Defining Entrepreneurial Business Ownership Key Concepts

Small business ownership involves having fewer employees and lower revenue compared to larger corporations.

• True

• False

Fill in the blank: Small business ownership involves prioritizing _______ and reliability over rapid growth.

• stability

• expansion

• innovation

• profitability

What is a customer-centric approach in small business ownership?

• A strategy that prioritizes customer needs and satisfaction.

• An approach that focuses solely on internal processes.

• A method centered on maximizing profits at all costs.

• A cost-efficient strategy with minimal customer feedback.

Small business ownership involves operating in local or niche markets serving specific communities or customer bases.

• True

• False

Fill in the blank: Small business ownership involves having limited resources, including finances, human resources, and _______.

• time

• technology

• strategy

• network

Small business owners take some risks by starting and running businesses.

• True

• False

Which of the following is a type of business structure?

• Corporation

• Franchise

• Partnership

• All of the above

What is a characteristic of C corporations?

• A) Not legally separate from owners

• B) Can make a profit, be taxed, and be held legally liable

• C) Avoids double taxation

• D) None of the above

S corporations are designed to avoid the double taxation regular C corps undergo. (True/False)

• True

• False

Fill in the blank: Franchises are a business model where the rights to the business branding, such as the logo, name, and model, are sold from the business owner, the franchisor, to an independent entrepreneur, the ________.

• franchisee

• franchisor

• investor

• associate