1 A) be willing to take a risk. B) gather the factors of production. C) learn as much as possible about the businesses they plan to start. D) do all the work in their businesses themselves. 2 A) expenses, advertising, receipts and record keeping, and risk B) expenses, risk, small business incubators, corporate bonds C) advertising, the Small Business Administration, record keeping, and risk D) shareholders' prospectuses, expenses, advertising, and receipts 3 A) the operation of the business is usually less complicated than other types of business. B) management decisions can be made quickly. C) the owner has unlimited liability. D) the owner receives all the profits. 4 A) Unlike sole proprietorships, the life of the business in a partnership is not a risk to employees and creditors. B) Unlike sole proprietorships, management decision making in partnerships is often slow. C) Unlike sole proprietorships, partnerships do not have trouble borrowing large amounts of capital. D) Unlike sole proprietorships, partnerships are protected from unlimited liability. 5 A) quick decision making by management. B) limited liability. C) individual stockholders can influence daily corporation decisions. D) no federal taxes. 6 A) corporations are owned by stockholders. B) a corporation does not have a separate or distinct existence from its stockholders. C) the board of directors is responsible for supervising and controlling the corporation. D) in order to form a corporation, its founders must elect a board of directors. 7 A) The Gap. B) Sears. C) Burger King. D) Wal-Mart.
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