Deck 1: Entrepreneurs Recognize Opportunities

Question 1

Cash or goods invested to generate income and wealth is called ________.

A) profit
B) capital
C) debt
D) liability

Answer 1

B

Question 2

Entrepreneurs are often both owners and ________.

A) creditors
B) employees
C) customers
D) suppliers

Answer 2

B

Question 3

Entrepreneurs have more control over more aspects of their working lives than employees. Of which aspect of their working lives do employees have more control?

A) financial uncertainty
B) working conditions
C) time
D) encroachment on personal time

Answer 3

A

Question 4

A(n) ________ is the wealth and resources of a country or region, including its financial structure.

A) economy
B) government
C) justice system
D) free enterprise

Question 5

A company that has more than ________ employees and sales of more than $________ million per year is considered to be a "big" business.

A) 100/$5 million
B) 100/$10 million
C) 500/$5 million
D) 500/$10 million

Question 6

Why do consumers benefit from free trade and the resulting competition between businesses?

A) Competition drives away the entrepreneurs who use resources most wisely.
B) Competition tends to drive down prices and improve quality.
C) Competition offers consumers fewer choices and makes the marketplace less confusing.
D) Competition reduces the choices to consumers.

Question 7

The United States economy is a free enterprise system. It is also referred to as a "free trade system" because it is based on ________.

A) voluntary exchange
B) gambling and chance
C) involuntary exchange
D) government cooperation

Question 8

How does the free-enterprise system discourage entrepreneurs who waste resources?

A) The government penalizes them.
B) They run into regulations that make it too difficult for them to operate.
C) They can't make a profit and are forced out of business.
D) They limit competition.

Question 9

When making an investment, always consider the ________, which is the cost of your next-best investment.

A) next-investment cost
B) cost of goods sold
C) opportunity cost
D) marginal cost

Question 10

The corporate equivalent of paying owners a portion of the business's profits is called a ________.

A) bonus
B) dividend
C) capital
D) revenues

Question 11

A for-profit enterprise with the dual goals of achieving profitability and attaining beneficial returns for society is called ________.

A) venture capitalism
B) serial entrepreneurship
C) social entrepreneurship
D) portfolio entrepreneurship

Question 12

Explain how entrepreneurs can add value to scarce resources, and what signal they use to determine whether or not they are succeeding in doing so.

Question 13

Which of the following is not a characteristic that is helpful for an entrepreneur to have?

A) self-confidence
B) caution
C) self-esteem
D) drive

Question 14

Products are tangible, meaning ________.

A) you can't actually touch them
B) you can sell them
C) you can touch them
D) you can see them

Question 15

Entrepreneurship can be very challenging. Which is not a typical challenge of being an entrepreneur?

A) loneliness
B) financial reward
C) long hours
D) financial insecurity

Question 16

The free-market system is also called ________.

A) volunteerism
B) socialism
C) capitalism
D) dogmatism

Question 17

Most of the world's businesses are ________ businesses.

A) small
B) medium-sized
C) large
D) family-owned

Question 18

In the United States nearly half of the private workforce is represented by ________.

A) small business owners and their employees
B) entrepreneurs
C) corporations and their employees
D) women and minorities

Question 19

An entrepreneur is a person who assumes the risks of organizing and managing a business for the sake of reducing stress from the "rat race."

Question 20

Some of the world's greatest entrepreneurs have overcome challenges from their childhood and youth, including all of these except one.

A) learning disabilities
B) abuse
C) extreme poverty
D) financial prosperity

Question 21

Benefits of becoming an entrepreneur include independence, satisfaction, financial reward, self-esteem, and contributions to society.

Question 22

Explain why it is important to consider opportunity cost when making a decision.

Question 23

Entrepreneurs look at five basic ways of opportunity for business ideas. Which is not one of those five?

A) developing a new market for an existing product
B) producing a product more cheaply
C) finding new ways to use existing technology
D) raising prices in an existing market

Question 24

A business opportunity is an idea, plus ________.

A) it is attractive to suppliers
B) it may have marginal performance in your business environment
C) it has a limitless window of time to work within
D) it is attractive to customers and will work in your business environment

Question 25

The great economist Joel Schumpeter emphasized that innovation is the key to entrepreneurship. Which of the following is a basic way to create a new business?

A) expand upon old technology
B) develop current markets
C) use new technology to produce a new product
D) find a less expensive source of resources

Question 26

A(n) ________ is a plan for how a business intends to go about its own performance and outdo that of its competition.

A) strategy
B) model
C) opportunity
D) All of the above.

Question 27

What are the four characteristics of a business opportunity?

Question 28

Closing a business is nothing to be ashamed of if you ________.

A) learn something from the experience
B) are on vacation in Jamaica
C) have a partner
D) are a corporation

Question 29

If a business is not making a profit, the entrepreneur knows that ________.

A) no one wants to buy the product/service
B) he/she is not making good use of scarce resources
C) people are willing to buy the product/service at a high price
D) competition is too great

Question 30

Describe three potential rewards of becoming an entrepreneur that appeal to you.

Question 31

The economy of the United States is a free-enterprise system.

Question 32

Entrepreneurs that participate in activities to avoid harm to the environment or help protect it in some ways are engaged in ________.

A) venture philanthropy
B) green entrepreneurship
C) social entrepreneurship
D) corporate responsibility

Question 33

What are the seven rules for building a successful business?

Question 34

Entrepreneurs view problems as a(n)________.

A) roadblock
B) opportunity
C) hurdle
D) challenge

Question 35

The seven rules for building a successful business include recognizing an opportunity, evaluating it with critical thinking, building a team, and financing with money from credit cards.

Question 36

________ is the sign that an entrepreneur has added value to the resources he or she is using.

A) Profit
B) Sales
C) Revenues
D) Liabilities

Question 37

In creating a new business, a(n) ________ is one that comes from inside you, a hobby or an interest.

A) internal opportunity
B) passionate choice
C) compulsion
D) external opportunity

Question 38

Profits result from customer choices, not the entrepreneur's choices.

Question 39

The best business opportunities often combine both ________ and ________.

A) extreme luck/chance
B) luck/sales skill
C) sales/marketing
D) internal/external factors

Question 40

Russell Simmons, founder of Def Jam Records, believes that if you know 10 people who will buy your product, ________ would be willing to buy it if they knew about it.

A) 1,000
B) 10 more
C) 10 million
D) 10,000