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Quiz: The Basics of Starting Your Own Business

See if you know these entrepreneurship basics

AARP

En español

April 16, 2021

10 Questions

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Quiz: The Basics of Starting Your Own Business

[ {
  "question" : "What steps should you take before starting your own business?",
  "answers" : [ {
    "answer" : "Take a hard look at your business ideas, your qualifications and your personal goals",
    "correctAnswer" : false
  }, {
    "answer" : "Research and plan, plan, plan",
    "correctAnswer" : false
  }, {
    "answer" : "Network",
    "correctAnswer" : false
  }, {
    "answer" : "All of the above",
    "correctAnswer" : true
  } ],
  "multiSelect" : false,
  "explanation" : "Before starting your own business, take the time to analyze yourself, do your research, identify your product or service, know the financial risks, and develop a business plan.",
  "hint" : "",
  "hintLink" : "",
  "questionImgCaption" : "",
  "questionImgCredit" : ""
}, {
  "question" : "What does building a business require?",
  "answers" : [ {
    "answer" : "A product or service ",
    "correctAnswer" : false
  }, {
    "answer" : "Thoughtful planning",
    "correctAnswer" : false
  }, {
    "answer" : "Access to financial resources",
    "correctAnswer" : false
  }, {
    "answer" : "All of the above",
    "correctAnswer" : true
  } ],
  "multiSelect" : false,
  "explanation" : "You probably want to start your business because you encountered a need that you’ve found a way to solve. But remember, building a business requires strategic planning, financial reserves, and the energy and zeal to put in long work weeks.",
  "hint" : "",
  "hintLink" : "",
  "questionImgCaption" : "",
  "questionImgCredit" : ""
}, {
  "question" : "Which of the following is not required when running a successful small business?",
  "answers" : [ {
    "answer" : "Expand as quickly as possible",
    "correctAnswer" : true
  }, {
    "answer" : "Know your product and how to sell it",
    "correctAnswer" : false
  }, {
    "answer" : "Be passionate about what you’re doing",
    "correctAnswer" : false
  }, {
    "answer" : "Have a business plan",
    "correctAnswer" : false
  } ],
  "multiSelect" : false,
  "explanation" : "Don't grow too fast because early success can pin you into making poor decisions.",
  "hint" : "",
  "hintLink" : "",
  "questionImgCaption" : "",
  "questionImgCredit" : ""
}, {
  "question" : "Which government agency helps Americans start, build and grow businesses?",
  "answers" : [ {
    "answer" : "Federal Trade Commission (FTC)",
    "correctAnswer" : false
  }, {
    "answer" : "Small Business Administration (SBA)",
    "correctAnswer" : true
  }, {
    "answer" : "Federal Reserve Board",
    "correctAnswer" : false
  }, {
    "answer" : "Securities and Exchange Commission (SEC)",
    "correctAnswer" : false
  } ],
  "multiSelect" : false,
  "explanation" : "The Small Business Administration (SBA) helps Americans get real-world, actionable information they need to start and grow small businesses.",
  "hint" : "",
  "hintLink" : "",
  "questionImgCaption" : "",
  "questionImgCredit" : ""
}, {
  "question" : "The first step to starting a business is to write a business plan. What does a good business plan include?",
  "answers" : [ {
    "answer" : "Why your idea is workable",
    "correctAnswer" : false
  }, {
    "answer" : "How your business will operate",
    "correctAnswer" : false
  }, {
    "answer" : "How much your projected revenues and expenses will be",
    "correctAnswer" : false
  }, {
    "answer" : "All of the above",
    "correctAnswer" : true
  } ],
  "multiSelect" : false,
  "explanation" : "A good business plan shows why your idea is workable, how your business will operate and the amount of your income and expenses.  The Small Business Administration has online workshops and templates to help you assess your situation, identify a niche, analyze the market, and organize your finances—all important components of a business plan.",
  "hint" : "",
  "hintLink" : "",
  "questionImgCaption" : "",
  "questionImgCredit" : ""
}, {
  "question" : "Among the options listed below, which of the following is the best way to fund your small business?",
  "answers" : [ {
    "answer" : "Use your retirement savings",
    "correctAnswer" : false
  }, {
    "answer" : "Sell your house",
    "correctAnswer" : false
  }, {
    "answer" : "Explore small business loans",
    "correctAnswer" : true
  }, {
    "answer" : "Win the lottery",
    "correctAnswer" : false
  } ],
  "multiSelect" : false,
  "explanation" : "Don’t use your retirement income to start a business. Consider a small-business loan to get you started.",
  "hint" : "",
  "hintLink" : "",
  "questionImgCaption" : "",
  "questionImgCredit" : ""
}, {
  "question" : "Why is it important to have a small business mentor?",
  "answers" : [ {
    "answer" : "To provide you with advice and guidance",
    "correctAnswer" : true
  }, {
    "answer" : "To shower you with praise",
    "correctAnswer" : false
  }, {
    "answer" : "To help you become a millionaire",
    "correctAnswer" : false
  }, {
    "answer" : "All of the above",
    "correctAnswer" : false
  } ],
  "multiSelect" : false,
  "explanation" : "A good business mentor will tell you like it is and provide you with advice and guidance, such as whether you have a good idea or whether your concept will work.",
  "hint" : "",
  "hintLink" : "",
  "questionImgCaption" : "",
  "questionImgCredit" : ""
}, {
  "question" : "Creating a marketing plan can help you reach your target customers and effectively promote your product or service. Which of the following is not an essential component of a successful marketing plan?",
  "answers" : [ {
    "answer" : "Target customers",
    "correctAnswer" : false
  }, {
    "answer" : "Unlimited budget",
    "correctAnswer" : true
  }, {
    "answer" : "Goals",
    "correctAnswer" : false
  }, {
    "answer" : "Marketing tactics",
    "correctAnswer" : false
  } ],
  "multiSelect" : false,
  "explanation" : "Creating a marketing plan for your business can help ensure that you're maximizing each marketing dollar you spend and that your marketing message is getting across to your target customers, helping you meet your goals and achieve desired results.",
  "hint" : "",
  "hintLink" : "",
  "questionImgCaption" : "",
  "questionImgCredit" : ""
}, {
  "question" : "Which of the following organizations specializes in helping small businesses find mentors?",
  "answers" : [ {
    "answer" : "Small Business Development Centers",
    "correctAnswer" : false
  }, {
    "answer" : "Women’s Business Development Centers",
    "correctAnswer" : false
  }, {
    "answer" : "SCORE",
    "correctAnswer" : true
  }, {
    "answer" : "All of the above",
    "correctAnswer" : false
  } ],
  "multiSelect" : false,
  "explanation" : "SCORE is a nationwide nonprofit association dedicated to educating entrepreneurs and helping small businesses start, grow and succeed. SCORE pairs aspiring business owners with mentors who have extensive real-world experience.",
  "hint" : "",
  "hintLink" : "",
  "questionImgCaption" : "",
  "questionImgCredit" : ""
}, {
  "question" : "What is a helpful online resource for current and future small business owners?",
  "answers" : [ {
    "answer" : "AARP’s Small Business Resource Center",
    "correctAnswer" : false
  }, {
    "answer" : "sba.gov/Encore",
    "correctAnswer" : false
  }, {
    "answer" : "SmallBusinessMajority.org",
    "correctAnswer" : false
  }, {
    "answer" : "All of the above",
    "correctAnswer" : true
  } ],
  "multiSelect" : false,
  "explanation" : "AARP, the Small Business Administration and the Small Business Majority offer free resources to help current and future entrepreneurs.",
  "hint" : "",
  "hintLink" : "",
  "questionImgCaption" : "",
  "questionImgCredit" : ""
} ]

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Some provider offers are subject to change and may have restrictions.\u003c/p\u003e\u003cp\u003e*Terms and conditions:\u0026nbsp;\u003c/p\u003e\u003cp\u003eTo qualify, you must book a “Flight Package Trip” (meaning, a trip which includes a flight and at least one of a hotel stay or rental car booked together) through the package booking option of the AARP Travel Center powered by Expedia (\u003cu\u003e\u003ca href\u003d\"http://www.expedia-aarp.com/\" title\u003d\"AARP Travel Center powered by Expedia\" data-overlay-msg\u003d\"AARP.Everywhere.LeavingModal.drawOverlay(this,\u0027\u0027,/content/dam/content-fragments/aarp-org/en/dbr/offers/Travel/Flights-Vacation-Packages/aarp-travel-center-powered-by-expedia-vacation-packages/aarp-travel-center-powered-by-expedia-vacation-packages-disclosure.html,\u0027\u0027,\u0027You are now leaving AARP.org and going to a website that is not operated by AARP. 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Expedia and/or AARP may cancel this promotion at any time for any reason.\u003c/p\u003e\u003cp\u003eReward Link is managed by Tango Card, Inc. Reward Links expire on the date stated on the Gift Card and are valid within the USA only. Reward Links are issued to Reward Recipient without charge for loyalty, award, or promotional purposes, and are not sold to consumers. Your Reward Link balance may be redeemed for national gift cards and can be accessed at any time by clicking the Reward Link URL. Gift Card can only be redeemed by the Reward Recipient; Gift Card cannot be transferred, sold or exchanged. All redemptions are final. Reward Link balances from different programs cannot be combined. No fees apply to Reward Link. Please treat like cash. 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MEMBERS ONLY

Finances

AARP® Identity Theft Protection powered by Norton™

Up to 53% off comprehensive protection plans

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See more Finances offers >

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Health & Wellness

AARP Online Fitness powered by LIFT session

Customized workouts designed around your goals and schedule

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See more Health & Wellness offers >

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