Mod 3. exam Review

An entrepreneur is best defined as a person who

• manages a business

• is a role model for young Americans

• manages the finances of a large corporation

• takes financial risk to try new business ideas

Samuel F.B. Morse patented the

• telegraph

• automobile

• audio recorder

• radio transmitter

You are starting a lawn care business. Which of the following would be a needed land resource?

• Lawns

• Oil

• Lawnmower

• Hedge clippers

Your friend wants to open a clothing shop. A necessary capital resource is a

• place to open the shop

• knowledgeable fashion manager

• license to conduct business

• highway billboard for advertising

Meg and her mother are opening a cupcake shop. They buy an oven, a walk-in cooler, and a decorating table. In terms of factors of production, what are these items?

• Capital

• Entrepreneurship

• Labor

• Land

Jessica is a violinist who believes she can extend her method of learning music to early childhood education. She opens a preschool in her hometown, using her expertise to form an arts-based program. What factor of production is this?

• Capital

• Entrepreneurship

• Labor

• Land

Your friend likes to direct all the activities of his business. It would be best for him to create a

• limited liability company

• sole proprietorship

• corporation

• partnership

Your friend hopes to expand her business to multiple locations. It would be best for her to create a

• limited liability company

• sole proprietorship

• corporation

• partnership

Your friend lacks the financial capital to start a business. You offer to help him and he accepts. You and your friend create a

• sole proprietorship

• sole proprietorship

• corporation

• partnership

Antonia runs her own business as a cabinetmaker. What benefit and what drawback does her sole proprietorship entail?

• Control over decision making, but high costs

• Shared liability, but shared profits

• Total control, but total liability

• More investment, but double taxation