Business Management 1 Review

Which of the following is a way that entrepreneurship helps our society?

• Eliminates financial concerns
• Reduces taxes
• Creates new jobs
• Decreases economic growth

One difference between entrepreneurs and small-business owners is that

• small-business owners generally are not interested in expanding their businesses.
• entrepreneurs rarely manage the day-to-day aspects of their businesses.
• small-business owners usually employ between 500 and 1,000 workers.
• entrepreneurs usually purchase existing businesses or franchise rights.

While managers help make entrepreneurs’ visions a reality, they aren’t required to

• set business objectives.
• assume the risk involved.
• implement procedures.
• formulate company policy.

The most likely reason an individual might turn a woodworking hobby into a business is because of

• personal satisfaction.
• higher taxes.
• guaranteed financial security.
• sales quotas.

Michelle’s primary reason for starting her own business is her desire to make her own schedule. Michelle is looking forward to the __________ she hopes to have as a business owner.

• flexibility and independence
• personal commitment
• tax breaks and deductions
• advanced technology

Many businesses fail due to insufficient capital. Insufficient capital is also known as a lack of

• money.
• commitment.
• employees.
• advertising.

In the early stages of a startup business, entrepreneurs assume sole responsibility for

• the daily activities of competitors.
• the demand of their products.
• global economic growth rates.
• all aspects of their businesses.

What is a disadvantage of entrepreneurship?

• Personal satisfaction
• Lower taxes
• Fewer resources
• Uncertain income

How are entrepreneurs similar?

• Startup business owners rarely fail at their entrepreneurial ventures.
• They have strong personal traits, such as determination and confidence.
• Most entrepreneurs go on to start other businesses.
• They are born with excellent leadership and communication skills.

Even though there is a significant chance that his business will fail, Sidney intends to open a sports memorabilia shop. What entrepreneurial trait is Sidney exhibiting?

• Creativity
• Open-mindedness
• Willingness to take risks
• Organization