Entrepreneurship Basics
What term describes the process of designing, launching, and running a new business?
Entrepreneurship
Give one personal trait that helps entrepreneurs keep going when progress is slow.
Perseverance / determination (or other valid trait such as discipline, resilience).
Roughly what percentage of new businesses fail within the first 10 years?
About 65%
What do economists call the value of the best alternative you give up when you make a choice?
Opportunity cost
What type of business sells a skill or expertise rather than a physical product?
Service business
What do we call a person who creates, owns, and potentially runs a business; literally “one who undertakes”?
Entrepreneur
Name one practical skill that is useful for an entrepreneur when dealing with customers or partners.
Communication skills (or social skills, decision‑making, organization, etc.)
What term describes the drive to make decisions that maximize earnings, encouraging innovation and efficiency?
Profit motive
If you stay up late to work on a business plan, what is one possible opportunity cost?
Sleep / energy the next day / ability to focus in class (any reasonable).
A grocery store that buys finished goods and resells them to customers is what type of business?
Retail business
Name two well‑known companies that started very small (e.g., in a garage or selling out of a car).
Any two of: Amazon, Apple, Nike (or similar examples from lesson).
What are the three main categories of entrepreneurial qualifications?
Knowledge & Education; Work Experience; Drive & Personal Traits
Besides profit, name one other motivation that might lead someone to start a business.
Solving a problem / creating something meaningful / helping the community / independence (any valid).
Jeff Bezos left a high‑paying job to start Amazon. What was his opportunity cost?
His salary, stability, career path, and future earnings he gave up.
Which ownership structure has one owner with unlimited personal liability?
Sole proprietorship
Entrepreneurship is described as both a process and what other important concept?
A mindset
Why is financial literacy important for entrepreneurs?
“Because they need to understand income, expenses, budgets, and profit to keep the business from losing money.”
According to Austrian economists, where does the value of a good or service come from?
From what consumers believe it is worth (subjective value).
What does the phrase “There is no such thing as a free lunch” mean in economics?
“Even if something seems free, someone pays; every benefit has a hidden cost or trade‑off.”
Which ownership structure provides limited liability and is often chosen by small to mid‑sized businesses that want protection without heavy corporate rules?
LLC (Limited Liability Company)
Explain in one sentence why having an idea alone is not enough to be an entrepreneur.
“Because entrepreneurship requires taking action in a market with customers, not just thinking of an idea.”
Explain why recognizing your own weaknesses can be a strength for an entrepreneur.
“Because it shows what you need to learn, helps you ask for help, and allows you to build a team that balances your gaps.”
In Austrian economics, how does competition help the market over time?
“Competition is a discovery process that leads to better products, lower prices, and more efficient use of resources as entrepreneurs experiment and respond to preferences.”
Describe one everyday decision you might make and identify its opportunity cost.
“Choosing to spend $50 on a video game means I cannot use that $50 for savings or another purchase; the opportunity cost is the next best thing I could have bought or saved.”
A group wants to raise large amounts of money by selling stock and plans to operate in many states. Which ownership structure is best suited, and what is one disadvantage?
“A corporation; disadvantage: it is more complex, expensive, and heavily regulated (and may face double taxation).”