ENT101 STUDY questions all with Correct Answers
Product - ANS Something that exists in nature or is made by human beings. It is tangible,
meaning that it can be physically touched
Service - ANS Labor or expertise exchanged for money. It is intangible. It cannot be physically
touched.
Entrepreneur - ANS A person who recognizes an opportunity and organizes and manages a
business , assuming the risk for the sake of the potential return.
Necessity-based entrepreneurs - ANS Enter entrepreneurship because circumstances make self-
employment their best available option for income replacement.
Opportunity-based entrepreneurs - ANS Start businesses to exploit a perceived opportunity or
to pursue one that they created.
Free-enterprise System - ANS Characterized by private (rather than governmental) ownership of
capital assets and goods, and prices are determined by markets; anyone is free to start a
business.
Capitalism - ANS The free-market system, characterized by individuals and private companies,
as opposed to governments, competing for economic gains, ownership of private property and
wealth, and price determination through free-market forces.
Capital - ANS Cash or goods invested to generate income and wealth
Voluntary Trade - ANS A market transaction between buyers and sellers who willingly agree to
trade.
, Small Buisness - ANS Having fewer than 500 employees and selling less than $5 million worth of
products or services annually
Cost/benefit analysis - ANS A decision-making process where the costs of taking an action are
compared to the benefits.
Salary - ANS A fixed payment made at regular intervals, such as every week or every month
Wage - ANS A fixed rate per hour
Dividend - ANS Pay yourself a portion of the business's profits, must be paid to all shareholders
Commission - ANS A percentage of the value of a sale
Opportunity cost - ANS The value of what must be given up to obtain something else.
Social entrepreneurship - ANS A for-profit enterprise with the dual goals of achieving
profitability and attaining beneficial returns for society
Social business - ANS A company designed to address a social objective within the highly
regulated marketplace of today. It is distinct from a non-profit because the business should
seek to generate a modest profit, but this will be used to expand the company's reach, improve
the product or service, or in other ways to subsidize the social mission.
Venture philanthropy - ANS A subset or segment of social entrepreneurship. Financial and
human capital is invested in not-for-profits by individuals and for-profit enterprises with the
intention of generating social rather than financial returns.
Green entrepreneurship - ANS Enterprise activities that avoid harm to the environment or help
to protect the environment in some way.
Product - ANS Something that exists in nature or is made by human beings. It is tangible,
meaning that it can be physically touched
Service - ANS Labor or expertise exchanged for money. It is intangible. It cannot be physically
touched.
Entrepreneur - ANS A person who recognizes an opportunity and organizes and manages a
business , assuming the risk for the sake of the potential return.
Necessity-based entrepreneurs - ANS Enter entrepreneurship because circumstances make self-
employment their best available option for income replacement.
Opportunity-based entrepreneurs - ANS Start businesses to exploit a perceived opportunity or
to pursue one that they created.
Free-enterprise System - ANS Characterized by private (rather than governmental) ownership of
capital assets and goods, and prices are determined by markets; anyone is free to start a
business.
Capitalism - ANS The free-market system, characterized by individuals and private companies,
as opposed to governments, competing for economic gains, ownership of private property and
wealth, and price determination through free-market forces.
Capital - ANS Cash or goods invested to generate income and wealth
Voluntary Trade - ANS A market transaction between buyers and sellers who willingly agree to
trade.
, Small Buisness - ANS Having fewer than 500 employees and selling less than $5 million worth of
products or services annually
Cost/benefit analysis - ANS A decision-making process where the costs of taking an action are
compared to the benefits.
Salary - ANS A fixed payment made at regular intervals, such as every week or every month
Wage - ANS A fixed rate per hour
Dividend - ANS Pay yourself a portion of the business's profits, must be paid to all shareholders
Commission - ANS A percentage of the value of a sale
Opportunity cost - ANS The value of what must be given up to obtain something else.
Social entrepreneurship - ANS A for-profit enterprise with the dual goals of achieving
profitability and attaining beneficial returns for society
Social business - ANS A company designed to address a social objective within the highly
regulated marketplace of today. It is distinct from a non-profit because the business should
seek to generate a modest profit, but this will be used to expand the company's reach, improve
the product or service, or in other ways to subsidize the social mission.
Venture philanthropy - ANS A subset or segment of social entrepreneurship. Financial and
human capital is invested in not-for-profits by individuals and for-profit enterprises with the
intention of generating social rather than financial returns.
Green entrepreneurship - ANS Enterprise activities that avoid harm to the environment or help
to protect the environment in some way.
