Entrepreneurship Ch. 2 - Business Plan

To be an entrepreneur you must invent a new product or service.

• True

• False

A retailer buys products from wholesalers and resells them to the warehouse.

• True

• False

Tangible items such as toothpaste, cars, and food are examples of products or goods.

• True

• False

Scarcity occurs when supply is higher than demand.

• True

• False

To determine whether a product or service is worth pursuing, entrepreneurs should conduct a(n) feasibility analysis before starting the business.

• True

• False

A mission statement is the overall goal for the company's future.  

• True

• False

The economic principle related to the quantity of products or services available to meet consumer wants is called supply and demand.

• True

• False

Privately owned businesses operate to make a profit with limited government regulation.

• traditional economy

• command economy

• market economy

• mixed economy

The government determines what goods are produced, how much is produced, and the prices.

• traditional economy

• command economy

• market economy

• mixed economy

A small number of large companies selling same or similar products.

• oligopoly

• monopoly

• perfect competition

• monopolistic competition