DECA Entrepreneurship 2

Question 1

Which financial statement shows a business's revenues and expenses over a specific period?

Accepted Answer

Income statement

Answer

The income statement (profit and loss statement) reports revenues and expenses over a defined accounting period.

Question 2

An entrepreneur's 'value proposition' refers to:

Accepted Answer

The unique benefit a product provides to customers

Answer

A value proposition articulates why customers should choose your product by explaining the unique benefits it delivers.

Question 3

Which pricing strategy sets a high initial price and lowers it over time?

Accepted Answer

Price skimming

Answer

Price skimming targets early adopters willing to pay premium prices, then reduces the price to attract more price-sensitive customers.

Question 4

What does 'accounts receivable' represent on a balance sheet?

Accepted Answer

Money customers owe the business

Answer

Accounts receivable is money that customers owe the business for goods or services already delivered but not yet paid for.

Question 5

A SWOT analysis examines Strengths, Weaknesses, Opportunities, and:

Accepted Answer

Threats

Answer

SWOT stands for Strengths, Weaknesses, Opportunities, and Threats — a framework for strategic business analysis.

(DECA) Distributive Education Clubs of America Practice Test