Busg 1373 Quiz 1

Entrepreneurship: Starting & Operating a Small Business, 4e (Mariotti)

Chapter 1 Entrepreneurs Recognize Opportunities

1) 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

Answer: C

Diff: 1 Page Ref: 3

Learning Object.: 1.1 Summarize what entrepreneurs do.

AACSB Category: Reflective thinking

2) Entrepreneurs are often both owners and ________.

A) creditors

B) employees

C) customers

D) suppliers

Answer: B

Diff: 2 Page Ref: 3

Learning Object.: 1.1 Summarize what entrepreneurs do.

AACSB Category: Reflective thinking

3) 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."

Answer: FALSE

Diff: 1 Page Ref: 3

Learning Object.: 1.1 Summarize what entrepreneurs do.

AACSB Category: Reflective thinking

4) 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.

Answer: A scarce resource is something of value that can be used to make something else or to fill a need. The French economist Jean Baptiste Say wrote at the turn of the 19th century: "The entrepreneur shifts economic resources [like wood or coal] out of an area of lower and into an area of higher productivity and greater yield." By doing this, Say argued, entrepreneurs add value to scarce resources.

Diff: 3 Page Ref: 4

Learning Object.: 1.1 Summarize what entrepreneurs do.

AACSB Category: Analytical thinking

5) 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

Answer: A

Diff: 1 Page Ref: 7

Learning Object.: 1.2 Examine how free-enterprise economies work and how entrepreneurs fit into them.

AACSB Category:...