Ben and Chris Combined Their Love of Football with a Business

question 288

Multiple Choice

Ben and Chris combined their love of football with a business venture. They purchased a small portable cart and began selling football memorabilia outside of the hometown stadium. Their first year went well, but the past two years have been a real struggle. Due to poor economic conditions including loss of jobs, ticket sales at the stadium are down, which has significantly hurt their sales as well. As a recent business school graduate, you explain to Ben and Chris that:

• A) this type of business is always high risk because it is seasonal.
• B) the business does not fill a sufficient need for most people.
• C) environmental circumstances are dynamic and tough to control.
• D) social entrepreneurs are currently getting most of the attention.

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Definitions:

Consumer Sovereignty

The concept that consumers' preferences and decisions dictate the production of goods and services in an economy, emphasizing the power of consumer choice.

Market Economy

An economic system where supply and demand from private enterprise make all the economic decisions.

Economic Profit

The split between entirety of income and the full scope of expenditures, considering both clear and implicit financial obligations.

Production Techniques

Methods and processes used in the creation of goods and services, influenced by technology, labor skills, and resource availability.