Unit 1 Exam

Which of the following best defines an entrepreneur?

• A) A person who works for a corporation

• B) A person who organizes and manages a business venture and takes risks

• C) A person who solely invests in stock markets

• D) A person who manages government operations

What is the primary difference between an entrepreneur and an intrapreneur?

• A) Entrepreneurs work within a company, while intrapreneurs start their own businesses

• B) Intrapreneurs work within a company to innovate, while entrepreneurs create their own businesses

• C) Entrepreneurs are employed by others, while intrapreneurs are self-employed

• D) There is no difference

Which of the following skills is most critical for an entrepreneur when starting a new business?

• A) Technical skills

• B) Interpersonal skills

• C) Conceptual skills

• D) Analytical skills

Analytical skills are best defined as the ability to:

• A) Lead and motivate a team

• B) Understand and apply technology to solve problems

• C) Break down complex problems into smaller, more manageable parts

• D) Communicate effectively with clients and stakeholders

What is a key advantage of a partnership in business?

• A) Unlimited liability

• B) Easier access to capital and shared responsibilities

• C) Full control over business decisions

• D) No need to share profits

A limited partner in a limited partnership:

• A) Has unlimited liability for the partnership’s debts

• B) Participates actively in the day-to-day management of the business

• C) Has liability limited to their investment in the partnership

• • Understand and apply technology to solve problems

Which of the following is a disadvantage of a corporation?

• Limited liability for shareholders

• Ability to raise large amounts of capital

• Double taxation of profits

• Perpetual existence

A key feature of a Limited Liability Partnership (LLP) is that:

• It provides limited liability protection to all partners

• It requires at least one general partner with unlimited liability

• It is only available for professional services firms

• It does not protect partners from personal liability for the business’s debts

The conceptual skills of an entrepreneur involve:

• The ability to work well with others

• Understanding and manipulating data and numbers

• Thinking strategically and seeing the big picture

• Applying technical knowledge to specific tasks

Which type of business ownership is characterized by having both general and limited partners?

• Corporation

• General Partnership

• Limited Partnership

• Sole Proprietorship