FSE 2022- FINAL EXAM REVIEW QUESTIONS AND ANSWERS
WITH COMPLETE SOLUTIONS VERIFIED LATEST UPDATE
Business
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.
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 Capitalist
Someone who invests 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
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 emotional strain from the business
-You may have to work long hours to start the business
External causes of business failure
-Lack of owner finances
-General types of businesses
-Manufacturing
-Merchandising
-Services
Articles of a 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 Chapter
The written application for permission to incorporate that is approved by a state official
Partnership
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.
Sole Proprietorship
A legal form of organization whereby the business is owned and operated by one
person.
, -An ADVANTAGE of a sole proprietorship is that the owner is free to manage the firm in
the way he/she sees fit.
Limited Partner
Those partners which 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.
Disadvantages of 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
Disadvantages of Sole Proprietorship
-Raising capital may be a hardship on the owner.
Disadvantages of a corporation may be:
-Privacy in business operations and dealings
-Double taxation
Rewards 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
WITH COMPLETE SOLUTIONS VERIFIED LATEST UPDATE
Business
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.
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 Capitalist
Someone who invests 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
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 emotional strain from the business
-You may have to work long hours to start the business
External causes of business failure
-Lack of owner finances
-General types of businesses
-Manufacturing
-Merchandising
-Services
Articles of a 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 Chapter
The written application for permission to incorporate that is approved by a state official
Partnership
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.
Sole Proprietorship
A legal form of organization whereby the business is owned and operated by one
person.
, -An ADVANTAGE of a sole proprietorship is that the owner is free to manage the firm in
the way he/she sees fit.
Limited Partner
Those partners which 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.
Disadvantages of 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
Disadvantages of Sole Proprietorship
-Raising capital may be a hardship on the owner.
Disadvantages of a corporation may be:
-Privacy in business operations and dealings
-Double taxation
Rewards 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
