Midterm Exercise 1

1. What is the primary goal of a business?

• To create innovations

• To enhance the personal income of business owners

• To earn profits

• To improve the standard of living

1. Which economic system involves a central government controlling all or most production and allocation decisions?

• Market Economy

• Mixed Market Economy

• Planned Economy

• Capitalist Economy

1. What are the five factors of production in business?

• Labor, Capital, Technology, Information, Natural Resources

• Labor, Capital, Entrepreneur, Physical Resources, Information Resources

• 1. Labor, Technology, Innovation, Market Structure, Capital

• Capital, Market Structure, Entrepreneur, Technology, Natural Resources

1. What is a characteristic of monopolistic competition?

• 1. Many small firms

• A single producer dominates

• Few firms with large capital investment

• Firms try to differentiate their products

1. Which of the following is not a form of business ownership?

• Sole Proprietorship

• Partnership

• Corporation

• Monopoly

What defines an international firm?

• A company that only exports goods

• A company that imports goods from other countries

• A company that has subsidiaries in multiple countries

• A company operating in a single domestic market

1. Which of the following describes the role of SMEs in economic development?

• They dominate large-scale industries

• They provide entrepreneurial training

• They are the main contributors to GDP

• They focus only on rural development

1. In the classification of SMEs, what distinguishes a medium enterprise in the manufacturing sector?

• Less than 5 employees

•  5 to 30 employees

• 75 to 200 employees

• Over 200 employees

1. What is a key characteristic of an entrepreneur?

• Prefers stability over risk

• Follows established market patterns

• Takes calculated risks to start and operate a business

• 1. Avoids innovation to reduce risk

1. What is a technopreneur?

• An entrepreneur who focuses on social issues

• An entrepreneur in the technology industry

• A government employee starting a new business

• A small business owner with limited technological skills