Ent Unit 2 Practice 3

In which of the following types of ventures is reduced profit due to payment of royalty fees a major DISADVANATGE?

• Franchise

• Sole trader

• Private company

• State-owned enterprise

The primary purpose of a cooperative is to

• reach the breakeven point

• push the economic interest of its members

• improve the standard of living of the country

• bring together a group of existing companies to form one company

One advantage of the franchise approach to business is that the entrepreneur gets more

• profit

• capital

• partners

• guidance

Which of the following feasibility analyses assesses whether or not a new business venture will provide return on investment?

• Industry

• Financial

• Technical

• Marketing

Which of the following is a form of equity financing?

• Loan

• Debenture

• Personal funds

• Issuing of bonds

An organization that has a separate legal identity from its owners is BEST termed

• corporate organization

• non-corporate organization

• limited liability organization

• unlimited liability organization

A form of organization where the owner has total control of the business and is liable for all debts incurred is specifically

• franchise

• limited liability

• partnership

• sole trader

Which of the following is NOT a key disadvantage of a partnership?

• unlimited personal liability

• one can be held responsible for a partner's be negligence

• easier than a sole trader to access financing

• shared decision making can lead a conflict

The value of expenses recorded in the income statement by an entrepreneur for the year is the amount.

• owed

• incurred

• deferred

• disbursed

When a business venture first begins operations, it usually experiences

• low sales, low costs

• high sales, low cost

• low sales, high cost

• high sales, high cost