Entrepreneurship Quiz

What is a characteristic often found in entrepreneurs according to the summary?

• Pessimism

• Dependence on others

• Confidence

• Lack of enthusiasm

What do successful entrepreneurs have that contributes to their success?

• A product idea, potential customers, technical know-how, and financial resources

• A large corporation

• A partnership with unlimited liability

• A sole proprietorship with limited liability

What can cause a business to disappear?

• The owner decides to expand the business

• The owner sells the business, retires, or dies

• The business forms a partnership

• The business becomes a corporation

What is a sole proprietorship?

• A business owned by two or more people

• A business with limited liability

• A business one person owns

• A business that is part of a corporation

What is a disadvantage of sole proprietorships?

• They are difficult to form

• They have unlimited liability

• They require many owners

• They cannot sell products or services

How do partnerships generally compare to sole proprietorships in terms of financial resources?

• Partnerships have less money than a sole proprietorship

• Partnerships and sole proprietorships have the same amount of money

• Partnerships generally have more money than a sole proprietorship

• The financial resources of partnerships and sole proprietorships are not comparable

What is a unique feature of corporations compared to sole proprietorships and partnerships?

• Corporations have unlimited liability

• Corporations can sell stock shares

• Corporations cannot enter into contracts

• Corporations are owned by a single person

What does the circular flow model show?

• The process of exchange among consumers, businesses, and governments

• The unlimited liability of partnerships

• The tax exemptions for sole proprietorships

• The stock market trends for corporations

What does the circular flow model not show?

• How a change in one part of the economy affects the other parts

• The process of exchange among consumers, businesses, and governments

• A complete picture of an economy

• The role of stockholders' dividends in corporations

What are the three elements in the circular flow model?