(p. 257) Investors accept that the management team draws a large salary for their contributions in early operations. 

p. 258) The proprietor is only personally liable for all aspects of the business when gross negligence occurs. 

(p. 258) The corporation is considered a legal person that is taxable and absorbs liability. TRUE

 (p. 259) In a limited partnership, the limited partners are equally liable for the debts of the partnership. 

(p. 258) In a partnership, the general partners usually share the amount of personal liability according to their capital contributions. 

 (p. 260) The most expensive type of business to start is the partnership. 

p. 260) In order for a corporation to be legally formed the owners have to register the name and articles of incorporation and meet statutory requirements. 

 (p. 260) The corporation can be created only by statute. TRUE

(p. 260) In a partnership, the death of a general partner generally does not result in termination of the partnership. 

p. 260) The corporation has the most continuity of the forms of business. 

 (p. 260) In a limited liability partnership (LLP), the death or withdrawal of a partner dissolves the partnership. 

(p. 261) In an S Corporation, ownership can be freely transferred as long as the buyer is an individual. 

 (p. 261) In an LLP, the transfer of interest of one limited partner is typically not allowed. 

 (p. 261) Transferability of interest is easiest in a limited partnership. 

 (p. 261) Sole proprietors can access two sources of capital—personal contributions from the entrepreneur and sale of stock. 

(p. 262) The only source of capital for a corporation is the sale of shares of stock. 

 (p. 262) The sole proprietorship form of ownership gives owners the most control of business operations. 

 (p. 262) The limited partners in a venture share control of day-to-day operations with the general partners. 

(p. 262) Stockholders in a corporation share day-to-day control of the entrepreneur. 

 (p. 262) In the partnership, profit and loss distribution is determined by the partnership agreement. 

 (p. 263) Corporations are not able to distribute profits to shareholders. 

 (p. 263) Corporations distribute profits primarily through dividends. 

 (p. 263) The partnership is the most attractive type of business formation for raising capital. FALSE

 (p. 265) Both partnerships and proprietorships serve as nontaxable conduits of income for their owners. TRUE

 (p. 263-264) Income from the partnership is taxed twice: once at the business level and once as personal income. 

(p. 264) Sole proprietorships usually use a calendar year for tax purposes.

(p. 265) Since a corporation is recognized as a separate tax, it has the advantage of being able to take many deductions and expenses that are not available to the proprietorship or partnership. 

 (p. 265) The limited liability company is automatically taxed as a corporation. 

(p. 267) In a limited liability company, every member has limited liability. 

(p. 268) The limited liability company is the only form of organization that allows members to share liability. 

(p. 267) Shares of stock are issued to members of a limited liability company. 

(p. 268) The standard term of a limited liability company is 30 years. 

(p. 272) When hiring employees for the venture, the entrepreneur should consider the candidate's skills and abilities and avoid considering the individual's personality. 

 (p. 272) The hiring process is one area of business operation that the entrepreneur should not cut back on to save time. 

(p. 273) The board of directors should be an even number of members. 

 (p. 274) A board of advisors has less decision making authority than a board of directors does. 

 (p. 274) Once the board of advisors have been hired, the entrepreneur should not question their advice. 

(p. 257) The management team of a new venture: 

(p. 258) _____________ have unlimited liability for the actions of the business. 

(p. 259) In a limited partnership, the limited partners: 

 (p. 258) Liability is one of the most critical reasons for establishing a: 

 (p. 260) In a limited liability partnership (LLP) death or withdrawal of a partner: 

(p. 260) Which type of ownership is the least expensive to start? 

(p. 260) Which type of ownership is the most expensive to start? 

 (p. 265) Which of the following ways of distributing the income of corporations is taxed twice? 

Empowering and encouraging employees to work on their own

Why is it important to consider competition when determining where to conduct business?

Of the folowing examples, which would be breaking a rule

If it costs Apple $225 to manufacturer an iPhone and $25 to sell, what is the minimum amount they can charge?

What is the difference between wages and salary?

Of the following, which is key to managing?

(p. 6) The four basic aspects of being an entrepreneur are creation, motivation, delegation and risk-taking. 

 (p. 6) The term entrepreneur means different things to different people. 

(p. 6) The key element found in all definitions of entrepreneurship is risk taking. 

(p. 8) Technical people are often the best source for entrepreneurs for identifying new business opportunities due to their expert knowledge. 

(p. 8) The market size and the length of the window of opportunity are the primary bases for determining risks and rewards. 

(p. 8) Entrepreneurs can develop an internal desire for any venture. 

(p. 10) Entrepreneurs must often make decisions in highly uncertain environments where there is considerable emotional investment. 

(p. 11) Demographics, ethnic origin, and marital status are examples of segmentation variables. 

(p. 13) Principles of effectuation help entrepreneurs develop their cognitive adaptability. 

(p. 13) The question "What is this technology all about?" is a comprehension question. 

 (p. 13) Comprehension questions are designed to stimulate entrepreneurs to think about their own understanding. 

(p. 19) An entrepreneur typically learns more from failures than from successes. 

 (p. 19) The motivation for managing one's own business is typically driven out of personal profit. 

(p. 21) An entrepreneur's recovery from grief is detrimental to society. 

 (p. 22) Entrepreneurs tend to rely much more on their personal value systems than managers when making ethical decisions. 

(p. 24) The process for developing and commercializing an innovation is known as the product-evolution process. 

(p. 7) Major parts of the business plan include all of the following except: 

(p. 9) In determining the resources required for a new venture an entrepreneur should: 

(p. 6) Which of the following is not an element of the entrepreneurial definition? 

(p. 8) Which is the most fruitful source for identifying a business opportunity? 

32. (p. 8) The market size and the length of the window of opportunity are the primary bases for: 

(p. 9) Which of the following is not a part of the opportunity assessment plan? 

(p. 13) An entrepreneur questioning the meaning of a key technological concept would fall under which of these categories? 

 (p. 13) Questions designed to increase an entrepreneurs' understanding of the nature of the environment are known as: 

(p. 18) An entrepreneur considering if what they are doing makes sense is an example of: 

 (p. 18) An entrepreneur asks if there is a better way to implement a strategy. Identify the category of this question. 

(p. 19) What is the most probable motivation for managing one's own company? 

 (p. 19) Which negative emotional response does a person feel from the loss of something important? 

 (p. 20) When would an entrepreneur be pronounced to have recovered from the grief of a lost business? 

(p. 21) In the loss-orientation process of grief recovery, when are painful memories likely to dominate most? 

(p. 21) Why is loss-orientation physically and mentally exhausting? 

(p. 21) Why does restoration-orientation have adverse effects on an individual's health? 

 (p. 21) Which of the following is most effective in grief-recovery? 

(p. 22) Investigation of business practices in light of human values is business: 

 (p. 22) According to the text business ethics is defined as: 

 (p. 24) Which of the following is not a stage of the product evolution process?

(p. 24) The product evolution process begins with: 

(p. 25) Iterative synthesis is best defined as: 

(p. 25) New products with significant technological advancement are known as: 

(p. 25) Which of the following would be considered an ordinary innovation? 

Companies rely on ________________ to plan funding for marketing plans.

A strategy used to retain customers through customer loyalty and brand loyalty initiatives.

Transform a person into a paying customer. For example, transform a website visitor into a customer.

A plan to increase awareness, persuade a target audience, create interest, generate sales, or create brand loyalty.

5. The path a product takes from producer to consumer is known as a _____________ of distribution.

The total number of product lines a company offers to its customers.

Ability to price products according to competitors and position the product at a specific level or quality category.

_____________________ the factor that differentiates a product from its competitors.

When a business does not identify a________________, its marketing plan has no focus.

According to the use of the 4-P’s classifications for developing a marketing strategy on product, price, place, and promotion, patents or legal protection would be a part of which P?

According to the use of the 4-P’s classifications for developing a marketing strategy on product, price, place, and promotion, reputation and image among consumers would be a part of which P?

According to the use of the 4-P’s classifications for developing a marketing strategy on product, price, place, and promotion. Where products are being sold would be a part of which P?

According to the use of the 4-P’s classifications for developing a marketing strategy on product, price, place, and promotion. How to price a product would be a part of which P?

 (p. 257) Investors usually insist that the management team not operate the business as a part-time venture.