1. Companies such as Uber and Airbnb, which bridge the digital and physical worlds, are examples of businesses that are based on _____.
a. continuous integration
b. backward integration
c. disruptive innovation
d. mixed model production
2. In the context of the different legal structures of companies, a _____ is an artificial entity created by the state and existing apart from its owners.
a. partnership
b. corporation
c. collaboration
d. sole proprietorship
3. Jacinta manages a small catering business that supplies meals to around 30 clients. She begins her day at 5 AM and goes to the local market to source her raw materials. She then begins preparations for the day's menu with the help of two assistants. She also personally delivers food to her clients so that she can interact with them directly and obtain feedback about the food quality, which she ensures to incorporate into her business. Jacinta is determined to make her services more profitable and puts in long hours working on building her business. According to the five categories of small-business owners, Jacinta is most likely to be classified as a(n) _____.
a. hard worker
b. socialist
c. idealist
d. sustainer
4. Entrepreneurs with _____ are motivated to excel and pick situations in which they are likely to succeed.
a. a strong need to achieve
b. an external locus of control
c. low self-esteem
d. low energy
5. In the context of launching an entrepreneurial start-up, a(n) _____ is a document specifying the details prepared by an entrepreneur prior to opening a new company.
a. business plan
b. partnership agreement
c. memorandum of understanding
d. article of incorporation
6. Mira and Caroline started an organization to help communities that do not have a reliable source of electricity. They did this by designing and manufacturing solar powered lamps and selling them at an affordable price to those communities. They enrolled volunteers to help them travel to these communities and set up lamps in every household. In the context of the various types of organizations, Mira and Caroline own a(n) _____.
a. nonprofit organization
b. social business
c. online business
d. government-aided organization
7. In the context of legal structures for a business, a _________partnershipbusiness trustlimited liability companysole proprietorshipis defined as an unincorporated business owned by an individual for profit.
8. In the context of buying an existing business, the buyer:
a. invests his or her money to develop new products and services under that firm's name.
b. pays an ongoing fee and sells another firm's products and services under that firm's name.
c. has complete control over the business in terms of deciding the price of products.
d. has the advantage of a shorter time to get started and an existing track record.
9. Jim is a single father. He decides to start a restaurant and borrows money from his parents, which he promises to pay back at a later date. He also takes out a Small Business Administration (SBA) loan to help set up and run his restaurant. In the context of the various ways of arranging finance for a business, which of the following financing options has Jim used?
a. Equity financing
b. Debt financing
c. Crowd investing
d. Angel financing