Entrepreneurship Midterm Review

Which of the following is a way that entrepreneurship helps our society:

• Creates new jobs

• Reduces taxes

• Eliminates financial concerns

• Decreases economic growth

One difference between entrepreneurs and small-business owners is that:

• entrepreneurs usually purchase existing businesses or franchise rights.

• small-business owners generally are not interested in expanding their businesses.

• entrepreneurs rarely manage the day-to-day aspects of their businesses.

• small-business owners usually employ between 500 and 1,000 workers.

While managers help make entrepreneurs’ visions a reality, they aren’t required to:

• set business objectives.

• assume the risk involved.

• formulate company policy.

• implement procedures.

The most likely reason an individual might turn a woodworking hobby into a business is because of:

• higher taxes.

• guaranteed financial security.

• personal satisfaction.

• sales quotas.

Michelle’s primary reason for starting her own business is her desire to make her own schedule. Michelle is looking forward to the ________ she hopes to have as a business owner.

Many businesses fail due to insufficient capital. Insufficient capital is also known as a lack of:

• advertising.

• money.

• employees.

• commitment.

In the early stages of a startup business, entrepreneurs assume sole responsibility for:

• all aspects of their businesses.

• global economic growth rates.

• the demand of their products.

• the daily activities of competitors.

Technological advancements have made it possible for some entrepreneurs to:

• reduce the need for maintaining financial records.

• eliminate the need to pay income and Social Security taxes.

• run their businesses with fewer computer skills.

• operate their businesses entirely from their computers.

Governments can encourage entrepreneurial development by

• increasing interest rates on loans.

• establishing higher ethical standards.

• deregulating and reducing taxes.

• passing more legislation with strict guidelines.

What is a disadvantage of entrepreneurship?

• Personal satisfaction

• Uncertain income

• Lower taxes

• Fewer resources