Strategic Entrepreneurship Review

In order for a business to generate a profit, its operating costs must be

• close to the gross margin

• less than the gross margin

• the same as the gross margin

• greater than the gross margin

Variable expenses increase in direct proportion to the

• employment rates

• production rates

• mortgage rates

• automation rates

A disadvantage of a general partnership is that

• each partner is liable for the business's losses.

• the government watches you more closely.

• each partner has equal investment in the company.

• they must come up with a partnership agreement.

A major advantage of a sole proprietorship is

• that it is easy work.

• more than one set of skills.

• costs more to start.

• ease of start up.

Joseph starts a tennis school. His former pro advises him with the school's start-up.

• The former pro is acting as a leader

• The former pro is acting as a partner

• The former pro is acting as a mentor

• The former pro is acting as a middle man

What is often a positive result of accepting responsibility for a poor decision?

• You don't receive any of the blame.

• You gain others respect.

• You cause people to be skeptical.

• You earn future business.

A reliable online source of general business start-up information:

• Google

• University of Cincinnati's website

• Small Business Administration (www.sba.gov).

• National Federation of Retailers

An entrepreneur considers venture location and financial needs during the

• banking process.

• discussion process.

• logistic process.

• planning process.

Emotional risks that many entrepreneurs face include

• unemployment

• competition

• family problems

• inflation

Entrepreneurs often discover business start-up ideas by looking for gaps between

• financial markets.

• features and benefits.

• interest and inflation rates.

• what is currently being done and what needs to be done.