What is an Entrepreneur? Chapter 1 Key Concepts Quiz and Flashcards

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Questions and Answers

What is the primary contribution of entrepreneurship to economic development?

Mobilizing capital resources (correct)

Developing new products

Introducing new technologies and processes

Creating employment

Which of the following is NOT considered a characteristic of successful entrepreneurs?

Drive

Self-confidence

Risk-aversion (correct)

Creativity

Which type of business is involved in the conversion of raw materials into products?

Non-Profit

Manufacturing (correct)

Consulting

Franchising

Which of the following is NOT listed as a career opportunity for entrepreneurs?

Real Estate Signup and view all the answers

Which of the following is NOT considered a type of innovation?

Increased marketing efforts Signup and view all the answers

Which of the following is the LEAST important characteristic of successful entrepreneurs?

Technical knowledge Signup and view all the answers

What is the main focus of a businessman/businesswoman compared to an entrepreneur?

Pursuing profits Signup and view all the answers

How does entrepreneurship differ from traditional business in terms of idea implementation?

Entrepreneurs follow existing ideas, businessmen bring up new ideas Signup and view all the answers

Which term best describes the readiness of an entrepreneur to embrace challenges and changes?

Flexibility Signup and view all the answers

What is the primary motivation for a businessman/businesswoman according to the text?

Pursuing profits Signup and view all the answers

Which of the following characteristics is essential for an entrepreneur based on the text?

Bringing up new ideas Signup and view all the answers

What distinguishes entrepreneurship from economic development according to the text?

Creating opportunities vs improving living standards Signup and view all the answers

Which of the following statements accurately describes a service business?

A business that performs tasks for the benefit of their customers Signup and view all the answers

In a general partnership, which of the following statements is true?

All partners are personally liable and responsible for the business, and must be involved in decision-making Signup and view all the answers

Which of the following accurately describes a corporation?

A business owned by shareholders and structured as a separate legal entity Signup and view all the answers

Which of the following is the primary characteristic of a merchandising business?

It purchases finished products and resells them Signup and view all the answers

Which of the following business types is involved in the farming, management, production and marketing of agricultural commodities?

Agricultural Business or Agribusiness Signup and view all the answers

In a limited partnership, which of the following statements is true?

One partner is responsible for decision-making and is liable for the business, while the other partner(s) merely invest Signup and view all the answers

Study Notes

Entrepreneurship and Economic Development

Effective and efficient utilization of economic resources contributes to economic development, which is driven by entrepreneurship.

Contributions of Entrepreneurship to Economic Development

Develop new products
Discover new sources of materials
Mobilize capital resources
Introduce new technologies and processes to improve existing products
Create employment opportunities
Pay taxes

Career Opportunities for Entrepreneurs

Starting a new business
Consulting
Investing
Teaching or mentoring
Franchising
Intrapreneurship
Non-profit work
Freelancing or contracting

Entrepreneurship and Innovation

Innovation is the introduction of a new idea, method, procedure, or change to an existing product or process that adds value.
Types of innovation include new products, new processes of production, substitution of cheaper materials, reorganization of production, and improvement in instruments or methods of production.

Characteristics of Entrepreneurs

Drive
Creativity
Human relations ability
Ability to communicate
Technical knowledge
Risk-taking
Self-confidence
Goal setting
Accountability
Innovation

Types of Businesses

Manufacturing: converts raw materials into products
Service Business: performs tasks for the benefit of customers
Merchandising Business: purchases finished products and resells them
Wholesaling: sells to retailers, industry institutions, and commercial users
Retailing: sells to final consumers/end users
Extractive Business: involves the extraction of raw materials from the earth
Agricultural Business/Agribusiness: involves the farming, management, production, and marketing of agricultural commodities
General Construction: involves various forms of construction projects

Major Forms of Business Organizations

Sole Proprietorship: a business owned and run by one person for their own benefit
Partnership: a business owned by two or more people, can be either general or limited
Corporation: a business owned by shareholders, structured as a separate legal entity

Entrepreneurship Definition and Key Concepts

Entrepreneurship is the process of identifying, creating, and pursuing opportunities to start and manage a new business.
Entrepreneurship involves taking risks, organizing resources, and making innovations to bring a new product, service, or idea to the market.

Businessman/Business Woman VS Entrepreneur

Businessman/businesswoman: follows traditional ways, focuses on pursuing profits, and finds it difficult to get out of their comfort zone.
Entrepreneur: brings up new ideas, focuses on their passion, and is flexible, easy to adapt to changes, and can easily get out of their comfort zone.

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Description

Test your knowledge of key concepts, principles, and core competencies in entrepreneurship with this quiz. Learn about the process of identifying, creating, and pursuing opportunities to start and manage a new business, taking risks, organizing resources, and making innovations.

Entrepreneurship Chapter 1 Key Concepts

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