Chapter1: Entrepreneurs Recognize Opportunities

Products are tangible, meaning ________.

• you can't actually touch them

• you can sell them

• you can touch them

• you can see them

Entrepreneurs often have a variety of reasons to start and run their own businesses. However, entrepreneurs generally focus on ________.

• creating sustained-value

• creating business plan

• creating marketing plan

• finding capital fund

Cash or goods invested to generate income and wealth is called ________.

• profit

• capital

• debt

• liability

The United States economy is a free enterprise system. It is also referred to as a "free trade system" because it is based on ________.

• voluntary exchange

• gambling and chance

• involuntary exchange

• government cooperation

When making an investment, always consider the ________, which is the cost of your next-best investment.

• next-investment cost

• cost of goods sold

• opportunity cost

• marginal cost

The free-market system is also called ________.

• volunteerism

• socialism

• capitalism

• dogmatism

A company that has more than ________ employees and sales of more than $________ million per year is considered to be a "big" business.

• 100/$5 million

• 100/$10 million

• 500/$5 million

• 500/$10 million

The corporate equivalent of paying owners a portion of the business's profits is called a ________.

• bonus

• dividend

• capital

• revenues

A for-profit enterprise with the dual goals of achieving profitability and attaining beneficial returns for society is called ________.

• venture capitalism

• serial entrepreneurship

• social entrepreneurship

• portfolio entrepreneurship

Entrepreneurs look at five basic ways of opportunity for business ideas. Which is not one of those five?

• developing a new market for an existing product

• producing a product more cheaply

• finding new ways to use existing technology

• raising prices in an existing market