M02: Quiz
Which entity is defined as independent and has little influence on itsmarket? -
ANS-Small business
Which of the following would be considered a smallbusiness? - ANS-A local dress shop
with three employees
Which of the following is required to be considered anentrepreneur? - ANS-You
assume the risk of business ownership.
What does an entrepreneur use to summarize his or her business strategy for a
proposed newventure? - ANS-Business plan
Which of the following are groups of small investors seeking to make profits on
companies with rapid growthpotential? - ANS-Venture capital companies
Brooke believes that there are many consumers who would like pizza delivery
companies to deliver movies and popcorn along with their pizza. Brooke is looking at
what type ofmarket? - ANS-Niche
MostMcDonald's andDunkin' Donuts outlets are franchises operating under licenses
issued by parent companies to local owners. One of the primary advantages of
purchasing a franchise rather than starting a business from scratch is that a franchise
offers_______. - ANS-aready-made business model
Which of the following factors MOST contributes to small businessfailure? -
ANS-Managerial incompetence or inexperience
Which of the following represents one of the existing trends for small business
start-ups? - ANS-Emergence ofe-commerce
What is a major drawback of soleproprietorships? - ANS-Unlimited liability
If a business owner needs money forexpansion, but does not want to give up sole
control over thebusiness, what type of partnership would bebest? - ANS-Limited
partnership
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