Becoming an Entrepreneur Answers

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1
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A disadvantage to joining a family business is that _____.

A
more can be achieved by working in a team
B
family relationships may be negatively affected
C
one individual must take on all of the financing responsibilities
D
there is little trust and loyalty
2
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The expenses involved in going into business, such as buying a space and purchasing equipment, are examples of _____.

A
marketing funds
B
start-up costs
C
financial plans
D
operating expenses
3

The three traits an entrepreneur must possess to be successful are _____.

A
motivation, humility, and decision making
B
conflict management, motivation, and decision making
C
sight & foresight, decision making, and motivation
D
humility, conflict management, and sight & foresight
4

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

A
T
B
F
5

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
interpretation
B
sight and foresight
C
independence
D
decision making skills
6

Buying a franchise might be a good decision for someone who _____.

A
wants to create a new product or service
B
doesn’t want to work long hours
C
doesn’t have experience developing management systems
D
likes to work alone without many rules and regulations
7

A business’ success depends on four key factors: financing, location, management, and _____.

A
opportunity costs
B
retail sales
C
competition
D
employment opportunities
8

A person who organizes a business and then runs it is called a(n) _____.

A
entrepreneur
B
financial planner
C
franchiser
D
stockholder
9

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
10

An existing business can be for sale because _____.

A
the owners are retiring
B
the owners are entering a new business
C
the business is losing money
D
all of the above

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