Bus082-201 summer 2014 Test 2 chpts.

4,5,& 6
Chpt 4
1. Which of the followin !escri"es the !e"#te re#r!in $i!eo sh#rin in the "o%e!
m#teri#l Making Ethical Decisions, &To Tu"e or 'ot to Tu"e(&(
). The !e"#te is o$er whether it is le#l #n!*or ethic#l for in!i$i!u#ls to uplo#!
$i!eos onto +ouTu"e th#t the, themsel$es !i! not cre#te.
B. The !e"#te in$ol$es the unf#ir #!$#nt#e th#t -i#com #n! other l#re
corpor#tions h#$e when uplo#!in $i!eos onto +ouTu"e, e$en thouh the, #re
oper#tin within the l#w.
C. The !e"#te is o$er whether the .iit#l /illennium Cop,riht )ct 0./C)1 h#s
outrown its usefulness.
.. The !e"#te is #"out wh, -i#com is compl#inin to +ouTu"e #"out ille#l
uplo#!s when the, h#$e no support from other or#ni2#tions.
2. ) 3.4. o$ernment offici#l h#s in!ic#te! th#t for # enerous contri"ution to his
reelection fun!, he woul! inore ,our firm5s #pp#rent $iol#tion of se$er#l #nti-
pollution l#ws. Which of the followin &ethics chec6 7uestions& woul! ,ou
consi!er first(
). 8s it le#l(
B. 8s it f#ir #n! "#l#nce!(
C. 9ow will it m#6e me feel #"out m,self(
.. 8s it # enerous #mount(
:. ) frien! offers to sh#re with ,ou # term p#per pre$iousl, prep#re! for her
8ntro!uction to Business cl#ss l#st semester. When ,ou tell her th#t it woul!n5t "e
f#ir, she remin!s ,ou of ,our h#"it of re#!in #n entire 9#rr, ;otter "oo6 #t the
loc#l "oo6store without p#,in for the "oo6. Which ethics-"#se! 7uestion woul!
"e most helpful in e$#lu#tin these situ#tions(
). 8s it le#l(
B. 8s it "#l#nce!(
C. Who wins #n! who loses(
.. Will 8 et c#uht(
4. ) hih-le$el m#n#er #thers his te#m of super$isors toether to cre#te # new
office polic, th#t will #ffect #ll emplo,ees #t the comp#n,. )fter recei$in #
$er"#l no! from the super$isors, he then procee!s to p#ss #roun! # written form
of the new polic, #n! #s6s #ll mem"ers of the te#m to initi#l it. 9e e%pl#ins to the
super$isors th#t the new polic, will "e poste! in the "re#6 rooms on e#ch floor of
corpor#te he#!7u#rters. 8f ,ou were # p#rt of this wor6 te#m, which 7uestion
woul! ,ou ultim#tel, #s6 ,ourself "efore initi#lin ,our #ppro$#l of this polic,(
). 8s it le#l(
B. 8s it "#l#nce!(
C. 9ow will it m#6e me feel #"out m,self(
.. 8s it # lose-lose situ#tion(
5. The 9um-!iner Corpor#tion recentl, institute! # corpor#te ethics co!e. The
presi!ent of the comp#n, re#li2es th#t ethic#l rel#tionships #re "#se! on<
). f#irness #n! honest,.
B. strict pen#lties for ille#l #cti$ities.
C. # full-time compli#nce officer monitorin emplo,ee "eh#$ior.
.. w#tch!os #n! whistle"lowers.
6. Which of the followin woul! most likely in$ol$e ethic#l concerns(
). =$erst#tin #n e%pense report.
B. >orec#stin s#les for the ne%t ,e#r.
C. .e$elopin the m#r6etin pl#n for the ne%t ,e#r.
.. 8mpro$in wor6in con!itions.
?. With respect to "usiness ethics, it c#n "e s#i! th#t &it t#6es two to t#no.& This
in!ic#tes th#t<
). !#ncin #roun! issues shoul! "e p#rt of # firm5s co!e of ethics.
B. #n in!i$i!u#l5s "eh#$ior is influence! ", the "eh#$ior of others.
C. te#mwor6 elimin#tes # nee! for person#l ethics.
.. m#n#ement is insensiti$e to ethic#l issues.
8. @#6e recentl, in$este! in # 9ottie ;ot#tee fr#nchise! "usiness th#t ser$es pot#toes
with #ll the trimmins. The "usiness nee!s lots of emplo,ees in or!er to oper#te
effecti$el,. 9e tol! ,ou th#t if he c#lls the "usiness once e#ch !#, #n! tells the
emplo,ees th#t he is on his w#, there, the, will "e on their "est "eh#$ior. )s he
tells it, &8t5s o6#, if 8 re#ll, !on5t m#6e it there, #fter #ll, 85m the owner #n! the
"usiness shoul! "e #"le to run without microm#n#ement.& )s # recent stu!ent of
"usiness ethics, ,ou remin! @#6e th#t<
). he shoul! post # co!e of ethics th#t stipul#tes how e#ch emplo,ee shoul! wor6
#n! how e#ch emplo,ee shoul! tre#t the customers.
B. he shoul! cre#te # sur$e, for customers to respon! to, #n! then he will #lw#,s
6now if his emplo,ees #re pro!ucti$e.
C. emplo,ees usu#ll, t#6e-on the "eh#$ior of their le#!ers. 8f interit, is not
import#nt to the owner, it m#, not "e import#nt to emplo,ees.
.. &'o oo! !ee! oes unpunishe!.& A$en thouh he m#, thin6 he is !oin #
oo! thin, his emplo,ees will not #ppreci#te the f#ct th#t he is wor6in $er, h#r!
on his "usiness, off-site. Their e%pect#tions #re th#t he shoul! "e there, wor6in
si!e ", si!e with them.
B. While spe#6in with his s#les force, the !irector of s#les e%pl#ins, &)n,one
c#uht $iol#tin # s#les l#w will "e fire!.& )fter stu!,in "usiness ethics, ,ou
reconi2e this rem#r6 #s # reference to the firm5s CCCCCCCCCC ethics.
). technolo,-"#se!
B. person#l responsi"ilit,-"#se!
C. compli#nce-"#se!
.. interit,-"#se!
10. 8n #n effort to promote the import#nce of # $#lu#"le e!uc#tion, the f#cult, #n!
st#ff #t the loc#l communit, collee #re tr#ine! to #s6 e#ch stu!ent #"out their
c#reer preferences, r#ther th#n suest courses th#t m#, not "enefit the stu!ent5s
future o#ls. )lthouh it woul! "e temptin to suest courses Dust to incre#se the
Collee5s enrollment, emplo,ees 6now th#t it is more import#nt to ser$e e#ch
stu!ent well, e$en if it me#ns suestin courses #n!*or !erees offere! #t other
institutions. This #ppro#ch is consistent with<
). #n interit,-"#se! ethics co!e.
B. # compli#nce-"#se! ethics co!e.
C. # response to # o$ernment m#n!#te.
.. # person#l responsi"ilit, commitment.
11. 4h#ron, # C;) for # l#re firm notice! th#t the comp#n,5s #ccountin recor!s
!r#stic#ll, o$erst#te! the #mount of in$entor, on h#n!, which le! to o$erst#tin
the #ssets of the firm. 8niti#ll,, she "rouht it to the #ttention of her super$isor, "ut
when nothin w#s !one to correct the mist#6e in # timel, m#nnerE she !eci!e! the
"est course of #ction w#s to report it to the #ppropri#te o$ernment offici#l.
)lthouh her #ctions too6 her outsi!e the comp#n,, she w#s countin on current
l#w, un!er the CCCCCCCCCCCC to protect her ##inst comp#n, ret#li#tion.
). Cell#r-Fef#u$er )ct
B. 4#r"#nes-=%le, )ct
C. Go"inson-;#tm#n )ct
.. 4herm#n )ct
12. ) phone c#ll to # o$ernment offici#l ", #n emplo,ee of the Anron Corpor#tion
!isclose! the !eception #n! !ishonest, of the firm5s #ccountin recor!s. This
emplo,ee pl#,e! the role of #<
). whistle"lower.
B. horn "lower.
C. cheerle#!er.
.. mor#l policem#n.
1:. H#ch spent se$er#l months !e$elopin # oo! rel#tionship with # "usiness client.
The client is now "u,in # sinific#nt #mount of pro!uct from H#ch5s comp#n,,
resultin in hih commissions for H#ch, person#ll,. )fter chec6in the s#les
recor!s for the p#st si% months, Ben 0# s#les colle#ue of H#ch5s1 st#rte! $isitin
the s#me client in the hopes of c#pturin some of the client5s "usiness too.
)lthouh he consi!ers it &le#l #n! f#ir #me&, s#les reps in his firm h#$e "eun
to #$oi! him "ec#use the, consi!er it # $iol#tion of<
). comp#n,-"#se! ethics.
B. compli#nce-"#se! ethics.
C. interit,-"#se! ethics.
.. whistle"lowin-"#se! ethics.
14. @ohn w#s recentl, hire! ", B#c6street Boo6s, #n eclectic "oo6store in # l#re
collee town. )t the "einnin of the first !#, on the Do", his store m#n#er
h#n!e! him # sm#ll "oo6let consistin of comp#n, rules. 9e w#s #s6e! to re#! it
#n! sin #n! su"mit the l#st p#e, "efore st#rtin wor6. )mon other thins, the
rules e%plicitl, !iscusse! reprim#n!s for rie$ous "eh#$ior #n! !ismiss#l if the
firm coul! pro$e th#t the emplo,ee w#s ste#lin pro!uct from the store. This
"oo6let represente! the CCCCCCCCCCC of the store.
). comp#n,-"#se! ethics
B. compli#nce-"#se! ethics
C. interit,-"#se! ethics
.. whistle"lowin-"#se! ethics
Chpt 5
15. @oe @#c6son oper#tes # sole proprietorship, "ut he is in poor he#lth #n! m#, "e
un#"le to continue runnin the "usiness. 8f @oe "ecomes inc#p#cit#te!, his
"usiness<
). )utom#tic#ll, continues un!er new m#n#ement #s # sole proprietorship.
B. )utom#tic#ll, con$erts into # pu"lic corpor#tion with stoc6 sol! to intereste!
in$estors.
C. Ce#ses to e%ist unless sol! or t#6en o$er ", @oe5s heirs.
.. Becomes the propert, of the most senior emplo,ee who wishes to continue
oper#tin the firm.
16. /#ri# h#s # lot of self-confi!ence #n! "usiness 6nowle!e. 4he recentl, opene! #
"#6er, #s # sole proprietor. 4he is e%pectin # hih le$el of profits #n! is loo6in
forw#r! to<
). The lower corpor#te t#% r#te p#i! ", sole proprietorships.
B. Feepin #ll of the mone, she e#rns e%cept for the t#%es she is re7uire! to p#,.
C. Feepin #ll of the mone, she e#rns since she !oes not h#$e to p#, t#%es #s #
sole proprietor.
.. A#sil, r#isin #!!ition#l l#re sums of mone, from the c#pit#l m#r6ets since
she is # sole proprietor.
1?. C#li owns .o Trotters, # !o-w#l6in "usiness th#t she st#rte! to e#rn mone,
#fter school #n! supplement her #llow#nce. 4he pl#nne! to 6eep #ll the profits,
#n! 6ept thins simple, ", puttin # flier on the "ulletin "o#r! #t the loc#l rocer,
store #nnouncin th#t she w#s #$#il#"le to pro$i!e this ser$ice. C#li5s "usiness is
#<
). 4ole proprietorship.
B. >r#nchise.
C. 4-corpor#tion.
.. ;#rtnership.
18. 'ic6 w#nts to st#rt his own "usiness. 'ic6 shoul! consi!er # sole proprietorship if
he<
). A%pects r#pi! rowth #n! w#nt to "e #"le to r#ise # l#re sum of mone,.
B. W#nts to m#6e it e#s, to #ttr#ct 7u#lifie! emplo,ees.
C. W#nts to "e his own "oss #n! c#n #ccept unlimite! li#"ilit,.
.. W#nts to minimi2e the fin#nci#l ris6 he must #ccept #s the owner of # "usiness.
1B. @#$ier is the sole proprietor of # olf shop. Bec#use he is # sole proprietor, #n,
profit @#$ier5s "usiness e#rns is<
). Tot#ll, t#%-free.
B. T#%e! onl, #s @#$ier5s person#l income.
C. T#%e! twice, once #s "usiness income, then ##in #s Alro,5s person#l income.
.. T#%e! onl, if #n! when it is !istri"ute! to in$estors.
20. >inle, is # limite! p#rtner in Iettout & )ssoci#tes. 9e,woo! 3. Iettout, one of
the ener#l p#rtners in the comp#n,, must tempor#ril, le#$e the comp#n, to
#tten! to some person#l m#tters. 9e,woo! h#s #s6e! >inle, to perform his
m#n#eri#l !uties while he is one. )s # limite! p#rtner, >inle,<
). C#n fill in #s # m#n#er whene$er necess#r,, #s lon #s it is for onl, # limite!
time.
B. C#n m#6e m#n#eri#l !ecisions #s lon #s the, !o not in$ol$e the p#,ment of
mone,.
C. C#nnot p#rticip#te in the m#n#ement of the p#rtnership.
.. C#n m#n#e the firm #s lon #s he ets #ppro$#l from the comp#n,5s other
ener#l p#rtners.
21. Fristen #n! her "rothers #n! sisters !eci!e! to form # p#rtnership th#t speci#li2es
in home !esin of #ll t,pes. =ne their o#ls is to m#int#in the lo$in rel#tionship
the, currentl, enDo, so the, #re followin the /o!el Business Corpor#tion )ct
recommen!#tions #s the, write the p#rtnership #reement. Which of the followin
is #n #ccur#te recommen!#tion of the )ct(
). The "usiness shoul! "e #cti$el, oper#tin for #n e%ten!e! perio! "efore the
p#rtners !eci!e who is responsi"le for wh#t "usiness functions.
B. >#mil, "usinesses ne$er t#6e on outsi!e p#rtners, so no !iscussion of this nee!
t#6e pl#ce.
C. There shoul! "e !iscussion #n! well-un!erstoo! w#,s th#t the p#rtners will
h#n!le !is#reements.
.. .ue to the f#ct th#t the, #re #ll un!er 40 ,e#rs ol! #n! e%pect to wor6 until
the, #re 65 there is no nee! to !eci!e wh#t will h#ppen to the p#rtnership if one
!eci!es to le#$e the "usiness, retire, or !ie.
22. /#,# pl#ns to open # shop speci#li2in in foo!s #n! cultur#l items from the
/i!!le A#st. 4he w#nts to "e the firm5s onl, ener#l p#rtner, "ut she is tr,in to
et se$er#l frien!s to p#rticip#te #s limite! p#rtners. )pp#rentl, /#,# w#nts to<
). Jimit her person#l li#"ilit, to the #mount she person#ll, in$ests in the
comp#n,.
B. Feep #ll of the firm5s profits.
C. ="t#in # stron fin#nci#l "#se for the firm while m#int#inin person#l control
o$er the firm5s m#n#ement.
.. /eet the le#l re7uirements of the 3niform ;#rtnership )ct.
2:. H#ch #n! /#c own #n #uto rep#ir "usiness which the, oper#te #s co-owners. Both
t#6e #n #cti$e role in the m#n#ement of the "usiness, #n! e#ch #ccepts unlimite!
li#"ilit,. H#ch #n! /#c oper#te #s # CCCCCCCCCC.
). Doint $enture
B. ener#l p#rtnership
C. limite! p#rtnership
.. cooper#ti$e
24. )lthouh it is # sm#ll comp#n,, Horn Anterprises owns # l#re num"er of
ine%pensi$e rent#l housin units in Te%#s #n! Jouisi#n#. Currentl,, the comp#n,
is # ch#rtere! C-corpor#tion, "ut the owners #re intereste! in switchin to #n 4
corpor#tion. )fter consultin # l#w,er, the, le#rne! th#t Horn Anterprises !oes not
7u#lif, to "e !esin#te! #s #n 4 corpor#tion. Which of the followin
ch#r#cteristics of Horn Anterprises woul! pre$ent it from "ecomin #n 4
corpor#tion(
). The firm h#s fewer th#n ?5 stoc6hol!ers.
B. The firm is ch#rtere! in one st#te, "ut owns propert, in #nother.
C. The firm h#s onl, one cl#ss of stoc6, #ll owne! ", 3.4. citi2ens.
.. The firm recei$es more th#n ?0 percent of its income from rents #n! other
p#ssi$e sources.
25. Amil, w#nts to open # ch#in of h#ir st,lin s#lons #n! hopes to #ttr#ct in$estors to
help fin#nce rowth. 4he consi!ere! formin # C corpor#tion, "ut w#nts to h#$e
more fle%i"ilit, #"out how the new "usiness will "e t#%e!. 4he #lso w#nts to offer
in$estors*owners limite! li#"ilit,. Amil, c#n s#tisf, her o"Decti$es ", settin up
#0n1<
). Jimite! li#"ilit, comp#n,.
B. 4 corpor#tion.
C. )lien corpor#tion.
.. Iener#l p#rtnership.
26. ) few ,e#rs "#c6, ,our three 3.4. "orn frien!s th#t li$e in the 4t#te of W,omin
inherite! # !u!e r#nch th#t the, pl#n to turn into # retirement h#$en for r#ce
horses. ;e#ceful ;#stures w#nts to open its !oors ", sprin, 2010. )fter #tten!in
se$er#l sm#ll "usiness semin#rs, the three frien!s #re cert#in the, nee! limite!
li#"ilit,. The hih-ris6, l#"or-intensi$e "usiness will re7uire # si2e#"le in$estment
inclu!in #n #ir-con!itione! "#rn, se$er#l fence!-in p#stures #n! lo#!s of #nim#l
fee!. +ou recentl, he#r! th#t one form of "usiness ownership re7uires owners to
p#, self-emplo,ment t#%es on the entire #mount of e#rnins. +ou #re f#irl, cert#in
this is one t#% loophole ,our frien!s woul! li6e to #$oi!. +ou recommen!<
). 4ole ;roprietorship
B. Iener#l ;#rtnership
C. Jimite! Ji#"ilit, Comp#n,
.. 4-Corpor#tion
2?. &-ermont W#nts to "e the 9ome of +our 'ew -irtu#l Comp#n,& t#l6s #"out<
). ) new form of JJC offere! in the st#te of -ermont, where #ll mem"ers c#n
oper#te $irtu#ll,.
B. The f#ct th#t it is !ifficult to #s6 firms to commit to one form of "usiness
ownership since &lo"#l is now loc#l&.
C. ) new l#w th#t s#,s ,our firm c#n "e # corpor#tion in the 3.4., #n JJC in
Anl#n!, #n! # sole proprietorship in Chin#.
.. 9ow st#tes #re competin for ,our "usiness, p#rticul#rl, in!i$i!u#ls who w#nt
to st#rt sole proprietorships.
Chpt. 6
28. Fen,# recentl, 7uit # Do" with # l#re corpor#tion to st#rt her own "usiness. While
she re#li2es th#t her !ecision comes with ris6, she is e%cite! for the ch#nce to "e
in!epen!ent #n! ", the ch#llenes of runnin her own firm. Fen,# is #n e%#mple
of #0n1<
). intr#preneur.
B. entrepreneur.
C. $enture c#pit#list.
.. r#conteur.
2B. Arin !e$elope! # new t,pe of e%ercise e7uipment she c#lls the Tush '5 Tone.
)fter unsuccessfull, se#rchin for potenti#l in$estors, she #rr#ne! # person#l
lo#n #n! "orrowe! #!!ition#l mone, from her p#rents. 9er willinness to
continue "elie$in in her i!e# #n! rem#in enthusi#stic shows th#t Arin is<
). ch#r#cteristic#ll, self-nurturin.
B. "etter suite! to m#n#in # nonprofit or#ni2#tion.
C. un#w#re of the ris6s she w#s t#6in.
.. not # true entrepreneur.
:0. )pple Computer5s &sm#rt te#m& is #n e%#mple of # firm th#t succee!e! ",<
). encour#in e#ch m#n#er to focus on # well !efine! #re# of the "usiness #n!
"uil! his own speci#li2e! !ep#rtment.
B. "rinin toether # roup of t#lente! #n! e%perience! m#n#ers to concei$e,
!e$elop, #n! m#r6et pro!ucts.
C. emph#si2in # low price #n! low cost str#te, riht from the "einnin.
.. #ssem"lin # roup of emplo,ees whose ine%perience w#s # plus, "ec#use the,
!i! not come with the "##e #n! institution#l i!e#s of l#rer comp#nies.
:1. )nn# recentl, left # l#re insur#nce firm #n! opene! # home-"#se! "usiness
prep#rin me!ic#l tr#nscriptions for !octors. B#se! on recent st#tistics, she c#n
e%pect<
). # ne#ti$e re#ction from frien!s #n! f#mil, who won!er when she will et #
&re#l& Do".
B. the emerence of #ffor!#"le technolo, will m#6e it less ch#llenin for her to
compete with l#rer firms offerin the s#me ser$ice.
C. the o$ernment will !iscour#e her #ttempts to cre#te # home-"#se! "usiness
in the hopes th#t she will opt for loc#tin in #n enterprise 2one.
.. to fin! securit,, routine #n! # p#,chec6 from her new enterprise.
:2. )fter r#!u#tion, /#nn, focuse! his #ttention on fin!in full time emplo,ment.
9e h#s !eci!e! to n#rrow his Do" se#rch to Do"s with # m#Dor corpor#tion. 9is Do"
se#rch str#te,<
). m#6es sense "ec#use m#n#eri#l s6ills #re "est !e$elope! ", wor6in for "i
firms.
B. is sm#rt "ec#use m#Dor corpor#tions represent the most import#nt source of
emplo,ment rowth in the 3nite! 4t#tes.
C. in!ic#tes th#t /#nn,5s p#ssion is to fulfill his !re#m of ownin his own
"usiness.
.. will li6el, limit his Do" prospects since most new Do"s #re with sm#ll
"usinesses.
::. )fter se$er#l ,e#rs of wor6in #s # reion#l m#n#er for # n#tion#ll, 6nown
nonprofit, @#nelle l#n!e! # m#n#ement position with #n inno$#ti$e sm#ll
"usiness. 8f she #ccepts the Do" offer, she is li6el, to fin! th#t<
). !ue to the sinific#nt !ifferences in l#re #n! sm#ll firms, her pre$ious
e%perience will "e of little $#lue in her new position.
B. the principles of m#n#ement #re much the s#me #t l#re #n! sm#ll firms.
C. nonprofit or#ni2#tions #re moti$#te! ", their !esire to help people #n! so
fin#nci#l m#n#ement is of little concern.
.. pl#nnin is more import#nt to # nonprofit or#ni2#tion #n! less import#nt to #
sm#ll "usiness so she will nee! to #!Dust the time she spen!s on the pl#nnin
function.
:4. )s # result of corpor#te !ownsi2in, )le% lost his Do" #s #n inform#tion s,stems
m#n#er for # l#re telecommunic#tions comp#n,. ) "on#fi!e computer ee6 in
his own riht, )le% 6new th#t se$er#l of his p#st comp#n, cont#cts often
outsource! their computer pro"lems. 9e !eci!e! it w#s # oo! time to test the
w#ters #n! see if he coul! secure enouh computer clients to "e in "usiness for
himself. 9is success !emonstr#te! th#t<
). st#rtin ,our own "usiness c#n 7uic6l, pro$i!e securit, #n! profits.
B. people #lw#,s ten! to hire people the, 6now from p#st #ssoci#tions.
C. the ser$ice sector is not #n #re# of sinific#nt rowth.
.. successful "i "usinesses often cre#te profit#"le opportunities for sm#ll
"usinesses.
:5. )fter sellin his softw#re "usiness for # si2e#"le profit, softw#re enineer Ius
Ireene !eci!e! to tr, somethin !ifferent. 9e woul! "ecome # ener#l contr#ctor
on # l#re con!o !e$elopment in #n upcomin #re# of )tl#nt#, Ieori#. 9e
in$este! se$er#l million #n! then "orrowe! #nother K:0 million 0or ?5L of the
proDect cost1 from # len!in institution. 9e "#se! his "orrowin ris6 on the
#ssumption th#t the housin m#r6et woul! continue to #ppreci#te for se$er#l ,e#rs
to come. )s the housin m#r6et "e#n # free-f#ll in e#rl, 2008 #n! continue! into
200B, Ius s#w his "usiness cr#shin #roun! him. 4#les were $er, me#er #n! the
"#n6 w#nte! its mone, "#c6. Which of the followin st#tements miht "est
!escri"e the re#son Ius5 "usiness f#ile!(
). )lthouh Ius too6 some ris6, it w#sn5t enouh. 8n "usiness, it is &more ris6,
more e%pecte! rew#r!M&
B. The "#n6 let Ius !own. 8t shoul! not h#$e lent him th#t much mone,.
C. 9e shoul! h#$e !esin#te! himself #s # p#ssi$e in$estor. Therefore, his
in$estment woul! not "e in Deop#r!,
.. Ius went into the "usiness with $er, little 6nowle!e #"out the in!ustr, or the
m#r6et.
:6. @ennifer, # t#lente! photor#ph, m#Dor st#rte! # corpor#te photor#ph, "usiness.
4he pl#nne! to solicit Do"s from l#re corpor#tions who nee!e! pictures for their
#nnu#l reports #n! we"sites. )lthouh fillin # uni7ue niche, @ennifer nee!e! the
securit, th#t the "usiness woul! thri$e #n! th#t she woul! e#rn enouh to support
herself #n! her chil!. 4he #lso hope! th#t she woul! spen! less time e#ch !#,
c#llin on potenti#l clients #n! more time !oin the #ctu#l shoots. )s her sm#ll
"usiness consult#nt, which of the followin suestions woul! ,ou h#$e for
@ennifer(
). @ennifer shoul! either t#6e the ris6 necess#r, to !e$elop # sm#ll "usiness, or o
to wor6 for someone else.
B. 8n the "einnin, it5s !ou"tful th#t @ennifer will re#li2e e#se of entr,, securit,,
#n! oo! profits. 4he nee!s to m#6e pl#ns in the e$ent th#t one or more of these
!oes not m#teri#li2e 7uic6l,.
C. ;hotor#phers c#n t#6e pictures of # multitu!e of thins. 8t5s pro"#"l, not oo!
str#te, to limit her "usiness to onl, photor#phin the nee!s of l#re
corpor#tions.
.. @ennifer shoul! !efinitel, m#6e time for herself e#ch !#, so th#t she !oes not
e%perience "urn-out. 8f she pl#ns well, le#pin into her own "usiness will pro$i!e
with her se$er#l hours of unstructure! time e#ch !#, where she c#n perfect her
cr#ft e$en more.
:?. .r. 4mile, White Dust r#!u#te! from !ent#l school. 9e is hopin to #c7uire the
necess#r, fun!in to st#rt his own !ent#l pr#ctice. =ne #!$#nt#e of this t,pe of
"usiness is<
). #"o$e #$er#e opportunit, to "orrow fun!s #t # hih interest r#te
B. ne#rl, unlimite! rowth potenti#l
C. the ser$ice is in!i$i!u#li2e! #n! not e#sil, m#ss-pro!uce!
.. $er, low st#rtup costs
:8. /oti$#te! ", his !esire to oper#te his own "usiness, 'ic6 consi!ers purch#sin #n
e%istin "usiness. )s he c#refull, weihs this option, he is li6el, to fin! th#t<
). $er, few owners of sm#ll "usinesses h#$e #n, interest in sellin.
B. his potenti#l for success woul! re#tl, impro$e if he st#rte! his own new firm.
C. the $#lue of #n e%istin "usiness is !etermine! ", wh#t the "usiness owns,
wh#t it e#rns, #n! wh#t m#6es it uni7ue.
.. #n, entrepreneur willin to sell his*her "usiness is e%periencin serious
fin#nci#l pro"lems.
:B. C#rrie, # stu!ent #t /etropolit#n Communit, Collee, !re#ms of st#rtin her own
"usiness. 8n #n effort to le#rn #s much #s she c#n #"out sm#ll "usiness
m#n#ement, she t#l6e! to four frien!s who e#ch offere! their #!$ice. Which of
these suestions is li6el, to help C#rrie the most(
). The "est w#, to le#rn #"out runnin # "usiness is ", ettin h#n!s-on
e%perience. +ou shoul! 7uit school #n! put ,our !re#m into #ction.
B. T#6e courses rel#te! to sm#ll "usiness m#n#ement #n! loo6 for # Do" with #
successful "usinessperson, prefer#"l, in ,our fiel! of interest.
C. 4ince e$er, "usiness is uni7ue, !on5t worr, #"out #!$ice from others. Io to #
"#n6, et # "usiness lo#n, #n! li$e ,our !re#m.
.. 4t#rtin #n! m#n#in # sm#ll "usiness re7uires little more th#n common
sense. 8f ,our i!e# is uni7ue, h#r! wor6 will u#r#ntee ,our success.
40. ;epp, is confi!ent th#t ;epp,5s ;i22#22eri# will "e # success, "ut onl, if he h#s
enouh mone, to !o thins riht. 4ince ;epp, h#s $er, little person#l we#lth, he
6nows he must o"t#in fin#nci#l #ssist#nce. 8n or!er prep#re for meetins with
"#n6ers #n! potenti#l in$estors, ;epp, shoul!<
). hire # pu"lic rel#tions firm to !e$elop promotion#l m#teri#ls.
B. !e$elop # "usiness pl#n.
C. re#! # "oo6 on entrepreneurship.
.. cre#te # p#rtnership contr#ct.
41. ;epp, h#s in7uire! #"out the possi"ilit, of o"t#inin # microlo#n from the 4B).
This t,pe of lo#n is #w#r!e! prim#ril, on the "#sis of the<
). "orrower5s interit, #n! the soun!ness of the "usiness i!e#.
B. #mount of coll#ter#l the "orrower c#n ple!e.
C. "orrower5s cre!it histor, #n! recor! of pre$ious "usiness success.
.. #e of the "orrower, since onl, senior citi2ens 7u#lif,.