Economics Week 1 Reviewer

What are the three factors that budding entrepreneurs must assess before venturing into business?

• Profitability, personal vision, legal constraints

• Profitability, environmental constraints, personal beliefs

• Profitability, current constraints, personal vision

• Profitability, political constraints, personal beliefs

What does PESTLE Analysis provide a framework for?

• Analyzing internal characteristics of firms

• Investigating and analyzing the external environment

• Identifying potential threats to the industry

• Exploring new initiatives for a company

What does SWOT Analysis serve as a precursor to?

• Exploring new initiatives

• Identifying possible areas for change

• Making decisions about new policies

• All of the above

What does Porter's Five Forces Framework examine?

• The profitability of an industry

• The external environment for an organization

• The business pressures on an organization

• The competitive behavior of existing players

What is the major competitive force that may impact the profitability in an industry?

• Competition among existing firms

• Threats of potential entrants

• Threats of substitute goods

• Bargaining power of customers

What is the process of converting raw materials into finished goods called?

• Agriculture

• Manufacturing

• Retailing

• International trade

What is the main focus of a business that earns most or all of its revenues from agriculture?

• Furniture making

• Drinking water business

• Hog raising

• Commercial bread baking

What is the process of selling goods or services to customers to earn profit called?

• Agriculture

• Manufacturing

• Retailing

• International trade

What is an export in international trade?

• A good or service produced in one country that is bought by someone in another country

• A good or service brought into one country from another

• Agricultural products

• Manufactured goods

What is an import in international trade?

• A good or service produced in one country that is bought by someone in another country

• A good or service brought into one country from another

• Agricultural products

• Manufactured goods