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| 1 | |
A common characteristic of entrepreneurs is: |
| | A) | A willingness to accept the risks involved in starting and managing a business. |
| | B) | A high level of scientific and technical expertise. |
| | C) | A great deal of personal wealth. |
| | D) | Experience running large, complex organizations. |
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| 2 | |
Elizabeth has converted her garage into a graphics shop. Each month, her revenues total approximately $4,000. Expenses include the cost of her computer paper and other paper, her ink cartridges, and her time to create designs. These total approximately $3,000/month. She also expenses the space and part of her home's utility bill as expenses of the business. These average $400/month. Her monthly profit is: |
| | A) | $7400. |
| | B) | $7000. |
| | C) | $1000. |
| | D) | $600. |
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| 3 | |
Taxes and government regulations are part of the ________________ environment of business. |
| | A) | economic and legal |
| | B) | competitive |
| | C) | social |
| | D) | technological |
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| 4 | |
Tiger Woods is one of the highest paid golfers to play the game. In order to remain on top, he spends most of his time practicing and traveling to different golf courses with varying levels of difficulty. The fact that he can afford most luxuries would put him in a high _______________ category. The fact that he must spend an incredible amount of time doing it would leave us to ponder his _____________. |
| | A) | quality of life; entrepreneurial spirit |
| | B) | quality of life; standard of living |
| | C) | standard of living; quality of life |
| | D) | high income modality; tolerance of fun |
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| 5 | |
San Jose, CA could be called the incubator town, but they are not raising chickens! Although the place is crowded with lot of people and not much room, the city provides all sorts of benefits for people with ideas that want to start businesses. Last count, there were 60 small business incubators In terms of the five factors of production, which two make this city and its inhabitants wealthy? |
| | A) | capital and labor |
| | B) | labor and land |
| | C) | entrepreneurship and capital |
| | D) | knowledge and entrepreneurship |
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| 6 | |
Collectively, the customers, employees, stockholders, suppliers, creditors, and the local communities in which a business operates are known as the firm's: |
| | A) | market. |
| | B) | economic environment. |
| | C) | stakeholders. |
| | D) | social dependents. |
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| 7 | |
As a salesperson for Ergo-Tech, a company that makes ergonomic peripherals such as keyboards, Jack enjoys the freedom and flexibility he has to better meet the needs of his customers. Jack's experience suggests that Ergo-Tech management practices: |
| | A) | centralized management. |
| | B) | outsourcing. |
| | C) | enfranchisement. |
| | D) | empowerment. |
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| 8 | |
Jill lives in a large metropolitan area. She is thinking about starting a senior citizen van service, where she will pick-up seniors from nursing homes and assisted living centers and take them to doctor appointments, hair-stylists, and even to the movies. She is concerned about the long-term prospects for such a business. Jill believes the future of her service depends upon the number of older and retired people who no longer drive, and also the number of community care centers the region is planning to build. These concerns illustrate how businesses can be affected by: |
| | A) | econometric trends. |
| | B) | demographic trends. |
| | C) | regulatory trends. |
| | D) | psychographic trends. |
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| 9 | |
Technology continues to make businesses more productive. More efficient global distribution systems have led to: |
| | A) | increased world trade. |
| | B) | decreased world trade. |
| | C) | decreased international competition. |
| | D) | reduced standards of living around the world. |
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| 10 | |
In recent years, almost all new job creation in the United States has occurred in the ________________ sector. |
| | A) | service |
| | B) | manufacturing |
| | C) | agricultural |
| | D) | telecommunications |
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