Test 2 Business - Chapters 5 6 15&16 Chapter 5 Small Biz...

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Ryan Wisneski Chapter 5 Small Biz and the Entrepreneur 1. Characteristics of Entrepreneurs- Vision, High Energy Level, Need to Achieve, Self Confidence, Optimism, Tolerance for failure, Creativity, Tolerance for Ambiguity, Internal Locus of Control 3. The Small Business Administration defines a small business as having less than 500 employees 4. Small businesses employ 50.6% of the private US workforce 5. Small businesses over the past decade have generated 70% of new jobs created. 7. What is the average age of an entrepreneur when they first start their business? 37 9. What are the advantages of Franchising? Proven Business Plan 10. What are the disadvantages of Franchising? “Happy Prisoner” 11.The failure rate of startups after 2 years is 24%, 4 years the failure rate is 53% and if the startup survives to year 6 the rate is 62% 12. What is the #1 reason why businesses fail? Accumulate too much debt 13. How can I finance my small business? Government grants, Small Business Administration loan, personal loan, bank loan 14. A Business Plan outlines the goals and strategies of a company including marketing plans, financial forecasts, a risk analysis and operational plan. Chapter 6 Forms of Business Ownership 1. The most common form of business organization in the US is the Sole Proprietorship 2. What are the advantages of a sole proprietorship? Complete Control, Lower Taxes The biggest disadvantage of a sole proprietorship is the Unlimited Liability. 3. What are the advantages of a partnership? Double Capital, 2x Talent, Lower Taxes 4. The biggest disadvantage of the partnership is the Unlimited Liability. 5. What is the law of agency? Represents acts of partners; a relationship in which one person has legal authority to act for another 6. What is a quasi-partnership? Share some stuff; area, secretaries, that resembles a partnership but actually is not one 7. Am I required to have a written partnership agreement? No Should I? Yes but without one you'll be ill-equipped to settle conflicts when they arise, and minor misunderstandings may erupt into full-blown disputes. In addition, without a written agreement saying otherwise, your state's laws will control many aspects
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Ryan Wisneski of your business. 8. A limited liability partnership has at least one general partner with unlimited liability and one or more limited partners with liability limited to the amount of investment in the partnership. 8. The biggest advantage of the corporation is the
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Test 2 Business - Chapters 5 6 15&16 Chapter 5 Small Biz...

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