ENT 101 EXAM #1 Questions with Correct Answers 100% Verified By Experts|2025/2026
Latest Update
Product Something that exists in nature or is made by human beings. It is tangible, meaning
that it can be physically touched
Service Labor or expertise exchanged for money. It is intangible. It cannot be physically
touched.
Entrepreneur 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 Enter entrepreneurship because circumstances make self-
employment their best available option for income replacement.
Opportunity-based entrepreneurs Start businesses to exploit a perceived opportunity or to
pursue one that they created.
Free-enterprise System 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 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 Cash or goods invested to generate income and wealth
Voluntary Trade A market transaction between buyers and sellers who willingly agree to
trade.
, Small Buisness Having fewer than 500 employees and selling less than $5 million worth of
products or services annually
Cost/benefit analysis A decision-making process where the costs of taking an action are
compared to the benefits.
Salary A fixed payment made at regular intervals, such as every week or every month
Wage A fixed rate per hour
Dividend Pay yourself a portion of the business's profits, must be paid to all shareholders
Commission A percentage of the value of a sale
Opportunity cost The value of what must be given up to obtain something else.
Social entrepreneurship A for-profit enterprise with the dual goals of achieving profitability
and attaining beneficial returns for society
Social business 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 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.
Latest Update
Product Something that exists in nature or is made by human beings. It is tangible, meaning
that it can be physically touched
Service Labor or expertise exchanged for money. It is intangible. It cannot be physically
touched.
Entrepreneur 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 Enter entrepreneurship because circumstances make self-
employment their best available option for income replacement.
Opportunity-based entrepreneurs Start businesses to exploit a perceived opportunity or to
pursue one that they created.
Free-enterprise System 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 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 Cash or goods invested to generate income and wealth
Voluntary Trade A market transaction between buyers and sellers who willingly agree to
trade.
, Small Buisness Having fewer than 500 employees and selling less than $5 million worth of
products or services annually
Cost/benefit analysis A decision-making process where the costs of taking an action are
compared to the benefits.
Salary A fixed payment made at regular intervals, such as every week or every month
Wage A fixed rate per hour
Dividend Pay yourself a portion of the business's profits, must be paid to all shareholders
Commission A percentage of the value of a sale
Opportunity cost The value of what must be given up to obtain something else.
Social entrepreneurship A for-profit enterprise with the dual goals of achieving profitability
and attaining beneficial returns for society
Social business 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 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.
