IBT Final Exam Review (Spring)

This is the most common form of a business organization.

• Sole proprietorship

• General Partnership

• Franchise

• Corporation

Which form of ownership is the easiest to start?

• Sole proprietorship

• General Partnership

• Franchise

• Corporation

What is an advantage of a Corporation?

• Closely regulated by the government

• Unlimited liability

• Subject to multiple taxing

• Corporation's individual stockholders are not responsible for debts.

What does unlimited liability mean?

• Owner's can lose only what they put in.

• Owner's can lose everything they own.

• Owner's lose some of their stuff.

• Owner's don't lose anything.

In a corporation, people who invest in a company by purchasing stock are called?

• Board of Directors

• Stockholders

• Partners

• Franchises

Someone who recognizes a business opportunity and organizes, manages, and assumes the risks of starting a business.

• Business Owner

• Manager

• Entrepreneur

• Director

Which one of the following statements is true about entrepreneurs?

• Entrepreneurs usually work hard and for long hours.

• Entrepreneurs prefer to assign the decision-making responsibility to employees.

• Entrepreneurs would rather work for others.

• Entrepreneurs usually give up quickly when their businesses are not immediately successful.

What is one of the risks of being an entrepreneur?

• Being fully responsible means the success or failure of your business rests on you.

• Problems can happen that you don’t expect. 

• You may not get a paycheck.

• All of the above

What are the characteristics of an entrepreneur?

• care-free & reckless

• rich & intelligent

• determined & responsible

• bossy & afraid

The type of document that describes all the steps necessary in opening and operating a successful business.

• marketing plan

• owner’s equity plan

• financial plan

• business plan