ENT Chapter 2 Test Prep Question

Choose the answer that best fits each statement below. Which of the following is not a type of business model?

• Freemium

• Direct sales

• Franchise

• Demand

Choose the answer that best fits each statement below. 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

Choose the answer that best fits each statement below. 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

Choose the answer that best fits each statement below. The four functions of business are __________.

• Production, supplying, marketing, modeling

• Marketing, modeling, management, investing

• Production, marketing, management, finance

• Planning, management, finance, modeling

Choose the answer that best fits each statement below. Which is an example of a franchise business model?

• Magazine

• Chain restaurant

• Mobile application

• Social media

Define the following key term from this chapter: Profit.

• The total revenue minus total expenses

• The total expenses minus total revenue

• The total revenue plus total expenses

• The total revenue divided by total expenses

Define the following key term from this chapter: Service.

• A tangible product offered to customers

• An intangible offering that involves a deed, performance, or effort

• A physical good that can be stored and inventoried

• A financial instrument used for investment purposes

Supply is defined as:

• The amount of a product or service available to consumers.

• The demand for a product or service by consumers.

• The price at which a product or service is sold.

• The quality of a product or service.

Define the following key term from this chapter: Good.

• A moral quality considered to be desirable

• An item that is beneficial to health

• A type of economic product

• A feeling of happiness

Define the following key term from this chapter: Liability.

• A financial obligation or debt

• An asset owned by a company

• A type of revenue

• A form of equity