Entrepreneurship Final Review

Which term refers to an individual who starts and runs a business, taking on financial risks in the hope of profit?

• Investor

• Franchisee

• Entrepreneur

• Franchisor

What is the term for the money invested in a business to generate income?

• Profit

• Capital

• Supply

• Demand

Which term describes a business arrangement where one party allows another to use its trademark and business model?

• Sole proprietorship

• General Partnership

• Franchise

• LLC

What is the term for the economic system where private businesses operate in competition and largely free of state control?

• Free enterprise system

• Limited partnership

• S Corporation

• Small Business

Which term refers to the condition where resources are limited in relation to wants and needs?

• Supply

• Scarcity

• Equilibrium

• Demand

What is the term for a business owned and operated by one person?

• General Partnership

• Limited partnership

• Sole proprietorship

• S Corporation

The process of starting a new business is known as:

• Diversification

• Entrepreneurship

• Liquidation

• Amortization

Which of the following best defines entrepreneurship?

• The process of purchasing stocks and bonds

• The act of managing and organizing any enterprise, especially a business, usually with considerable initiative and risk

• The practice of being employed by a large corporation

• The activity of working for the government

The primary reason for a business to pursue entrepreneurship is to:

• Avoid taxes

• Create new markets or products

• Follow government regulations

• Reduce the number of employees

A financial a financial reward that comes from starting and running a business is called a/n

• Expense

• Liability

• Profit

• Owner's Equity