22 Entrepreneurship Quiz

What is the definition of an entrepreneur?

• A person who invests in stocks and bonds

• A person who starts a new business and takes on the risks, responsibilities, and potential rewards of building and operating that business

• A person who works as an employee in a large corporation

• A person who manages a government organization

What is the principal source of new jobs in the US economy?

• Large corporations

• Government agencies

• Small businesses

• Non-profit organizations

What are two benefits of owning a franchise?

• High initial investment and lack of support

• Exclusivity and lack of training

• Proven track record of success and support from the franchiser

• Limited market and lack of location assistance

Why do some entrepreneurs start their businesses in their homes?

• To have a professional business environment

• To have a larger space for operations

• To keep costs down while the business is getting established

• To have a prestigious business address

What are overhead expenses?

• Costs that are not directly related to the production of goods or services

• Costs directly related to the production of goods or services

• Costs that are paid only once at the start of the business

What is the purpose of a business license?

• To track and tax businesses

• To provide financial assistance to businesses

• To regulate the prices of products and services

• To provide free advertising for businesses

List the three basic structures used to organize a business.

• Sole proprietorships, cooperatives, and conglomerates

• Partnerships, franchises, and corporations

• Sole proprietorships, partnerships, and corporations

• Non-profit organizations, government agencies, and franchises

Explain how capital expenses differ from fixed expenses.

• Capital expenses are one-time costs needed to get the business started, while fixed expenses must be paid regularly in set amounts

• Capital expenses must be paid regularly in set amounts, while fixed expenses are one-time costs needed to get the business started

What is the purpose of bookkeeping?

• To analyze the financial data recorded for a person or business

• To record income and expenses for a person or business

• To provide marketing strategies for a person or business

• To provide legal advice to a person or business

How is profit ratio calculated?

• By dividing the total costs by the total expenses

• By adding the total profit to the total expenses

• By adding the total profit to the total receipts

• By dividing the total profit by the total receipts