EI 2.01-2.06

Which statement is true about entrepreneurial discovery?

• It ensures that start-up businesses have continuous funding.
• It is an ongoing process that facilitates the success rate of a business.
• It is a way to determine the long-term profit that a start-up company can generate.
• It provides entrepreneurs with professional development training.

Which is an example of a demographic trend that has encouraged entrepreneurial discovery?

• Technological advancements
• Industry deregulation
• Interest rate fluctuations
• Increased cultural diversity

After a Korean auto manufacturer built a plant in Ames, Iowa, Kwan noticed a substantial growth of Korean residents in the area, many of whom were relocated to Ames to work for the plant. Kwan decided to import Korean goods and sell them in a small Korean specialty store near town. This is an example of a product opportunity resulting from which situation?

• Differences in priority
• Shifts in popularity ethnicity
• Changes in travel habits
• Advancements in technology

Identifying new product opportunities usually requires a person to possess which characteristic?

• Awareness
• Decisiveness
• Indifference
• Emotional

For a prospective entrepreneur, what is necessary to determine the existence of goods and services?

• Demographic changes
• Product standards
• Entrepreneurial discovery
• Raw materials

Entrepreneurial discovery is an important process in a free-enterprise economic system because an entrepreneur or small-business owner will most  likely accomplish which goal?

• Satisfy an unmet demand
• Form a technological monopoly
• Improve economic sanctions
• Change legal requirements

The entrepreneurial discovery process requires knowledge and the recognition of which situation?

• Economic crisis
• Preventable accident
• Creative observation
• Market need

Which example illustrates how environmental factors are interrelated?

• Low investor confidence heavily impacts financial planners.
• The economy affects what competitors are doing.
• The economy affects banking institutions.
• New legislation will be written in the future.

Which is an example of a demographic trend?

• The aging of the population
• A concern for fitness and health
• Shifting political climates
• Rising interest rates

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

• Local demographics
• Global trade regulations
• Restricted sales territories
• Consumer spending habits