Business Ownership Vocab

What is the definition of an entrepreneur?

• A person who organizes, manages, and takes on the risks of a business.

• A person who invests in stocks and bonds.

• A person who works for a corporation.

• A person who manages a non-profit organization.

What are start-up costs?

• The expenses required to start your business.

• The profits made in the first year of business.

• The taxes paid by a new business.

• The revenue generated by a new business.

What is a lease?

• A contract granting use or occupation of property during a specified time for a specified payment.

• A document that transfers ownership of a property.

• A loan agreement for purchasing equipment.

• A contract for hiring employees.

What does goodwill refer to in a business context?

• Loyalty of existing customers.

• The amount of profit made.

• The value of physical assets.

• The number of employees.

What is a franchise?

• A business established or operated under an authorization to sell or distribute a company's goods or services in a particular area.

• A business owned by one person.

• A business owned by stockholders.

• A business that operates online only.

What is a sole proprietorship?

• A business owned by one person.

• A business owned by two partners.

• A business owned by a corporation.

• A business owned by a franchise.

What is a partnership?

• A business in which two or more persons combine their assets and skills.

• A business owned by one person.

• A business owned by stockholders.

• A business that operates internationally.

What is a corporation?

• A business owned by stockholders who share in its profits but are not personally responsible for its debts.

• A business owned by one person.

• A business owned by a partnership.

• A business that operates in a single location.

What are operating expenses?

• Expenses incurred in paying for the day-to-day activities of the business.

• The cost of purchasing new equipment.

• The amount spent on marketing.

• The profit made from sales.

What is an income statement?

• A financial statement showing the revenue and expenses for a specific period of time.

• A document showing the assets and liabilities of a business.

• A report on employee performance.

• A statement of cash flow.