GMETRIX ENTREPRENEURSHIP AND SMALL
BUSINESS EXAM PREP PRACTICE SET 2026
FULL SOLUTION
◉ You need to create a legal structure for your small business. You
would like some of the benefits enjoyed by large corporations, but
do not want to be taxed twice. You have four partners who will be
shareholders. None of you plan to sell your ownership shares to the
public, but do not want to be protected from business liabilities.
Which legal structure should you set up for your business? Answer:
S- Corporation
◉ Place the stages of the business life cycle in the correct order.
Answer: 1. Existence
2. Survival of the Fittest
3. Success
4. Take-Off
5. Maturity
,◉ Match each Element of the Design Thinking Process to its
corresponding description. Answer: Research your users' needs:
Empathize
State your users' needs and problems: Define
Challenge assumptions and create ideas: Ideate
Create Solutions: Prototype
Try your solutions: Test
◉ In general, which TWO characteristics define a "small" business?
Answer: Less than $35.5 million revenue
Fewer than 1,500 employees
◉ You need to create a legal structure for your small business. You
have plans for it to grow and hope in the future to sell shares to the
public. Your startup partners are citizens of Mexico and Japan. You
do not want to be personally responsible for business liabilities.
, Which legal structure should you set up for your business? Answer:
C-Corporation
◉ Match each business management role to its corresponding
description. Answer: CEO: The highest-ranking employee in the
company; reports to the board of directors.
CFO: Creates budgets, analyzes financial data, and forecasts
company profits.
CIO: Develops policies and structures to protect company data.
COO: Oversees the day-to-day administrative functions of a business;
second in command.
◉ You own a lawn care business. You have employees who work long
hours laboring in good weather, often exceeding 40 hours per week.
They also work short hours when the weather is bad, sometimes
they can't work at all. You do all of the sales for your business.
Which TWO types of compensation would be appropriate for these
landscape employees? Answer: Hourly
Salary
BUSINESS EXAM PREP PRACTICE SET 2026
FULL SOLUTION
◉ You need to create a legal structure for your small business. You
would like some of the benefits enjoyed by large corporations, but
do not want to be taxed twice. You have four partners who will be
shareholders. None of you plan to sell your ownership shares to the
public, but do not want to be protected from business liabilities.
Which legal structure should you set up for your business? Answer:
S- Corporation
◉ Place the stages of the business life cycle in the correct order.
Answer: 1. Existence
2. Survival of the Fittest
3. Success
4. Take-Off
5. Maturity
,◉ Match each Element of the Design Thinking Process to its
corresponding description. Answer: Research your users' needs:
Empathize
State your users' needs and problems: Define
Challenge assumptions and create ideas: Ideate
Create Solutions: Prototype
Try your solutions: Test
◉ In general, which TWO characteristics define a "small" business?
Answer: Less than $35.5 million revenue
Fewer than 1,500 employees
◉ You need to create a legal structure for your small business. You
have plans for it to grow and hope in the future to sell shares to the
public. Your startup partners are citizens of Mexico and Japan. You
do not want to be personally responsible for business liabilities.
, Which legal structure should you set up for your business? Answer:
C-Corporation
◉ Match each business management role to its corresponding
description. Answer: CEO: The highest-ranking employee in the
company; reports to the board of directors.
CFO: Creates budgets, analyzes financial data, and forecasts
company profits.
CIO: Develops policies and structures to protect company data.
COO: Oversees the day-to-day administrative functions of a business;
second in command.
◉ You own a lawn care business. You have employees who work long
hours laboring in good weather, often exceeding 40 hours per week.
They also work short hours when the weather is bad, sometimes
they can't work at all. You do all of the sales for your business.
Which TWO types of compensation would be appropriate for these
landscape employees? Answer: Hourly
Salary
