Entrepreneurship Quiz

Who is an entrepreneur?

• • A person who creates and manages a new business venture.​

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• A manager who runs an existing business

• A banker who provides business loans

What is a franchise?

• A business owned and run by the government

• A business that sells the rights to its brand and model to others

• A business that makes and sells French fries

• A business that sells fairness products

What are the advantages of buying an existing business?

• Complete flexibility and freedom

• Low startup costs

• Established customer base and relationships

• Getting cutting edge technology

What is a source of startup funding for a new business?

• Business loans from a bank

• Stock investments by the public

• Research grants from universities

• Donations from charitable foundations

How can an entrepreneur better understand customer needs?

• Ignoring customer feedback

• Conducting market research

• Avoiding new technologies

What type of business has unlimited liability?

• Limited company

• Sole proprietorship

• Franchise

• Partnership

What is an advantage of starting a business as a sole proprietorship?

• Raising funds by selling stock

• Simple startup and minimal paperwork

• Limited liability for the owner

• Shared ownership with partners

What is an advantage of starting a business as a partnership?

• Funds can be raised through public stock offerings

• Losses are absorbed by investors, not the founders

• Ownership is shared amongst partners

Why might some entrepreneurs start a business partnership instead of going solo?

• Partnerships limit liability.

• It's harder for partnerships to get funding.

• Partners cannot share decision-making.

• Starting a business is easier with shared resources.

What legal business structure has the limited liability?

• Limited company

• Sole proprietorship

• Franchise

• Partnership