Succeeding in the World of Work

Chapter 4: Entrepreneurship

Entrepreneurship


1.	What is an entrepreneur?
		A)	a sole proprietor
		B)	a person who takes over the family business
		C)	a person who buys a franchise
		D)	all of the above


2.	Which of the following is considered an advantage of entrepreneurship?
		A)	autonomy
		B)	financial risk
		C)	long hours
		D)	stiff competition


3.	Which of the following is not considered a start-up cost?
		A)	rent
		B)	equipment purchase
		C)	401(k) plan
		D)	office supplies purchase


4.	What is a contract to use something for a specified period of time?
		A)	franchise
		B)	lease
		C)	start-up
		D)	entrepreneurship


5.	What percentage of new businesses fail within the first four years?
		A)	50%
		B)	25%
		C)	66%
		D)	75%


6.	What is a common trait among entrepreneurs?
		A)	motivation
		B)	trepidation
		C)	hindsight
		D)	all of the above


7.	What is one challenge of starting a new business?
		A)	high franchise fees
		B)	high start-up costs
		C)	potentially difficult family relationships
		D)	all of the above


8.	What is the potential for future sales for a business known as?
		A)	franchise future
		B)	goodwill
		C)	market outlook
		D)	economic outlook


9.	What is an agreement in which one company purchases the right to sell another company's goods and services?
		A)	coooperative agreement
		B)	management system
		C)	lease
		D)	franchise


10.	What is a legal agreement in which two or more people share ownership of a company?
		A)	partnership
		B)	sole proprietorship
		C)	corporation
		D)	franchise


11.	What are owners of a corporation called?
		A)	partners
		B)	shareholders
		C)	managers
		D)	directors


12.	What are operating expenses?
		A)	the costs of starting a new business
		B)	legal costs
		C)	the costs of doing business
		D)	financing costs


13.	What is a summary of a business's income and expenses during the past year called?
		A)	balance sheet
		B)	net profit
		C)	revenue statement
		D)	income statement


14.	What are liabilities?
		A)	things a business owns
		B)	debts a business owes
		C)	the difference between assets and debts
		D)	owner's equity


15.	What is a business's revenue?
		A)	its income from sales
		B)	the difference between the cost of goods and their selling price
		C)	the same as net profit
		D)	a measure of its cash flow