CHAPTER 1
Entrepreneurs Recognize Opportunities
Chapter 1 – Multiple Choice
Choose the most appropriate answer to the following questions:
1. Products are tangible, meaning ________.
a. you can't actually touch them
b. you can sell them
c. you can touch them
d. you can see them
Answer: C
Objective: Explain what entrepreneurs do.
Page number: 3
Level: Basic
2. In the United States half of the private workforce is represented by ________.
a. small business owners and their employees
b. entrepreneurs
c. corporations and their employees
d. women and minorities
Answer: A
Objective: Describe how free enterprise economies work and how entrepreneurs fit into them.
Page number: 7
Level: Basic
3. The system that produces and distributes the wealth of a country is called ________.
a. the economy
b. the government
c. the justice system
d. free enterprise
Answer: A
Objective: Describe how free enterprise economies work and how entrepreneurs fit into them.
Page number: 4
Level: Intermediate
1
,4. Entrepreneurs have more control over more aspects of their working lives than employees. Of
which aspect of their working lives do employees have more control?
a. financial uncertainty
b. working conditions
c. time
d. encroachment on personal time
Answer: A
Objective: Explain what entrepreneurs do.
Page number: 10
Level: Intermediate
5. The most successful entrepreneurs say they are motivated by ________.
a. the desire to make their vision come true
b. the desire for money and to make their vision come true
c. the desire for money
d. the desire for more independence
Answer: B
Objective: Describe how free enterprise economies work and how entrepreneurs fit into them.
Page number: 24
Level: Basic
6. The United States economy is a free enterprise system. It is also referred to as a "free trade
system" because it is based on ________.
a. voluntary exchange
b. gambling and chance
c. involuntary exchange
d. government cooperation
Answer: A
Objective: Describe how free enterprise economies work and how entrepreneurs fit into them.
Page number: 5
Level: Basic
7. 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 high price
d. competition is too great
Answer: B
Objective: Explain how profit works as a signal to the entrepreneur.
Page number: 24
Level: Difficult
2
,8. Entrepreneurship can be very challenging. Which is not a typical challenge of being an
entrepreneur?
a. loneliness
b. financial reward
c. long hours
d. financial insecurity
Answer: B
Objective: Explain what entrepreneurs do.
Page number: 10
Level: Intermediate
9. When making an investment, always consider the ________, which is the cost of your next-
best investment.
a. next-investment cost
b. cost of goods sold
c. opportunity cost
d. marginal cost
Answer: C
Objective: Describe how free enterprise economies work and how entrepreneurs fit into them.
Page number: 11
Level: Difficult
10. Entrepreneurs look at five basic ways of opportunity for business ideas. Which is not one of
those five?
a. developing new market for existing product
b. producing a product more cheaply
c. finding new ways to use existing technology
d. raising prices in an existing market
Answer: D
Objective: Find and evaluate opportunities to start your own business.
Page number: 14
Level: Difficult
11. The reward for satisfying a customer need is earning a ________.
a. business
b. discount
c. profit
d. referral
Answer: C
Objective: Explain what entrepreneurs do.
Page number: 6
Level: Basic
3
, 12. Profit is a sign that an entrepreneur has added value to the "scarce" ________ that he or she
is using.
a. goods
b. employees
c. resources
d. customer service
Answer: C
Objective: Explain what entrepreneurs do.
Page number: 4
Level: Intermediate
13. Most of the world's businesses are ________ businesses.
a. small
b. medium-sized
c. large
d. family-owned
Answer: A
Objective: Explain what entrepreneurs do.
Page number: 6
Level: Basic
14. Entrepreneurs view change as ________.
a. inevitable
b. an opportunity
c. a problem
d. a challenge
Answer: B
Objective: Find and evaluate opportunities to start your own business.
Page number: 15
Level: Difficult
15. A company that has more than ________ employees and sales of more than $________
million per year is considered to be a "big" business.
a. 100 / $5 million
b. 100 / $10 million
c. 500 / $ 5 million
d. 500/ $10 million
Answer: C
Objective: Explain what entrepreneurs do.
Page number: 6
Level: Intermediate
4
Entrepreneurs Recognize Opportunities
Chapter 1 – Multiple Choice
Choose the most appropriate answer to the following questions:
1. Products are tangible, meaning ________.
a. you can't actually touch them
b. you can sell them
c. you can touch them
d. you can see them
Answer: C
Objective: Explain what entrepreneurs do.
Page number: 3
Level: Basic
2. In the United States half of the private workforce is represented by ________.
a. small business owners and their employees
b. entrepreneurs
c. corporations and their employees
d. women and minorities
Answer: A
Objective: Describe how free enterprise economies work and how entrepreneurs fit into them.
Page number: 7
Level: Basic
3. The system that produces and distributes the wealth of a country is called ________.
a. the economy
b. the government
c. the justice system
d. free enterprise
Answer: A
Objective: Describe how free enterprise economies work and how entrepreneurs fit into them.
Page number: 4
Level: Intermediate
1
,4. Entrepreneurs have more control over more aspects of their working lives than employees. Of
which aspect of their working lives do employees have more control?
a. financial uncertainty
b. working conditions
c. time
d. encroachment on personal time
Answer: A
Objective: Explain what entrepreneurs do.
Page number: 10
Level: Intermediate
5. The most successful entrepreneurs say they are motivated by ________.
a. the desire to make their vision come true
b. the desire for money and to make their vision come true
c. the desire for money
d. the desire for more independence
Answer: B
Objective: Describe how free enterprise economies work and how entrepreneurs fit into them.
Page number: 24
Level: Basic
6. The United States economy is a free enterprise system. It is also referred to as a "free trade
system" because it is based on ________.
a. voluntary exchange
b. gambling and chance
c. involuntary exchange
d. government cooperation
Answer: A
Objective: Describe how free enterprise economies work and how entrepreneurs fit into them.
Page number: 5
Level: Basic
7. 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 high price
d. competition is too great
Answer: B
Objective: Explain how profit works as a signal to the entrepreneur.
Page number: 24
Level: Difficult
2
,8. Entrepreneurship can be very challenging. Which is not a typical challenge of being an
entrepreneur?
a. loneliness
b. financial reward
c. long hours
d. financial insecurity
Answer: B
Objective: Explain what entrepreneurs do.
Page number: 10
Level: Intermediate
9. When making an investment, always consider the ________, which is the cost of your next-
best investment.
a. next-investment cost
b. cost of goods sold
c. opportunity cost
d. marginal cost
Answer: C
Objective: Describe how free enterprise economies work and how entrepreneurs fit into them.
Page number: 11
Level: Difficult
10. Entrepreneurs look at five basic ways of opportunity for business ideas. Which is not one of
those five?
a. developing new market for existing product
b. producing a product more cheaply
c. finding new ways to use existing technology
d. raising prices in an existing market
Answer: D
Objective: Find and evaluate opportunities to start your own business.
Page number: 14
Level: Difficult
11. The reward for satisfying a customer need is earning a ________.
a. business
b. discount
c. profit
d. referral
Answer: C
Objective: Explain what entrepreneurs do.
Page number: 6
Level: Basic
3
, 12. Profit is a sign that an entrepreneur has added value to the "scarce" ________ that he or she
is using.
a. goods
b. employees
c. resources
d. customer service
Answer: C
Objective: Explain what entrepreneurs do.
Page number: 4
Level: Intermediate
13. Most of the world's businesses are ________ businesses.
a. small
b. medium-sized
c. large
d. family-owned
Answer: A
Objective: Explain what entrepreneurs do.
Page number: 6
Level: Basic
14. Entrepreneurs view change as ________.
a. inevitable
b. an opportunity
c. a problem
d. a challenge
Answer: B
Objective: Find and evaluate opportunities to start your own business.
Page number: 15
Level: Difficult
15. A company that has more than ________ employees and sales of more than $________
million per year is considered to be a "big" business.
a. 100 / $5 million
b. 100 / $10 million
c. 500 / $ 5 million
d. 500/ $10 million
Answer: C
Objective: Explain what entrepreneurs do.
Page number: 6
Level: Intermediate
4
