Econ Chapter 7 The Business of Free Enterprise

Question 1

Some workers have left higher salaries for the entrepreneurial risk & innovative management

Accepted Answer

true

Question 2

Our economy has changed over the years. What best describes the reason for the change?

Accepted Answer

Entrepreneurs developed new things for the marketplace

Question 3

A benefit of small business is you do not need a large market to make a profit

Accepted Answer

true

Question 4

One advantage of a partnership is that

Accepted Answer

adding partners brings more funds for startup & expansion

Question 5

Elected representatives of a corporation's shareholders

Accepted Answer

Board of Directors

Question 6

Method of turning the risk of big loss into the certainty of a small one

Accepted Answer

insurance

Question 7

Since small businesses have few expenses money is not a problem

Accepted Answer

false

Question 8

License allowing a business to operate as if it were part of a large chain

Accepted Answer

franchise

Question 9

Which of the following is not true about small business in the US?

Accepted Answer

most small business start with enough money but still fail

Question 10

Entrepreneurs often spot new markets and develop new products

Accepted Answer

true

Question 11

Entrepreneurship promotes economic change

Accepted Answer

true

Question 12

Does free enterprise encourage entrepreneurship?

Accepted Answer

true

Question 13

Obligation to cover debt is limited to the extent of ownership

Accepted Answer

Limited liability

Question 14

Hiring and retaining workers is a challenge for small businesses

Accepted Answer

true

Question 15

Entrepreneurship is

Accepted Answer

never without risk

Question 16

Entrepreneurs are not critical thinkers but are very creating

Accepted Answer

false

Question 17

Business analysis predict entrepreneurs will continue to fuel the economy

Accepted Answer

true

Question 18

Sole proprietorships are

Accepted Answer

most numerous kind of business organization

Question 19

A share of ownership in a corporation

Accepted Answer

stock

Question 20

A corporation is a legal"person". Which means the corporation

Accepted Answer

can be sued or sue, can enter into contracts and pays taxes

Question 21

When you buy a share of stock

Accepted Answer

you can not lose more money than you spent for the stock

Question 22

Business organization that enables many owners to hire specialist

Accepted Answer

corporation

Question 23

Profits distributed to the owners of a corporation

Accepted Answer

dividends

Question 24

In a large corporation

Accepted Answer

ownership and management are separated

Question 25

type of business organization that typically uses revenue for charitable or religious purposes

Accepted Answer

Not-for-Profit

Question 26

Pa Thao just bought a store that carries the name of a well known national company, this is a

Accepted Answer

franchise

Question 27

Entrepreneurs develop very sophisticated products most people don't know about

Accepted Answer

false

Question 28

Owners of a corporation who may share in its profits

Accepted Answer

stockholder

Question 29

The Girl Scouts and Boy Scouts of America are what type of business?

Accepted Answer

not-for-profit

Question 30

Sees new business opportunities and assumes risk to pursue them

Accepted Answer

entrepreneur

Econ Chapter 7 The Business of Free Enterprise

Questions 30

Econ Chapter 7 The Business of Free Enterprise

Questions 30