Entrepreneurship Exam Study Guide

Which of the following is a problem a nation might attempt to solve through its economic system?

• limited supply of goods and services

• democracy

• entrepreneur’s profit motive

• all of the above

Profit is beneficial to entrepreneurs because

• profit builds wealth and financial independence

• profit is the equilibrium quantity one supply and demand curve

• profit is a barrier to international trade

• profit is the answer to one of the fundamental questions of economics

Which of the following statements about competition is false?

• competition motivates entrepreneurs to introduce new products to consumers

• competition between suppliers drives prices upward

• competition between consumers benefits suppliers

• competition occurs between suppliers and between consumers

Importing and exporting are activities primarily associated with

• nonprofit organizations

• the profit motive

• the economics of one unit

• the global economy

A nonprofit organization

• is not allowed to make a profit

• must use any profit it earns to further itssocial mission

• can use profit any way it sees fit

• uses profit for the financial gain of its operators

An entrepreneur

• a. has the final say in business decisions

• b. assumes much financial risk

• c. is responsible for the success or failure of his or her business

• d.all of the abive

Which of the following is not a risk for an entrepreneur?

• potential business failure

• financial stability

• financial insecurity

• long hours and hard work

When a business encourages employees to be creative within the company, the practice is called

• a. entrepreneurship

• b. creating a vision

• c. implementing a mission

• d. intrapreneurship

What is possibly the biggest reward of becoming an entrepreneur?

• a. empowerment

• b. fame

• c. money

• d. none of the above

As an entrepreneur, the amount of time you spend working is typically

• a. constant—35 to 40 hours a week, just like an employee

• b. a little less than for an employee

• c. more than for an employee, particularly during initial startup

• d. significantly less than for an employee—around 20 hours a week