PBAM Unit 2 Review: Entrepreneurship

Which entity is defined as independent and has little influence on its market?

• corporation

• joint venture

• small business

• partnership

Entrepreneurs often have more than one goal for starting a business and becoming self-employed. Which of the following reasons is the LEAST common goal of entrepreneurs?

• to seek independence and be their own boss

• to grow and expand a current business

• to earn a comfortable living for a period of time

• to meet community or social obligations

What is the most significant disadvantage of owning a franchise?

• start-up costs

• difficulty obtaining loans

• double taxation

• competition

Which of the following is the most significant disadvantage of starting a business from scratch?

• inability to franchise

• having few employees

• having competition

• the risk of failure

What is the most important source of money for new business start-ups?

• the SBA

• personal resources

• government grants

• venture capital

Which of the following types of businesses is most common in the United States?

• sole proprietorship

• general partnership

• corporation

• limited partnership

Which type of business is legally considered a separate entity from its owners and is liable for its own debts?

• sole proprietorship

• general partnership

• corporation

• limited partnership

The U.S. Department of Commerce considers a business "small" if it has fewer than how many employees?

• 10

• 50

• 100

• 500

Which of the following are groups of small investors seeking to make profits on companies with rapid growth potential?

• community banks

• venture capital companies

• equity managers

• stock brokers

Which of the following is the most significant recent trend in small-business start-ups?

• entrepreneurs who cross over from big business

• emergence of e-commerce

• increased opportunities for minorities

• increased opportunities for women