Exam 10: Fostering Entrepreneurship

Hortense and a few of her family members want to launch a new venture but don't want to place their personal assets at risk. For this privilege they are willing to incur the higher taxes associated with the ________ form of organization.

A C corporation can have no more than 50 owners who agree not to sell their stock.

Michael has a sense that his business isn't doing as well as it should but he isn't sure what to look for to confirm his suspicions. Which one of the following could be a signal that the business is in trouble?

A sole proprietor's personal assets are protected from any liability associated with the business.

Finding people to support growth is an important issue for entrepreneurs.

In the days before sterile adhesives, bandages were tied onto the patient. Next came adhesive tape with small squares of gauze attached, but making these in the doctors' office was tedious and time consuming. Finally Earle Dickson invented the Band-Aid for his wife, who needed a bandage she could apply to herself for small kitchen burns. Dickson saw ________.

After the venture is launched, the entrepreneur continues with the same activities as before the launch.

One advantage of the C corporation is that the owners have complete protection from liability related to business activity.

Having a visionary leader early in its history is good for a company.

Karlee, a production worker, is working on a project with employees from accounting, purchasing, engineering, and customer service. Karlee is part of a ________ team.

Competitive advantage is a necessary ingredient for an entrepreneurial venture's long-term success and survival.

The main difference between an entrepreneurial venture and a small business is size.

The minimum number of partners in a general partnership is three: two general partners and at least one limited partner.

In a sole proprietorship, profits are ________.

Geneva needs additional capital to launch her business but does not want to share management responsibility with partners. Neither does she want to pay the high taxes often assessed on businesses. Her best option may be a(n) ________.

In a sole proprietorship, the founder keeps all the profits but must share management responsibility with investors.

Fully empowering employees means releasing budgetary control to them.

If Camden wants his new business to be a good corporate citizen, he should ________.

The ability of small firms to successfully recruit appropriate employees is one of the most important factors influencing organizational success.

________ is a process of changing, experimenting, transforming, and revolutionizing.