Question Details

MGT 101 Chapter 6--Managing Small Business Start-Ups PART 5

71.	Social entrepreneurs are committed to both good business and: 
 
A. 	swaying political opinion of consumers.
B. 	improving the natural environment.
C. 	positive social change.
D. 	non-profit goals.
E. 	big profits.

 
72.	What is the primary goal of the social entrepreneur? 
 
A. 	Maximizing profits
B. 	Improving society
C. 	Reaching social circles
D. 	Finding funding
E. 	Writing grants

 
73.	_____ combines creativity, business smarts, passion, and hard work of the traditional entrepreneur with a mission to change the world for better. 
 
A. 	Contemporary entrepreneurship
B. 	Traditional entrepreneurship
C. 	Modern-day entrepreneurship
D. 	Social entrepreneurship
E. 	Conventional entrepreneurship

 
74.	One of the first characteristics or points of a successful business plan is: 
 
A. 	a profile of potential customers and market needs.
B. 	demonstrate a clear, compelling vision that creates an air of excitement.
C. 	the key ingredient of the business that will attract million of customers.
D. 	the entrepreneur's background and role in the company.
E. 	essential information about funding received so far.

 
75.	Which of the following is the most cited source of new business ideas? 
 
A. 	Brainstorming
B. 	In-depth understanding of industry/profession
C. 	A hobby
D. 	Copying someone else
E. 	None of these

 
76.	Before opening his own business, Kareem was writing a report that details the specifics of his ideas and future business operations. This document is known as a: 
 
A. 	SWOT analysis.
B. 	business portfolio.
C. 	business plan.
D. 	competitive analysis.
E. 	mission statement.

 
77.	The most common reason for becoming an entrepreneur is: 
 
A. 	joining the family business.
B. 	to control one- future.
C. 	to be one- own boss.
D. 	to fulfill a dream.
E. 	the result of being laid off.

 
78.	Which of these refers to an unincorporated business owned by an individual for profit? 
 
A. 	Partnership
B. 	Sole proprietorship
C. 	Corporation
D. 	Association
E. 	Trade alliance

 
79.	Which of the following is NOT an appropriate legal structure for an entrepreneurial company? 
 
A. 	Proprietorship
B. 	Corporation
C. 	Partnership
D. 	Trade alliance
E. 	All of these are appropriate legal structures for an entrepreneurial company.

 
80.	Which of the following is a popular small business form because it is easy to start and has few legal requirements? 
 
A. 	A partnership
B. 	A proprietorship
C. 	A corporation
D. 	An association
E. 	A trade alliance

 
81.	Vaughn Hager started his one-man consulting business under the name Hager Associates. The legal structure for the company can best be described as a(n): 
 
A. 	proprietorship.
B. 	partnership.
C. 	trade alliance.
D. 	corporation.
E. 	one man operation.

 
82.	A(n) _____ has a legal life of its own. 
 
A. 	partnership
B. 	proprietorship
C. 	corporation
D. 	association
E. 	trade alliance

 
83.	The drawback(s) of proprietorship include: 
 
A. 	the unlimited liability of the partners.
B. 	conflicts with partners.
C. 	existence regardless of whether the owners live or dies.
D. 	difficulty in obtaining financing.
E. 	complexity and cost.

 
84.	Blake, Madison and Sean started selling computer software on college campuses under the name Student Software Company. Each person contributed $1500 toward start-up costs and agreed on dividing costs and profits equally. The legal structure for the company can best be described as: 
 
A. 	a proprietorship.
B. 	a partnership.
C. 	a trade alliance.
D. 	a corporation.
E. 	none of these.

 
85.	Which of the following is an unincorporated business owned by two or more? 
 
A. 	A partnership
B. 	A proprietorship
C. 	A corporation
D. 	An association
E. 	A trade alliance

 
86.	An artificial entity created by the state and existing apart from its owners is known as: 
 
A. 	a partnership.
B. 	a proprietorship.
C. 	a corporation.
D. 	an association.
E. 	a trade alliance.

 
87.	What are the two principal advantages of forming a corporation? 
 
A. 	Unlimited liability and potential conflicts with partners
B. 	Freedom from debt and relatively simple structure
C. 	Continuity and limits on owner's liability
D. 	Unlimited liability and continuity
E. 	Continuity and non-tax structure

 
88.	All of the following are common reasons why small business ventures fail except: 
 
A. 	sloppy accounting.
B. 	naive hiring.
C. 	lack of controls.
D. 	long-term focus.
E. 	unrealistic focus.

 
89.	What is the most common way that entrepreneurs finance the start-up of a new business? 
 
A. 	Self-financing from savings or credit cards
B. 	Loans from friends, family, or business associates
C. 	Bank loans
D. 	Lines of credit
E. 	Venture capital

 
90.	_____ refers to borrowing money that has to be repaid in order to start a business. 
 
A. 	Venture capital
B. 	Debt financing
C. 	Equity financing
D. 	Franchising
E. 	Licensing