Intro to Business Economics & Entrepreneurship

An important characteristic of a successful entrepreneur is that:

• they are always rich
• they are risk takers
• they are usually shy
• they want to avoid hard work

A ________ must name a board of directors that will make the major policy and financial decisions for the business.

• limited liability company
• proprietorship
• corporation
• limited liability partnership

In what type of business organization is each owner personally liable for all business debts, even if the debts were created by other owners?

• corporation
• partnership
• proprietorship
• S corporation

The easiest form of business to start and end is a(n)

• limited liability partnership
• S corporation
• franchise
• proprietorship

Disadvantages include unlimited liability, difficult to raise financial capital, difficulty attracting qualified employees, limited life

• Sole Propriotorship
• Partnership
• Corporation

Disadvantages include double taxation and more government regulation

• Sole Propriotorship
• Partnership
• Corporation

The concept that human wants and need for resources, goods, and services exceed what is available is called:

• Supply
• Demand
• Scarcity
• Elasticity

Competition forces businesses to produce poor-quality products at low prices.

• True
• False

When the supply of a product exceeds the demand, businesses usually lower its price.

• True
• False

The amount of money available to the business after all costs and expenses have been paid.

• selling price
• product costs
• operating expenses
• profit