Understanding Entrepreneurship Basics

How do entrepreneurs contribute to the economy?

• By reducing job opportunities

• By driving innovation and creating jobs

• By avoiding competition

• By limiting market growth

According to the U.S. Small Business Administration, what qualifies as a small business?

• A company with under 50 employees

• A business with fewer than 500 employees

• Any business run by an entrepreneur

• A company that does not expand

Who is mainly responsible for setting company goals and strategies?

• Investors

• Managers

• Customers

• Competitors

What is a frequent cause of business failure?

• Too many employees

• Lack of necessary funding

• Excessive marketing

• Minimal competition

How has the internet influenced entrepreneurship?

• By eliminating financial challenges

• By making starting a business more accessible

• By reducing the need for record-keeping

• By replacing traditional businesses

Why is passion important for an entrepreneur?

• It ensures financial success

• It helps them stay motivated and overcome obstacles

• It eliminates business risks

• It replaces the need for financial management

What is a key factor in an entrepreneur’s success?

• Refusing to take risks

• Recognizing strengths and weaknesses

• Depending on government funding

• Avoiding competition

What is a common trait of successful entrepreneurs?

• Confidence and persistence

• Fear of failure

• Avoidance of responsibility

• Lack of flexibility

What is a common reason people choose entrepreneurship?

• Guaranteed financial stability

• Desire for independence and flexibility

• Less work responsibility

• No need to manage employees

Who primarily determines product demand in a market?

• Entrepreneurs

• Government agencies

• Consumers

• Business competitors