True/False
Indicate whether the
statement is true or false.
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1.
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An entrepreneuer usually doesn’t have to work hard to make large
profits.
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2.
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A chain is a business that has one location owned by several people
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3.
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A franchise fee is the money that the outside person pays the chain owner for
the right to use the chain’s brand name.
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4.
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All chains are a part of a franchise, but not all franchises offer
chains.
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5.
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The costs to start a new business are called start-up costs.
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Multiple Choice
Identify the
choice that best completes the statement or answers the question.
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6.
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Which of the following are traits of successful entrepreneurs?
a. | aloofness | d. | agnostic | b. | confidence | e. | only b and c | c. | responsibility | f. | all of the above |
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7.
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Who of the following can be an entrepreneur
a. | a dentist | d. | a teacher | b. | a market analyst | e. | only a, b, and d | c. | a burger flipper at
a fast food place | f. | all of
the above |
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8.
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Which is NOT a benefit of being an entrepreneur?
a. | being your own boss | c. | setbacks for which you are solely responsible | b. | being able to do
work you’re interested in | d. | earning a large profit |
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9.
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Three main advantages of a sole proprietorship are:
a. | easy and inexpensive startup, owner has total control, many government
regulations | c. | easy and inexpensive startup, limited liability, very easy to earn
money | b. | easy and inexpensive startup, owner has total control, minimal government
regulations | d. | complex
startup, government regulated, owner has total control |
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10.
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A franchise agreement is:
a. | a document that binds all franchise owners to each other | c. | the legal document
that sets up a franchise | b. | a document that gives the franchisee the power
to change a brand | d. | an
agreement between two franchisors that enables them to collapse their franchises into one business
(e.g. Pizza Hut/Taco Bell restaurant) |
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11.
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The costs to keep a business running are called:
a. | operating expenses | c. | running expenses | b. | running costs | d. | operating costs |
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12.
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A business plan is a(n):
a. | PowerPoint presentation that entrepreneurs give to sponsors in order to raise
money | c. | document that business owners look at before they aquire a new
franchise | b. | written document that describes a business and how it will
operate | d. | description of the
business to be distributed to marketing companies for product
promotion |
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13.
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The U.S. Small Business Administration (SBA):
a. | was created to administer trade agreements and provide technical assistance to small
businesses | c. | promotes fair advertising and selling practices | b. | was created to help
America’s entrepreneurs form successful businesses | d. | is an organization developed to keep small
business from becoming larger and turning into monopolies |
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14.
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If an owner is responsible for all the debts and choices of a business he is
considered to have
a. | unlimited liability | c. | public liability | b. | unlimited responsibility | d. | warranty |
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15.
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A business that has only one location and is not part of any other business is
called a(n)
a. | franchise | c. | private business | b. | isolationist | d. | independent
business |
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Completion
Complete each
statement.
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16.
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_________ can be an entrepreneur.
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17.
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Entrepreneurs must have excellent _________ skills. They must be able to
explain their plans and engage customers.
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18.
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A ___________ has two or more owners and liability is distributed between
owners.
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19.
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A __________ is a more complicated form of ownership. It is a legal entity
established for the purpose of doing business.
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20.
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The __________ market is where an entrepreneur intends for his product to be
sold.
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Short Answer
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21.
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Give an example of a successful business venture that you could capitalize on
right now.
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22.
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What is the entrepreneurial process?
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23.
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List two examples of ways to start an original business.
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24.
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You are recently unemployed to the downturn in the economy so you move to a
small new town. You have three naturally occuring materials lying abundantly around the old
house you are renting, and you have decided to take your business destiny into your own hands.
Name one or two ways you might inventively use the materials to create a product and become an
entrepreneur.
The three materials are cypress wood, clay, and granite.
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Essay
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25.
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Create a business plan for a new business. Include a description of the
business, competition analysis, target market, marketing plan, day to day operations, and an
executive summary.
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