APEX Business Finance 8.1.2 Study Guide

Which of the following best describes the law of supply and demand?

When a desirable product or service is scarce, its value increases.

Selling or mortgaging an asset, such as a house or land, is one way an entrepreneur might try to gain funding for a new business. This action would fall under the _____ part of a business.

finance

What is customer service?

Customer service is a way to build positive, long-term relationships with clients.

Which of the following entrepreneurial businesses is most likely to have a global impact?

A business that sells low cost clothing that is manufactured overseas

Which of the following statements is the best description of an entrepreneur?

A person who starts his or her own business using his or her own resources

Allison is an entrepreneur who has started her own video game development company. She lives in California, one of the designers lives in Iowa, and the programmer lives in Minnesota. Based on this information, which entrepreneurial trend is Allison's business following?

Entrepreneurs will be more likely to build virtual teams than to build brick-and-mortar offices.

Phillip wanted to open a high end Italian restaurant. Based on the law of supply and demand, which is the best place for him to open such a restaurant?

In an area where there are no high end Italian restaurants

Which of the following is an example of an entrepreneur?

Kevin used his own ideas and assets to start his graphic design business.

What is free enterprise?

The opportunity for an individual to start up and run a business of his or her choice

Which of the following is a low-cost option for entrepreneurs to market their businesses?

Using social media to promote their products