This must be done before starting your own business
What is write up a business plan
100
People who take on the responsibility of developing a new innovation in a larger company
What is an intrapreneur?
100
Those to whom money is owed
Who are creditors?
100
What kinds of businesses are well-suited for partnerships.
If a business furnishes more than one kind of product or service, if the business has long hours or operates more than 8-10 hours a day, those offering professional services.
100
As a sole proprietor, my home is not at risk if my business fails.
What is false
200
Assets = Liabilities + Capital
What is the Accounting Equation or balance sheet formula?
200
SBDC
What is Small Business Development Center?
200
Name one of the very first decisions a budding business owner must make
What legal form of ownership to adopt - sole proprietorship, partnership, corporation, etc.
200
The maximum number of people that can be owners in a partnership
There is no maximum number of partners
200
My personal credit score will affect my ability to obtain credit for my business.
What is true
300
Liability for each member of a partnership is for all the debts of the business
What is unlimited financial responsibility?
300
SBA
What is the Small Business Administration?
300
What types of business would be best suited for a proprietorship?
Businesses that provide personal services or sell merchandise on a small scale.
300
This restricts the liability of a partner to the amount of the partner's investment
What is limited partnership
300
A partnership can have a predetermined length of its life
What is true
400
When there is more than one owner of a business
What is a partnership?
400
How many elements are there to a business plan?
What is five (5)?
1 - Nature of the Business
2 - Goals and Objectives
3 - Marketing Plan
4 - Financial Plan
5 - Organizational Plan
400
The four disadvantages to proprietorships
1.Owner may lack necessary skills and abilities
2.Owner may lack funds
3.Owner bears all losses
4.illness or death may close the business
400
Name at lest four (4) disadvantages of partnerships
1.Unlimited financial liability
2.Disagreement among partners
3.Each partner is bound by any contracts made by other partners
4.Uncertain life of the business or partnership
5.Limited sources of capital
6.Unsatisfactory division of profits
7.Difficulty in withdrawing from partnership
400
A lender will not ask for my business plan prior to allowing me to borrow money
What is false
500
Define a Business Plan
What is a written document that describes the nature of the business, its goals and objectives, and how they will be achieved.
500
The major reason small businesses often fail
What are financial reasons and lack of owner experience?
500
The six advantages to being a sole proprietor?
1.Owner is boss
2.Owner receives all profits
3.Owner personally knows employees and customers
4.Owner can act quickly in decision making
5.Owner is free from red tape
6.Pays less income tax than a corporation
500
Name at least five advantages to partnerships
1.skills and abilities pooled
2.Sources of capital increased
3.Credit position improved
4.Contribution of goodwill
5.Increased concern in business management
6.Lower tax burden than corporations
7.reduction in competition
8.Retirement from management
9.Operating Economies
500
The following three words refer to the same person/business: sole proprietorship, proprietorship, proprietor