Question

1. The use personal assets to borrow money and the difficulty in obtaining external sources of funds are disadvantages of which form of business organization?

	a.	Corporations
	b.	Sole proprietorships
	c.	Partnerships
	d.	Limited liability companies

2. Which of the following is a government-level incentive encouraging women and minorities to become entrepreneurs?

	a.	Market risk mitigation
	b.	Supplemental income provision
	c.	Flexibility in work hours
	d.	Tax breaks

3.

Small-business entrepreneurs have control over decisions related to the business, which is referred to as

	a.	dependency.
	b.	selectivity.
	c.	autonomy.
	d.	flexibility.

4. One aspect of being an entrepreneur is

	a.	operating in multiple markets.
	b.	holding many patents for new inventions.
	c.	supervising the work of others.
	d.	taking risks to gain a profit.

5. The Small Business Administration offers which type of management assistance to small businesses?

	a.	Free advertising
	b.	International franchise opportunities
	c.	Tax breaks
	d.	Counseling for firms in difficulty

Answer 1

Answer (1) B) Sole proprietorships

Explanation- When a business owner runs a unincorporated business by herself or himself then it is known as Sole proprietorships; In this type of business organization the owner has to use his/her own personal assets to borrow money.

Answer (2) B) Tax breaks

Explanation - In order to encourage the women and minorities to become entrepreneurs government offers several tax incentives to them.

Answer (3) C) Autonomy

Explanation- Autonomy from perspective of business refers to great freedom and ability to take and control the decisions of business to the entrepreneur.

Answer (4) D) Taking risks to gain a profit.

Explanation- The most important aspect of being an entrepreneur is risk-taking ability in order to drive profitability of the busienss generally the entrepreneurs face multiple risks such as financial risk, bankruptcy, environmental risks, reputational risks, competitive risks, and economic and political risks.

Answer (5) D) Counseling for firms in difficulty

Explanation- The  Small Business Administration offers several benefits to the small businesses such as business financing, education and training, giving small business voices, helping small businesses to win government contracts and counseling the firms which are facing difficult situation.