SBA SBA Entrepreneurship & Small Business Fundamentals 2

Question 1

What is 'intellectual property' in the context of a small business?

Accepted Answer

Intangible creations of the mind such as inventions, brand names, and creative works

Answer

Intellectual property (IP) refers to intangible assets created through human intellect, including patents, trademarks, copyrights, and trade secrets.

Question 2

What is the primary difference between a trademark and a copyright?

Accepted Answer

Trademarks protect brand identifiers; copyrights protect original creative works

Answer

Trademarks protect brand identifiers such as names, logos, and slogans, while copyrights protect original creative works such as books, music, and software.

Question 3

Which type of business valuation method calculates worth based on the company's expected future earnings?

Accepted Answer

Income approach valuation

Answer

The income approach values a business based on its projected future earnings or cash flows, often discounted back to present value.

Question 4

What is the purpose of a 'pivot' strategy in entrepreneurship?

Accepted Answer

Fundamentally changing the business model or product based on market feedback

Answer

A pivot is a strategic shift in a business's core model, product, or target market in response to market feedback or changing conditions.

Question 5

What is a 'value proposition' in the context of small business development?

Accepted Answer

A clear statement of the unique benefit a business provides to its customers

Answer

A value proposition is a concise statement that explains how a product or service solves a customer's problem and why it's better than alternatives.

(SBA) Small Business Administration Certified Business Practice Test

(SBA) Small Business Administration Certified Business Practice Test

SBA SBA Entrepreneurship & Small Business Fundamentals 2