Chapter 2 Idea Generation Assessment

Which of the following is not a type of business model?

• Freemium

• Direct sales

• Franchise

• Demand

The science of how individuals, businesses, and governments make decisions about satisfying unlimited wants with limited resources is called:

• Business Function

• Entrepreneurship

• Economics

• Business Model

Which is the term used to describe the financial gain calculated by the difference between amount earned and amount spent by a business?

• Profit

• Liability

• Asset

• Supply

The four functions of business are

• Production, supplying, marketing, modeling

• Marketing, modeling, management, investing

• Production, marketing, management, finance

• Planning, management, finance, modeling

Which is an example of a franchise business model?

• Magazine

• Chain restaurant

• Mobile application

• Social media

Profit

• Good

• Tangible item produced and sold to consumers

• Supply

• What a business owes

• Service

• Performance of a particular task in exchange for money

• Product

• The amount of goods available to consumers

• Liability

• Anything that can be bought or sold.

A plan for making a profit

An effective organizational design is critical in order to avoid losing time, money and valuable resources.

• True

• False

The SBA is a federal agency designed to assist small businesses. What does SBA stand for?

Refers to the total value of a business determined by assets minus liabilities

• net worth

• profit

• asset

• liability