Bus Man Ch 4&5 Test

May is a fitness expert who starts her own personal training company. She conducts fitness classes for women and provides personal training sessions for clients. May can be regarded as a(n)

• investor

• entrepreneur

• shareholder

• inventor

Doreen owns a small shoe repair company and is a sole proprietor. This means that she is personally responsible for payment all of the debts.

• True

• False

A person who is involved in the process of creating and managing a business to achieve his or her desired objectives is engaged in

• capitalization

• economics

• entrepreneurship

• philanthropy

Rings and Things, an independent jewelry store, acquires jewelry and accessories from producers and wholesalers and sells them to consumers. Rings and Things is a

• manufacturer

• retailer

• wholesaler

• direct sales company

       Lim Limited partners do not participate in the management of the business.do not participate in the management of the busin

• True

• False

The assets and liabilities of a corporation are separate from its owners.

• True

• False

Hideki worked for a large corporation for years, and he felt like he did not fit in the “corporate mold” anymore. He decided to start his own business because he wanted the freedom to choose with whom he works and when and where he works. What advantage of small-business ownership seems the most prevalent in this example?

• cost

• independence

• flexibility

• focus

What is one of the difficulties faced by small-business owners that causes stress?

• high cost of formation

• inability to focus on certain groups of customers

• worry about employee problems

• limited scope for inovation

Kenneth starts a consulting firm with his friend Amie. They decide to equally share the profits and have unlimited liability for the debts of their business. Such unlimited liability can be a distinct disadvantage for Kenneth if he has

• fewer financial resources than Amie

• more financial resources than Amie

• comparable resources to Amie

• if he has the exact same financial resources as Amie

Chanda is a very talented computer programmer who starts her own small software development firm. She finances the firm from her savings. Initially, she is able to get many projects from customers and completes them successfully. However, as her business grows, she fails to make good decisions in hiring new employees, billing the clients, and negotiating prices. She eventually ends up liquidating the business. Which cause of small-business failure does this scenario best illustrate?

• managerial experience

• debt financing