Entrepreneurship Chapter 1 Quiz 1

1.The U.S. Small Business Administration estimates that women formed businesses ________ as men during the 1990s.

D) 1.5 times as fast

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

A) Competition tends to drive down prices and improve quality.

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?

C) Financial uncertainty

4. Profit is a sign that an entrepreneur has added value to the "scarce" ________ that he or she is using.

A) Resources

5. An entrepreneur may change a business many times over a lifetime in response to changing competition and consumer needs. The great economist Joel Schumpeter called the process of constantly changing the business ________.

D) Creative destruction

6. Since time began, people have had to answer the same basic economic questions. Among these are ________

C) What should be produced?

7. The reward for satisfying a customer need is earning a ________.

C) Profit

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

A) Raising prices in an existing market

9. the most successful entrepreneurs say they are motivated by ________.

B) The desire for money and to make their vision come true

10. Products are tangible, meaning ________.

B) You can touch them

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

A) 500 / $5 million

12. Entrepreneurs view change as ________.

B) An opportunity

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

B) Opportunity cost

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

A) They can't make a profit and are forced out of business.

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