ENT 101 EXAM #1 QUESTIONS AND
ANSWERS 100% CORRECT
Product - ANSWER-Something that exists in nature or is made by human beings. It is
tangible, meaning that it can be physically touched
Service - ANSWER-Labor or expertise exchanged for money. It is intangible. It cannot
be physically touched.
Entrepreneur - ANSWER-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 - ANSWER-Enter entrepreneurship because
circumstances make self-employment their best available option for income
replacement.
Opportunity-based entrepreneurs - ANSWER-Start businesses to exploit a perceived
opportunity or to pursue one that they created.
Free-enterprise System - ANSWER-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 - ANSWER-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 - ANSWER-Cash or goods invested to generate income and wealth
Voluntary Trade - ANSWER-A market transaction between buyers and sellers who
willingly agree to trade.
Small Buisness - ANSWER-Having fewer than 500 employees and selling less than $5
million worth of products or services annually
Cost/benefit analysis - ANSWER-A decision-making process where the costs of taking
an action are compared to the benefits.
Salary - ANSWER-A fixed payment made at regular intervals, such as every week or
every month
Wage - ANSWER-A fixed rate per hour
, Dividend - ANSWER-Pay yourself a portion of the business's profits, must be paid to all
shareholders
Commission - ANSWER-A percentage of the value of a sale
Opportunity cost - ANSWER-The value of what must be given up to obtain something
else.
Social entrepreneurship - ANSWER-A for-profit enterprise with the dual goals of
achieving profitability and attaining beneficial returns for society
Social business - ANSWER-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 - ANSWER-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 - ANSWER-Enterprise activities that avoid harm to the
environment or help to protect the environment in some way.
Due diligence - ANSWER-The process used to learn about its true financial condition
(the current owners may have incentives to provide incomplete, misleading, or
inaccurate information), its reputation, and its continuing viability.
Profit - ANSWER-Show a positive gain from operations after all expenses are
subtracted.
Trade-off - ANSWER-The act of giving up one thing for another.
Feasibility Analysis - ANSWER-A study to assist in making the go/no go decision—
based on a close examination of product/service, market, industry, and financial data, in
a sufficient degree of detail to ensure confidence in the results.
Porter's Five Forces of Competition in an Industry - ANSWER-
Lean Start-up - ANSWER-A hypothesis driven approach to business start-up using
iterative development. (Create ideas -> Build product -> Measure -> Analyze data ->
Learn ->
Micro-enterprises - ANSWER-A businesses with five or fewer employees, initial
capitalization requirements of less than $50,000, and the habitual operational
ANSWERS 100% CORRECT
Product - ANSWER-Something that exists in nature or is made by human beings. It is
tangible, meaning that it can be physically touched
Service - ANSWER-Labor or expertise exchanged for money. It is intangible. It cannot
be physically touched.
Entrepreneur - ANSWER-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 - ANSWER-Enter entrepreneurship because
circumstances make self-employment their best available option for income
replacement.
Opportunity-based entrepreneurs - ANSWER-Start businesses to exploit a perceived
opportunity or to pursue one that they created.
Free-enterprise System - ANSWER-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 - ANSWER-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 - ANSWER-Cash or goods invested to generate income and wealth
Voluntary Trade - ANSWER-A market transaction between buyers and sellers who
willingly agree to trade.
Small Buisness - ANSWER-Having fewer than 500 employees and selling less than $5
million worth of products or services annually
Cost/benefit analysis - ANSWER-A decision-making process where the costs of taking
an action are compared to the benefits.
Salary - ANSWER-A fixed payment made at regular intervals, such as every week or
every month
Wage - ANSWER-A fixed rate per hour
, Dividend - ANSWER-Pay yourself a portion of the business's profits, must be paid to all
shareholders
Commission - ANSWER-A percentage of the value of a sale
Opportunity cost - ANSWER-The value of what must be given up to obtain something
else.
Social entrepreneurship - ANSWER-A for-profit enterprise with the dual goals of
achieving profitability and attaining beneficial returns for society
Social business - ANSWER-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 - ANSWER-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 - ANSWER-Enterprise activities that avoid harm to the
environment or help to protect the environment in some way.
Due diligence - ANSWER-The process used to learn about its true financial condition
(the current owners may have incentives to provide incomplete, misleading, or
inaccurate information), its reputation, and its continuing viability.
Profit - ANSWER-Show a positive gain from operations after all expenses are
subtracted.
Trade-off - ANSWER-The act of giving up one thing for another.
Feasibility Analysis - ANSWER-A study to assist in making the go/no go decision—
based on a close examination of product/service, market, industry, and financial data, in
a sufficient degree of detail to ensure confidence in the results.
Porter's Five Forces of Competition in an Industry - ANSWER-
Lean Start-up - ANSWER-A hypothesis driven approach to business start-up using
iterative development. (Create ideas -> Build product -> Measure -> Analyze data ->
Learn ->
Micro-enterprises - ANSWER-A businesses with five or fewer employees, initial
capitalization requirements of less than $50,000, and the habitual operational
