FSE 2202 FINAL GUIDE EXAM QUESTIONS AND ANSWERS
WITH COMPLETE SOLUTIONS VERIFIED LATEST UPDATE
An organization that combines inputs of raw materials, capital, labor and
management skills to produce useful outputs of goods and services so as to earn
a profit
Business
A business which is independently owned and operated and is not dominant in
its filed of operations
Small business
One who organizes, manages, and assumes the risk of a business firm or venture
Entrepreneur
Someone who invests funds in a new business without owning the business
Venture capitalist
Private investors who are willing to supply financing for new and/or risky small
business firms in a community
Business Angels
An entrepreneur who primarily possesses technical knowledge, but has very
little, if any, business experience
Artisan entrepreneur
Can be an external cause of business failure
Consumerism
The emphasis placed on providing to customers products and services that are
safe, reliable, and honestly advertised; Also a social movement that seeks to
strengthen the rights of consumers relative to sellers
Consumerism
What are the drawbacks to entrepreneurship
-Responsible for the financial risk of the business
-You face emotional strain from the business
-Working long hours to start the business
,What are the external causes of business failure
Lack of owner finances
General types of businesses
-Manufacturing
-Merchandising
-Services
A written document that states explicitly the rights and duties of partners in a
partnership
Articles of Partnership
The governing body that is elected by the stockholders of a corporation
Board of Directors
The written application for permission to incorporate that is approved by a state
official
Corporate Charter
A form of legal organization in which a business association made up of two or
more persons is formed for the purpose of carrying on as co-owners
Partnership
A legal form of organization whereby the business is owned and operated by one
person
Sole proprietorship
What is an advantage of a sole proprietorship
Owner is free to manage the firm in the way he/she sees fit
Those partners which can only lose the amount of money they invested in a
partnership
Limited partner
A legal form of organization whereby a legal entity is authorized by a state to
operate
Corporation
What is a disadvantage of a sole proprietorship
Raising capital may be a hardship on the owner
Disadvantages of a partnership
, -Investments on both parties are frozen by a decision by either party
-Control, duties and profits are sometimes not evenly divided
-Labor may not be divided equally between partners
Disadvantages of a corporation may be
-Privacy in business operations and dealings
-Double taxation
Reward of entrepreneurship
-You receive all profit
-Independence in direction of business
-You can receive personal satisfaction from the business
Characteristics of an entrepreneur
-Willing to take risks
-Need for achievement
-Self-confident
Believes that each person controls his/her own destiny
Internal focus of control
Those individuals who flee the bureaucratic environment of big business by
going into business for themselves
Corporate refugees
The person who functions as the administrator of a business
General Manager
Characteristics of a small business
-manufacturing
-merchandising
What is the contribution of a small business
Stimulate economic competition
The type of business activity that makes finished good from raw materials by
hand or machinery
Manufacturing
The type of business activity which purchases finished products for resale
Merchandising
WITH COMPLETE SOLUTIONS VERIFIED LATEST UPDATE
An organization that combines inputs of raw materials, capital, labor and
management skills to produce useful outputs of goods and services so as to earn
a profit
Business
A business which is independently owned and operated and is not dominant in
its filed of operations
Small business
One who organizes, manages, and assumes the risk of a business firm or venture
Entrepreneur
Someone who invests funds in a new business without owning the business
Venture capitalist
Private investors who are willing to supply financing for new and/or risky small
business firms in a community
Business Angels
An entrepreneur who primarily possesses technical knowledge, but has very
little, if any, business experience
Artisan entrepreneur
Can be an external cause of business failure
Consumerism
The emphasis placed on providing to customers products and services that are
safe, reliable, and honestly advertised; Also a social movement that seeks to
strengthen the rights of consumers relative to sellers
Consumerism
What are the drawbacks to entrepreneurship
-Responsible for the financial risk of the business
-You face emotional strain from the business
-Working long hours to start the business
,What are the external causes of business failure
Lack of owner finances
General types of businesses
-Manufacturing
-Merchandising
-Services
A written document that states explicitly the rights and duties of partners in a
partnership
Articles of Partnership
The governing body that is elected by the stockholders of a corporation
Board of Directors
The written application for permission to incorporate that is approved by a state
official
Corporate Charter
A form of legal organization in which a business association made up of two or
more persons is formed for the purpose of carrying on as co-owners
Partnership
A legal form of organization whereby the business is owned and operated by one
person
Sole proprietorship
What is an advantage of a sole proprietorship
Owner is free to manage the firm in the way he/she sees fit
Those partners which can only lose the amount of money they invested in a
partnership
Limited partner
A legal form of organization whereby a legal entity is authorized by a state to
operate
Corporation
What is a disadvantage of a sole proprietorship
Raising capital may be a hardship on the owner
Disadvantages of a partnership
, -Investments on both parties are frozen by a decision by either party
-Control, duties and profits are sometimes not evenly divided
-Labor may not be divided equally between partners
Disadvantages of a corporation may be
-Privacy in business operations and dealings
-Double taxation
Reward of entrepreneurship
-You receive all profit
-Independence in direction of business
-You can receive personal satisfaction from the business
Characteristics of an entrepreneur
-Willing to take risks
-Need for achievement
-Self-confident
Believes that each person controls his/her own destiny
Internal focus of control
Those individuals who flee the bureaucratic environment of big business by
going into business for themselves
Corporate refugees
The person who functions as the administrator of a business
General Manager
Characteristics of a small business
-manufacturing
-merchandising
What is the contribution of a small business
Stimulate economic competition
The type of business activity that makes finished good from raw materials by
hand or machinery
Manufacturing
The type of business activity which purchases finished products for resale
Merchandising
