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24) Describe three potential rewards of becoming an entrepreneur that appeal to you.
Learning Object.: 1.2 Examine how free-enterprise economies work and how entrepreneurs fit
into them.
AACSB Category: Analytical thinking
25) Explain why it is important to consider opportunity cost when making a decision.
Learning Object.: 1.2 Examine how free-enterprise economies work and how entrepreneurs fit
into them.
AACSB Category: Reflective thinking
8
26) Entrepreneurs look at five basic ways of opportunity for business ideas. Which is not one of
those five?
A) developing a new market for an existing product
B) producing a product more cheaply
C) finding new ways to use existing technology
D) raising prices in an existing market
Learning Object.: 1.3 Identify and evaluate opportunities to start your own business.
AACSB Category: Analytical thinking
27) Entrepreneurs view problems as a(n)________.
A) roadblock
B) opportunity
C) hurdle
D) challenge
Learning Object.: 1.3 Identify and evaluate opportunities to start your own business.
AACSB Category: Reflective thinking
28) The great economist Joel Schumpeter emphasized that innovation is the key to
entrepreneurship. Which of the following is a basic way to create a new business?
A) expand upon old technology
B) develop current markets
C) use new technology to produce a new product
D) find a less expensive source of resources
Learning Object.: 1.3 Identify and evaluate opportunities to start your own business.
AACSB Category: Analytical thinking
29) A business opportunity is an idea, plus ________.
A) it is attractive to suppliers
B) it may have marginal performance in your business environment
C) it has a limitless window of time to work within
D) it is attractive to customers and will work in your business environment
Learning Object.: 1.3 Identify and evaluate opportunities to start your own business.
AACSB Category: Analytical thinking
9
30) In creating a new business, a(n) ________ is one that comes from inside you, a hobby or an
interest.
A) internal opportunity
B) passionate choice
C) compulsion
D) external opportunity
Learning Object.: 1.3 Identify and evaluate opportunities to start your own business.
AACSB Category: Reflective thinking
31) The best business opportunities often combine both ________ and ________.
A) extreme luck/chance
B) luck/sales skill
C) sales/marketing
D) internal/external factors
Learning Object.: 1.3 Identify and evaluate opportunities to start your own business.
AACSB Category: Reflective thinking
32) Russell Simmons, founder of Def Jam Records, believes that if you know 10 people who will
buy your product, ________ would be willing to buy it if they knew about it.
A) 1,000
B) 10 more
C) 10 million
D) 10,000
Learning Object.: 1.3 Identify and evaluate opportunities to start your own business.
AACSB Category: Application of knowledge
33) A(n) ________ is a plan for how a business intends to go about its own performance and
outdo that of its competition.
A) strategy
B) model
C) opportunity
D) All of the above.
Learning Object.: 1.3 Identify and evaluate opportunities to start your own business.
AACSB Category: Analytical thinking
10
34) What are the four characteristics of a business opportunity?
Learning Object.: 1.3 Identify and evaluate opportunities to start your own business.
AACSB Category: Analytical thinking
35) If a business is not making a profit, the entrepreneur knows that ________.
A) no one wants to buy the product/service
B) he/she is not making good use of scarce resources
C) people are willing to buy the product/service at a high price
D) competition is too great
Learning Object.: 1.4 Explain how profit works as a signal to the entrepreneur.
AACSB Category: Analytical thinking
36) ________ is the sign that an entrepreneur has added value to the resources he or she is using.
A) Profit
B) Sales
C) Revenues
D) Liabilities
Learning Object.: 1.4 Explain how profit works as a signal to the entrepreneur.
AACSB Category: Analytical thinking
37) Closing a business is nothing to be ashamed of if you ________.
A) learn something from the experience
B) are on vacation in Jamaica
C) have a partner
D) are a corporation
Learning Object.: 1.4 Explain how profit works as a signal to the entrepreneur.
AACSB Category: Reflective thinking
38) The seven rules for building a successful business include recognizing an opportunity,
evaluating it with critical thinking, building a team, and financing with money from credit cards.
Learning Object.: 1.4 Explain how profit works as a signal to the entrepreneur.
AACSB Category: Analytical thinking
11
39) Profits result from customer choices, not the entrepreneur's choices.
Learning Object.: 1.4 Explain how profit works as a signal to the entrepreneur.
AACSB Category: Reflective thinking
40) What are the seven rules for building a successful business?
Learning Object.: 1.4 Explain how profit works as a signal to the entrepreneur.
AACSB Category: Analytical thinking
