If Profit-Seeking Entrepreneurs Are Going to Be Successful, They Must

question 144

Multiple Choice

If profit-seeking entrepreneurs are going to be successful, they must

• A) produce a product that the consumers value more than the resources required for its production.
• B) produce the product more cheaply than their rivals regardless of quality.
• C) maximize the salaries of high-level management so they will be able to attract people who will work hard.
• D) charge a higher price than their competitors so they can make economic profits in the long run.

---

Definitions:

Legitimate Power

Power based on the position a person holds in an organization that is effective only when followers believe in the structure that produces this power.

Informal Group

A group formed naturally with no official structure or formal recognition, often based on personal relationships.

Group Process

The sequence of dynamic interactions and developments that occur within a group setting over time.

Group Development

The phases or stages a group goes through as it forms, progresses, and possibly disbands, including forming, storming, norming, performing, and adjourning.