Entrepreneurship and Society

How does entrepreneurship helps our society?

• Eliminates financial concerns

• Decreases economic growth

• Creates new jobs

• Reduces taxes

One way in which entrepreneurs are different from 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 to make entrepreneurs’ visions a reality, they aren’t required to

• assume the risk involved.

• formulate company policy.

• implement procedures.

• set business objectives.

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

• personal satisfaction

• sales quotas.

• higher taxes.

• guaranteed financial security.

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.

• tax breaks and deductions

• personal commitment

• advanced technology

• flexibility and independence

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

• advertising

• commitment

• employees.

• money

In the early stages of a start-up business, entrepreneurs assume sole responsibility for

• the daily activities of competitors.

• global economic growth rates

• all aspects of their businesses

• the demand of their products.

Technological advancements have made it possible for some entrepreneurs to

• run their businesses with fewer computer skills.

• operate their businesses entirely from their computers.

• reduce the need for maintaining financial records

• eliminate the need to pay income and Social Security taxes.

Governments can encourage entrepreneurial development by

• establishing higher ethical standards

• passing more legislation with strict guidelines.

• deregulating and reducing taxes.

• increasing interest rates on loans

What is a disadvantage of entrepreneurship?

• Personal satisfaction

• Uncertain income

• Lower taxes

• Fewer resources