Entrepreneurship Review

51. Scarcity occurs when peoples needs and wants are unlimited and the resources needed to produce the goods and services to meet those needs and wants are limited
True
1. Entrepreneurs try to meet the needs of the marketplace by supplying a product or service
True
2. Entrepreneurs and employees are both directly affected by the consequences of the decisions they make
False
52. Opportunity cost is the cost of the last alternative
False
3. Manufacturing businesses produce the products they sell
True
53. The functions of businesses operate independently of each other
False
4. Entrepreneurial businesses include retailing businesses, such as clothing and furniture stores, but do not include service businesses
False
54. A market economy is based on personal choice
True
5. A travel agency is a retailing business
False
55. Traditional economies are used in developed countries
False
56. A mixed economy often results in when a country shifts away from command economy toward a market economy but still has government involvement in the marketplace
True
6. Entrepreneurs constantly change U.S. business and contribute to the nation’s overall good
True
7. Small firms with fewer than 500 employees represent about 25% of all businesses in the U.S. today
False
57. Communism is another name for the economic system in the U.S.
False
8. The owner’s of a business experience is a factor that contributes to the like hood of success
True
58. The rivalry among businesses to sell their goods and services is called competition
True
9. Small businesses contribute billions of dollars to the U.S. economy every year
True
59. The value of the next-best economic alternative is the tradeoff cost
False
10. Small companies cannot take as many risks as large companies, so small companies are likely to be innovative
False
60. A Marketing mix is the combination of product, distribution, price , and promotion
True
11. Successful entrepreneurs need to be self-confident because they must make decisions alone, but they do not need to be creative because they can hire creative people
False
61. The supply curve for a market economy shows that as the price os a good or services rises, suppliers are willing to produce more of the good or service
True
12. Entrepreneurs need to able to make quick decisions
True
62. The demand curve for market economy shows that as the price of a good or service rises, individuals are willing to consume more of the good or service
False
13. To determine if entrepreneurship is right for you, you need to perform a self-assessment
True
63. Demand elasticity occurs when demand for a product is affected by its price
True
64. In market with perfect competition, a small number of businesses gain the majority of total sales
False
14. Everyone has the qualities and aptitude needed to become a successful entrepreneur
False
15. Your past experiences are key factors in determining your commitment to a business
True
65. Inelastic demand occurs when a change in price creates more demand
False
16. Aptitude is the ability to evaluate your strengths and weaknesses
False
66. When a company controls all of the market, it is a monopoly
True
17. Before starting a business, it is important to identify the kinds of entrepreneurial opportunities that match your aptitudes and interests
True
67. Fixed costs must be paid even if a company has no sales
True
68. When the quantity of good or service produced increases, variable costs remain the same
False
18. Entrepreneurial involves risk, which is both an advantage and a disadvantage
True
19. An advantage of entrepreneurship is that nobody tells and entrepreneur what to do
True
69. Marginal benefit measures the advantages of producing one additional unit of a good
True
20. An advantage of entrepreneurship is that owners make all of the decisions by themselves
False
70. It is difficult for new businesses to enter businesses in a market with an oligopoly market structure
False
71. A business plan provides financial information that shows how businesses will earn a profit
True
21. Libraries have publications that provide data of interest to entrepreneurs
True
22. Many companies display their products at the Small Business Administration (SBA)
False
72. How a business will get and keep customers is not a part of a business plan
False
23. You can learn about business opportunities by talking to other entrepreneurs
True
73. A business plan does not give suppliers much confidence when it comes to extending credit
False
24. Assessing different opportunities help you identify those most likely to succeed
True
74. Businesses must have a completely new product or services to convince investors that the idea is solid
False
25. To decide whether or not a business opportunity is realistic for you, compare your background and experience with the experience of people who own that kind of business
True
75. A good business plan includes sales projections for the short, medium, and long term and sets forth future business plans
True
76. The backgrounds and experience of the people who will be running the business help lenders make the financing decisions
True
26. It is not necessary to determine how much money it will take to start a business because you will be able to borrow the money you need
False
27. Financial goals may include how quickly you can pay your debts
True
77. A business plan will not help you think about all of the aspects of your business
False
78. Writing a business plan can help you identify problems you might encounter in the future
True
28. Ideas are thoughts or concepts that come from creative thinking
True
79. Lenders require a business plan before they will consider financing a business
True
29. Non-Financial goals are only for entrepreneurs who are solely interested in financial gain
False
80. After your business is up and running, you will rarely use your business plan
False
30. Your financial and non-financial goals do not have to be realistic
False
31. The best entrepreneurs use a formal problem-solving model to make decisions
True
81. Entrepreneurs estimate demand for their products and services by identifying their target market
True
32. Defining and quantifying the problem is the first step in the problem-solving process
True
82. Understanding your customers allows you to meet customer demands
True
33. Identifying one or two possible solutions is usually sufficient
False
83. Demographics describe a group of people in terms of their tastes, opinions, personality traits, and lifestyle habits
False
84. A customer profile should include demographic data but not psychographic data
False
34. Quantifying a problem helps a business owner determine how much it is worth to them to solve it
True
85. Marital status, family size, and age are useful data for identifying your target market
True
35. The problem solving process is not complete until the action is evaluated
True
86. Segmenting your market is usually not necessary because most markets are small
False
36. The fourth step in the problem solving process is brainstorming
False
87. Data that helps you determine how often potential customers use a particular service is called customer profile
False
37. Communication and listening skills are vital to the problem-solving process
True
38. Brainstorming is always done in a group setting; it is a useful activity for an individual
False
88. A Market segment is made up of people with common characteristics
True
39. Following a brainstorming session, a decision should be made immediately
False
89. Customers should never be profiled based on geographic data
False
40. Entrepreneurs should not be afraid of making mistakes
True
90. A marketing strategy identifies customers that you can better serve than your competitors, but it cannot help you determine the size of your market
False
41. Both types of wants–economic and non-economic–form the basis of an economy
False
91. A marketing mix is the blending of product, distribution, price, and promotion to satisfy a target market
True
42. Needs are things that you must have in order to survive
True
92. Establishing short-, medium-, and long-term marketing goals ensures that the marketing you do today fits the vision you have for your business tomorrow
True
43. The role of businesses is to produce and distribute goods and services that people need and wants
True
93. Long-term goals are what you want your business to achieve in the next 2 or 3 years
False
94. Short-term goals should not be listed in terms of product price, distribution, and promotion
False
44. The most basic of needs is security
False
45. Needs and wants are unlimited
True
95. Medium-term goals are used to create strategies for each element of the marketing mix
False
96. If a short-term goal is to generate traffic in a retail store, the marketing strategy should focus on the market share of the competition
False
46. Economic resources are not factors of production
False
97. Long-term goals show where you would like your business to be in 5 or 10 years from now but do not help you think about how to market your business today
False
47. Services must be provided to you at the time you need them–they cannot be stores
True
98. A written marketing plan can help you define your market and identify your customers
True
48. Human resources rarely perform specialized labor
False
99. The marketing concept uses the needs of entrepreneurs as the primary focus during the planning, production, distribution, and promotion of a product or service
False
49. Natural resources are not limited
False
100. Researching industry norms and past performances will help you develop appropriate performance standards for your marketing plan
True
50. Capital resources include buildings and equipment
True
What can not provide additional information about direct competition
Reasearch a competitor’s business plan
Today China operate’s under a what economy
Mixed economy
The psychologist who developed a theory on the hierarchy of needs was who
Abraham Maslow
A business plan’s title page includes everything but
A summary of the plan
A letter that introduces and explains an accompanying document is called a what
Cover letter
Price is one of the elements of what
Marketing mix
Creating an image for a product in the customers mind is called what
Positioning
Bernie Marcus and Arthur Blank did what
Opened the first Home Depot Stores
Information about necessary equipment for your business is included in the what section
Operations section
What need involves something that provides a sense of accoplishment such as earning a college degree
Self-actualization
In the U.S History, entrepreneurs have what
been an important part of the American economy
Secondary data is found where
in news papers, internet, and government publications
Which of the following is not an element of the financial management section of your plan
A. Financial Statements
B. Distribution of profits and loses
C. Funding request and return on an investment
D. Identification of risks
B. Distribution of profits and loses
Your busniess plan must
A. Be consistant
B. Nver overlook the competition
C. All of these
D. Clearly define your market
C. All of these