Economics of Business Ownership Chapter 1 Test Review

When studying for the upcoming chapter test, be sure to review all objectives and key terms as well as any text that is highlighted or in bold print. Pay close attention to the following:

• Explain how the laws of supply and demand (in a free enterprise system) affect entrepreneurship.
• Distinguish between elastic & inelastic demand.
• Describe economic systems.
• Discuss the role of economic indicators and business cycles.
• Describe what entrepreneurs contribute to the economy.
• Discuss the five components of the entrepreneurial start-up process.
• Explain how to achieve business success.
• Distinguish between business failure and discontinuance.
• Explain the concept and role of competition in a free enterprise.
• Define venture.

Be sure to bring your chapter notes and a #2 pencil with you to class for the test on Thursday, 9/21.