ENT CHAPTER 2 Quiz

According to the Small Business Administration, the percentage of businesses that survive the first five years is about

• 44

• 50

• 67

• 75

Which of the following is not a common reason for failure of a new business?

• Insufficient Start Up Capital

• Lack of planning

• Overestimating the competition

• Unexpected Growth

The road map or course of action to be taken for a start-up business is described in the

• business plan

• feasibility study

• sales strategy

• business license

Finding a need for a good or service on which to base a start-up business is part of the

• feasibility study

• job search

• discovery process

• funding process

Which of the following items is classified as a need?

• Computer

• Food

• Vacation

• Cell Phone

An analysis that helps a person decide whether a new product or service idea is worth pursuing is a

• business strategy

• financial overview

• risk management evaluation

• feasibility study

In which type of economy does the government determine what goods are produced, how much is produced, and the selling prices?

• Traditional economy

• Market economy

• Mixed economy

• Command economy

Which of the following types of resources is not a factor of production?

• Consumer resources

• Capital resources

• Natural resources

• Human resources

The four basic market structures are oligopoly, monopoly, monopolistic competition, and

• imperfect competition

• imperfect monopoly

• perfect competition

• perfect oligopoly

The part of a business plan that explains how the business will function if an unexpected event occurs is a

• financial plan

• contingency plan

• vision statement

• risk management plan