Chp 27 Starting a Business

Chp 27 Starting a Business

Multiple Choice

Person who takes the risk to start a new business.

• Entrepreneurship

• Entrepreneur

• Owner

• Manager

Multiple Choice

The process of taking the risk of starting a new business.

• Entrepreneurship

• Entrepreneur

• Owner

• Manager

Open Ended

Name an entrepreneur. (Any one who has started a business.)

Multiple Choice

True or False? Successful entrepreneurs are hardworking but not creative.

• True

• False

Multiple Choice

An advantage of entrepreneurship is that you determine your work schedule.

• True

• False

Multiple Choice

An advantage of entrepreneurship is that income is often irregular.

• True

• False

Multiple Choice

Entrepreneurs sometimes experience large financial losses.

• True

• False

Multiple Choice

The three basic ways to start a business are to ____.

• analyze the competition, buy a building, or join a professional association

• buy an existing business, buy a franchise, or start a business from scratch

• work for your parents, get ideas from friends, or join a chamber of commerce

• buy a building, get ideas from friends, or start a business from scratch

Multiple Choice

What is the main disadvantage of buying an existing business?

• The business may be for sale because it has problems.

• The business already has customers, employees, a location, equipment, and working operations.

• The business has a financial history.

• The seller may be willing to act as a consultant.

Multiple Choice

If you buy a franchise, you must follow rules set by the _____.

• Previous owner

• Franchisor

• Franchisee

• No one, you are the owner

Multiple Choice

Which of the following are the three forms of business ownership?

• Chain, franchise, and independent.

• Commercial, institutional, and within a business.

• Corporation, partnership, and sole proprietorship.

• Hotel, motel, and bed-and-breakfast.

Multiple Choice

The sole proprietorship structure of ownership has many government regulations.

• True

• False

Multiple Choice

Partnerships have the potential for conflict among the partners.

• True

• False

Multiple Choice

One of the advantages of the corporate structure of ownership is that the owner has total control.

• True

• False

Multiple Choice

Many entrepreneurs have to take out a loan which is...

• Money earned from a start up company.

• Money borrowed from a bank or other source, with the expectation that the money will be repaid with interest.

• Money borrowed from a bank or other source, with the expectation that the money will not be repaid.

• Money lent to entrepreneurs to start up new businesses.

Open Ended

What is a business plan?

(Use the definition from the previous slide)

Multiple Choice

Which of the following is the first part of the business plan, but is the last part written?

• Executive summary.

• Industry/market analysis.

• Marketing plan.

• Operations plan.

Multiple Choice

The section of the business plan that describes product, place, price, and promotion is the _________.

• executive summary

• sole proprietorship

• marketing plan

• customers

Multiple Choice

In a business plan, the description of a business should include the business concept, goals, and ownership structure.

• True

• False

Multiple Choice

Association of business people who work together to promote business in their area.

• U.S. Small Business Administration

• SCORE

• professional associations

• Chamber of Commerce

Open Ended

If you could own your own business one day, what would it be?