ENTREPRENEURSHIP FINAL EXAM REVIEW QUESTIONS ANSWERED CORRECTLY LATEST UPDATE
2026
Entrepreneurship - Answers The process of running a business of one's own.
Entrepreneur - Answers A person who owns, operates, and takes the risks of a business venture.
Small Business Prevalence - Answers They make up more than 99.9 percent of all U.S. businesses.
New Business Success Factors - Answers Adequate capital, employee capacity, and the owner's
education and experience.
Characteristics of Successful Entrepreneurs - Answers Independent, self-confident, goal-oriented, and
creative.
Personal Assessment for Entrepreneurship - Answers Evaluating your own strengths, weaknesses,
interests, and aptitudes.
Sources of Business Ideas - Answers Hobbies, interests, past experiences, and discoveries or
inventions.
SMART Goals - Answers Goals that are specific, measurable, attainable, realistic, and timely.
Goal Categories - Answers Financial and nonfinancial.
Problem-Solving Model Steps - Answers Define, gather info, identify solutions, evaluate alternatives,
take action, evaluate action.
Ways to Improve Problem-Solving Skills - Answers Communicating, brainstorming, and learning from
mistakes.
Economics - Answers Making choices to satisfy consumer wants and needs.
Needs vs. Wants - Answers Needs are survival essentials; wants are desires for satisfaction.
Economic Resources (Factors of Production) - Answers Natural resources, human resources, and
capital resources.
Entrepreneur Roles in the Economy - Answers Supply goods/services, provide capital investment,
create jobs, and drive change.
Command Economy - Answers An economic system where the government determines production
and distribution.
Market Economy - Answers An economy where individuals and businesses decide production and
distribution.
Mixed Economy - Answers An economic system combining elements of command and market
economies.
Traditional Economy - Answers An economy operated according to custom or tradition.
Principles of the U.S. Economic System - Answers Private property, freedom of choice, profit, and
competition.
Opportunity Cost - Answers The cost of the next-best alternative foregone when making a choice.
Four Functions of Business - Answers Production, marketing, management, and finance.
Supply vs. Demand - Answers Supply is producer willingness to sell; demand is consumer willingness
to buy.
Fixed Costs vs. Variable Costs - Answers Fixed costs stay constant; variable costs change with
production levels.
Four Major Market Structures - Answers Perfect competition, monopolistic competition, oligopoly,
and monopoly.
Business Plan - Answers A written document describing steps to open and operate a successful
business.
Main Body Sections of a Business Plan - Answers Introduction, Marketing, Financial Management,
Operations, and Concluding Statement.
Executive Summary - Answers The most important element of a business plan, written last.
Market Segmentation Bases - Answers Demographics, psychographics, use-based data, and
geographic data.
Primary vs. Secondary Data - Answers Primary data is collected firsthand; secondary data comes from
existing sources.
Customer Relationship Management (CRM) - Answers Technology used to track individual customer
interactions.
Direct vs. Indirect Competition - Answers Direct sells similar products; indirect makes small revenue
from similar products.
Marketing Concept - Answers Using customer needs as the primary focus of all business decisions.
2026
Entrepreneurship - Answers The process of running a business of one's own.
Entrepreneur - Answers A person who owns, operates, and takes the risks of a business venture.
Small Business Prevalence - Answers They make up more than 99.9 percent of all U.S. businesses.
New Business Success Factors - Answers Adequate capital, employee capacity, and the owner's
education and experience.
Characteristics of Successful Entrepreneurs - Answers Independent, self-confident, goal-oriented, and
creative.
Personal Assessment for Entrepreneurship - Answers Evaluating your own strengths, weaknesses,
interests, and aptitudes.
Sources of Business Ideas - Answers Hobbies, interests, past experiences, and discoveries or
inventions.
SMART Goals - Answers Goals that are specific, measurable, attainable, realistic, and timely.
Goal Categories - Answers Financial and nonfinancial.
Problem-Solving Model Steps - Answers Define, gather info, identify solutions, evaluate alternatives,
take action, evaluate action.
Ways to Improve Problem-Solving Skills - Answers Communicating, brainstorming, and learning from
mistakes.
Economics - Answers Making choices to satisfy consumer wants and needs.
Needs vs. Wants - Answers Needs are survival essentials; wants are desires for satisfaction.
Economic Resources (Factors of Production) - Answers Natural resources, human resources, and
capital resources.
Entrepreneur Roles in the Economy - Answers Supply goods/services, provide capital investment,
create jobs, and drive change.
Command Economy - Answers An economic system where the government determines production
and distribution.
Market Economy - Answers An economy where individuals and businesses decide production and
distribution.
Mixed Economy - Answers An economic system combining elements of command and market
economies.
Traditional Economy - Answers An economy operated according to custom or tradition.
Principles of the U.S. Economic System - Answers Private property, freedom of choice, profit, and
competition.
Opportunity Cost - Answers The cost of the next-best alternative foregone when making a choice.
Four Functions of Business - Answers Production, marketing, management, and finance.
Supply vs. Demand - Answers Supply is producer willingness to sell; demand is consumer willingness
to buy.
Fixed Costs vs. Variable Costs - Answers Fixed costs stay constant; variable costs change with
production levels.
Four Major Market Structures - Answers Perfect competition, monopolistic competition, oligopoly,
and monopoly.
Business Plan - Answers A written document describing steps to open and operate a successful
business.
Main Body Sections of a Business Plan - Answers Introduction, Marketing, Financial Management,
Operations, and Concluding Statement.
Executive Summary - Answers The most important element of a business plan, written last.
Market Segmentation Bases - Answers Demographics, psychographics, use-based data, and
geographic data.
Primary vs. Secondary Data - Answers Primary data is collected firsthand; secondary data comes from
existing sources.
Customer Relationship Management (CRM) - Answers Technology used to track individual customer
interactions.
Direct vs. Indirect Competition - Answers Direct sells similar products; indirect makes small revenue
from similar products.
Marketing Concept - Answers Using customer needs as the primary focus of all business decisions.
