CBA 110 Quiz 1

Which is a reason for Krispy Kreme's near failure

Consumers preferred its competitors' products

In general, as price of a good or service increases, the quantity demanded:

Declines

A graph showing the amount of a product that buyers will purchase at different prices is the _____ curve.

Demand

Which of the following refers to the willingness and ability of buyers to purchase goods and services at different prices?

Demand

Which of the following has contributed the LEAST to the boom in entrepreneurship?

Economies driven by innovation

Vaida is a single mother who is required to work evenings and weekends at a local retail store. She is thinking of starting a consulting business primarily so she can _____.

Enjoy a higher quality of life

Zainab is opening her own bakery. Zainab is most likely to be categorized as a(n) _____.

Entrepreneur

Unlike small-business owners, one of the major goals of entrepreneurs is:

Expansion and growth

A fast food chain offers a contractual business arrangement in various countries around the world. This fast food chain will be an example of a(n) international _____.

Franchise

Which of the following statements regarding franchising is FALSE?

Franchisers are riskier than other forms of business ownership

Michelle works for a large bank that recently merged with another financial institution. Word of layoffs has been discussed. Michelle is most likely to become an entrepreneur in order to _____.

Obtain job security

The franchisor provides all of the following services EXCEPT _____.

On site management

Sunita is the owner of an electronic repair shop. She creates the marketing strategy for her shop, pays all the required taxes, and is also the only person who enjoys the profits generated by the shop. Sunita's business ownership in this scenario can be regarded as a _____.

Sole proprietorship

The supply curve will shift left when:

Taxes increase

Which of the following is one of the criteria for borrowers to qualify for a Small Business Administration backed loan?

The borrower should be unable to secure conventional commercial financing

Which of the following statements about globalization and entrepreneurship is correct?

The business ownership rate is highest in economies that compete based on unskilled labor.

David cultivates and sells sugarcane to a sugar manufacturing company. John is a retailer for pet food. Which of the following is a difference between David's and John's businesses?

Unlike John, David has very few competitors.

Sole proprietorships have all of the following advantages EXCEPT _____.

Unlimited life

In exchange for an ownership share, small businesses receive financing from a group of investors known as _____,

Venture capitalists

Which of the following is a personality trait that differentiates entrepreneurs from managers?

Willingness to take risks in a new venture

Which of the following is an example of a country with a factor-driven economy?

Zambia

Concerning education and entrepreneurs, all of the following statements are correct EXCEPT:

a number of schools offer opportunities to intern with a start up

A particular industry has many competitors, each of whom has no significant control over price. In addition, it is fairly easy to enter the industry. This industry is an example of _____.

an oligopoly

According to a supply curve, _____.

as prices rise, the quantity of a product that is supplied also rises

A demand curve will shift to the left if the _____.

buyers income decreases

The three major types of economic systems are _____.

capitalism, planned economies, and mixed economies

The equilibrium price is established when the _____.

prevailing market price of an item is same as the price at which a consumer can buy the item

Most industrialized nations operate economies based on _____.

private enterprise systems

Which of the following is considered to be the BEST example of pure competition in today's business environment?

the fishing industry

All of the following are identified as responsibilities of entrepreneurs EXCEPT:

upsizing their organizations in response to declining revenues.

Jennifer Hyman, the founder of Rent the Runway, exemplifies the concept of _____.

Classic entrepreneurship

The largest lenders to small businesses are

Commercial banks

Franchising offers all of the following advantages EXCEPT _____.

guaranteed level of profitability

Financial success _____.

is part of the appeal of becoming an entrepreneur

Serial entrepreneurship involves:

launching and running a business, and then starting and running additional businesses in succession.

If the number of buyers decreases, the demand curve will shift to the _____ and the price will ____.

left; rise

If the cost of producing a good or service increases, the supply curve will shift to the _____ and the price will _____.

left;rise

A business plan for small business typically contains all of the following EXCEPT

A time frame for selling stock to investors

Mariana wants to start an event management firm. Which of the following should she include in the business plan?

An introduction that includes the objectives of her business

Owners of small businesses can increase their chances of success if they:

Become an expert in legal, financial, marketing, and other related business areas

Maria is the owner of a very small technology start up. She shares clerical staff, computers, and other business services with other small business owners. Maria is part of a:

Business incubator

The Small Business Administration (SBA) provides all of the following except

Business incubators

Which of the following is an implication of demand curves sloping downward?

Buyers will purchase greater quantities of a good or service as its price falls.

Incentives to motivate employees to perform at their highest level are strongest in _____ systems.

Capatilist

The two principal parties in a franchising agreement are the _____.

Franchisor and franchisee

Information technology can help entrepreneurs in all of the following ways EXCEPT:

Guarantee financial success

Many businesses fail during the early years because of

Inadequate financing

During an epidemic, the price of surgical masks increased. Which of the following is most likely to have been a consequence of this increase in price?

Increase the supply of surgical masks

An entrepreneur:

Is a risk taker in the private enterprise system

A drawback of franchising is that:

It deprives the franchisor of absolute control over her business

Which of the following is a benefit of franchising?

It offers several opportunities for the expansion of a business

Which of the following is true of a business with sole proprietorship?

Its owner has maximum management flexibility

Tim Ferriss, best-selling author of the 4-Hour self-help series, is considered by many to be a(n) _____.

Lifestyle entrepreneur

Victoria is an employee at Pegasys Inc., a consulting firm. She uses the resources of the firm to expand and diversify into related fields. Victoria is most likely to be classified as a(n) _____.

Manager

An economist studies the consumer behavior in a particular area. This is an example of _____.

Microeconomics

Which of the following countries is an example of an innovation-driven economy?

Portugal

Flora Cult Inc., an exporter of flowers across the globe, operates in an industry where there are many sellers and buyers. This makes it difficult for any one single seller or buyer to influence the market price of the flowers. Also, it is difficult for sellers or exporters to differentiate their products from each other. What type of market structure does this illustrate?

Pure competition

A demand curve is the schedule that shows the relationship between the price of a product and the _____.

Quantity of that product buyers will purchase

After starting a web design company while still in college, Ricardo sold the company after graduation. He then opened a computer repair shop; and most recently, he has started a marketing firm that specializes in social media. Ricardo is an example of a(n):

Serial entrepreneur

Martha requires funding for a shopping portal that she launched recently. She wants to secure a government procurement contract to ensure adequate funding. Which of the following organizations can help Martha avail the contract?

Small Business Administration

The management of Javier Investments....they invest a portion of company profit along with money received through government loans ....is an example of

Small Business Investment Companies

_____use their own capital supplimented with government invested loans to invest in small businesses

Small Business Investment Companies (SBIC)

Syed and Mica come up with an idea for making sugar-free ice cream. They open their own small business to cater to the needs of those who are health conscious. Their products are distributed nationwide and their sales continue to increase. Syed and Mica are examples of _____.

Social Entreprenerurs

Sophia is the CEO of a not-for-profit organization. She runs the organization to provide quality education for the underprivileged children. Sophia is most likely to be categorized as a:

Social entrepreneur

_____ focus on solving society's challenges through their businesses.

Social entrepreneurs

In which of the following types of economic systems do entrepreneurs and investors have the most amount of freedom with regard to controlling business ownership, profits, and resource allocations?

Socialism

Diya owns FoodMart, the franchisee of a local retail shop. Which of the following will be one of Diya's chief concerns regarding owning the franchise?

The franchising agreement is too restrictive

One of the disadvantages of partnerships is that:

The partners are exposed to unlimited financial liability

Identify a true statement about successful entrepreneurs.

They fit into one specific job title, career path or industry

The primary reasons people become entrepreneurs include all of the following reasons EXCEPT:

To avoid taking risks

_____ of the fastest-growing small companies in the United States have international sales.

Two of every five

An increase in consumers' incomes causes the _____.

demand curve to shift to the right

If the prices of substitute goods decrease, the demand curve will shift to the _____ and the price will _____.

right; fall

As the number of suppliers of a product increases, the supply curve shifts to the _____ and the price will _____.

right;fall

Assume that the price of gasoline triples. What will likely happen to the demand for fuel-efficient small cars? The demand curve will shift to the _____ and demand will _____.

right;increase

If buyers' incomes increase, the demand curve will shift to the _____ and the prices will _____.

right;rise