30 Questions
What should a company consider when selecting advertising media?
Trading area size, customer characteristics
What is a natural part of the creative process?
Failure
Which structure features elements of both a partnership and a corporation?
Limited liability company (LLC)
Which area should a business plan presentation cover?
The problem your product or service solves
What distinction is made only for federal income tax purposes?
S corporation
What does an entrepreneur draw up to fulfill a company's mission?
Vision
What method is used for determining the value of a business by using the price/earnings ratios of similar businesses?
Earnings approach
Which terms correctly complete the following statement: '______ is thinking new things, and ______ is doing new things.'?
Innovation, Creativity
What category of business refers to a business that employs less than 100 people?
Small business
Which of the following is NOT a benefit of owning a small business?
Opportunity to be more stressed
Which form of business ownership is designed for a business owned and managed by one individual?
Sole proprietorship
What does 'Intellectual capital' refer to in business terms?
Intellectual capital
What legal structure allows co-owners to share a business's assets, liabilities, and profits based on an established agreement?
Partnership
What does UPA stand for in the context of business entities?
Uniform Partnership Act
Which type of competitors offer some of the same products and services as the business?
Direct competitors
What is a corporation called when it conducts business in the state where it is incorporated?
Domestic corporation
Which of the following methods are used for preparing an advertising budget?
Affordable, competitor matching, percentage of sales, objective-and-task
What factors are considered when determining the right price for a product or service?
Cost structure, market assessment, desired image
What is a key characteristic of pure franchising?
Complete business system provided
What is one potential drawback of owning a small business related to income?
Guaranteed monthly salary
In pure franchising, what aspect can the franchiser impose rules on?
Store style
What contributes to the lower quality of life when owning a small business according to the text?
Lower pay at the beginning
Which drawback of owning a small business is related to being liable for all debts and losses?
Risk of losing invested capital
What potential issue might lead to discouragement in a small business owner?
Motivation loss midway
What is one goal of the seller in negotiating a deal for selling a business?
Avoid unreasonable contract terms that might limit future opportunities
In the context provided, who are referred to as scalable entrepreneurs?
Entrepreneurs who create multiple companies simultaneously
What type of franchising involves only using the brand name without restrictions on store management or advertising?
Trade-name franchising
In product distribution franchising, what rights are granted to the franchisee?
Rights to promote and sell franchiser's products
Which of the following is not a characteristic of trade-name franchising?
Franchisee gets support regarding business system
What distinguishes serial entrepreneurs based on the text provided?
They create and run multiple businesses concurrently
Test your knowledge of entrepreneurship and innovation with this midterm exam quiz, featuring multiple choice questions related to business structures, partnership agreements, and the Uniform Partnership Act.
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