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Flashcards in Final (Questions) Deck (32):
1

The amount of goods or services that consumers are willing and able to buy is determined by

Demand

2

The chances of a new business succeeding are good with

Effective planning and management

3

A new business's ability to start and grow is affected by which of these variables?

A. Favorable taxes, good markets, and supportive governmental policies
B. Incentives to create new businesses
C. The nature of the venture and availability of resources
D. All of the above

D. All of the above

4

The amount of a good or service that producers are willing to provide is called

Supply

5

A business that is operating under a new name or a business that had been purposely discontinued to start a new one is considered a

Discontinuance

6

A key element in a market economy between similar businesses is

Competition

7

A business that files chapter 7 bankruptcy and loses money for creditors and investors is considered a

Business failure

8

A successful entrepreneur is willing to work until a job is done. What term describes this characteristic?

Persistent

9

Entrepreneurs must understand how the economy works. What skills this describe?

Basic business skills

10

The success or failure of an entrepreneurial venture rests entirely on the

Owner

11

Being and entrepreneur involves risks as well as rewards. What is a risk of being an entrepreneur?

Uncertain income

12

Entrepreneurs want to know as much as possible about anything that might affect their ventures. What term describes this characteristic?

Inquisitive

13

Business ownership carries with it a amount of

Prestige

14

Entrepreneurs want to make their own decisions which word best describes characteristic?

Independent

15

What is one contribution that a business owner makes to the community?

Generates jobs

16

Hiring a firm to design and produce packaging for your product is example of

Outsourcing

17

Which of the following are some major trends for the creation of new businesses?

A. New kinds of strategic alliances
B. Increased emphasis on outsourcing
C. Growth of home-based businesses
D. All of the above

D. All of the above

18

To find a new business you may need to hire a

Business broker

19

One way to prevent some of the problems the family business face is to

Establish clear lines of responsibility

20

An asset of acquiring an existing business is customer loyalty or

Goodwill

21

A partner his liability is limited to his or her investment is called a

Limited partner

22

Partners that all have unlimited personal liability and take full responsibility for the management of the businesses are

General partners

23

Which type of a corporate form is expensive to set up?

C-corporation

24

One major type of a corporation is a

Subchapter S

25

The owner of a sole proprietorship is the only one who receives

Profits

26

The law requires that all partnerships have at least one

General partner

27

The easiest and most popular form of business to create is the

Sole proprietorship

28

The principal disadvantage of a sole proprietorship is

Financial

29

McDonald's is an example of a

Franchise

30

Before you can determine if a new venture is feasible you must prepare

A business plan

31

To identify consumer markets you should be aware of

Demographic changes

32

Revenues lost to lower prices can be made up through

Higher volume