Entrepreneurship Final Exam Review

Which term best describes an individual who undertakes to start and run their own business with the intention of making a profit?

• Intrapreneur

• Entrepreneur

• Manager

• Shareholder

Entrepreneurship is defined as which of the following?

• A hobby that generates no financial risk

• Activity of setting up a business, taking on financial risks in the pursuit of profit

• A government-backed employment program

• Managing an existing division within a firm without change

Step 1 in the Lean Canvas Model indicates an entrepreneur should identify a __________ and create solutions to address consumers' needs/wants.

• Problem

• Unique Value Proposition (UVP)

• Customer Segment

• Customer Segment

An increase in the availability of resources most directly affects which economic concept?

• Determinants of Demand

• Determinants of Supply

• Profit Motive

• Opportunity Cost

A government subsidy to entrepreneurs most directly illustrates which idea about the government’s role?

• Government shapes entrepreneurship through regulations, taxes, and supports within a free market system

• Government sets the price of every good and service

• Government eliminates scarcity by providing unlimited resources

• Government prevents imports and exports to protect domestic firms

A business chooses between launching Product A or Product B. If it selects Product A, the value it could have gained from Product B is called:

• Profit Motive

• Opportunity Cost

• Determinant of Demand

• Import

Which scenario is an example of an export?

• A retailer buys shoes made in another country and sells them domestically

• A firm sells software produced domestically to customers in another country

• A consumer’s preference shifts from tablets to laptops

• A rise in consumer income increases demand for restaurant meals

Which component of the marketing mix focuses on the amount of money requested or exchanged for a product and should cover expenses while allowing for a profit?

• Price

• Place

• Promotion

• Product

In the marketing mix, which element includes activities like shipping, order processing, inventory storage, and stocking of goods—and can refer to both a physical location and an online site?

• Price

• Place

• Promotion

• Positioning

A business that operates conventionally in a physical space rather than over the internet is best described as which type of location?

• E-commerce

• Brick-and-mortar store

• Subscription-based service

• Delivery-only business