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