Entrepreneurship and Small Business Management

Chapter 1: What Is Entrepreneurship?

Practice Test

1
A/An_____________is an individual who undertakes the creation, organization, and ownership of a business.
A)consumer
B)entrepreneur
C)business owner
D)capitalist
2
A/An___________ is a new business undertaking that involves risk.
A)monopoly
B)venture
C)entrepreneur
D)market structure
3
____________is the study of how people choose to allocate scarce resources to fulfill their unlimited wants.
A)Economics
B)Entrepreneurship
C)Free enterprise system
D)Monopoly
4
In a/an__________, people have an important right to make economic choices.
A)entrepreneurship
B)monopoly
C)free society
D)free enterpise system
5
___________is money left after all expenses of running a business have been deducted from the income.
A)Capital
B)Cost
C)Profit
D)Surplus
6
________ competition is a market structure in which there are numerous buyers and sellers, and no single buyer or seller can affect price.
A)Free enterprise
B)Monopolistic
C)Oligopolistic
D)Perfect
7
A__________is a basic requirement for survival.
A)need
B)good
C)service
D)want
8
The resources businesses use to produce the goods and services people want are called__________.
A)factors of manufacturing
B)factors of production
C)capital
D)start-up funds
9
________ occurs when demand exceeds supply.
A)Production
B)Scarcity
C)Want
D)Need
10
In a free enterprise system, the price of a product is determined in the _____________.
A)marketplace
B)stock market
C)government
D)company
11
____________ is the total market value of goods and services produced by workers and capital within a country during a given period.
A)Federal Reserve
B)Factors of Production
C)Resources
D)Gross Domestic Product
12
The entrepreneur is the driving force of the_________________process.
A)start-up
B)venture
C)manufacturing
D)production
13
Studies by the Small Business Administration report that _____ percent of new businesses survive the first two years
A)42
B)33
C)66
D)50
14
A/An________________is a business that has stopped operating with a loss to creditors.
A)new venture
B)enterprise
C)business failure
D)discontinuance
15
A ____________ is a business that may be operating under a new name
A)discontinuance
B)business failure
C)new venture
D)start-up
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