Entrepreneurship Module 7 Quiz: Business in the Economy and Opportunities

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Questions and Answers

What is a market?

A place where buyers and sellers meet to exchange goods and services (correct)

A system for producers and consumers to act in their interests

A doctrine emphasizing a free market economy

A concept involving the buying and selling of goods and services

According to Adam Smith, what is the essence of the market?

Producers and consumers acting in their interests (correct)

A controlled economy

Equal distribution of wealth

Regulation by the government

What is meant by 'economies of scale'?

No correlation between production scale and input cost

Increasing input cost with production growth

Decreasing production units with a higher cost

Producing more units with less input cost on a larger scale (correct)

What is the core concept of trade?

Buying and selling of goods and services with compensation paid by a buyer to a seller Signup and view all the answers

How can commerce be defined?

The exchange of goods and services, especially on a large scale Signup and view all the answers

What is the purpose of coordination commerce?

To facilitate trade and commerce on a large scale Signup and view all the answers

In the economic sense, what does 'commerce' refer to?

The conduct of trade among economic agents Signup and view all the answers

What is the main characteristic of a business opportunity venture known as 'distributorship'?

Agreeing to offer and sell the product of another without using the manufacturer's trade name Signup and view all the answers

What is an externality in an economic context?

A benefit or cost imposed on a third party other than the producer or consumer of a good or service Signup and view all the answers

What is a key component of a business model according to Module 8?

Identifying the products or services to sell, its target market, and anticipated expenses Signup and view all the answers

What does 'vending machine routes' business venture involve?

Buying the machines and merchandise, and paying location owners a percentage based on sales Signup and view all the answers

Which type of content has the highest level of content engagement inside Facebook according to studies?

Video posts Signup and view all the answers

What does a business model describe?

How the business makes money and delivers value to customers at an appropriate cost Signup and view all the answers

'Rack jobbing' involves marketing goods through strategically located store racks. What does this type of business opportunity venture entail?

Agreeing with the parent company to market their goods to various stores through strategically located racks Signup and view all the answers

'Positive and negative externalities' refer to what in an economic context?

Benefits or costs imposed on a third party other than the producer or consumer of a good or service Signup and view all the answers

What is the main function of a market?

To facilitate the exchange or transaction of goods and services Signup and view all the answers

According to Adam Smith's doctrine of Laissez Faire, what characterizes the market?

A free market where producers and consumers act in their own interests Signup and view all the answers

What does it mean when a business achieves 'economies of scale'?

The business can produce more units of a good or service with less input cost on average Signup and view all the answers

What is the primary focus of coordination commerce involving trade and commerce?

To establish legal, economic, political, social, cultural, and technological systems for international trade Signup and view all the answers

What is the essence of trade in basic economic concept?

Involving the buying and selling of goods and services with compensation paid by a buyer to a seller Signup and view all the answers

What does the term 'commerce' refer to in the context of exchange of goods and services?

The exchange of goods and services, especially on a large scale Signup and view all the answers

What is the main focus of a business model?

Delivering value to customers Signup and view all the answers

What does a 'distributorship' business opportunity venture entail?

Offering and selling the product of another without using the manufacturer's trade name Signup and view all the answers

In the context of commerce, what is an externality?

A cost or benefit imposed on a third party other than the producer or consumer Signup and view all the answers

What is the core purpose of coordination in commerce?

To bring specialized people and resources together for production Signup and view all the answers

What is the primary goal of a vending machine routes business venture?

Maximizing profit margins from sales Signup and view all the answers

What does 'rack jobbing' involve as a type of business opportunity venture?

Agreeing to market the parent company's goods to various stores using store racks Signup and view all the answers

What is the primary characteristic of a business opportunity venture known as 'vending machine routes'?

The operator pays a percentage based on sales to the location owner Signup and view all the answers

What does 'positive and negative externalities' refer to in an economic context?

Side effects of economic activities imposing costs or benefits on third parties Signup and view all the answers

'Commerce' in an economic sense refers to which of the following?

The conduct of trade among economic agents Signup and view all the answers

'What to produce' in business models typically involves decisions related to:

Cost-effective design and manufacturing processes Signup and view all the answers

Study Notes

Market and Commerce

A market is a platform where goods and services are exchanged between buyers and sellers.
According to Adam Smith, the essence of the market is the "invisible hand" that guides economic activities.
Commerce refers to the exchange of goods and services, and its primary focus is on trade and commerce.
The core concept of trade is the exchange of goods and services between individuals or businesses.
Commerce can be defined as the exchange of goods, services, or something of value between businesses, organizations, or individuals.

Economies of Scale

Economies of scale refer to the cost advantages that a business can achieve by increasing its production volume or scale.
When a business achieves economies of scale, it means it can produce goods or services at a lower cost per unit.

Business Opportunities and Models

A distributorship is a business opportunity venture where a business purchases products from a supplier and sells them to customers.
A vending machine routes business venture involves the operation of vending machines that dispense products to customers.
Rack jobbing is a business opportunity venture that involves marketing goods through strategically located store racks.
A business model describes how a business will operate, including what products or services it will offer, how it will produce and deliver them, and how it will generate revenue.

Externalities and Coordination

In an economic context, an externality refers to a positive or negative impact of a business's actions on third parties, such as the environment or society.
Positive and negative externalities refer to the unintended consequences of a business's actions on third parties.
The main function of a market is to facilitate the exchange of goods and services between buyers and sellers.
According to Adam Smith's doctrine of Laissez Faire, the market is characterized by minimal government intervention.
The primary focus of coordination commerce is on facilitating trade and commerce between businesses and individuals.

Miscellaneous

In the context of commerce, what to produce typically involves decisions related to the products or services a business will offer.
According to studies, video content has the highest level of engagement inside Facebook.
The primary goal of a vending machine routes business venture is to operate vending machines that dispense products to customers.
The primary characteristic of a vending machine routes business venture is the operation of vending machines.

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Description

This quiz covers Module 7 of APP 004, focusing on the role of business in the economy and identifying opportunities. Topics include the concept of markets, transmission of information between buyers and sellers, and Adam Smith's doctrine of Laissez Faire.

Entrepreneurship Module 7: Business in the Economy and Opportunities

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