Exam 3: Competing in the Global Marketplace

Norman's interest in computers helped fuel his design of a new hard drive that is far superior to anything on the market.Norman's product and business plan will likely attract several sources of financing if he is willing to give up part ownership of his company.

SBA microloans are given based on the collateral of the borrower.

Businesses usually fail due to over planning.

Corporate governance refers to the processes,customs,policies,laws and institutions affecting the way in which a corporation is directed,administered or controlled.

Which of the following types of business is the easiest to start?

A general partner is an owner who has unlimited liability and is active in the management of the firm.

Each entrepreneur has very unique characteristics that allow him or her to succeed in business so it is hard to predict who will be a great entrepreneur.

Which of the following is an advantage of a sole proprietorship?

Which of the following explains why individuals accept the risks of business ownership?

A franchisee is the person who owns the rights to the franchise.

An effective business plan analyzes the competition and identifies the resources required to profitably serve a target market.

An LLC is a form of ownership that involves only one person.

Discuss several ways the Small Business Administration assists entrepreneurs.

Which of the following is a way to start your own business?

A sole proprietor has limited liability.

Which of the following is a reason that many people decide to take the risk of becoming an entrepreneur?

Successful entrepreneurs are self-nurturing.This means they:

Franchises have lower business failure rates than sole proprietors.

Which of the following companies was started by an entrepreneur?

A __________ limited partnership is traded on the stock exchange like a corporation but is taxed like a partnership and thus avoids corporate income tax.