Final (Questions)

Question 1

The amount of goods or services that consumers are willing and able to buy is determined by

Answer 1

Demand

Question 2

The chances of a new business succeeding are good with

Answer 2

Effective planning and management

Question 3

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

Answer 3

D. All of the above

Question 4

The amount of a good or service that producers are willing to provide is called

Answer 4

Supply

Question 5

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

Answer 5

Discontinuance

Question 6

A key element in a market economy between similar businesses is

Answer 6

Competition

Question 7

A business that files chapter 7 bankruptcy and loses money for creditors and investors is considered a

Answer 7

Business failure

Question 8

A successful entrepreneur is willing to work until a job is done. What term describes this characteristic?

Answer 8

Persistent

Question 9

Entrepreneurs must understand how the economy works. What skills this describe?

Answer 9

Basic business skills

Question 10

The success or failure of an entrepreneurial venture rests entirely on the

Answer 10

Owner

Question 11

Being and entrepreneur involves risks as well as rewards. What is a risk of being an entrepreneur?

Answer 11

Uncertain income

Question 12

Entrepreneurs want to know as much as possible about anything that might affect their ventures. What term describes this characteristic?

Answer 12

Inquisitive

Question 13

Business ownership carries with it a amount of

Answer 13

Prestige

Question 14

Entrepreneurs want to make their own decisions which word best describes characteristic?

Answer 14

Independent

Question 15

What is one contribution that a business owner makes to the community?

Answer 15

Generates jobs

Question 16

Hiring a firm to design and produce packaging for your product is example of

Answer 16

Outsourcing

Question 17

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

Answer 17

D. All of the above

Question 18

To find a new business you may need to hire a

Answer 18

Business broker

Question 19

One way to prevent some of the problems the family business face is to

Answer 19

Establish clear lines of responsibility

Question 20

An asset of acquiring an existing business is customer loyalty or

Answer 20

Goodwill

Question 21

A partner his liability is limited to his or her investment is called a

Answer 21

Limited partner

Question 22

Partners that all have unlimited personal liability and take full responsibility for the management of the businesses are

Answer 22

General partners

Question 23

Which type of a corporate form is expensive to set up?

Answer 23

C-corporation

Question 24

One major type of a corporation is a

Answer 24

Subchapter S

Question 25

The owner of a sole proprietorship is the only one who receives

Answer 25

Profits

Question 26

The law requires that all partnerships have at least one

Answer 26

General partner

Question 27

The easiest and most popular form of business to create is the

Answer 27

Sole proprietorship

Question 28

The principal disadvantage of a sole proprietorship is

Answer 28

Financial

Question 29

McDonald’s is an example of a

Answer 29

Franchise

Question 30

Before you can determine if a new venture is feasible you must prepare

Answer 30

A business plan

Question 31

To identify consumer markets you should be aware of

Answer 31

Demographic changes

Question 32

Revenues lost to lower prices can be made up through

Answer 32

Higher volume