True/False
Indicate whether the sentence or statement is true
or false.
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1.
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Virtual
companies do business over the Internet.
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2.
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A good
business plan takes only a few days to prepare.
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3.
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An
entrepreneur does not take financial risks.
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4.
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Most people
start a business when they discover they can fill a need or want in society.
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5.
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Each
stockholder is a member of the corporation’s board of directors.
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6.
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Owners of
franchises are free to make their own choices about how to run their businesses.
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7.
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Owners of
sole proprietorships have limited liability.
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8.
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A good
leader is not always the person in charge.
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9.
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Teenagers
can begin start-up businesses on the Internet.
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10.
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The first
computers were used by the military.
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Multiple Choice
Identify the
letter of the choice that best completes the statement or answers the question.
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11.
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Which of the
following is true of people who start their own business? a. | give up responsibility
to others | c. | receive bank loans when
out of money | b. | work fewer hours | d. | work more hours | | | | |
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12.
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Which of the
following is a characteristic of an entrepreneur? a. | willingness to take risks | c. | need for security | b. | ability to follow
instructions | d. | is very
wealthy | | | | |
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13.
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What does a
company need to show the different managers how to run their departments? a. | a decentralized
organization | c. | a management
plan | b. | a centralization
organization | d. | line
authority | | | | |
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14.
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Giving a
manager the power to run things and make decisions is called this. a. | autocratic
leadership | c. | democratic
leadership | b. | initiative | d. | delegating | | | | |
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15.
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Monster.com
is an example of this type of business. a. | e-ticket | c. | e-trade | b. | e-commerce | d. | e-tail | | | | |
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Completion
Complete each sentence or
statement.
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16.
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The
____________________ form of ownership is often used when large amounts of money are needed to start
or expand a business.
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17.
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The
____________________ of a corporation are its owners.
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18.
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The part of
a business plan that shows which customers will buy the product or service is the
____________________.
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19.
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A(n)
_________________________ shows how a business is structured.
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20.
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____________________ means knowing what you’re doing, not just acting sure of
yourself.
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21.
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____________________ businesses are those organized with authority focused in one
place.
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22.
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Good leaders
have ____________________, which means holding to principles like honesty, loyalty, and
fairness.
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23.
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More than
three-fourths of all businesses in the U.S. are _________________________.
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24.
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A company
that sells merchandise online, in stores, and in catalogs is called a(n)
_________________________.
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Matching
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Match
each item with the correct statement. a. | entrepreneur | f. | franchise | b. | partnership | g. | listening | c. | vision | h. | small business | d. | e-ticket | i. | corporate
charter | e. | business plan | j. | start-up | | | | |
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25.
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Jeff Bezos,
who started Amazon.com, is an example
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26.
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written
description of a new business venture that describes all aspects of the business
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27.
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business
that employees less that 500 people
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28.
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business
owned by two or more people who share the risks and rewards
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29.
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license to
run a corporation
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30.
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contractual
agreement to sell a company’s products and services
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31.
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requirement
of good leadership
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32.
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an important
part of communication
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33.
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Internet
concert ticket
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34.
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new virtual
business
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