Mock exam entrepreneurship 1 a b c d 2 a b c d 3 a b c d 4 a b All Dutch business entities must be registered at: Any Dutch bank Municipality Association

of commerce entities Chamber of Commerce Entrepreneurship entails: Investing in foreign businesses Investing in local businesses Setting up a business for a third party Setting up ones own business Why is it important to map your skills before setting up a business? This will allow you to attract customers This will allow you to understand your product(s) This will allow you understand your competitors This will allow you use your strength as core competence The purpose of market research is to: Identify the banks needs To meet the Chamber of Commerce requirements b To meet the municipality's requirements d Establish the market size, wants, needs and opportunities

5 The purpose of having a business plan is to: a Influence investors and municipality b Influence investors, municipality and customers c Convincing investors and competitors d Convincing investors, having a time bound road map including financial and marketing planning 6 a b c d The difference between a service and a product is: A service is labor-intensive, whereas a product is less labor-intensive. A service is cost-intensive, whereas a product is less cost-intensive. A product is labor-intensive, whereas a service is less labor-intensive. A product is tangible whereas a service is intangible.

7 The most common legal forms for business entities in The Netherlands are: a Association, foundation, high liability, private limited company, partnership b Cooperation, foundation, private limited company, sole trader c Sole trader, partnership, foundation, private limited company d Private Limited Company, limited Liability Company , association, foundation, sole trader, partnership 8 What is a franchise contract? a An agreement between three parties which allows all parties to market product or services b An agreement between multiple parties which allows all parties to market products or services c A contract between two parties which allows both parties to market their products d A agreement between two parties which allows one party to market product or services using the trademark and operating methods of the other party

9 a b c d know

Common mistakes in market research is: Using both online and offline data only Using interviews held by business entities only Not using data at all Using only secondary data, using only web resources, surveying only people you

10 Which six aspects must be included in a business plan? a Market size, business idea, strategy & implementation, financial statements b Market size, business idea, market limitations, strategy & implementation, financial analysis c Product mix, business idea, market analysis, strategy & implementation, financial analysis d Executive summary, company profile, business idea, market analysis, strategy & implementation, financial analysis 11 a b c d The business information of a company profile must include: Marketing mix, financial overview, market size and various roles of management Start-up plan, info on what you want to accomplish and various roles management Start-up plan, various roles management, role of competitors Sales plan, various roles management, product benefits

12 The purpose of having a business plan is to: a Convince investors, employees and the municipality b Convincing investors, having a time bound road map including financial and marketing planning b Convince investors, employees, the bank and customers c Convincing investors, employees, the bank, Chamber of commerce and competitors 13 The difference between copyrights and patents is: the expression of an idea and allows the owner to have limited the expression of an idea, while a patent protects the idea itself. the potential customers from buying counterfeits. an idea, while a patent protects the expression of that idea

a Copyright protects control. b Copyright protects c Copyright protects d Copyright protects 14

Economy pricing is:

a A pricing method in which you compete with your direct competitors outside your targeted market b A pricing technique in which you keep your cost of marketing, production and overhead extremely low and offer low prices that sell your product c A pricing method in which you keep your production costs low and offer low prices d A pricing technique in which you keep your cost of marketing, production and logistics high 15 Williams defines Pricing as: a) The process of determining what your business will receive in tax benefits b) The process of determining what your business will receive in exchange for your product/service c) Determined by market dynamics and VAT benefits

d)

The process of determining what your business will when costs are reduced

16 A business angel is someone who is: a) Looking to buy shares in a private company in order to influence the product portfolio b) Looking to invest money in a private company, but is not the main driving force of a business c) Looking to invest time and knowledge in private companies in order influence financial decisions d) Looking to invest money in a private company in order to (re)sell the company within six months

17 a) b) c) d) 18 a) b) c) d) 19 a) b) c) d)

Ways to increase profits are: Cutting costs, reduce quality, reduce selling price, increase production costs Cutting costs, sell more of your product/service, change your product mix, increase your price Sell more of your product/service, increase production, sales and marketing costs Sell less of your product/service, increase production and lower marketing costs The way to improve customer care is to: Develop policies on product/service portfolio handling Develop policies on response times and complaint handling Develop policies on how to deal with customers personal data Develop a clear strategy on how increase sales and how to improve CRM In order to work out your break-even point you need to know: Gross loss margin and total external investment Gross profit margin and total cost of overheads Gross income and total investment Gross expenditure and total inventory

20 According to Williams Controlling cash when cash is not particularly tight can be done by: a) Quarterly cash flow statement, six-monthly bank statement, annual payment cycle b) Weekly cash balance, weekly bank statement, monthly payment cycle c) Daily cash balance, monthly bank statement, six-monthly payment cycle d) Six-monthly cash balance, Quarterly bank statement, Annual payment cycle 21 Customer relation building can be done by: a) Type of customers, new customers, existing customers and passer-by customer b) Type of product orientation, existing customers and passer-by customer and foreign customers c) New customers, existing customers and passer-by customer and online customers d) Online customers, offline customers, potential customers 22 According to Williams, The best way to act when customer payment is overdue is to: a) Hand collection over to an agency b Contact the customers bank c) Contact the Chamber of Entrepreneurs to file a complaint d) Adjust your cash flow statement 23 Should suppliers have the need to investigate your solvency, they may ask: a) Permission to approach your bank for reference, two trade references, a balance sheet or set of the latest accounts b) Chamber of Commerce registration, cash-flow statement and balance sheet c) To see investigate your cash-flow statements and your bank for reference d) Permission to see your criminal records, five trade references and a one month old balance sheet 24 According to Williams, growth can be defined on the basis of: a) Growth in sales, growth in employees, growth in profits

b) b) c)

Growth in sales, growth in employees, growth in debtors Increase in transactions, Increase in inventory, growth in profits Increase in transactions, Increase in inventory, growth in gross margin

25

a) b) c) d) 26 a) b) c) d)

According to Williams, two stock markets which are suitable for innovative, fast-growing smaller markets are: The Alternative Investment Market (AIM) and PLUS-quoted market The Alternative Euro Investment Exchange Market (AEIEM) and PLUS-quoted market Long Term Stock Market (LSM) and Euro Stock Exchange (ESX) Euro Stock Exchange (ESX) and New York Stock Exchange According to Williams, the principle of the VAT system is that tax is: Paid on the value added at each stage of the business process Paid on the value added at each stage of the forecasted revenues Paid on the estimated value at each stage of the business process and net profit Paid on the estimated value at each stage of the sales process and gross profit

27 Williams argues that, VAT registration is about the person, not the business who is registered for VAT. Reasons why the entrepreneur might not have to register for VAT are: a) Sales are too low, the business operates outside the VAT area, carrying out nonbusiness activities b) Sales are too low, the business operates outside the VAT area, too many debts c) Sales are too high, the business is not eligible for tax, few competitors d) Sales are too low, the business operates outside the VAT area, illegitimate business activities 28 a) b) c) d) When, goods are exported abroad and are not consumed in The Netherlands, they are not subject to: Dutch VAT EU VAT Dutch tax Foreign tax

29 According to Williams, records needed for VAT purposes are: a) Tax invoices, a VAT account showing the result for each tax period, returns to the tax office showing the VAT payable or receivable b) Returns to the tax office showing the VAT payable or receivable, cash flow statement c) Tax invoices, the result of the past two years, returns to the tax office showing VAT payable only d) Tax invoices, the result of the past three years, returns to the tax office showing VAT receivable only

30 What are ways to increase profits? a) Cutting costs, sell more of your product/service, change your product mix, increase your price

b) c) d)

Cutting costs, reduce quality, reduce selling price, increase production costs Sell more of your product/service, increase production and marketing costs Sell less of your product/service, increase production and lower marketing costs

31 a) b) c) d)

The way to improve customer care is to: Develop policies on product/service portfolio handling Develop policies on how to deal with customers personal data Develop policies on response times and complaint handling Develop a clear strategy on how increase sales

32 a) b) c) d)

A balance sheet for your business will show: What you earned and what you need to pay your suppliers What you invested and what you are earned What you owe and what you are owed on one particular day The value of your inventory and expenditures

33

According to Williams, there are four requirements for something to be regarded as an invention for patent purposes. These are that it must: a) Be new and is only applicable for new companies b) Be innovative and must be approved by the bank c) Be new, involve an inventive step, be capable of industrial application, not be excluded by law (illegal) d) Be innovative and be applied for by a R & D department only 34 a) b) c) d) Overhead costs include the following elements: The cost of setting up the structure of your income The revenues from business activities The cost of setting up the structure of your business The cost of setting up your business

35 Williams defines penetration pricing as: a) A pricing strategy in which a price war determines how quickly market share can be gained b) A pricing strategy in which both online and offline sales prices are different c) A pricing technique in which one places a low price on a product/service to quickly gain market share d) A pricing technique in which one places a high price on a product or service to quickly gain market share

36 Price skimming is defined as: a) A pricing strategy aimed at setting premium price for high quality products in a crowded market b) A pricing strategy aimed at setting premium price for high quality products in a less crowded market c) A pricing technique in which at first a high price is set on your product while you have a competitive advantage, with the understanding that your high profit margin will eventually increase competition, and then lowers the price over time d) A pricing technique in which at first a low price is set on your product with the

understanding that your high profit margin will eventually increase competition and then lowers the price over time

37 a) b) c) d)

The extended service marketing mix include: Process, promotion, product Price, place, physical evidence People, process, physical evidence Product, physical evidence, place

38 a) b) c) d)

According to Williams, disadvantage of stock markets are that: One has to meet regulations set by the Chamber of Commerce, Additional layer of responsibility to shareholders One has to meet rules and regulations set by the bank, Additional layer of responsibility to shareholders One has to meet rules and regulations, Additional layer of responsibility to shareholders and your business is no longer a private company One has to meet EU rules and regulations, Additional layer of responsibility to shareholders and suppliers Williams defines the break-even point as: The point at which the contribution that you make from sales is insufficient to cover the overheads The point at which sales is sufficient to cover the overheads The point at which the contribution that you make from sales is sufficient to cover the overheads The point at which sales is insufficient to cover the overheads Keeping your records in a methodical way is: Less important as long as your inventory is up-to date Not required by law, as long as taxes are paid More important than installing very sophisticated systems for a very small business Less important provided the owner is registered at the Chamber of Commerce

39 a) b) c) d) 40 a) b) c) d)