Unit 8 - Make Up

What is the primary role of an entrepreneur in business creation?

• Following established business models

• Managing existing corporations

• Creating innovative business solutions and opportunities

• Working as an employee for others

Which factor best describes how entrepreneurs primarily earn income?

• Through fixed monthly salaries

• Through business profits and ownership returns

• Through government grants only

• Through employee benefits

When comparing self-employment to traditional employment, which statement is most accurate?

• Self-employed individuals always earn more than employees

• Employees have more tax obligations than self-employed individuals

• Self-employed individuals must handle their own benefits and tax obligations

• Traditional employment offers more flexibility than self-employment

Which federal agency provides support for small business creation?

• Internal Revenue Service (IRS)

• Small Business Administration (SBA)

• Department of Education

• Federal Trade Commission

What is a key characteristic of a sole proprietorship?

• Limited liability protection

• Shared ownership between multiple parties

• Complete personal liability for business debts

• Separation between personal and business assets

Which business structure typically requires the most complex regulatory compliance?

• Sole proprietorship

• Partnership

• Corporation

• Independent contractor

What is a primary advantage of purchasing a franchise?

• Complete business autonomy

• Lower initial investment costs

Which risk is most commonly associated with starting a new business?

• Guaranteed profit margins

• Financial loss and personal debt

• Immediate market recognition

• Secured customer base

In a partnership business structure, what is a key characteristic?

• Single owner responsibility

• Shared profits and losses between partners

• Government ownership

• Corporate tax structure

What resource typically provides the initial funding for most entrepreneurs?

• Government grants

• Bank loans

• Personal savings and assets

• Corporate investors