Sophia BUSN100 Unit 1 Challenge 2 Latest 2022 September

BUSN100 Basics of Business

Unit 1 Challenge 2

1 — Small Business and the Entrepreneur

Differentiate between entrepreneurs and small business owners.

What is the main difference between a small business owner and an entrepreneur?

1.  Entrepreneurs are interested in generating profit.
2. Small business owners usually do not last more than two years.
3. Small business owners lack innovation and creativity.
4. Entrepreneurs take on businesses with the goal of growth and expansion.

2 — Non-Corporate Business

Compare the advantages of starting a sole proprietorship or partnership.

Select the best reason below why Oliver should form a partnership with Kyle instead of starting a business as a sole proprietor.

1. Oliver may want to make all final decisions on how they will operate the business.
2. Kyle may have experience managing business operations.
3. Oliver may want to keep all of the profits the company earns.
4. Kyle may have personality traits that make working with him difficult.

3 — Types of Corporations

Understand corporate ownership and types of corporations.

Which of the following statements confirms that Global Hotel Group (GHG) is a corporation rather than another type of business?

1. GHG is taxed solely on earnings from sales.
2. GHG implemented a social responsibility program.
3. GHG can be sued by a disgruntled former employee.
4. GHG shares its profits with its investors.

4 — The 3 Part Business Plan

Identify the purpose and components of a business plan.

Which of the following is an example of goals and objectives?

1. Includes a summary of the amount of investment needed to start Tarheel Coffee as well as a break-even analysis and revenue projections
2. Includes current market research and predictions about how Tarheel Coffee will fare in the marketplace
3. Includes the specific milestones or outcomes that Tarheel Coffee hopes to achieve as a business

5 — The Small Business Franchise

Determine the advantages or disadvantages of owning a franchis

Which of the following is an advantage to starting a franchise?

1. The cost of franchise license is inexpensive.
2. The franchisee has freedom to incorporate his/her own ideas into the business.
3. The customer base is already established.
4. Success is guaranteed by the franchiser.

6 — Small Business Success or Failure?

Understand mismanagement and why businesses fail.

If a business does not audit its decisions, it might fail due to __________.

1. lack of focus
2. uncontrolled resources
3. not enough money
4. managerial failure