| A | B |
|---|
| Free enterprise is the economic system most characteristic of democractic nations | True |
| The principle of diminishing marginal utility establishes that price alone does not determine demand. | True |
| In some parts of the world, elimination of trade barriers has resulted in more goods flowing freely among countries. | True |
| Entrepreneurs have long working hours, especially when they start up their businesses. | True |
| The trend that has most affected the way we do business is technology. | True |
| Geographics include region, state, and country. | True |
| Psychographics include gender, personality, and age. | False |
| The amount of a good or service that producers are willing to provide is known as supply. | True |
| When a change in price has little or no effect on quanity demanded that is known as elastic demand. | False |
| Entrepreneurs are not inclined to take responsibility for the outcome of their actions. | False |
| Competition forces companies to become more efficient to servive. | True |
| Economics is the creation, organization and ownership of a business with the intent of creating value | False |
| Equilibrium is the price point at which supply and demand curves meet. | True |
| Technology has shortened the time it takes to introduce a new product. | True |
| All those variables that affect the business but are not controlled by the entrepreneur are part of the environment. | True |
| A joint venture agreement is like a partnership where both companies benefit. | True |
| A market is a group of people or companies who demand a particular product or service. | True |
| Wealth consists of the equipment, factories, tools, and other goods needed to produce a product. | False |
| About 47% of all new businesses today are started by people under the age of 35. | True |
| Selling and shipping to another country is called importing. | False |
| A global economy means that the economies of the various countries of the world are llinked in one big marketplace. | True |
| Money to spend after necessary expenses are paid is called discretionary income. | False |
| A basic understanding of economics, finance, marketing, and management are needed to create and run a successful enterprise. | True |
| The number of businesses that start in the entrepreneur's home has been growing rapidy. | True |
| The UPC is a numerical system for classifying foods and services sold in the international market. | False |
| Every partnership must have at least one limited partner. | False |
| Industrial markets have customers who buy for business use. | True |
| Loyalty to a business is termed "goodwill." | True |
| A non-profit company can make a profit. | True |
| The easiest and most popular form of business is the sole proprietorship. | True |
| Starting a business is much easier and less time consuming than buying one. | False |
| You can find opportunity in industry by looking at trends and patterns of change. | True |
| Barriers to entry are things that keep new businesses from entering an industry. | True |
| In exploratory research, you consult a variety of sources to gether information. | True |
| One of the questions you should ask when buying a business is, "Why is the owner selling?" | True |
| A new business patterned on an existing model is called a lifestyle business. | False |
| The best way to find a business to buy is through the newspaper. | False |
| Family businesses are often called "mom and pop" businesses. | True |
| You can own a business by buying a business or starting a business from scratch. | True |
| As businesses grow, the cost of producing products increases. | True |
| When you want to study the current status of something, you do historical research. | False |
| Primary data is the most important, because it's current. | True |
