Becoming an Entrepreneur Answers

A business chartered by a state that legally operates as a separate entity from the owner(s) is called _____.a.franchiseb.sole proprietorshipc.partnershipd.corporation

Buying an existing business _____.a.is beneficial because an established business always has a good reputationb.is not recommended because there are too many disadvantagesc.allows the owner to build upon the goodwill of previous customersd.is a high risk because successful businesses are usually not sold

An existing business can be for sale because _____.a.the owners are retiringb.the owners are entering a new businessc.the business is losing moneyd.all of the above

A proven product, established management systems, and customer goodwill are three advantages of _____.a.joining a family businessb.starting a new businessc.buying a franchised.working from home

Buying a franchise might be a good decision for someone who _____.a.wants to create a new product or serviceb.doesn’t want to work long hoursc.doesn’t have experience developing management systemsd.likes to work alone without many rules and regulations

Franchises tend to have better success rates that non-franchised businesses.

The expenses involved in going into business, such as buying a space and purchasing equipment, are examples of _____.a.marketing fundsb.start-up costsc.financial plansd.operating expenses

In order for a teen to have a successful business, they must to do all of the following EXCEPT _____.a.be prepared to work long hoursb.make a profit with the businessc.ignore customer satisfaction d.be able to promote the business

Jefferson is interested in starting his own business. He plans to borrow money from the local bank in order to finance the business. They will require him to submit a business plan and a(n) _____. a. buy-out plan b. income statement c. partnership agreement d. financial plan Please select the best answer from the choices provided

Entrepreneurs are self-motivated and recognize opportunities around them.