Module no.

2
1. One of the factors behind the failure of business.
a) Paying attention to product features
b) Determining the specifications of the work team and then selecting them
c) Dealing kindly with employees and workers
d) Seeking to distort the enterprise's competitors

2. The first obstacle to the successful implementation of the strategy during

the initiation phase is
a) Expected threats
b) Diversity of funding sources
c) Lack of talented employees
d) Lack of opportunities in the market
3. The following is NOT considered a source of opportunity:
a. Change in local and international laws, regulations and trends
b. New discoveries and distinguished knowledge.
c. Problems faced by the individual and others.
d. Existing products and services without added value

4. Creating a company profile is an important step in writing a business

plan, and this file does not include:
a) Company history
b) Products and services you offer
c) Target market
d) Personal savings

5. …….. represents a plan for setting up a new company, presented in the

form of short detailed slides, well formatted so that all the information
contained therein can be easily understood.

a) Operational plan
b) Oral presentation
c) Quick summary
d) Production details

6. ………… is defined as a business model in which a company manufactures

finished products that can be sold directly to customers or sold to an
intermediary.

a) Manufacturer
b) distributor
c) Retailer
d) wholesale

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 7. ………………is the first stage of turning an idea into an opportunity.

a) Idea exploitation
b) Idea evaluation
c) Choice of the idea
d) Idea generation

8. Which of the following is not an element of a business plan:

a) Executive Summary
b) Company Description
c) Market research
d) Organizing and focusing

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 9. To identify market opportunities, the following is required:
a) Examination of economic conditions that do not affect the project
b) Determining the industry in which the project operates without considering its
growth rate
c) Think about the past to learn from it
d) Study competitors and determine their strengths and weaknesses

10. …………… is not considered one of the main types of business plans that
can be submitted for establishing a new company.
a) Oral presentation c) Operational plan
b) List of competitors d) Quick summary

11. ………: is an action plan used to take care of potential investors, clients or
strategic partners, and it is characterized as lasting from thirty seconds to
three minutes.
a) Oral presentation c) Quick summary
b) operational plan d) Presentation

12. The ……….plan includes the determination of the marketing objectives

planned to be reached, such as introducing new products, entering new
areas, or activating current sales.
a) operational c) Executive
b) strategic marketing d) Strategic executive

13. .............: business model in which a company may take on the role of
manufacturer, distributor, or retailer, but instead of creating a new
product, it uses the parent company's model and brand in return for
royalties.
a) Manufacturer c) E-commerce
b) distributor d) Franchise

14. ……….. represents a major and influential pillar in the success of the
small project and the elements for its growth and stability.
a) Capital c) Geographical location
b) Human element d) Use of technology

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Second: True or False:

1. While desire is defined as a basic thing that people must have for survival, a need is
that product or service that people need but are not essential. (False)

2. In economics, a need is defined as something that people must have to survive, such as
water, food, clothing, or shelter. (True)

3. Improving existing products is one of the sources of opportunities that the entrepreneur
can exploit. (True)

4. A want is a product or service that people desire. (True)

5. The Business Model is defined as a conceptual structure that supports the feasibility of
a product or company and explains how it works, earns money, and achieves goals.
(True)

6. A manufacturer buys products from a manufacturers and resells them to the retailers or
the public. (False)

7. Car dealerships that buy products from the factory and resell them to the public are an
example of a business model that is a retailer. (False)

8. The Brick & Mortar model describes a business model that focuses on selling products
only by creating an online store. (False)

9. A business plan is a statement of your business goals, the reasons you think these goals
can be met, and how you are going to achieve them. (True)

10. Investors are busy people - So, business plan should be no longer than 20 typed
pages. (True)

11. Research is the first step for writing a perfect business plan. (True)

12. Targeted advertising are cheaper than most methods or types of advertising. (True)

13. Targeted advertising identifies people who need your services and products. (True)

14. Facebook and Google ads are non-targeted ads. (False)

15. Smart social media are not considered one of the suitable steps to connect with
potential customers effectively. (False)

16. When a company uses the concept of Affiliate Marketing with others, the company
itself is responsible for marketing its own products. (False)

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17. A business in your market that sells a product or service similar to yours is your direct
competitor. (True)

18. McDonald’s® and Burger King® can be considered as indirect competitors. (False)

19. A business that sells a different product or service from yours but fills the same
customer need or want is your indirect competitor. (True)

20. A value proposition is the promise you make to deliver products and services of value
to your customers. (True)

21. The Business Model Canvas categorizes the processes and internal activities of a
business into 6 separate categories. (False)

22. The Business Model Canvas categorizes the processes and internal activities of a
business into 9 separate categories. (False)

23. The Business Model Canvas categorizes the processes and internal activities of a
business into the four major aspects of a business; customers, offer, infrastructure, as well
as financial viability. (True)

24. The four major aspects of a business; customers, offer, infrastructure, as well as
financial viability. (True)

25. In the Business Model Canvas, The medium through which an organization provides
its value proposition to its customer segment is known as a channel. (True)

26. In the Business Model Canvas, There are two basic kinds of channels; Company
owned channels such as store fronts, or Partner Channels such as Distributors. (True)

26. In the Business Model Canvas, There are only one basic kind of channels; Company
owned channels. (False)

27. In cost structure, Fixed Costs are costs that remain the same over a period of time.
(True)

28. In cost structure, Variable Costs are not vary according to a variance in production
rate. (False)

29. Economies of Scale mean that costs decrease as production increases. (True)

30. Economies of Scope mean that costs are decreased by investing in businesses related
to the core product. (True)

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