entrepreneurship

entrepreneurship - Class M 2/11 Question Set AEM1200 Spring...

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Class M 2/11 Question Set AEM1200 Spring 2011 Pedro David Pérez 1. An activity which seeks to earn a profit by providing a good or service is known as a(n) a. Business b. Corporation c. Industry d. Organization e. Service 2. Starting a business always involves ________. a. Loss b. Profit c. Revenue d. Risk e. Uncertainty 3. _______ is the chance a business owner will lose the time and money invested in a business that does not make money. a. Depreciation b. Fallibility c. Loss d. Risk e. Uncertainty 4. _______ is the known chance that a business owner will lose the time and money invested in a business that proves to be unprofitable; and _________ is the unknown chance that a business owner will either be rewarded for or lose the time and money invested in a business. a. Risk, profit b. Risk, risk c. Risk, uncertainty d. Uncertainty, risk e. Uncertainty, uncertainty 5. Often in business the greater the risk an entrepreneur or manager decided to take the a. Greater the number of stakeholders b. Greater the potential rewards c. Greater the uncertainty associated with the risk d. Lower the expected revenues e. Lower the value provided to society 6. Which of the following is the situation with the highest risk? a. High upside, low downside b. High upside, high downside c. Low upside, low downside d. Low upside, high downside e. All of the above have the same level of risk 7. Which of the following is the situation with the highest uncertainty? a. High upside, low downside b. High upside, high downside c. Low upside, low downside d. Low upside, high downside e. All of the above have the same level of risk
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Class M 2/11 Question Set AEM1200 Spring 2011 Pedro David Pérez Match the factors of production for business management with their defining characteristics 8. Capital 9. Entrepreneurship 10. Labor 11. Land 12. Technology a. Defines the owners of the firm b. Most immobile factor of production, after real estate c. The most important and scarce of the factors of production d. The quantity of this factor of production never decreases e. The quantity of this factor of production very rarely increases 13. As a factor of production, the term capital includes a. Natural resources such as land and water b. Services provided by the government that enable businesses to be more productive c. Stock and bonds issues by corporations d. Technologies and know-how obtained from science and technology e. Tools, machinery and building 14. Two factors of production that seem to contribute most to a nation’s ability to create wealth are a. Capital and knowledge b. Entrepreneurship and knowledge c. Entrepreneurship and labor d. Land and capital e. Land and labor 15. Money is one of the five factors of production that contribute to the creation of wealth a. True b. False 16. The major advantage rich nations have over poor nations is an abundance of land and labor a. True b. False 17. The only real purpose of a business is to make money for entrepreneurs a. True b.
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This note was uploaded on 02/12/2011 for the course ECON 202 taught by Professor La during the Spring '11 term at Alcorn State.

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entrepreneurship - Class M 2/11 Question Set AEM1200 Spring...

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