LKL1 Exploring Entrepreneurship and Business Basics

What is the best definition of entrepreneurship?

• The process of buying and selling goods for profit

• The process of creating, organizing, and running a new business to take on financial risk in the hope of profit

• The act of managing an existing company

• The process of investing in the stock market

Which of the following is considered a small business?

• A multinational corporation with thousands of employees

• A local bakery owned and operated by a family

• A government agency

• A public university

Which of the following is NOT a common legal structure for a business?

• Sole proprietorship

• Partnership

• Corporation

• Government agency

Who is primarily responsible for making strategic decisions in a small business?

• The government

• The entrepreneur or business owner

• The customers

• The suppliers

Which business ownership model involves two or more people sharing ownership and responsibility?

• Sole proprietorship

• Partnership

• Corporation

• Franchise

What is the main purpose of a business plan?

• To decorate the office

• To outline the goals, strategies, and financial forecasts of a business

• To hire employees

• To pay taxes

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

• Owned by shareholders

• Owned and operated by one individual

• Owned by the government

• Owned by a board of directors

Which legal structure offers limited liability protection to its owners?

• Sole proprietorship

• Partnership

• Corporation

• Cooperative

What is a key responsibility of an entrepreneur?

• Following orders from employees

• Taking initiative and managing business risks

• Only working part-time

• Avoiding innovation

Which of the following best describes a franchise?

• A business owned by one person

• A business that licenses the right to operate under a larger company's brand and system

• A government-run business

• A non-profit organization