Small Business Chapter 1 Review

Question 1

What is demand called when consumers change the amount they buy by a LOT when price changes?

Accepted Answer

Elastic

Question 2

A business that is ended on purpose or is operating under a new name is called a:

Accepted Answer

Discontinuance

Question 3

A business that goes bankrupt, losing money for creditors and investors, is considered what?

Accepted Answer

Failure

Question 4

What is the term for a person who takes on a business's creation, organization, and ownership?

Accepted Answer

Entrepreneur

Question 5

What is the term for a certain area of a community that gives tax benefits to new businesses

Accepted Answer

Enterprise zone

Question 6

Which of the following is NOT one of the Factors of Production?

Accepted Answer

Money

Question 7

The amount of a good or service that producers will provide is called what?

Accepted Answer

Supply

Question 8

What is the term for a business undertaking that involves risk?

Accepted Answer

Venture

Question 9

Businesses will continually adjust price and the quantity they supply until what is achieved?

Accepted Answer

Equilibrium

Question 10

What element of a market economy encourages businesses to offer quality products at low prices?

Accepted Answer

Competition

Question 11

An "opportunity" is an idea that has what?

Accepted Answer

Value

Question 12

What is the term for the money left over after a business pays its expenses?

Accepted Answer

Profit

Question 13

Economics is the study of what?

Accepted Answer

Decisions and choices of producers and consumers

Question 14

Which is NOT a term for our economic system?

Accepted Answer

Command economy

Question 15

What is the term for the amount that consumers are willing and able to buy?

Accepted Answer

Demand

Question 16

What variables does an entrepreneur deal with that affect the success of a new business?

Accepted Answer

All of these

Question 17

Businesses are primarily motivated by what?

Accepted Answer

Profit

Question 18

What is the term for an intangible product (i.e., not a "good")?

Accepted Answer

Service

Question 19

At what point on the supply & demand graph do consumers produce the same amount producers make?

Accepted Answer

Equilibrium

Question 20

The "shell" that surrounds the new business is called the new venture _______.

Accepted Answer

organization

Question 21

What is the number one reason that businesses fail?

Accepted Answer

Poor management

Question 22

The market price for a product will be the price...?

Accepted Answer

where supply and demand cross on a graph.

Question 23

Which aspect of a new business includes things outside the business, out of its control?

Accepted Answer

Environment

Question 24

What is one way a business can raise its revenue?

Accepted Answer

Raise prices

Question 25

If a change in price only has a small effect on the quantity demanded, then demand is what?

Accepted Answer

Inelastic

Question 26

The main motivation for all businesses is _______.

Accepted Answer

Profit

Small Business Chapter 1 Review

Questions 26

Small Business Chapter 1 Review

Questions 26