ENTREPRENEURSHIP EXAM

Which of the following statements is true of legally binding contracts:

• They are not valid unless written.

• They are enforceable for legal and illegal acts.

• Breaking one results in a lawsuit and possibly jail time.

• They clearly outline both sides of an agreement.

John would like to be a business owner, has money to invest, and wants to limit his liability. He does not have time to participate in the day-to-day operations of the business. What type of business ownership would you recommend?

• Close corporation

• Open corporation

• Sole proprietorship

• General partnership

Why should partnerships develop a formal written agreement?

• To meet the requirements of the law

• To be able to sell stock

• To prevent future problems

• To pay less tax

Torts relating to misrepresented facts about a business's goods or services may be subject to a lawsuit on the basis of

• intrusion.

• assault.

• defamation.

• fraud.

Channel members add value to a product by

• performing certain channel activities expertly.

• making the product more costly.

• making the product difficult for consumers to find.

• pursuing individual goals.

Which of the following is an example of an industrial user:

• A. A family buying weekly groceries

• B. A construction company buying wood

• C. A college student buying school supplies

• D. An individual purchasing toothpaste

When responding to an official request for a formally solicited project, the writer creating the proposal should

• provide formal objectives to define the proposed project.

• provide updates for the approved project.

• explain why the project should be continued.

• follow directions in the request for proposal document.

What is an important aspect of fulfilling a company's brand promise?

• To change the company's slogan on a regular basis

• To use touchpoints to create positive customer experiences

• To establish different policies for different types of customers

• To develop different trade characters for different market segments

Government protects consumers by establishing

• requirements for product testing.

• laws to monitor the growth of business.

• a measure of effectiveness in government.

• rules to generate competition.

In many places, trash pickup is legally controlled by just one company. This is known as

• a regulated monopoly.

• nonprice competition.

• price competition.

• price discrimination.