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WorksheetsEntI_Unit 1 Laps Test
Total questions: 50
Worksheet time: 25mins
Which of the following is a way that entrepreneurship helps our society:
Creates new jobs
Eliminate financial concerns
Reduces taxes
Decreases economic growth
One difference between entrepreneurs and small-business owners is that
a. entrepreneurs usually purchase existing businesses or franchise rights.
small-business owners generally are not interested in expanding their businesses.
entrepreneurs rarely manage the day-to-day aspects of their businesses.
small-business owners usually employ between 500 and 1,000 workers.
While managers help to make entrepreneurs’ visions a reality, they aren’t required to
set business objectives.
assume the risk involved.
formulate company policy.
implement procedures.
The most likely reason an individual might turn a woodworking hobby into a business is
because of
higher taxes.
guaranteed financial security.
sales quotas.
personal satisfaction.
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.
advanced technology
personal commitment
tax breaks and deductions
flexibility and independence
Many businesses fail due to insufficient capital. Insufficient capital is also known as a lack of
advertising.
employees.
money.
commitment.
In the early stages of a start-up business, entrepreneurs assume sole responsibility for
all aspects of their businesses. c. the demand of their products.
global economic growth rates. d. the daily activities of competitors.
the demand of their products.
the daily activities of competitors.
Technological advancements have made it possible for some entrepreneurs to
reduce the need for maintaining financial records.
eliminate the need to pay income and Social Security taxes.
run their businesses with fewer computer skills.
operate their businesses entirely from their computers.
Governments can encourage entrepreneurial development by
increasing interest rates on loans.
deregulating and reducing taxes.
establishing higher ethical
passing more legislation with strict guidelines
What is a disadvantage of entrepreneurship?
Personal satisfaction
Uncertain income
Lower taxes
Fewer resources
Entrepreneurs who are aware of their personal strengths and weaknesses increase their
chances of
empathy.
productivity.
outsourcing.
success
Successful entrepreneurs enjoy their work and often start their businesses so that they can share their interests and enthusiasm with others. In other words, successful entrepreneurs have __________ what they do.
passion for
concerns about
apathy for
reservations about
How are entrepreneurs similar?
They have strong personal traits, such as determination and confidence.
They are born with excellent leadership and communication skills.
Start-up business owners rarely fail at their entrepreneurial ventures.
Most entrepreneurs go on to start other businesses.
Even though there is a significant chance that his business will fail, Sidney intends to open a sports memorabilia shop. What entrepreneurial trait is Sidney exhibiting?
Organization
Willingness to take risks
Open-mindedness
Creativity
How do entrepreneurs develop their skills?
By reducing their flexibility
By seeking little or no advice from other
By training and continuous practice
By becoming an autocratic leader
Which of the following statements is true regarding training for entrepreneurial ventures:
The type of training and education that entrepreneurs need depends on the nature of the start-up business.
Most successful entrepreneurs have degrees from four-year colleges or universities.
Once entrepreneurs are educated or trained in their business field, they rarely need
further education.
Most entrepreneurs must pass state-mandated exams to operate their businesses.
Which of the following statements is true regarding entrepreneurship:
Entrepreneurship offers limited personal and financial growth possibilities.
Most entrepreneurs are born with the skills they need for success.
Most people have the ability to become entrepreneurs.
Personal traits are behaviors that cannot be strengthened.
Before starting their business ventures, which of the following would entrepreneurs recognize first:
Regulations
Associations
Opportunities
Reductions
Entrepreneurs often discover business start-up ideas by looking for gaps between what is
currently being done and
what was done in the past.
when changes were last made.
how things are being done
what needs to be done.
Environmental protection and the shift towards healthier lifestyles are examples of
a. problems. c. solutions.
b. trends. d. obstacles.
problems.
trends.
solutions.
obstacles.
What do business owners consider when they select a business ownership structure?
Personal circumstances, type of business, and product mix
Product versatility, financial needs, and advertising strategies
Personal circumstances, financial needs, and type of business
Product versatility, advertising strategies, and personal circumstances
“To form my business, I used all of my savings and borrowed from the bank, and I’m personally liable for all of the debts.” This is an example of which of the following forms of business ownership:
Partnership
Sole proprietorship
Corporation
Cooperative
John, Robert, and Charles were college friends who wanted to start a business. John has creative ability, Robert’s expertise is selling, and Charles’ expertise is management. However, each has limited capital. The ideal business ownership for these young men is a
merger.
partnership.
franchise.
corporation.
If all of the individuals who own a business share unlimited liability for the business’s losses, these individuals are part of a(n)
private corporation.
general partnership.
"S" corporation.
"C" corporation
Lois and Lora plan to open a florist shop. Lois is unable to devote full time to the daily operations of the shop but wishes to provide financial support. Which form of business partnership
is most likely to appeal to Lois?
Private
Nonprofit
General
Limited
The Scott Company decided to sell stock to raise capital. Under what form of business organization does the company operate?
Corporation
Cooperative
Partnership
Sole proprietorship
What type of corporation may be owned by just a few people and does not offer its shares for sale to the general public?
Limited
Franchise
"C"
Private
A type of state-chartered corporation that was developed to help small businesses by taxing them as individuals in a partnership is a(n) __________ corporation.
"S"
"C"
private
limited
What type of corporation sells millions of shares and must furnish complete information about its earnings, assets, and debts?
"C"
Private
"S"
Limited
The American Red Cross is an example of a(n) ___________ corporation.
hybrid
nonprofit
"S"
"C"
One of the characteristics of the form of business ownership known as an LLC is that
this kind of business can last indefinitely.
it is required to have at least three owners (members).
the IRS collects taxes based on the LLC’s gross income.
the owners’ personal property cannot be taken to pay the business’s debts.
One reason a physicians’ practice might form a partnership as an LLP is to
ensure that the business experiences unlimited liability.
take advantage of higher dividend returns on shares of its stock.
protect innocent partners from the malpractice of another partner.
permit the general public to purchase licensing rights in the practice.
Wendy’s sells the right to operate its restaurants to individuals who meet the company’s criteria. The arrangement between Wendy’s and these individuals is an example of
a partnership agreement.
multi-level marketing.
licensing.
franchising.
Jake wanted to run his own business but was unsure that he had adequate business skills to be successful. Which type of business would give Jake the help he needs?
Private corporation
Sole proprietorship
Business-format franchise
Product trade-name franchise
Which of the following is a characteristic of a product trade-name franchise:
It is not open to the public.
The franchise can choose the name of the business.
The franchisee has unlimited liability.
It is owned by shareholders.
Jane is the owner of a pizza shop associated with a national chain of pizza restaurants. She established her business in a regional supermarket. The pizza shop is referred to as a
host franchise.
strategic alliance.
master license.
piggyback franchise.
Olivia runs a home-based business that distributes high quality, handmade baskets. She sells the products and earns commissions on the baskets sold by four other basket representatives. This is an example of
product licensing.
product trade-name franchising.
multi-level marketing.
strategic partnering.
Illegally run organizations that emphasize the collection of high fees from potential product distributors are often referred to as
pyramid schemes.
pressure-cooker tactics.
marketing rackets.
deceptive advertising gimmicks.
ABC Specialty Wear is the only company that has written permission to use a national football team’s logo on its sportswear. This is an example of a
product trade-name contract.
sole propietorship.
licensing agreement.
limited joint-venture contract.
Which of the following statements is true regarding joint ventures:
Joint-venture arrangements are usually short-term relationships.
Joint ventures are used only when it is necessary to raise a lot of capital.
Large corporations are the only business structures that can benefit from joint ventures.
An independent attorney must always be consulted before signing a joint-venture agreement.
1. Employees should seek positions that
capitalize on their strengths
capitalize on their weaknesses
minimize their strengths.
minimize their experience.
Which of the following quotes encourages you to evaluate yourself as a person:
“Know thyself.”
“Never give up.”
“Life is like a box of chocolates.”
“Give me liberty or give me death.”
Knowing your strengths and weaknesses can help you
make the right decision every time.
obtain any job you want.
receive a raise each year.
perform better in your current job.
Which of the following illustrates how knowing your strengths and weaknesses can contribute toward professional development and career success:
Developing new friendships in your neighborhood
Taking a leadership role on a group project
Avoiding new assignments
Spending less time on tasks you find difficult
Why is it important to assess personal strengths and weaknesses before interviewing for a job?
If you know your strengths and weaknesses, you will get the job.
Interviewers often ask you to discuss your strengths and weaknesses.
You must improve all weaknesses before you are hired.
Employers require you to have at least 10 strengths.
You decide not to take a certain action because you know it’s the wrong thing to do. You have made this decision based on your
peers.
ethics.
regulations.
laws.
A business’s ethics determine whether or not an action is acceptable for that business, especially if the action
affects the environment.
is illegal.
contributes to the business’s profitability.
has a negative impact on others.
Understanding business ethics can be difficult since
there are no industry-specific ethical codes.
it is a relatively new field of study.
many people aren’t sure how to behave ethically.
it involves a lot of technical terms.
Which of the following is a true statement about business ethics and the law:
The two are not the same thing, but they do overlap.
Everything that is illegal is also unethical.
Everything that is unethical is also illegal.
The two have nothing to do with each other.
One difference between business ethics and the law is that business ethics
are often unwritten.
must be published.
are enforced by government.
are easy to determine.
