Small Business

Which of the following is a characteristic of a sole proprietorship?

• Limited liability

• Shared management

• Unlimited liability

• Publicly traded shares

Which external resource provides legal guidance on business formation?

• Accountants

• Lawyers/solicitors

• Business advisors

• Industry Associations

Which of the following is a reason for starting a business to address social causes?

• Profit generation

• Employment creation

• Addressing social causes

Which of the following is a characteristic of a sole proprietorship?

• Limited liability

• Shared management

• Unlimited liability

• Publicly traded shares

Which personal quality is important for business success?

• Proactiveness

• Indecisiveness

• Passivity

• Pessimism

Which of the following is an external factor that can lead to business failure?

• Strong economy

• High demand for the product

• Catastrophic events

• Effective management skills

Which is an advantage of using retained earnings for financing?

• A. Interest payments

• B. No set repayment date

• C. Limited to previous profits

• D. High-interest charges

What is a primary reason for starting a business related to personal goals?

• Generating profit

• Creating self-employment

• Addressing community needs

• Achieving flexibility in work hours

Which motivation involves utilizing existing skills, hobbies, or interests?

• Profit generation

• Employment creation

• Addressing social causes

• Pursuing personal goals

Which of the following is a characteristic of a public company?

• Unlimited liability

• Reinvesting profits into social programs

• Limited liability

• Publicly traded shares