AICE Business Ch. 1

Increasing the difference between the cost of bought-in inputs (materials) and the selling price of finished goods is

• creating value

• adding value

• added value

• profit

An individual who has the idea for a new business, starts it up and carries most of the risks but benefits from the rewards.

• Intrapreneur

• Manager

• Entrepreneur

• CEO

The resources needed by business to produce goods or services.

• Capital Goods

• Labour

• Enterprise

• Factors of Production

If a university chooses to build a football stadium, then the new library becomes a(n)________________.

• liability

• risk

• opportunity cost

• obsolete

A limitation of a business plan is that...

• it is costly to create

• it can lead entrepreneurs to be inflexible

• it forces the owner to think seriously about the proposal

• it does not provide a clear plan of action

The physical goods used by industry to aid in the production of other goods and services, such as machines and commercial vehicles.

• Capital Goods

• Land

• Enterprise

• Factors of Production

Increase in gas prices and inflation are just two ways in which a car company could be impacted by the dynamic business environment:

• True

• False

Seed to Table (Oakes Farms) is an example of a ______ business.

• Local

• National

• International

• Multinational

Enterprise benefits a country's economic development by:

• Creating jobs

• Importing goods from other countries

• Social unrest

• Stagnant technology

How does a sandwich shop (Jimmy John's, Slicers, Jersey Mike's) create added value?