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WorksheetsEntrepreneurship Midterm Review
Total questions: 80
Worksheet time: 13hrs 20mins
Which of the following is a way that entrepreneurship helps our society:
Creates new jobs
Reduces taxes
Eliminates financial concerns
Decreases economic growth
One difference between entrepreneurs and small-business owners is that:
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 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.
personal satisfaction.
sales quotas.
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.
Many businesses fail due to insufficient capital. Insufficient capital is also known as a lack of:
advertising.
money.
employees.
commitment.
In the early stages of a startup business, entrepreneurs assume sole responsibility for:
all aspects of their businesses.
global economic growth rates.
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.
establishing higher ethical standards.
deregulating and reducing taxes.
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 (a) for what they do.
How are entrepreneurs similar?
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
Creativity
Open-mindedness
Willingness to take risks
How do entrepreneurs develop their skills?
By reducing their flexibility
By seeking little or no advice from others
By training and practicing continuously
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 startup 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 startup 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 toward healthier lifestyles are examples of
problems.
trends.
solutions.
obstacles.
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:
"Never give up."
"Life is like a box of chocolates."
"Know thyself."
"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.
Knowing your strengths and weaknesses can help contribute to improved group performance because
groups will be able to remove members with too many weaknesses.
a group can only function with one leader.
you will be able to avoid bringing your weaknesses into the group.
groups need members with different strengths to succeed.
Why is assessing strengths and weaknesses a difficult task?
It’s impossible to be modest when listing our strengths.
It may reveal characteristics about ourselves that we don’t like.
It’s an extremely time-consuming process.
It’s unrealistic to try to discover every strength and weakness.
To find a career that’s best suited for your strengths, it’s important to be (a) about your strengths and weaknesses.
Why shouldn’t you compare yourself to others when assessing strengths and weaknesses?
Everyone has unique abilities.
You will not measure up to others.
Self-assessment is very competitive.
Certain strengths are better than others.
When assessing strengths and weaknesses, what is wrong with simply saying, “I am a good leader”?
It’s not specific.
It’s not realistic.
It’s not honest.
It’s a false generalization.
Why is it sometimes difficult to be honest about strengths?
No one likes to recognize strengths.
Weaknesses are more significant than strengths.
We don’t want to brag.
Few people have strengths.
Which of the following tips keeps you from being too hard on yourself when assessing strengths and weaknesses:
Minimize your strengths.
Review your weaknesses each day.
Find a new weakness every day.
Identify one strength for every weakness.
Jennifer’s manager pointed out some areas for improvement in her last performance review. Now, she thinks she is a poor employee. This is an example of
false generalization.
comparing yourself to others.
being modest.
recognizing your strengths.
Assessing personal strengths and weaknesses is a(n) (a) process.
Which of the following questions might you ask when assessing your strengths and weaknesses:
Who can help me change?
Why don’t I work well in groups?
How can I better manage my time?
What can I improve?
When reviewing your education and experience to help assess strengths and weaknesses, look for
patterns.
choices.
talents.
mistakes.
When asking someone for input to help you assess personal strengths and weaknesses, you should
expect to get your feelings hurt.
approach only coworkers.
request specific examples.
avoid speaking to friends.
A person you ask for input to help you assess personal strengths and weaknesses should be
brutally honest.
someone who will focus on your strengths.
older than you.
tactful.
How can observing a role model help you assess your strengths and weaknesses?
You can ask him/her to identify your strengths.
You can ask him/her to identify your weaknesses.
You can identify strengths you wish to possess.
You can identify weaknesses you wish to avoid.
A survey designed to help you assess your strengths and weaknesses is known as a
group learning exam.
personal skills inventory.
group talent test.
personal behavior survey.
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.
they involve 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 ethical is also legal.
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.
Which of the following is a true statement about breaking the law:
Which of the following is one of the four pillars of a business’s social responsibility?
Political responsibility
Economic responsibility
Media responsibility
Universal responsibility
A large tech company donates a portion of its proceeds to charity. This is an example of (a) responsibility.
Which of the following is an example of a business’s ethical obligation to its stakeholders?
Sharing trade secrets within its industry
Doubling investors’ money within two years
Providing safe working environments for employees
Allowing the competition to succeed
Why should a business practice good ethics?
Which of the following is a true statement about ethical business practices?
They do not guarantee positive outcomes.
They are more difficult to undertake than unethical practices.
They are all under government regulation.
They ensure that a business will succeed.
A business suddenly moves its operations to a new town, leaving its current employees jobless. Its reason for taking this action, which some consider unethical, might be that the action
benefits the community.
is not illegal.
is committed by unethical employees.
doesn’t hurt anyone.
A financial advisor receives a bonus for selling a certain mutual fund. Her reason for taking this action, which some consider unethical, might be that the action
benefits the community.
is acceptable within the industry.
is acceptable in a foreign culture.
is committed by unethical employees.
Some people believe that a business’s only true ethical obligation is to
contribute to charity.
provide jobs.
protect the environment.
make money.
A company goes bankrupt because of its unethical accounting practices. The reason for its unethical behavior might be that the action is
not illegal.
acceptable in a foreign culture.
committed by unethical employees.
acceptable within the industry.
Which of the following is a potential consequence of poor business ethics:
Decreased internal problems
Negative public image
Increased customer loyalty
Reduced risk of lawsuits
A business with poor ethics is likely to
avoid fines.
beat the competition.
decrease its financial risk.
lose customers.
A business with poor ethics causes internal problems for itself by
improving its public image.
increasing customer loyalty.
decreasing productivity.
decreasing financial risk.
Which of the following is an example of increased financial risk for a company with poor business ethics:
Decreased company value
Increased productivity
Increased sales
Decreased labor costs
Unethical business practices may lower a company’s stock prices because
investors prefer to invest in companies they perceive as ethical.
the government fines unethical companies.
employees resign from unethical companies.
unethical companies usually go bankrupt.
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
Brea, Robert, and Lincoln are college friends who want to start a business. Brea has creative ability, Robert’s expertise is selling, and Lincoln’s expertise is management. However, each has limited capital. Their ideal type of business ownership 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 Harper 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 ownership 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 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 provide 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 from 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 wants to run his own business but is unsure that he has 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 franchisee can choose the name of the business.
The franchisee has unlimited liability.
It is owned by shareholders.
Kai is the owner of a pizza shop associated with a national chain of pizza restaurants. He established his business in a regional supermarket. The pizza shop is referred to as a
host franchise.
strategic alliance.
master licensee.
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 franchise
licensing agreement
sole proprietorship
joint venture
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.
