Entrepreneurship Ch 4 – Flashcards
Unlock all answers in this set
Unlock answersquestion
corporation
answer
a business with the legal rights of a peron and which may be owned by many people.
question
dividends
answer
distributions of profits to shareholders by corportations.
question
partnership
answer
a business owned by two or more people.
question
valuator
answer
an expert on determining the value of a business.
question
royalty fees
answer
weekly or month payments made by the owner of the franchise to the seller of the franchise.
question
entrepreneur
answer
what you can become by purchasing an existing business, purchasing a franchise, or by joining a family business.
question
suppliers
answer
An advantage to buying an existing business is that it already has customers, ______and procedures.
question
financial accounts
answer
Before buying an existing business, you should analyze the ______for at least the past three years.
question
compromises
answer
Entrepreneurs who join their family business must be prepared to make _____.
question
start-up costs
answer
The operating costs of a franchise included an initial franchise fee, ______, royalty fees, and advertising costs.
question
franchise agreement
answer
If a franchise fails to make royalty payments, the franchisor can terminate the______.
question
demand
answer
When you start your own business, you must estimate _____ for your product or service.
question
sole proprietorship
answer
A(n) _____ is the most common form of business ownership in the United States.
question
partnership agreement
answer
The purpose of the _____ is to set down in writing the rights and responsiblilites of each of the owners.
question
S corporation
answer
A small corporation can elect to be treated as a(n) _____ so it will not be taxed as a business.
question
list of all suppliers
answer
Before you buy a business, you should request a written______.
question
money
answer
Many entrepreneurs do not have enough _____ to purchase an existing business.
question
purchasing inventory
answer
The start-up costs for a franchise include renting a facility and _____.
question
discount
answer
Equipment and supplies for a franchise can be purchased at a _____ from the franchisor because franchises are parts of large chains.
question
not taxed as a business
answer
The difference between an S corporation and a regular corporation is that an S corporation is ______.
question
franchisees
answer
_____must offer only certain products or services and must charge prices set by the franchisor.
question
board of directors of a corporation
answer
is responsible for deciding how much the corporation should pay out in dividends.
question
salaries
answer
A partnership agreement identifies the______ to be withdrawn by each partner.
question
family business
answer
Entering a _____can give entrepreneurs a sense of pride and satisfaction in carrying on traditions.
question
private life
answer
The separation between business life and ______ is not clearcut in family-owned businesses.
question
performance
answer
Although franchise owners have an established product or service, they are dependent on the _____ of other franchises in the chain.
question
benefits
answer
In evaluating a franchise, you should decide if the _____provided by the franchisor are worth the loss of independence and the cost of purchasing the franchise.
question
risk
answer
There is more _____ in starting your own business than in joining a family business or buying a business or franchise because there is more uncertainty.
question
legally liable
answer
In a partnership, all the partners are _____ for the errors of one partner.
question
liability
answer
is the main reason entrepreneurs set up corporations.
question
sole proprietorships or partnerships
answer
There is very little govenment regulations for business that are______.
question
problems
answer
A disadvantage of buying and existing business is that _____ may be inherited.
question
decision-making
answer
An advantage of a partnership is that partners share_____.
