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Entrepreneurship — Unit test Answers

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1
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Articles of partnership establish

A
how businesses can raise capital.
B
what business taxes are paid.
C
how profits and losses are divided.
D
what is included in a charter.
2
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The EPA tries to balance protecting business interests with protecting

A
food.
B
air.
C
consumer products.
D
medical devices.
3

What circumstances during the early days of industrialization led to a need for reform? Check all that apply.

A
Factory equipment was dangerous to operate.
B
There were too few capable workers to fill positions.
C
There was little government regulation of workplaces.
D
A typical work shift might be twelve to sixteen hours long.
E
It was very expensive to keep factories running.
4

To be successful, what must an entrepreneur be willing to invest? Check all that apply.moneyunemploymentpersonal safetytimeconsiderable effort

A
money
B
unemployment
C
personal safety
D
time
E
considerable effort
5

[BLANK]

A
producers
B
consumers
C
government
D
prices
6

Which best describes a difference between the views of Milton Friedman and John Maynard Keynes on the economy?

A
Friedman said that monetary policy should be used to influence aggregate demand, while Keynes believed the best approach was fiscal policy.
B
Friedman said that fiscal policy should be used to influence aggregate demand, while Keynes believed the best approach was monetary policy.
C
Keynes believed in little government intervention in the economy, while Friedman said government should play an active role.
D
Keynes believed the economy was too complicated to think of aggregates, while Friedman said higher aggregate demand could solve issues.
7

A business owner would most likely create a cooperative instead of buying a franchise because

A
cooperatives give majority owners the most control, while franchises make decisions with a parent company.
B
cooperatives make it easy to accumulate supplies, while franchises come with supplier relationships already in place.
C
cooperatives are well financed by members, while franchises must raise large sums of money to launch a business.
D
cooperatives allow all owners to share profits, while franchises are required to share profits with a parent company.
8

Which best explains why a sole proprietor would want a partner?

A
to reduce the number of responsibilities
B
to make it easier to raise funds for expansion
C
to move into a more favorable tax bracket.
D
to take advantage of little government oversight.
9

What is a major factor in the decline of some occupations, such as those in the textiles and clothing industries?

A
shifting consumer tastes
B
overseas labor costs
C
changing technologies
D
aging populations
10

Successful entrepreneurs contribute to the economy by

A
becoming wealthy.
B
expanding markets.
C
encouraging free trade.
D
creating business strategies.
11

[BLANK]

A
similar
B
different
C
all
D
random
12

[BLANK]

A
Occupational Safety and Health Administration
B
Environmental Protection Agency
C
Food and Drug Administration
D
Securities and Exchange Commission
13

The development of many new businesses helps limit

A
unemployment.
B
taxation.
C
revenue.
D
risk.
14

Many classical economists such as Adam Smith believed that government should

A
intervene often in the economy.
B
intervene little in the economy.
C
always intervene in the economy.
D
totally control the economy.
15

Labor unions were certain to advocate for the best interests of workers because

A
the government shut down factories that did not improve work conditions.
B
the top factories were run by owners who wanted to retain their workers.
C
the government required all labor unions to promote workplace reform.
D
the labor unions were created by workers and made up of workers.
16

Which statement explains a way how the Securities and Exchange Commission upholds fair business practices?

A
The SEC makes sure that banks follow federal laws.
B
The SEC tries to limit risk in the financial system.
C
The SEC generally oversees banking practices.
D
The SEC generally oversees financial advisers.

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