Alberto buys a hot dog from a food truck for 5. This amount is the food truck's _______.
A) variable cost
B) fixed cost
C) contribution margin
D) breakeven amount
E) revenue
Question 2 - Although Tamara currently has just one pet-grooming store, she wants to validate the business model and prove it can be profitable. Once she has done that, her larger plan is to franchise the idea across the country. This relates to the entrepreneurial characteristic of:
A) confidence.
B) energy.
C) internal drive.
D) vision.
E) tolerance for uncertainty.
Question 3 - The amount of money that a seller is willing to accept in exchange for a product, at a given time and under given circumstances, is called the:
A) revenue.
B) income.
C) discount.
D) price.
E) breakeven quantity.
Question 4 - Internal drive, one of the characteristics of entrepreneurs, relates to:
A) the ability to act decisively and lead the business.
B) thinking strategically and creatively and effectively managing the details required to make their vision a reality.
C) being comfortable knowing that success isn't guaranteed and failure is common.
D) the desire to control one's own destiny, which serves as motivation, and the belief that this control can help them take action to overcome setbacks.
E) putting in long hours to make their business dreams come true.
Question 5 - The first Blu-ray player released by Samsung in 2006 cost 1000. Samsung, the only producer of Blu-ray players at the time, was able to set the price high because:
A) the economy was thriving, and consumers could afford to spend 1000.
B) the Blu-ray was in the beginning stages of the product life cycle.
C) there was a lot of competition within the industry, and Samsung had to price the Blu-ray accordingly.
D) the economy was struggling, and 1000 was a low price.
E) the Blu-ray was in the late stages of the product life cycle.
Question 6 - One of the reasons why Steve Jobs was a successful entrepreneur was his ability to take his ideas and turn them into actual products. His innovative and creative ideas and ability to excite others about the potential of these ideas relate to the entrepreneurial characteristic of:
A) energy.
B) internal drive.
C) vision.
D) tolerance for uncertainty.
E) confidence.
Question 7 - Suppose you are the marketing manager for a furniture company. The company is getting ready to release a new line of dining tables and china cabinets that feature hand carving. This requires approximately 10 hours of additional labor than tables and cabinets that do not have hand carving. As a result, you decide that your company must price these items higher. Your pricing decision is based on which of the following considerations?
A) The economy currently being in a recession, and customers having less disposable income
B) What competitors charge for similar items
C) The maximum price customers are willing to pay
D) Your cost to produce the product
E) An increase in your company's tax rate
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