FBLA Entrepreneurship 2 — Questions and Answers
Question 1: What is a 'SWOT analysis' used for in business?
- Calculating startup costs
- Evaluating a business's Strengths, Weaknesses, Opportunities, and Threats (Correct answer)
- Managing employee schedules
- Analyzing a company's stock performance
Correct answer: Evaluating a business's Strengths, Weaknesses, Opportunities, and Threats
A SWOT analysis helps businesses identify internal strengths and weaknesses alongside external opportunities and threats.
Question 2: Which section of a business plan describes how a company will sell and promote its products?
- Operations plan
- Financial plan
- Marketing and sales strategy (Correct answer)
- Executive summary
Correct answer: Marketing and sales strategy
The marketing and sales strategy section outlines how a business will reach its target market and convert prospects into customers.
Question 3: What is 'market research' in entrepreneurship?
- The process of hiring salespeople
- Gathering information about target customers and industry conditions (Correct answer)
- Setting product prices
- Registering a business name
Correct answer: Gathering information about target customers and industry conditions
Market research involves collecting and analyzing data about potential customers, competitors, and industry trends to inform business decisions.
Question 4: What is an 'angel investor'?
- A government-sponsored investment fund
- A wealthy individual who invests personal capital in early-stage startups (Correct answer)
- A nonprofit organization that funds charities
- A bank that specializes in small business loans
Correct answer: A wealthy individual who invests personal capital in early-stage startups
An angel investor is typically a high-net-worth individual who provides funding to startups in their early stages, often in exchange for equity.
Question 5: What does 'break-even analysis' determine for a new business?
- The maximum amount of debt a business can carry
- The point at which total revenue equals total costs (Correct answer)
- The optimal price for a product
- The number of employees needed
Correct answer: The point at which total revenue equals total costs
Break-even analysis identifies the sales volume at which a business covers all its costs and begins to generate profit.
Question 6: What is a 'franchise' business model?
- A business owned entirely by the government
- A licensing arrangement where a franchisor grants rights to a franchisee to operate under its brand (Correct answer)
- A cooperative owned by its employees
- A startup that partners with a nonprofit
Correct answer: A licensing arrangement where a franchisor grants rights to a franchisee to operate under its brand
A franchise allows an individual (franchisee) to operate a business using an established company's (franchisor's) brand, systems, and support.
FBLA Entrepreneurship 2
What is a 'SWOT analysis' used for in business?