Entrepreneurship and Small Business (ESB) Certification Practice Exam

What type of data was used when selecting inventory for a small boutique from an internet article?

1. Primary

2. Secondary

3. Tertiary

4. Qualitative

The correct answer is: Secondary

When selecting inventory for a small boutique from an internet article, the use of secondary data is appropriate because this type of data is derived from existing sources rather than collected firsthand. Secondary data includes information that has been previously gathered and published by others, such as articles, reports, and studies, which can provide valuable insights into trends, consumer preferences, and competitive analysis relevant to inventory decisions. In the context of a small boutique, utilizing secondary data like an internet article helps the owner quickly access a broad range of established knowledge without the time and resources needed to conduct primary research, which involves collecting original data directly from potential customers or through surveys. This can include information about fashion trends, popular styles, and seasonal demands that can guide inventory selection effectively. The other categories like primary, tertiary, and qualitative do not accurately describe the type of data derived from an article. Primary data would require original research efforts, tertiary data aggregates or compiles secondary data, and qualitative data focuses on descriptive attributes rather than numerical analysis, which may not directly apply to the systematic selection of inventory.