Entrepreneurship 1 Vocab 1 & 2 Practice Test

A person who starts, organizes, and manages a business while taking on the risks is called a:

• Manager

• Entrepreneur

• Franchisee

• Intrapreneur

The customary code of polite behavior in society is known as:

• Ethics

• Etiquette

• Objectivity

• Regulation

Which term refers to moral principles guiding personal or professional behavior?

• Profitability

• Ethics

• Licensing

• Regulation

A new idea, method, or device that solves a problem or adds value is called:

• Expansion

• Innovation

• Consolidation

• Merger

An employee within a company who develops new products or services is a(n):

• Entrepreneur

• Intrapreneur

• Manager

• Sole Proprietor

The chance of loss or failure is best described as:

• Risk

• Regulation

• Profitability

• Expansion

A legal entity that is separate from its owners is called a:

• Partnership

• Sole Proprietorship

• Corporation

• LLC

Which business form combines liability protection with tax benefits of a partnership?

• Sole Proprietorship

• Corporation

• LLC

• Franchise

The combination of two companies into one is a:

• Consolidation

• Expansion

• Merger

• Franchise

A franchising arrangement where the franchisee adopts the franchisor’s entire business method is a:

• Product trade-name franchise

• Business-format franchise

• Merger

• Sole proprietorship