Entrepreneurship Spring Final Review

A corporation is a legal structure in which the business is considered an "entity" under law.

• true

• false

Legal structure is

• the type of business ownership set up for the business.

• the business that is considered an "entity" under the law.

• the payment that corporations make to their shareholders as a share of the profit.

• a business owned, controlled, and operated by people who use its services.

A partnership is two or more individuals that share the management, profit, and liability of a business.

• true

• false

To set up a corporation in accordance with the laws where the business is located means to

• incorporate.

• create a cooperative

• create a corporation,

• none of these

A cooperative is a business owned, controlled, and operated by people who use its services.

• true

• false

A limited liability company

• combines the liability benefits of a corporation with the tax benefits of a sole proprietorship or partnership.

• is a business owned, controlled, and operated by people who use its services.

• operates not to provide profit for its shareholders, but to serve the good of the society.

• is a type of business owned by a single shareholder.

Expenses are things you will have to purchase to keep the business running.

• true

• false

Amount paid based on the volume of products or services that a salesperson sells.

• commission

• contribution margin

• COGS

• unit of sale

Salary is

• a fixed amount of money that an employee is paid on a regular basis.

• a variable amount of money that an employee earns based on the number of hours they work

• a percentage of sales that is earned

• none of these

Tom runs a mobile auto detailing company. He is looking for new customers for his low-priced service. He has identified some potential customers who will not pay high prices. Given this information, which segmentation method is Gary using?

• behavioral

• geographic

• psychographic

• demographic