanged through private transactions by private households and businesses. Prices are determined by buyers and sellers making exchanges in private markets."
"Marketing: - Correct Answer The sum of all activities that influence commercial movement
(sale) of goods and services from the provider to the consumer"
"Merger: - Correct Answer A combination of two or more businesses into one."
"Mission Statement: - Correct Answer A written statement, in the broadest terms, describing what the
business hopes to do and become."
"Money: - Correct Answer A medium of exchange; a good that can be used to buy other
goods and services."
"Natural Resources: - Correct Answer "Gifts of nature" that are present without human intervention.
(also called land)."
"Need: - Correct Answer A specific quantity of a specific good for which an individual
would pay any price. These are the goods and services a person must have."
"Net Income/Loss: - Correct Answer The result after subtracting all expenses and taxes from total
revenue."
"Net Profit: - Correct Answer Sales minus variable costs and fixed costs. Net profit is used as
a starting point to measure return on investment for specific products or businesses."
"Net Worth: - Correct Answer The total assets of a business minus its total liabilities."
"Niche Market: - Correct Answer A special segment of a market, often defined in terms of particular
buyer characteristics for which a business feels particularly well-suited to target."
"Opportunity - Correct Answer Appropriate time; favorable position or chance."
"Opportunity Cost: - Correct Answer The next best alternative that must be given up when a choice is
made, not all alternatives, just the next best choice."
"Production/Producers - Correct Answer People who use resourcesto make goods and services; also
called workers."
"Productivity - Correct Answer The ratio of output (goods and services) produced per unit of
input (productive resources over a period of time)."
"Profit: - Correct Answer The financial gain resulting from revenues after all business
expenses have been paid."
"Proprietorship: - Correct Answer The most common legal form of business ownership; about 85
percent of all small businesses are proprietorships. The liability of the owner is unlimited in this form of ownership."
"Public Goods: - Correct Answer Goods and services that are provided by the government. They
often are too expensive or not practical to be obtained by individuals."
"Public Offering: - Correct Answer A general solicitation for participation i n a n
investment opportunity. Interstate public offerings are supervised by the Securities and Exchange Commission."
"Public Relations: - Correct Answer Methods by which a business seeks to promote a favorable
relationship with the public; marketing examples: positive publicity (news story), community event participation, customer service, civic organization membership."
"Publicity: - Correct Answer A freepromotionaltoolwhich communicatesproduct or company
information to mass audiences through the media. Publicity media includes newspapers, press magazines, and/or radio. Publicity often begins with a press release by a business"
"Resources: - Correct Answer All natural, human and human-made aids to the production of
goods and services; also called productive resources."
"Services: - Correct Answer Activities that can satisfy people's wants"
"Shares: - Correct Answer Any of the equal parts into which the stock of a corporation or
company is divided"
"Short-Term Debt: - Correct Answer Loans that are due within one year"
"Shortages: - Correct Answer The situation resulting when the quantity demanded exceeds the
quantity supplied of goods, service, or resource."
"Simple Interest: - Correct Answer Interest paid only on the original amount, not on the interest
accrued."
"Sole Proprietorship: - Correct Answer Unincorporated, one-owner business, farm, or
professional practice."
"Specialization - Correct Answer The situation in which people produce a narrower range of goods
and services than they consume."
"Stock Exchange: - Correct Answer A place where stocks, bonds or other securities are bought and
sold. Also, an association of stockbrokers who meet to buy and sell stocks and bonds according to fixed regulations. Known as the Stock Exchange in both cases."
"Supply: - Correct Answer A schedule of how much producers are willing and able to
produce and sell at all possible prices during some time period."
"Supply and Demand - Correct Answer Supply is the amount of goods available at a given price at any
time. Demand is how many consumers desire the goods that are in supply."
"Surplus: - Correct Answer A term used when the quantity of goods supplied exceeds the
quantity demanded at the existing price."
"Target Market: - Correct Answer The specific group of individuals who are chosen as most likely
potential customers for the goods/services of a business and to whom the business wishes to appeal."
"Tariff: - Correct Answer A tax on imports."
"Taxes: - Correct Answer Required payments of money made to governments by households
and business firms"
"Income Taxes: - Correct Answer Taxes paid by households and business firms on the
income they receive."
"Property Taxes: - Correct Answer Taxes paid by households and businesses on land and
buildings."
"Sales Taxes: - Correct Answer Taxes paid on the goods and services people buy"
issues patents and registers trademarks."
"Value Added Agriculture: - Correct Answer Taking farm products such as wheat, corn or sunflowers
and increasing the value by processing into products such as flour or corn meal or by packaging products such as sunflower seeds or birdseed."
"Venture Capital - Correct Answer Money used to finance new or unusual undertakings"
"Wall Street: - Correct Answer The controlling financial interests of the United States. Wall
Street itself is located in New York City."
"Want: - Correct Answer Something desired, demanded or required."
"Warranty: - Correct Answer A promise or representation about goods which is part of the deal
and which creates an expectation that the goods will conform to that promise."
"Working Capital - Correct Answer Resources available in a business to cover short-term expenses
determined by subtracting current liabilities from current assets."
"World Wide Web: - Correct Answer A wide area hyper media information retrieval system which
provides computer access to a large universe of documents. The Web provides users with a consistent meansto access a variety of information."
"Zoning: - Correct Answer The division of an area into zones as to restrict the number and
types of buildings and their uses."
"credit - Correct Answer the privilege of buying something now with the agreement to pay for it later,
or borrowing money with the promise to pay it back"
"Balance Due - Correct Answer The amount that remains due on a loan, including principle and
interest"
"Billing Date - Correct Answer The last date of the month that any purchase you made with your card
or any payment made on you account was posted to your account"
"Borrower - Correct Answer The person who uses credit"
"Revenues: - Correct Answer The earning activities of a business; usually the act of performing
a service or selling a product. Revenues result in something of
value being received by the business"
"Rule of 72: - Correct Answer A rule stating that in order to find the number of years required to
double your money at a given interest rate, you divide the doubled amount by 72. The result is the approximate number of years that it will take for your investment to double."
"Scarcity: - Correct Answer The condition of not being able to have all the goods and services
that we want."
"Capital - Correct Answer Property you possess that is worth more than your debts"
"Creditor - Correct Answer Person or company to whom you owe money"
"Due Date - Correct Answer The date on or before which payment is due"
"Finance Charge - Correct Answer Amount a borrower must pay to use credit"
"Installment Purchase Contract - Correct Answer Written agreement to make regular payments on a
purchase"
"Prorate - Correct Answer To divide proportionally over a period of time"
"Secured loan - Correct Answer A loan wherein the borrower pledges property of other assets to
assure the creditor of repayment"
"Deferred Billing - Correct Answer service available to charge customers whereby purchases are not
billed to the customer until later"
"main categories of credit - Correct Answer Open-ended credit agreements
Closed-ended agreements Service Credit Layaway plans"
"Open-ended credit - Correct Answer credit card; lender places a limit on how much a customer can
borrow during a given period"
"Installment Loan - Correct Answer when a loan is repaid in fixed payments that include principle and
interest"
"Closed-End Credit - Correct Answer a specified amount of money, a loan"
"Lobbying - Correct Answer professional organizations try to influence public officials to take political
action that benefits the profession."
"Usury Laws - Correct Answer Maximum interest rates that may be charged"
"Durables - Correct Answer items expected to last several years"
"Labor Union - Correct Answer is a group of people who work in the same or similar occupations,
organized for the benefit of all employees in these occupations."
"Job sharing - Correct Answer is a job design in which two people share one full-time position. They
split the salary and benefits according to each person's contributions."
"Compressed workweek - Correct Answer is a work schedule that fits the normal 40-hour workweek
into less than five days."
"Flextime - Correct Answer allows employees to choose their working hours within defined limits.
Flextime plans generally require all employees to be present during a specified core time period"
"Pension and savings plans - Correct Answer Employees are said to be vested (means entitled to full
retirement benefits) after they have worked a specified period of time."
"Leaves of absence - Correct Answer some employers allow employees to temporarily leave their jobs
without pay to care for themselves or a family member"
"Self-employed tax - Correct Answer is the total social security and Medicare tax, including employer-
matching contributions paid by the people who work for themselves= 15.3%"
"Social Security tax for self-employed - Correct Answer self-employed people pay 12.4% of gross
income (6.2%*2)."
"Medicare tax for self employed - Correct Answer self-employed people pay 2.9% of gross income
"Net pay - Correct Answer the amount left after all deductions have been taken out of your gross pay."
"Deductions - Correct Answer amounts subtracted from your gross pay."
"Overtime - Correct Answer is time work beyond the regular 40 hours"
"Disposable Income - Correct Answer is the money you have left to spend or save after taxes have
been paid."
"Financial Plan - Correct Answer is a set of goals for spending, saving, and investing the money you
earn."
"Express contracts - Correct Answer can be written or oral; the parties have stated the terms of their
agreement in words"
"Binding - Correct Answer all who enter into the contract must be legally obligated to abide by its
terms"
"elements of an enforceable contract - Correct Answer Agreement, Consideration, Contractual
capacity, Legality"
"Promissory Note - Correct Answer is a written promise to pay a certain sum of money to another
person or to the holder of the note on a specified date."
"Co-signer - Correct Answer is a person who promises to pay the note if the maker fails to pay"
"Amortization - Correct Answer is the paying off of debt with a fixed repayment schedule in regular
installments over a period of time for example with a mortgage or a car loan."
"Harvesting - Correct Answer The stage in the entrepreneurial process in which the entrepreneur
decides on the venture's future (growth, development, demise)."
"Discovery - Correct Answer The stage in the entrepreneurial process in which the entrepreneur
generates ideas, recognizes opportunities, and determines the feasibility of ideas, markets, ventures, etc."
"Concept Development - Correct Answer The stage in the entrepreneurial process in which the
entrepreneur plans the venture, identifies needed resources using a business plan, identifies strategies .to protect intellectual property, etc."
"Resourcing - Correct Answer The stage in the entrepreneurial process in which the entrepreneur
identifies and acquires the financial, human, and capital resources needed for the venture startup, etc."
"Actualization - Correct Answer The stage in the entrepreneurial process in which the entrepreneur
operates the venture and utilizes resources to achieve its goals/objectives."
"Entrepreneurial Skills - Correct Answer The unique traits, behaviors and processes that differentiate
an entrepreneur from an employee or manager."
"Automatic Teller Machine (ATM) - Correct Answer A machine that allows a customer to deposit
checks or withdraw physical cash (bills) from their account"
"Prepaid Card - Correct Answer A card that is loaded with a specific cash amount before you use it but
then looks and works like a credit card until the full value is spent"
"Reconcile - Correct Answer To "balance" your checking account with your monthly statement from
the bank"
"Statement - Correct Answer A monthly record of your account transactions provided by your bank
electronically or on paper"
"Withdrawal - Correct Answer Money taken out of your account"
"Joint Account - Correct Answer A bank or credit account that is shared between two or more
individuals which allows everyone named on the account to access the funds"
"Checking Account - Correct Answer A bank or credit union account that allows easy (and usually
unlimited) access to your funds via check, ATM, or debit card"
"Unbanked - Correct Answer An individual or household that does not utilize a checking or savings
account and instead obtains financial services outside the traditional banking system"
"Underbanked - Correct Answer An individual or household that has a checking and/or savings account
but also obtains financial services outside the traditional banking system"
"Online Banking - Correct Answer Method of banking where all the transactions take place
electronically via the internet rather than at a physical bank branch"
"Mobile Banking - Correct Answer Method of banking using your smartphone to conduct transactions
rather than using a computer or a physical bank branch"
"National Credit Union Administration (NCUA) - Correct Answer The U.S. administration insuring
deposits in U.S.credit unions against credit union failure"
"Online Savings Account - Correct Answer A savings account, typically offering higher interest rates,
that is managed entirely online with no physical bank branch"
"Inflation - Correct Answer The rate at which the price of goods increases and consumer purchasing
power decreases over time"
"Money Market Savings Account - Correct Answer An account similar to a traditional savings account
but that typically pays higher interest, requires a higher minimum balance, and may allow check writing"
"Simple Interest - Correct Answer Interest paid on the principal alone"
"Principal - Correct Answer Original amount of money saved or invested, separate from interest or
earnings"
"Pay Yourself First - Correct Answer A method of saving whereby you put a fixed amount of income
into a savings account before you pay monthly bills or make purchases"
"Federal Deposit Insurance Corporation (FDIC) - Correct Answer The U.S. corporation insuring deposits
in US banks against bank failure"
"Certificate Of Deposit (CD) - Correct Answer A savings certificate with a fixed interest rate and
maturity date, holding the saver's money until the CD fully matures"
"Rule Of 72 - Correct Answer A popular trick to find out how long it will take your money to double
depending on what interest rate you are receiving"
"Health Savings Account (HSA - Correct Answer An account in which you can save pre-tax dollars to
pay for out-of-pocket health care expenses"
"Compound Interest - Correct Answer Interest earned on both the principal amount and any interest
already earned"
"Wealth - Correct Answer A measurement of your assets (money you've saved or things of value you
own) minus your liabilities (money you owe others); also called net worth"
"Direct Deposit - Correct Answer An automatic electronic deposit of net pay to an employee's
designated bank account"
"Interest - Correct Answer The amount you earn as the benefit of depositing money in an interest
bearing account"
"Emergency Fund - Correct Answer Money set aside for unanticipated expenses or loss of income"
"50-20-30 Rule - Correct Answer A popular savings rule of thumb in which 50% of your income goes
towards necessities, 20% goes towards saving and debt repayment, and 30% goes towards flexible spending"
"Cash Advance - Correct Answer A credit card service that allows cardholders to withdraw a certain
amount of cash, either through an ATM or directly from a bank, typically at a high interest rate or for a fee"
"Cash Back - Correct Answer A credit card benefit that pays the cardholder a small percentage of their
net expenditures, often in cash, payment toward their balance, reward points, travel miles, or gift cards"
