Exam 3: Entrepreneurship, New Ventures, and Business Ownership

Unlimited liability is when a sole proprietor is not personally liable for all debts incurred by the business.

A ________ can sue and be sued; buy,hold,and sell property; commit crimes and be tried and punished for them.

A ________ is a document in which an entrepreneur summarizes his or her business strategy for a proposed new venture and how that strategy will be implemented.

Short Case Scenario 3-1 The Miller brothers (Jack, Bill, and Evan) are about to fulfill a life-long dream. They are buying a thousand-acre farm and plan to grow cotton. Seeking independence, they are not interested in bringing in any outside owners. They have obtained financing from the Farm Credit Bureau that will allow them to finance the purchase of the farm and some equipment. The brothers are realistic and expect to work very long hours. However, they have a few critical decisions left to make. -Assuming the farm is organized as a general partnership,what are the disadvantages?

Explain the basic issues involved in managing a corporation.

Short Case Scenario 3-1 The Miller brothers (Jack, Bill, and Evan) are about to fulfill a life-long dream. They are buying a thousand-acre farm and plan to grow cotton. Seeking independence, they are not interested in bringing in any outside owners. They have obtained financing from the Farm Credit Bureau that will allow them to finance the purchase of the farm and some equipment. The brothers are realistic and expect to work very long hours. However, they have a few critical decisions left to make. -Assuming the farm is organized as an S-corporation,what are the advantages?

Describe three disadvantages of operating a business as a sole proprietorship.

A small business is an independently owned business that has relatively little influence in its market.

Describe the business plan and the start-up decisions made by small businesses.Identify sources of financial aid available to small businesses.

A limited partner ________.

Which of the following is NOT a typical part of a business plan?

A ________ invests all of the funds needed for a business but plays no role in its management.

Most successful entrepreneurs have a strong desire to be their own bosses.

How is the U.S.economy affected by small businesses?

Neglect is a major factor that contributes to small business failure.

What is Bob Williamson's work ethic?

Venture capital firms provide capital to small business in return for partial ownership.

A ________ is a business with two or more owners who share in the operation of the firm and are financially responsible for its debts.

A limited partnership has limited partners who only invest money but do not have an active role in the operation of the business and are only liable for debts to the extent of their investment.

Entrepreneurs share an aversion to risk.