ENT Unit 2 Exam Review

The entrepreneurial discovery process requires knowledge and the recognition of a(n): 

• market need
• economic crisis
• preventable accident
• creative obsession

Which of the following is a true statement about a business's environment?

• it can be avoided
• it is always changing
• it consists of the economy and technology
• it may not affect the business, depending on the industry.

Which of the following is an example of a demographic trend?

• the gender of a group of people
• shifting political climates
• rising interest rates
• a concern for how you look

Which of the following is a global trend that might encourage an entrepreneur to consider international business opportunities?

• lower tariffs
• higher allowances
• enforceable trade agreements
• flexible currency rates

The primary goal during the brainstorming process is to:

• come up with as many ideas as possible
• analyze each idea as it is presented
• rate each idea in relation to one another
• come up with a set number of ideas on a certain amount of time

In order for a business to generate a profit, its operating costs must be _____________ the gross margin.

• greater than
• equal to
• the same as
• less than

Emotional risks that many entrepreneurs face include:

• unemployment and uncertain income.
• marital tensions and family problems.
• competition and difficult suppliers.
• inflation and slow market acceptance

When conducting an environmental scan, which is an economic factor that a business should consider?

• Consumer spending habits

• Global trade regulations

• Local demographics

• Restricted sales territories

The primary purpose of a feasibility study is to answer which of the following questions?

• What are the opportunity costs of this project?
• Should we proceed with this project?
• What technology will be needed for the project?
• Is this business plan valid?

The process of systematically scanning for technological, political, social and demographic changes to discover new opportunities and produce new goods and services is called

• innovation
• entrepreneurial discovery
• creativity process
• brainstorming