Week 3 Quiz

An illustrative ride-share driver keeps hearing riders ask for help moving furniture, rents a trailer, recruits a friend, and starts a weekend moving-help service with no promise that it will work. Which statement fits this week's description of an entrepreneur?

Select one.

• The driver counts as an entrepreneur only after passing a fixed checklist of personality traits
• The driver starts and runs a venture and carries its risk, and the tendencies shown are habits
• The driver is not an entrepreneur, because a weekend service is too small to count as a venture
• The driver is an entrepreneur because the service is certain to take in more than it spends

In the moving-help service, the driver spots a chance to sell, combines a trailer, a friend's labor, and free weekends, and carries the risk that the service fails. Which of the four factors of production is the driver supplying?

Select one.

• Labor, because the driver also lifts furniture
• Capital, because the driver rents a trailer
• Entrepreneurship
• Natural resources, because the service uses roads

According to the SBA Office of Advocacy's Frequently Asked Questions About Small Business 2026, what share of U.S. businesses are small?

Select one.

• 99.9 percent
• About 50 percent
• About 36 percent
• About 10 percent

The SBA uses one national cutoff, fewer than 10 employees, to decide whether any business in any industry counts as small.

True or false.

• True
• False

An illustrative owner wants to find out this month whether neighbors will pay for weekend bike repairs at their homes, and no lender is involved yet. Which business-plan format fits this task best?

Select one.

• A traditional plan with all eight sections, because every plan must be complete before any test
• A funding request alone, because the owner mainly needs to know where money comes from
• No plan at all, because a plan is written once and filed after the business opens
• A lean startup plan, which sums up the key elements on about one page so the idea can be tested quickly

In the five forces analysis of the illustrative coffee cart's industry, a chain café is about to open nearby. Before it opens, which force does it show most directly?

Select one.

• The threat of substitute products or services
• The bargaining power of suppliers
• The threat of new entrants
• The bargaining power of customers

In the five forces analysis of the illustrative coffee cart's industry, office workers buy bottled cold brew from a grocery store instead of a drink from a cart. Which force does this show?

Select one.

• Rivalry among existing competitors
• The threat of substitute products or services
• The bargaining power of suppliers
• The threat of new entrants

The illustrative coffee cart faces rising bean prices. How does this fact appear in the cart's SWOT from Week 1 and in this week's five forces?

Select one.

• A threat in the SWOT, because it sits outside the cart; the bargaining power of suppliers in the five forces
• A weakness in the SWOT, because it hurts the cart; rivalry among existing competitors in the five forces
• An opportunity in the SWOT, because it sits outside the cart; the bargaining power of customers in the five forces
• A strength in the SWOT, because the cart buys beans; the threat of new entrants in the five forces

The illustrative coffee cart's start-up list: cart and equipment 20,000 dollars, opening inventory 2,000 dollars, and a cash cushion of 8,000 dollars. What are the cart's start-up needs?

Select one.

• 10,000 dollars
• 20,000 dollars
• 22,000 dollars
• 30,000 dollars

The illustrative coffee cart needs 30,000 dollars to open. The owner puts in 20,000 dollars, and an equipment loan of 10,000 dollars covers the rest at 10 percent a year. What is the first year's interest on the loan?

Select one.

• 1,000 dollars
• 3,000 dollars
• 2,000 dollars
• 100 dollars