FSE 2202 FINAL REVIEW EXAM QUESTIONS AND ANSWERS
WITH COMPLETE SOLUTIONS VERIFIED
Business
An organization that combines inputs of raw amterials, capital, labor and management
skills to product useful outputs of goods and services to earn a profit
Small business
A business which is independently owned and operated and is not dominant in its field
of operations
Entrepreneur
one who organizes, manages, and assumes the risk of a business firm or venture
venture capitalists
someone who invest funds in a new business without owning the business
business angels
private investors who are willing to supply financing for new and/or risky small business
firms in a community
Artisan Entrepreneur
an entrepreneur who primarily possesses technical knowledge, but has very little, if any,
business experience
Consumerism
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
Drawbacks of Entrepreneurship
-you are responsible for the financial risk of the business
-you face emtotional strain from the business
-you may have to work long hours to start the business
external causes of business failure
-lack of owner finances
-consumerism
general types of business
-manufacturing
-merchandising
-services
articles of partnership
a written document that states explicitly the rights and duties of partners in a partnership
board of directors
the governing body that is elected by the stockholders of a corporation
corporate charter
the written application for permission to incorporate that is approved by state officials
partnership
a form of legal organization in which a business association made up of tow or more
persons is formed for the purpose for carrying on as co-owners
, sole proprietorship
a legal form of organization whereby the business is owned and operated by one
person
What is an advantage of sole proprietorship?
owner is free to manage the firm in the way they see fit
limited partner
those partners who can only lose the amount of money they invested in a partnership
corporation
a legal form of organization whereby a legal entity is authorized by a state to operate
What is a disadvantage of a sole proprietorship?
raising captial may be a hardship on the owner
What are disadvantages of a partnership?
-investments of 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
what are disadvantages of a corporation?
-privacy in business operations and dealings
-double taxation
What are rewards of entrepreneurship?
-you receive all the profit
-independence in direction of business
-you can receive personal satisfaction from business
What are the characteristics of an entrepreneur?
WITH COMPLETE SOLUTIONS VERIFIED
Business
An organization that combines inputs of raw amterials, capital, labor and management
skills to product useful outputs of goods and services to earn a profit
Small business
A business which is independently owned and operated and is not dominant in its field
of operations
Entrepreneur
one who organizes, manages, and assumes the risk of a business firm or venture
venture capitalists
someone who invest funds in a new business without owning the business
business angels
private investors who are willing to supply financing for new and/or risky small business
firms in a community
Artisan Entrepreneur
an entrepreneur who primarily possesses technical knowledge, but has very little, if any,
business experience
Consumerism
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
Drawbacks of Entrepreneurship
-you are responsible for the financial risk of the business
-you face emtotional strain from the business
-you may have to work long hours to start the business
external causes of business failure
-lack of owner finances
-consumerism
general types of business
-manufacturing
-merchandising
-services
articles of partnership
a written document that states explicitly the rights and duties of partners in a partnership
board of directors
the governing body that is elected by the stockholders of a corporation
corporate charter
the written application for permission to incorporate that is approved by state officials
partnership
a form of legal organization in which a business association made up of tow or more
persons is formed for the purpose for carrying on as co-owners
, sole proprietorship
a legal form of organization whereby the business is owned and operated by one
person
What is an advantage of sole proprietorship?
owner is free to manage the firm in the way they see fit
limited partner
those partners who can only lose the amount of money they invested in a partnership
corporation
a legal form of organization whereby a legal entity is authorized by a state to operate
What is a disadvantage of a sole proprietorship?
raising captial may be a hardship on the owner
What are disadvantages of a partnership?
-investments of 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
what are disadvantages of a corporation?
-privacy in business operations and dealings
-double taxation
What are rewards of entrepreneurship?
-you receive all the profit
-independence in direction of business
-you can receive personal satisfaction from business
What are the characteristics of an entrepreneur?
