Planning a Business
The term limited liability means ____.
a partner or owner cannot lose more than he or she invested in the company
Which of the following is an example of a hard skill needed by entrepreneurs?
A. speaking to customers
B. writing business plans
C. reading product catalogs
D. performing calculations
performing calculations
The form of business ownership in which a single person owns the business and accepts all of the risks and responsibilities is a ____.
sole proprietorship
The relationship between two or more people who join to create a business is called a(n) ______________________________.
partnership
In many areas, sole proprietors are required to apply for a(n) ______________________________ to register their business under a name other than that of the business owner.
DBA license or fictitious name registration
Which of the following is not an advantage of buying an existing business?
A. It already has customers and employees.
B. It has an existing financial history.
C. All business problems have already been worked out.
D. The person selling the business may help you get started.
All business problems have already been worked out.
Someone who starts a new business.
entrepreneur
Which type of business is considered the "backbone" of the US economy?
small businesses
The ______________________________ process is the process of finding a need for a product.
entrepreneurial discovery
The critical, job-specific skills needed to perform work-related tasks are known as ______________________________ skills.
hard
One of the main advantages of an LLC is that ____.
A. it has no managing partner
B. it is restricted to a partnership organizational structure
C. it can have any organizational structure
D. partner liability is determined by the state
C. it can have any organizational structure
Name three risks involved in becoming an entrepreneur.
Possible answers: being responsible for the success or failure of the business; working long hours; risking personal finances.
Type of business that includes a managing partner and at least one limited partner.
limited partnership
Another name for a DBA license is ____.
fictitious name registration
The behavioral and emotional characteristics that make each person unique are called ______________________________.
traits
Which of the following statements about LLPs is true?
A. There is no managing partner
B. Their partners have unlimited liability.
C. They can have any organizational structure agreed upon by the members.
D. They are subject to double taxation.
A. There is no managing partner
Name four rewards associated with becoming an entrepreneur.
(Any four) controlling your destiny, being your own boss, taking advantage of earning potential, enjoying your career, and making a difference in the world.
Type of business that has most of the legal rights of an actual person.
corporation
People who have purchased a percentage of ownership in a corporation are known as ______________________________.
stockholders
The purpose of a(n) ______________________________ analysis is to determine whether a business idea is worth pursuing.
feasibility
day-to-day activities necessary to run a business.
Business Operations
What are the five Ps of entrepreneurship?
passion, perseverance, persistence, planning, and problem solving.
In a general partnership, ____.
A. all partners have unlimited liability
B. liability is limited for all except the managing partner
C. the managing partner has no liability
D. the personal assets of all partners are protected
all partners have unlimited liability
A partnership ______________________________ describes how much each partner will invest, each partner's responsibilities, and how profits are to be shared.
agreement
Before deciding to become an entrepreneur, you should complete a(n) ______________________________ to measure your actions or attitudes related to career performance.
self-assessment