ENTREPRENEURIAL FINANCE 7TH EDITION
LEACH ACTUAL EXAM UPDATED
COMPLETE QUESTIONS AND CORRECT
ANSWERS
◉ Market
Answer: Any organized effort through which buyers and sellers
freely exchange goods and services
◉ Natural Resources
Answer: Consists of natural products such as minerals, land, and
wildlife.
◉ Human Resources
Answer: Mental and physical talents of people. Also referred to as
labor.
◉ Marginal Revenue Product
Answer: The additional revenue we obtain by selling one more unit
of product to create an incremental increase in revenue.
, ◉ Marginal Physical Product
Answer: additional product that results from hiring one more unit of
labor
◉ Marginal Cost
Answer: Incremental cost of hiring that one more unit of labor or the
incremental cost of producing one more unit of output.
◉ Economic Capital
Answer: consists of those items that people manufacture by
combining natural and human resources.
◉ Financial Capital
Answer: Dollar-value claim on economic capital.
◉ Entrepreneurial Resources
Answer: the individuals who assume risk and begin business
enterprises.
◉ Opportunity Cost
Answer: The highest value surrendered when a decision to invest
funds is made.
LEACH ACTUAL EXAM UPDATED
COMPLETE QUESTIONS AND CORRECT
ANSWERS
◉ Market
Answer: Any organized effort through which buyers and sellers
freely exchange goods and services
◉ Natural Resources
Answer: Consists of natural products such as minerals, land, and
wildlife.
◉ Human Resources
Answer: Mental and physical talents of people. Also referred to as
labor.
◉ Marginal Revenue Product
Answer: The additional revenue we obtain by selling one more unit
of product to create an incremental increase in revenue.
, ◉ Marginal Physical Product
Answer: additional product that results from hiring one more unit of
labor
◉ Marginal Cost
Answer: Incremental cost of hiring that one more unit of labor or the
incremental cost of producing one more unit of output.
◉ Economic Capital
Answer: consists of those items that people manufacture by
combining natural and human resources.
◉ Financial Capital
Answer: Dollar-value claim on economic capital.
◉ Entrepreneurial Resources
Answer: the individuals who assume risk and begin business
enterprises.
◉ Opportunity Cost
Answer: The highest value surrendered when a decision to invest
funds is made.
