Midterm Exercise 2

What is demand?

• The willingness and ability of buyers to purchase a product

• The willingness and ability of producers to offer a good or service for sale

• Principle that buyers will purchase more of products as its price decrease and demand less as its price increase

• Principle that producers will offer more of products for sale as its price rises and less as its price drops

What is the primary advantage of a sole proprietorship?

• Limited liability

• Complete control by one owner

• Access to large capital

• Separation of personal and business assets

Which factor is not included in the definition of SMEs?

• Sales turnover

• Full-time employees

• Shareholding structure

• Market share

Which of the following is a type of entrepreneur focused on social issues?

• Technopreneur

• Social Entrepreneur

• Cyberpreneur

• Intrapreneur

What is the primary function of international business?

• Selling only to local markets

• Buying and selling goods and services between countries

• Operating in a single domestic market

• Reducing the need for globalization

How is a market economy different from a planned economy?

• Market economy is controlled by the government, planned economy by the market

• Market economy involves individual producers and consumers making decisions

• Planned economy has no economic planning

• Market economy does not involve supply and demand

What characterizes an oligopoly?

• Many small firms competing

• Only one seller

• A few large firms with significant market control

• Free entry and exit from the market

Which of the following is not a major form of business ownership?

• Corporation

• Franchise

• Sole Proprietorship

• Partnership

What is a significant barrier to international trade?

• Technological advancements

• Cultural differences

• High consumer demand

• Overproduction

Which type of entrepreneur uses technology to create new products or services?

• Social Entrepreneur

• Technopreneur

• Cyberpreneur

• Intrapreneur