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AICE Business Ch. 1

Total questions: 13

Worksheet time: 44mins

Name
Class
Date
1.

Increasing the difference between the cost of bought-in inputs (materials) and the selling price of finished goods is

a)

creating value

b)

adding value

c)

added value

d)

profit

2.

An individual who has the idea for a new business, starts it up and carries most of the risks but benefits from the rewards.

a)

Intrapreneur

b)

Manager

c)

Entrepreneur

d)

CEO

3.

The resources needed by business to produce goods or services.

a)

Capital Goods

b)

Labour

c)

Enterprise

d)

Factors of Production

4.

If a university chooses to build a football stadium, then the new library becomes a(n)________________.

a)

liability

b)

risk

c)

opportunity cost

d)

obsolete

5.

A limitation of a business plan is that...

a)

it is costly to create

b)

it can lead entrepreneurs to be inflexible

c)

it forces the owner to think seriously about the proposal

d)

it does not provide a clear plan of action

6.

The physical goods used by industry to aid in the production of other goods and services, such as machines and commercial vehicles.

a)

Capital Goods

b)

Land

c)

Enterprise

d)

Factors of Production

7.

Increase in gas prices and inflation are just two ways in which a car company could be impacted by the dynamic business environment:

a)

True

b)

False

8.

Seed to Table (Oakes Farms) is an example of a ______ business.

a)

Local

b)

National

c)

International

d)

Multinational

9.

Enterprise benefits a country's economic development by:

a)

Creating jobs

b)

Importing goods from other countries

c)

Social unrest

d)

Stagnant technology

10.

How does a sandwich shop (Jimmy John's, Slicers, Jersey Mike's) create added value?

4 lines
11.

Analyze two benefits to the US economy due to the number of new business start-ups by entrepreneurs.

4 lines
12.

What is the purpose of a business plan? How would an entrepreneur benefit from creating one?

4 lines
13.

How can the dynamic business environment impact a company?

4 lines