Entrepreneurship and Nonprofit Organizations Worksheet

A common characteristic of most entrepreneurs is that they

• accept the risks involved in starting and managing a business.

• have a high level of scientific and technical expertise.

• possess a great deal of personal wealth.

• have experience in running large, complex organizations.

Public schools, charities, and government agencies generally

• have the same goals as for-profit businesses.

• do not seek to earn a profit.

• provide goods rather than services.

• do not have any stakeholders.

The standard of living for a nation's people depends mainly on:

• the quality of the natural environment.

• how much political freedom they have.

• their income and the prices of the goods and services they can buy.

• the amount of labor and capital available employed in the manufacturing sector.

Today's businesses attempt to meet the needs of:

• their customers, even if it comes at the expense of employees and other stakeholders.

• their employees, even if it means shortchanging customers by charging higher prices.

• all stakeholders.

• exclusively their owners, since they are ultimately the ones who pay the bills.

When we compare the factors of production in wealthy versus poor nations, we find

• poor nations have plenty of land and knowledge, but very little labor.

• poor and wealthy nations (both) have an abundance of knowledge; it is the land that varies, with rich nations always having more.

• wealthy nations have knowledge and entrepreneurial opportunities, while poor nations are often lacking in these areas.

• wealthy nations have land and labor, while poor nations have capital and entrepreneurship.

Contemporary governments promote business development by

• increasing business regulations.

• encouraging government ownership of businesses.

• permitting businesspeople to conduct business without the use of contracts.

• establishing a currency that is tradable in world markets.

What policies would tend to foster entrepreneurship?

• Minimize taxes and regulations.

• Promote more regulations to protect the environment.

• Develop policies to reduce corruption between individuals.

• Encourage government ownership of businesses.

Which statement about the competitive environment is most accurate?

• Firms that produce a quality product will always succeed in the competitive marketplace.

• Traditional firms will be unable to successfully compete against the new online firms unless they immediately create a way to reach customers through the Internet.

• Firms that empower their employees will continue to perform poorly in the competitive environment.

• Companies now have to offer both high-quality products and outstanding service at competitive prices.

In order to compete well and gain market share, contemporary businesses are changing to be more

• customer-driven.

• cash-driven.

• management-driven.

• production-driven.

Which statement explains how people working in their own self-interest produce goods, services, and wealth for others?

• By taking advantage of a vast supply of labor, people working in their own self-interest could hire others at very low wages.

• In order to earn money and produce goods that improve lives, self-directed gain ultimately provides jobs, and subsequently wages for others.

• The government pays entrepreneurs in the United States to produce goods, services, and wealth for others.

• A portion of the entrepreneur’s profit (as required by law) goes to the charity of one’s choice to support the less fortunate.