True or False

Question 1

Profit is the money that will be allocated by the entrepreneur to establish

Answer 1

False, Capital

Question 2

It should be mixed with the personal money of the entrepreneur.

Answer 2

False, shouldn’t

Question 3

The three “green lights” or the positive signals that can help entrepreneurs develop ideal business models and eventually succeed.

Answer 3

True

Question 4

On the other hand, there are three “red flags” or negative signals that entrepreneurs should be wary of.

Answer 4

True

Question 5

The gross income is only realized when all expenses have been already deducted from the gross revenue.

Answer 5

False, real income or net revenue

Question 6

Therefore, the entrepreneur must prepare an balance sheet, which is a financial statement that details the computation of net revenue by deducting cost of sales, expenses, and taxes from the gross revenues generated.

Answer 6

False, Income Statement

Question 7

Implementations management, on the other hand, controls the implementation of the business plan

Answer 7

False, Operations

Question 8

Creating a business plan provides the entrepreneur a window to test the performance and specifications of various materials and service processes.

Answer 8

True

Question 9

A prototype helps the entrepreneur effectively describe the product or
service to the product team.

Answer 9

True

Question 10

A clear business plan is important because this will serve as the blue print of all business operations.

Answer 10

False, Business descriptions

Question 11

A prototype is a preliminary model or sample of a new product or service that is created to test a product concept or service process.

Answer 11

True

Question 12

This is an exciting process for the entrepreneur because he or she will be able to see that his or her ideas will soon become a tangible reality

Answer 12

True

Question 13

The entrepreneur must also prepare a balance sheet to account for the assets, liabilities, and capital of the business

Answer 13

True

Question 14

An balance sheet statement is a core financial statement that describes the financial position of the business

Answer 14

False, Income statement

Question 15

Assets are divided into current assets, which are mostly the liquid assets that can be exchanged to cash within one year, and noncurrent assets, which are long term assets that can be converted to cash more than one year.

Answer 15

True

Question 16

Owners equity are what the business owes to another person, a financial institution, or any creditor.

Answer 16

False, Liabilities

Question 17

Profit is the funds allocated by the entrepreneur to run the business.

Answer 17

False, Owner’s equity or capital

Question 18

Indirect competitors are those that offer the same product/product lines or services as the entrepreneur

Answer 18

False, Direct

Question 19

Direct competitors are those that do not offer the same products or services but influence or affect the entrepreneur’s market share.

Answer 19

False, Indirect

Question 20

Revenue is considered deferred when the product is already sold or service has been rendered regardless if the business is paid in cash or credit.

Answer 20

True

Question 21

Revenue is considered earned when the product or service has not yet been delivered or sold but the customer has already paid in advance.

Answer 21

True

Question 22

Consumer is one of the biggest investments of an entrepreneur or a
businessman.

Answer 22

False, Training people

Question 23

Therefore, he or she must devise strategies on how to keep employees satisfied working in the company.

Answer 23

True

Question 24

The operations plan is an important part of the business plan but it does not only simply states the details in operating the business.

Answer 24

True

Question 25

The business description does not only simply describes how a product or service works and how it benefits the customer.

Answer 25

True

Question 26

Liabilities does not represent the business that are expected to have future economic value.

Answer 26

True