Question 1

Scenario - Holly and Trent

While many others dreamed about owning their own business, Holly Gabrel decided to do something about it. Holly knew that being self-employed required long hours and hard work, but with the help of her husband, Trent, Holly was positive that the hours and the work would be rewarded. First, she and Trent developed a new concept in sunglasses that could be used by athletes better than the sunglasses now on the market. Holly and Trent obtained a patent on their invention, and began production and marketing.
-After fully developing their new business idea, Holly and Trent recognize the need to develop a business plan. Typical business plans will include all of the following, except:
A) mission or vision of the company.
B) information about the suppliers.
C) policy for extending credit to customers.
D) analysis of critical risks that threaten success.
E) all of these should be included.

Accepted Answer

The answer of Scenario - Holly and Trent

While many others...

Question 2

The process of initiating a business venture, organizing it, and assuming its risks is known as _________.

Accepted Answer

The answer of The process of initiating a business venture,...

Question 3

An_________ recognizes a viable idea for a business product or service and carries it out.

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The answer of An_________ recognizes a viable idea for a...

Question 4

_________is an arrangement by which the owner of a product or service allows others to purchase the right to distribute the product or service with help from the owner.

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The answer of _________is an arrangement by which the owner...

Question 5

An unincorporated business owned by an individual for profit is known as an_________ .

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The answer of An unincorporated business owned by an individual...

Question 6

Entrepreneurs in the _________category like the idea of working on something that is new, creative, or personally meaningful.

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The answer of Entrepreneurs in the _________category like the idea...

Question 7

In the next decade, _________and_________ businesses could end up being the emerging growth companies.

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The answer of In the next decade, _________and_________ businesses could...

Question 8

Jamila is a successful artist and entrepreneur who makes all of her work out of recycled goods because she believes in sustainability. She can be described as a social entrepreneur that is committed to:
A) international human rights.
B) environmental protection.
C) children's rights.
D) industrial protectionism.
E) consumerism.

Accepted Answer

Jamila's commitment to using recycled goods in her artwork indicates that she is focused on environmental protection, making option B the correct choice. The fact that she is also described as a social entrepreneur (i.e. one who uses business principles to address social and/or environmental issues) reinforces this idea. Options A, C, D, and E are not applicable based on the information provided.

Question 9

An_________ is an unincorporated business owned by two or more people.

Accepted Answer

The answer of An_________ is an unincorporated business owned by...

Question 10

_________firms are groups of companies or individuals that invest money in exchange for a stake in the company.

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The answer of _________firms are groups of companies or individuals...

Question 11

A human quality linked to entrepreneurship in which people are motivated to excel and pick situations in which success is likely is called the_________ .

Accepted Answer

The answer of A human quality linked to entrepreneurship in...

Question 12

_________entrepreneurs are committed to both good business and changing the world for the better.

Accepted Answer

The answer of _________entrepreneurs are committed to both good business...

Question 13

An _________is an artificial entity created by the state and existing apart from its owners.

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The answer of An _________is an artificial entity created by...

Question 14

Scenario - Holly and Trent

While many others dreamed about owning their own business, Holly Gabrel decided to do something about it. Holly knew that being self-employed required long hours and hard work, but with the help of her husband, Trent, Holly was positive that the hours and the work would be rewarded. First, she and Trent developed a new concept in sunglasses that could be used by athletes better than the sunglasses now on the market. Holly and Trent obtained a patent on their invention, and began production and marketing.
-If the business is legally Holly's, then the business form would be:
A) proprietorship.
B) partnership.
C) corporation.
D) chapter S42.5.
E) none of these.

Accepted Answer

A proprietorship is a business owned and operated by one individual without any legal distinction between the owner and the business. Since the statement specifies that the business is legally Holly's, it indicates that she is the sole owner of the business and therefore, it is a proprietorship. The other options (partnership, corporation, chapter S42.5) involve multiple owners or legal distinctions between the owner(s) and the business, which are not applicable in this scenario.

Question 15

An_________ is a group of companies or individuals that invests money in new or expanding businesses for ownership and potential profits.

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The answer of An_________ is a group of companies or...

Question 16

Borrowing money that has to be repaid at a later date in order to start a business is_________ .

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The answer of Borrowing money that has to be repaid...

Question 17

_________financing consists of funds that are invested in exchange for ownership in the company.

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The answer of _________financing consists of funds that are invested...

Question 18

By _________, an entrepreneur has the advantage to develop and design the business in his/her own way.

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The answer of By _________, an entrepreneur has the advantage...

Question 19

_________is the psychological characteristic that allows a person to be untroubled by disorder and uncertainty.

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The answer of _________is the psychological characteristic that allows a...

Question 20

An_________ is a document specifying the business details prepared by an entrepreneur in preparation for opening a new business.

Accepted Answer

The answer of An_________ is a document specifying the business...

Quiz 16: Managing Small Business Start-Ups