Becoming an Entrepreneur

Question 1

Define the three main forms of legal ownership of a business. Which one appeals most to you and why?

Revolt · Accepted Answer

The three forms of ownership are sole proprietorship, partnership, and corporation. Sole proprietorship – a business is completely owned by one person Partnership – a legal arrangement where two or more people share ownership of a business Corporation – business chartered by a state that legally operates apart from the owner(s) Students’ preferences should reflect an understanding of how the three forms of ownership offer different levels of responsibility, decision-making power, and financial risk.

Question 2

A legal arrangement where two or more people share ownership of a business is called a ______.

Revolt · Accepted Answer

C

Question 3

The loyalty of customers to a business is called _____,

Revolt · Accepted Answer

goodwill

Question 4

A _____ is a document that outlines specific information about your proposed business, including product, location, and marketing information.

Revolt · Accepted Answer

business plan

Question 5

Before buying an existing business, you need to identify if the business’s problems can be fixed.

Revolt · Accepted Answer

T

Question 6

A business plan is a document describing the start-up costs and operating expenses of a new business.

Revolt · Accepted Answer

F

Question 7

List the four ways to become a business owner.

Revolt · Accepted Answer

1. Start a new business 2. Buy an existing business 3. Buy a franchise 4. Join a family business

Question 8

List and describe the three traits needed to become a successful entrepreneur.

Revolt · Accepted Answer

Sight & Foresight -Ability to see opportunities that others do not see -Notice needs that are not being met, and make a career out of fulfilling these needs Decision-making -Makes business decisions every day -Must make GOOD decisions using the decision making process Motivation -Self motivation – know what they want and believe in their ability to achieve it -Stay motivated by setting short term and long term goals -Plan on how to achieve their goals

Question 9

The three legal forms of business ownership are _____.

Revolt · Accepted Answer

partnership, sole proprietorship, and corporation

Question 10

Select two ways of becoming a business owner. Compare the advantages and disadvantages and decide which of the two you would prefer.

Revolt · Accepted Answer

Students may compare any two of these four approaches: starting a new business, buying an existing business, buying a franchise, and taking over a family business. Student preferences will vary, but should be supported with content found in the lecture.

Becoming an Entrepreneur Answers

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