Maya rents a storefront, buys ovens, hires bakers, and decides what pastries to sell. Which factor of production is Maya supplying?

Jordan notices students near campus need bicycle repairs. He writes a business plan, rents a garage, and hires a mechanic to fix the bikes. Which factor of production does the mechanic supply?

A founder changes her product after customer feedback, then decides whether to spend money on a new design. Which entrepreneurial function is she performing?

Luis opens a mobile car-wash business and chooses its prices, suppliers, and advertising plan. Why is Luis classified as an entrepreneur?

A team starting an online tutoring service buys laptops and video software for its tutors to use. Which factor of production are the laptops and software?

Before opening a food truck, Renee studies local customers and decides to sell meals not offered by nearby restaurants. Which entrepreneurial action does this show?

A founder must decide whether to use limited startup funds for advertising or for more inventory. Which role is the founder carrying out?

A sole proprietor invests personal savings in a shop and signs its loan agreement personally. If the shop cannot repay the loan, what may the owner lose?

Two partners personally guarantee a loan for their new restaurant. The restaurant fails and cannot make payments. What risk did the partners accept?

A founder forms a corporation, invests her savings by buying shares, and the corporation later fails. What is she most directly at risk of losing?

Andre leaves a steady job to use his savings in a new landscaping business. The business closes without earning enough revenue. Besides his savings, what has Andre given up?

To obtain startup financing, Nia uses her home as collateral for a business loan. If she defaults under the loan terms, what personal risk has she accepted?

A founder buys inventory with a personal credit card and the inventory does not sell. What obligation can remain even after the business closes?

A sole proprietor's business loses a lawsuit and cannot pay from business assets, so the court can take the owner's personal savings. Which feature of a sole proprietorship does this show?

A new café opens on a block that already has several popular cafés. Most people keep going to the cafés they know, and the new café cannot cover its costs. Which cause of failure is most evident?

A contractor has many completed jobs but cannot pay suppliers because customers will not pay invoices until later. What business problem is causing the immediate failure risk?

A shop owner sets prices without tracking shipping, materials, or employee costs. Sales rise, yet the shop still loses money. What likely caused the failure?

A founder opens a winter-coat store in a city where it is warm all year. Very few customers buy coats. What was the key failure?

After one profitable month, a startup leases several more locations and hires many workers before revenue is steady. It soon cannot pay its bills. What failure cause best fits?

A business pays wages, rent, interest, and all other costs. The money left from sales revenue belongs to the entrepreneur. What is that remainder called?

A boutique has a salaried manager, a landlord, a bank loan, and an owner. When sales rise or fall, whose payment changes the most?

A print shop pays its employees' wages, pays rent to its landlord, and pays interest to its lender before the owner takes anything. One month, revenue exactly covers those three payments with nothing left over. What does the owner receive for that month?

In the factors-of-production model, which payment is the return to entrepreneurship?

A venture's revenue is less than its costs for labor, land, and capital. What has happened to the entrepreneur's return?

Why can profit be viewed as a reward for entrepreneurship rather than a guaranteed payment?