Entrepreneurship Semester 1 Exam Review

What is one characteristic that distinguishes an entrepreneur from a regular employee?

• Prefers routine tasks

• Avoids taking risks

• Seeks to innovate and create

• Follows established procedures

Which type of business ownership offers the owner complete control but also full liability?

• Corporation

• Partnership

• Sole Proprietorship

• Franchise

In economics, what is defined as the income received from selling goods and services?

• Costs

• Revenue

• Profit

• Investment

What is a key advantage of forming a corporation?

• Simple to establish

• Limited liability for owners

• Minimal paperwork

• Complete privacy

Which of the following is an example of a service?

• A smartphone

• A haircut

• A pair of shoes

• A book

What term describes making changes to an existing product to improve it?

• Invention

• Innovation

• Production

• Modification

What is the primary purpose of a non-profit corporation?

• To generate profit for shareholders

• To accomplish a specific mission other than making a profit

• To expand globally

• To pay dividends to investors

Which business structure is most suitable for someone who wants to be their own boss with minimal legal overhead?

• Corporation

• Franchise

• Sole Proprietorship

• Partnership

What does the gig economy primarily consist of?

• Full-time salaried positions

• Long-term employment contracts

• Short-term, flexible jobs

• Government jobs

Which of the following is typically considered a disadvantage of a partnership?

• Complete control by one partner

• Unlimited liability for partners

• Limited access to capital

• Excessive government regulation