1. Business Management Chapters 5 & 6 Starting and Growing Your Business
Unit 2 Review
Business Management
Chapters 5 & 6
Starting and Growing Your Business

2. ___ percent of all US companies are small businesses.
10-25%
26-50%
51-75%
76-100%

3. Limited financial liability is the most important advantage of which form of ownership?
General partnership
Corporation
Limited partnership
Sole proprietorship

4. Most of the businesses in the US are which form of ownership?
General partnership
Corporation
Limited partnership
Sole proprietorship

5. A corporation chartered in another state other than where it is doing business is called:
A domestic corporation
An alien corporation
A national corporation
A foreign corporation

6. The owners of a corporation are called:
CEOs
Partners
Board of directors
Stockholders

7. Transfer of ownership is most difficult in which type of business?
Partnership
Corporation
Sole proprietorship

8. When one business purchases the property and assumes the liabilities of another company, there has been a(n):
Merger
Acquisition
Divestiture
Charter

9. Steve Jobs, the late CEO of Apple, helped make the company the world’s largest marketer of MP3 players, smartphones, and tablet computers. His ____ contributed to this achievement.
Stubbornness
Restraint
Vision
Intreprneurship

10. Ethan wants to start a business
Ethan wants to start a business. He takes a personality test and discovers he possesses a trait that may reduce the likelihood he will succeed. Which of the following is that trait?
Creativity
Low tolerance for risk
Vision
Internal locus of control

11. Entrepreneurs possess all of the following EXCEPT:
Creativity
Low self-confidence
Vision
Internal locus of control

12. Anna signs a contract with SUBWAY to own and run a branch of the company. Anna is a :
Franchisor
Intrapreneur
Visionary
Franchisee

13. Louis works as an artist for a major textile company and created an innovation for producing designs. The company will implement Louis’s idea as part of its ____ strategy.
Skunkworks
Angel investment
Seed capital
entrepreneurship

14. It is suggested that entrepreneurs are a “different breed
It is suggested that entrepreneurs are a “different breed.” Which of the following is a characteristic of an entrepreneur?
Reliance on the way things have always been done in the past
Higher than average need for achievement
A tendency to avoid risk
A low tolerance for failure

15. When trying to find an idea for a new business, it may be wise to:
List your interests, abilities, values, and goals
Consider the job experiences you’ve already had
Look for ways to improve on existing goods and services
All of these are correct

16. Companies that want to enhance intrapreneurship should:
Remind employees that it is managers who identify new business ideas
Keep goals realting to new ventures secret until the top management has approved specific ideas
Discourage employees from developing new product ideas on their own
Quickly move proposals for new ventures through the approval process

17. When entrepreneurs borrow money to finance a business venture, they are using:
Debt financing
Money from angel investors
Money from venture capitalists
Equity financing

18. Popular methods for entering new ventures include:
Starting a business from scratch, based on an original idea
Buying and existing business that has potential to be rejuvenated
Buying a franchise
All of these are correct

19. Aspiring entrepreneurs can find information by:
Subscribing to magazines & reading books
Using the Internet
Contacting trade associations for the industry in which they have interest
All of these are correct

20. Someone who uses entrepreneurial talent while working for a large firm is called a(n):
Angel investor
Intrepreneur
Entrepreneur
Venture capitalist

21. Look at page 170 – review the characteristics of entrepreneurs.
Vision
High Energy Level
Need to Achieve
Self-confidence & Optimism
Tolerance of Failure
Creativity
Tolerance for Ambiguity
Internal Locus of Control