Question 1

A co-operative is an incorporated form of business.

Accepted Answer

A co-operative is a legally incorporated business entity, typically formed by a group of individuals seeking to meet a common need or goal by pooling resources and sharing ownership and control.

Question 2

A partner who generally does not participate actively in the business and whose liability is limited to the amount invested in the partnership is called a general partner.

Accepted Answer

A partner who does not actively participate in the business and has limited liability is called a limited partner, not a general partner.

Question 3

The highest-ranking executive in a company or organization is the Chief Executive Officer (CEO).

Accepted Answer

The Chief Executive Officer (CEO) is typically the highest-ranking executive in a company, responsible for making major corporate decisions and managing overall operations.

Question 4

The public sector is the part of the economy made up of companies and organizations not owned or controlled by the government.

Accepted Answer

The public sector is the part of the economy that is owned and operated by the government, including government agencies and publicly funded services.

Question 5

List the major parts of a good business plan.

Accepted Answer

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Question 6

How is a small business defined?

Accepted Answer

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Question 7

A businessperson who accepts both the risks and the opportunities involved in creating and operating a new business venture is known as an entrepreneur.

Accepted Answer

An entrepreneur is someone who starts and runs a business, taking on financial risks in the hope of profit.

Question 8

An initial public offering is a document in which the entrepreneur summarizes her or his business strategy for the proposed new venture and how that strategy will be implemented.

Accepted Answer

An initial public offering (IPO) is not a document; it is the process by which a private company offers shares to the public for the first time. The document describing the business strategy is typically a business plan.

Question 9

Co-operatives are allowed to deduct patronage refunds to members out of before-tax income.

Accepted Answer

Co-operatives are allowed to deduct patronage refunds to members out of before-tax income under the US tax code, known as Subchapter T.

Question 10

Assets that a borrower uses to secure a loan or other credit and that are subject to seizure by the lender if the loan isn't repaid according to the specified repayment terms are called fixtures.

Accepted Answer

Fixtures are items attached to property that are considered part of the property, while assets used to secure a loan are called collateral.

Question 11

Intrapreneurs are people who create something new within an existing large firm or organization.

Accepted Answer

Intrapreneurs are employees within a company who are tasked with developing innovative ideas or projects, similar to entrepreneurs, but within the context of the organization they work for.

Question 12

A co-operative is an organization that is formed to benefit its owners in the form of reduced prices and/or the distribution of surpluses at year-end.

Accepted Answer

Co-operatives are member-owned organizations that aim to provide benefits to their members, often through reduced prices or sharing profits (surpluses) among them.

Question 13

What is an intrapreneur?

Accepted Answer

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Question 14

Unlike corporations,co-operatives do not have directors and appointed officers.

Accepted Answer

Co-operatives do have directors and appointed officers, but they are elected by the members instead of being appointed by a board of shareholders.

Question 15

What is an entrepreneur?

Accepted Answer

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Question 16

What are the main reasons that female entrepreneurs give for starting a business?

Accepted Answer

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Question 17

A franchise is an arrangement in which a buyer purchases the right to sell the product or service of the seller.

Accepted Answer

A franchise is a business model where the franchisee buys the rights to operate a business using the branding, products, and operational model of the franchisor.

Question 18

What is the impact of new ventures on job creation?

Accepted Answer

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Question 19

The amount of money,normally a portion of the profits,that is distributed to the shareholders is called disbursements.

Accepted Answer

The correct term for the portion of profits distributed to shareholders is "dividends," not "disbursements."

Question 20

Define a new venture.

Accepted Answer

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Quiz 4: Entrepreneurship,small Business,and New Venture Creation