True/False

1) ______ An advantage of being an employee is a steady income.

a) True
b) False
.

2) ______ Successful entrepreneurs are timid and shy.

a) True
b) False
.

3) ______ An entrepreneur owns, operates, and takes the risk of a business venture.
a) True
b) False
.

4) ______ One characteristic of an entrepreneur is that they are able to act quickly. They are not
afraid to make quick decisions when necessary.
a) True
b) False
.

5) ______ Entrepreneurs have changed American business throughout the history of the United
States.
a) True
b) False
.

6) ______ An advantage of entrepreneurship is that nobody tells an entrepreneur what to do.

a) True
b) False
.

7) ______ An entrepreneur can expect to earn large profits immediately after starting a business.
a) True
b) False
.

8) ______ Running your own business is not difficult, and most companies started by
entrepreneurs are successful.
a) True
b) False
.

9) ______ Successful entrepreneurs set challenging goals and focus on achieving them.
a) True
b) False
.
10) ______ The owner's education level and business experience are two factors that contribute to
a new business's success or failure.
a) True
b) False
.

11) ______ It is not necessary to determine how much money it will take to start a business
because you will be able to borrow all the money you need.
a) True
b) False
.

12) ______ Opportunity cost is the price an entrepreneur pays to have the opportunity to go into
business--usually involving fees and startup costs.
a) True
b) False
.

13) ______ Entrepreneurs invest in their communities by contributing to the local economy and by
providing jobs.
a) True
b) False
.

14) ______ The price at which supply equals demand is the equilibrium price.
a) True
b) False
.

15) ______ Economist make no distrinction between a want and a need.

a) True
b) False
.

16) ______ Fixed costs must be paid even if a company has no sales
a) True
b) False
.

17) ______ The four interdependent functions of a business are production, marketing, finance, and
management.
a) True
b) False
.

18) ______ The rent a business owner pays for office space is an example of a fixed cost.
a) True
b) False
.
19) ______ Demand is how much of a good or service a producer is wiling to produce at different
prices.
a) True
b) False
.

20) ______ The rivalry among businesses to sell their goods and service is called a monpoly.
a) True
b) False
.

21) ______ Fixed costs are costs that fluctuate depending on the quantity of the good or service
provided.
a) True
b) False
.

22) ______ Needs are things that you must have in order to survive.
a) True
b) False
.

23) ______ A business plan does not give suppliers much confidence when it comes to extending
credit.
a) True
b) False
.

24) ______ How a business will get and keep customers is not a part of a business plan.
a) True
b) False
.

25) ______ Writing a business paln can force entrepreneurs to think about their goals.
a) True
b) False
.

26) ______ A business plan provides financial information that shows how your business will earn a
profit.
a) True
b) False
.

27) ______ A good business plan includes sales projections for the short, medium, and long term
and sets forth future business plans.
a) True
b) False
.
Multiple Choice

28) ______ To determine if a business opportunity is realistic, you should find out
a) how much money is needed to start the business
b) the rate of failure for this type of business
c) how many hours a week it is likely to take to run the business
d) all of the above
.

29) ______ Entrepreneurs try to

a) identify the needs of the marketplace
b) meet the needs of the marketplace
c) make a profit
d) all of the above
.

30) ______ Information about business opportunities is available from

a) the Postal Service
b) The Small Business Administration
c) most banks
d) none of the above
.

31) ______ Which of the following is not a characteristic of a successful entrepreneur?

a) Determination
b) Creativitiy
c) Dependence
d) Self Confidence
.

32) ______ Products you can see and touch are called_______________
a) services
b) goods
c) intangibles
d) all of the above
.

33) ______ How does competition benefit consumers

a) it forces a business to improve products
b) it encourages businesses to provide good customer service
c) it provides an incentive for businesses to keep prices as low as possible
d) all of the above
.
34) ______ The private ownership of resources by individuals rather than the government is called
a) objectivisim
b) socialism
c) capitalism
d) communism
.

35) ______ The psychologist who developed a theory on the hierarchy of needs was
a) Abraham Maslow
b) Sigmund Freud
c) Karl Jung
d) Terrence McKenna
.

36) ______ Which of the following is an example of a need

a) Water
b) XBox 360
c) IPad
d) Fair tickets
.

37) ______ Individuals and businesses decided what, how, and for whom goods and services are
produced in a
a) command economy
b) market economy
c) complex economy
d) traditional economy
.

38) ______ Before they will consider financing a business, lenders require
a) an organizational chart that lists all of your employees
b) a business plan
c) the history and background of your product
d) all of the above
.

39) ______ Long term sales projections are

a) for two to four years after start up
b) for five years in the future
c) for ten years in the future
d) not included in the business plan
.
 40) ______ Which of the following is NOT a purpose of a business plan
a) To describe the background and experience of your suppliers
b) To explain the idea behind your business
c) To explain how you expect to achieve specific objectives
d) To describe the backgrounds and experience of the people who will be running the
business
.

41) ______ The Introduction section of a business plan contains all of the following EXCEPT
a) a description of the business and its goals
b) the legal structure of the business
c) an identification of risks
d) the advantages your business has over your competitiors
.

42) ______ A business plan should

a) identify target customers
b) show how your business will earn a profit
c) detail who will run your business
d) all of the above
.

43) ______ Before lenders will loan money to a new business

a) they will want to interview all potential employees
b) the new business must have at leat two years worth of work already lined up
c) they need to be convinced that the people running the business have the necessary skills to
succeed
d) all the above
.

44) ______ A business plan explains how your product or service

a) will be produced
b) will be sold
c) is either new or better than existing products or services
d) all of the above
.

Matching

45) ______ Aptitude a) resources from the ground to consume

46) ______ Financial Goal b) Production decisions are made by the
47) ______ Employee government; few choices exist in the
marketplace
48) ______ Self-Assessment
c) states that if one factor of production is
49) ______ Entrepreneurship increased while others stay the same, the
 50) ______ Entrepreneurs
51) ______ Economies of Scale
52) ______ Business Plan
53) ______ Law of Diminishing Return
54) ______ Services
55) ______ Scarcity
56) ______ Profit
57) ______ Specialization
58) ______ Need
59) ______ Want
60) ______ SBA
61) ______ Manufacturing
62) ______ Wholesaling
63) ______ Retailing
64) ______ Service
65) ______ Agricultural
66) ______ Mining and Extracting
67) ______ Natural Resources
68) ______ Human Resources
69) ______ Capital Resources
70) ______ Command Economy
71) ______ Market Economy
72) ______ Traditional Economy
73) ______ Mixed Economy
74) ______ Communism
75) ______ Capitalism
76) ______ Supply
77) ______ Demand
78) ______ Perfect Competition
.
resulting increase in output will level off after
some time and then will decline.
d) The ability to learn a particular kind of job
e) How quickly you will pay off your debts
f) People who work for someone else
g) the cost advantages a business obtains
through expansion.
h) resell products to people
i) Production decision are made by individuals
and businesses; many choices exist in the
marketplace.
j) the quantity of a good or dervice that
consumers are willing to buy at a given price
k) occurs because people's needs and wants
are unlimited but the resources to meet those
needs and wants are limited.
l) the people who create goods and services
m) have to have in order to survive
n) how much of a good or service a producer is
wlling to produce at different prices
o) These economies contain elements of
command and market economies; the
govenment is still involved in the
marketplace.
p) A market that consists of a very large
number of business producing nearly
identical products and has many buyers
q) The private ownership of resources by
individuals rather than by the government;
also called free enterprise
r) The process of running a business of one's
own
s) the assets used in the production of goods
and services
t) occurs when individual workers focus on
single tasks, enabling each worker to
become more efficient and productive.
u) sell services
v) difference between the revenues earned by
a business and the costs of operating a
business is called
w) seller to seller
x) produce the product they sell
y) freshh produce and other fam products
 z) publishes information tha may be helpful to
small businesses
aa) raw materials supplies by nature
ab) activities that are consumed as they are
produced
ac) Production occurs the way it has always
occurred
ad) Evaluation of your strenghts and
weaknesses
ae) things you desire
af) People who own, operate, and take risk of a
business venture
ag) a written document that describes all the
steps necessary for opening and operating a
succefful business
ah) The government controls most of the
resources and decisions
.

Fill in the Blank

79) Entrepreneurs try to identify the _______________ of the marketplace.

80) Successful entrepreneurs are _______________ oriented.

81) Entrepreneurship involves _______________, so entrepreneurs can make lots of money but
can also lose money.

82) When considering Maslow's hierachy of needs pyramid...._______________ Needs are first,
then _______________, _______________, _______________ and finally _______________.

83) The U. S. economic system is on four basic principles and they

are:  _______________ _______________ _______________ and _______________