Becoming an Entrepreneur Answers

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

A disadvantage to joining a family business is that _____.a.more can be achieved by working in a teamb.family relationships may be negatively affectedc.one individual must take on all of the financing responsibilitiesd.there is little trust and loyalty

Location is not important for a business.

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

In order for a person to recognize needs that are not being met and make a career out of fulfilling unmet needs, that person must have _____. a.interpretationb.sight and foresightc.independenced.decision making skills

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 business’ success depends on four key factors: financing, location, management, and _____.a.opportunity costsb.retail salesc.competitiond.employment opportunities

Taking over a family business can help to maintain the goodwill of the customers.

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

A person who organizes a business and then runs it is called a(n) _____.a.entrepreneurb.financial plannerc.franchiserd.stockholder