ME11

Michelle's primary reason for starting her own business is her desire to make her own schedule. Michelle is looking forward to the ______ she hopes to have as a business owner.

• flexibility and independence
• tax breaks and deductions
• personal commitment
• advanced technology

The American Red Cross is an organization whose main goal is to help people by providing emergency medical services. They are NOT trying to maximize revenue. This is an example of a(n) ________ corporation.

• hybrid
• nonprofit
• public

One of the characteristics of the form of business ownership known as a limited liability company (LLC) is that

• it is required to have at least three owners (members).
• the IRS collects taxes based on the LLC's income.
• the owners' personal property cannot be taken to pay the business's debts.

Jake wanted to run his own business but was unsure that he had the business skills to be successful. He didn't want to start from scratch and instead wanted to follow a "playbook" of an already successful company. Which type of business would give Jake the help he needs?

• Private corporation
• Sole proprietorship
• Franchise

Many businesses fail due to the insufficient capital. Insufficient capital is also known as a lack of

• money.
• employees.
• advertising.
• commitment.

Environmental protection and the shift towards healthier lifestyles are examples of

• solutions.
• problems.
• trends.

Which of the following is NOT a type of business stakeholder?

• customers
• company equipment
• employees
• shareholders (people who invest in the company)

What type of corporation may be owned by just a few people and does not offer its shares for sale to the general public?

• Public
• Franchise
• Private

What type of corporation sells its shares of stock to the general public?

• Public
• Nonprofit
• Private

What is one drawback of excessive government regulation for small businesses?

• It can increase the cost and difficulty of starting up
• It always guarantees success
• It lowers startup costs
• It makes hiring easier