Enterprise and Marketing TA 5

Which of these is a risk that an entrepreneur could experience when they start a new business?

• Limited liability

• Opportunity to make a profit

• Personal relationship issues

• Self-satisfaction

Which factor does not influence the price that Charlie sets for a new product?

• Income levels of target customers

• Limited liability

• Price of competitor products

• Stage of the product life cycle

Who can best help an entrepreneur calculate the profit made during the past year?

• A solicitor

• An accountant

• The government

• The local council

Which of the following is a disadvantage of running a business as a partnership?

• Can share ideas to expand the business

• Limited legal requirements

• Must share profit amongst the shareholders

• Unlimited liability

Which of the following is a feature of a business grant?

• A limited amount of funds are generally available

• Only sole traders can apply for a grant

• The grant provider will ask for a royalty fee

• The need to make monthly repayments to repay the grant

What is the name given to individuals who donate money to a crowdfunded project?

• Lenders

• Owners

• Shareholders

• Sponsors

Which source of capital for a business start-up is most likely to be offered by a group of investors?

• Bank loan

• Business angel

• Crowdfunding

• Small business grant

Which of the following groups always receives a share of any profit earned by a business?

• Customers

• Employees

• Lenders

• Owners

Which of the following sources of capital usually includes business advice from an experienced entrepreneur?

• Bank loan

• Business angel

• Crowdfunding

• Own savings

Which of the following is a benefit of limited liability for the owners of a business?

• Profit must be shared equally between them

• They can easily raise extra capital by issuing more shares

• They must repay all the debts of the business

• They will only lose the amount they invested in the business if it fails