Business Principles Exam 1 – Flashcards
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people who assume the risk of business ownership.
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entrepreneurs
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the most significant disadvantage of owning a franchise is_____.
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startup costs
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examples of businesses started from scratch
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Dell computer, Wal-mart, Microsoft
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the leading type of business in the United states.
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sole proprietorships
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the owners of a corporation are the_____.
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Board of directors
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The U.S. Department of Commerce considers a business small if it has fewer than _____ employees.
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1,500
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Small businesses account for _____ of all new jobs in high technology sectors.
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40%
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the source of funding most commonly used to start a new business.
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personal resources
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A new business should have enough capital to operate for at least _____ months without earning a profit.
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6
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A major drawback of sole proprietorships is _____.
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unlimited liability
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The organizational form defines=d as a business that is legally considered an entity separate from its owners and is liable for its own debts is a _____.
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corporation
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The biggest advantage of a regular corporation is _____.
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limited liability
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The biggest potential drawback to the corporate form of ownership is _____.
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double taxation
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A(n) _____ is organized to operate like a corporation but is taxed like a partnership
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S-corporation
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Today, about _____ of all businesses in The U>S> are sole proprietors.
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72%
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In a _____, an entrepreneur summarizes the business strategy for a new venture and shows how it will be implemented.
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business plan
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legal form of business that is owned and usually operated by one person who is responsible for its debts?
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sole proprietorship
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An arrangement that permits the buyer to sell the product of the seller, or parent company, is called a _____.
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Franchise
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According to SBA estimates, roughly _____ of all new businesses can expecrt to surive for 4 years.
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44%
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Managerial incompetence or inexperience, neglect, and weak control systems
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Factors of small business failures
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the most common typ of partnership.
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general partnership
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liable for debts only to the limits of their investments
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limited partner
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corporations that are most likely comprised of doctors, lawyers, accountants, or other proffessionals
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professional
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governing body of a corporation
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board of directors
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Ina franchise agreement the franchisee is the _____.
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local owner
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In a franchise agreement, the franchiser is the _____.
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parent company
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A(n0_____ invests money in a partnership but is liable only to the extent of his/her investment.
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limited partner
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Form of business ownership generates the most sales in the U>S>
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corporation
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what are the fastest growing segment of small businesses
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services
