Succeeding in the World of Work

Chapter 4: Entrepreneurship

Interactive Practice Tests

1
What is one trait most entrepreneurs possess?
A)shyness
B)aggression
C)rudeness
D)self-motivation
2
The expenses involved in going into business are called
A)revenue
B)interest
C)start-up costs
D)profit
3
Which term refers to a business that is completely owned by one person?
A)corporation
B)sole proprietorship
C)partnership
D)franchise
4
Entrepreneurs tend to
A)work long hours.
B)face less competition because they work alone.
C)be dissatisfied with their businesses.
D)delegate responsibility to their employees.
5
The expenses involved in going into business, such as buying equipment and renting space, are examples of
A)market expenses.
B)operating expenses
C)financial liability.
D)start-up costs.
6
Buying an existing business
A)usually involves saving money on start-up costs.
B)provides more security than starting a new business.
C)requires analyzing the location, competition, and market outlook.
D)is a high risk because successful businesses are usually not sold.
7
One disadvantage of entering a family business is
A)financing is especially difficult.
B)there is less job satisfaction.
C)the start-up costs are higher.
D)family relationships can be affected by work.
8
One advantage of a sole proprietorship is that
A)the owner has total control.
B)there is little financial risk.
C)start-up costs are lower.
D)goodwill is already established.
9
One characteristic of a corporation is that
A)all owners are legally responsible for any debts incurred.
B)the founder has total control.
C)start-up costs are lower.
D)legally it operates apart from the owner(s).
10
Carter plans to borrow money from a bank to start his corporation. His bank is requiring that he submit a business plan and a(n)
A)income statement.
B)partnership agreement.
C)financial plan.
D)guarantee of success.
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