An unregulated price system alerts entrepreneurs to bring goods and services to market in which of the following ways?
- A Arbitrage and Creation/Innovation
- B Price Gouging and Haggling
- C Government Subsidies and Special Permits
- D Coercion and Fraud
The profit motive is the foundation of the market process?
- A True
- B False
When the United States set maximum prices for gasoline in 1973 and 1979, dealers sold gas on a first-come-first-served basis and drivers had to wait in long lines to buy gasoline The true price of gasoline, which included both the cash paid and the time spent waiting in line, was often higher than it would have been if the price had not been controlled In 1979, for example, the United States fixed the price of gasoline at about $100 per gallon If the market price had been $120, a driver who bought ten gallons would apparently have saved $20 per gallon, or $200 But if the driver had to wait in line for thirty minutes to buy gasoline, and if her time was worth $800 per hour, the real cost to her was $1000 for the gas and $400 for the time, an overall cost of $140 per gallon (from: http://wwweconliborg/library/Enc/PriceControlshtml) This is an example of:
- A Arbitrage
- B The Market Process
- C The Profit Motive
- D Price-controls (i.e. unfree prices)
Which of the following are important questions to ask when starting a business?
- A Is there a profit opportunity for my business?
- B Is the business environment a good one for my product/service?
- C Will other people think I am “crazy” or “stupid” for starting this business?
- D Both A & B
Surveying what other companies who seem to be selling products similar to yours is part of a _________________ analysis.
- A Technological analysis
- B Regulatory Analysis
- C Competitor analysis
- D Social forces analysis
A formal business plan does which of the following?
- A Serves as a guide for those inside the company
- B Makes clear to government regulators that the business is both legal and moral
- C Gives those outside the company, especially potential investors, reasons to believe why the company will be successful
- D Both A and C
The “Company Description” section of your Business Plan should include:
- A A history of your product, idea, or business
- B Key people involved
- C An organizational chart, if available
- D All the above
Which of the following should NOT a section in your Business Plan?
- A Executive Summary
- B List of Accolades and Honors
- C Financial Plan
- D Target Market
Answers to the four “P”s of marketing are to found in the Marketing Plan section of your Business Plan. The fours “P”s are:
- A Price, Perception, Publicity, Presentation
- B Price, Perception, Publicity, Presentation,
- C Publishing, Persuasion, Propaganda, Pacifying
- D Price, Pace, Persistence, Patience
You came up just a bit short. But don’t let that dampen your enthusiasm for the free enterprise system. Either re-watch a few of the videos or take a minute and re-take the quiz.
"Without failure there is no achievement."
- John C. Maxwell
Congratulations! You passed this quiz. Although you didn’t get every answer correct, you did manage to pull a passing grade. You are on your way to being a successful entrepreneur.
"The difference between a successful person and others is not a lack of strength, not a lack of knowledge, but rather a lack of will."
- Vince Lombardi
lesson 1Introduction to the Foundations of Free Enterprise
lesson 2The Entrepreneurial Role: Business Planning and Development
lesson 3Running a Business: Marketing, Pricing and Promoting Products
lesson 4Leadership and Ethical Decision Making: Running a Business with Integrity
lesson 5The Intersection of Business and Government: Is it “Free” Enterprise?