Final (Questions) Flashcards
The amount of goods or services that consumers are willing and able to buy is determined by
Demand
The chances of a new business succeeding are good with
Effective planning and management
A new business’s ability to start and grow is affected by which of these variables?
A. Favorable taxes, good markets, and supportive governmental policies
B. Incentives to create new businesses
C. The nature of the venture and availability of resources
D. All of the above
D. All of the above
The amount of a good or service that producers are willing to provide is called
Supply
A business that is operating under a new name or a business that had been purposely discontinued to start a new one is considered a
Discontinuance
A key element in a market economy between similar businesses is
Competition
A business that files chapter 7 bankruptcy and loses money for creditors and investors is considered a
Business failure
A successful entrepreneur is willing to work until a job is done. What term describes this characteristic?
Persistent
Entrepreneurs must understand how the economy works. What skills this describe?
Basic business skills
The success or failure of an entrepreneurial venture rests entirely on the
Owner
Being and entrepreneur involves risks as well as rewards. What is a risk of being an entrepreneur?
Uncertain income
Entrepreneurs want to know as much as possible about anything that might affect their ventures. What term describes this characteristic?
Inquisitive
Business ownership carries with it a amount of
Prestige
Entrepreneurs want to make their own decisions which word best describes characteristic?
Independent
What is one contribution that a business owner makes to the community?
Generates jobs
Hiring a firm to design and produce packaging for your product is example of
Outsourcing
Which of the following are some major trends for the creation of new businesses?
A. New kinds of strategic alliances
B. Increased emphasis on outsourcing
C. Growth of home-based businesses
D. All of the above
D. All of the above
To find a new business you may need to hire a
Business broker
One way to prevent some of the problems the family business face is to
Establish clear lines of responsibility
An asset of acquiring an existing business is customer loyalty or
Goodwill
A partner his liability is limited to his or her investment is called a
Limited partner
Partners that all have unlimited personal liability and take full responsibility for the management of the businesses are
General partners
Which type of a corporate form is expensive to set up?
C-corporation
One major type of a corporation is a
Subchapter S
The owner of a sole proprietorship is the only one who receives
Profits
The law requires that all partnerships have at least one
General partner
The easiest and most popular form of business to create is the
Sole proprietorship
The principal disadvantage of a sole proprietorship is
Financial
McDonald’s is an example of a
Franchise
Before you can determine if a new venture is feasible you must prepare
A business plan
To identify consumer markets you should be aware of
Demographic changes
Revenues lost to lower prices can be made up through
Higher volume
