CM 443 Prep QUESTIONS WITH ANSWERS|
2026 | 100% Correct
Entrepreneur
a person who takes advantage of a business opportunity by assuming the financial, material, and
psychological risks of starting or running a company
-creation
-innovation
-risk
-general management
-performance
successful traits:
-not research based
-passionate, determined, technical skills, confident, optimistic, good work ethic
Pros of Self Employment
opportunity for independence
opportunity for a better lifestyle
opportunity for profit
Cons of Self Employment
personal liability
uncertain income
long working hours
limited compensation while business grows
,Start Up Process
-innovation or idea
-triggering event
-implementation: form the organization
-growth
-maturity
-harvest: owner removes himself from the business
-environmental and organizational characteristics
Advantages for Starting a Business
-free to mold into anything you want
-pride of creating something
-no carryover baggage from someone else's mistakes
Disadvantages for Starting a Business
-greater risk than buying an existing business
-there may not be a market in your area
-you have to inform people that your business exists
-many details to consider
Home Based Business
-fastest growing method (61% of all)
advantages:
-flexibility and low overhead
, -convenience
-tax advantages
disadvantages:
-domestic interruptions
-informal/insufficient workspace
-lack of respect
-zoning issues
-material/equipment shortage
Starting a Side Business
-start while keeping fulltime job
-extreme organizational skills and discipline
-be sure of company moonlighting policy
Steps for Starting a Business
1. Planning
2. How will you compete
3. License, permits, and regulations
Planning
-write comprehensive plan
-market analysis
-competitive analysis
-startup costs
-legal form of business
2026 | 100% Correct
Entrepreneur
a person who takes advantage of a business opportunity by assuming the financial, material, and
psychological risks of starting or running a company
-creation
-innovation
-risk
-general management
-performance
successful traits:
-not research based
-passionate, determined, technical skills, confident, optimistic, good work ethic
Pros of Self Employment
opportunity for independence
opportunity for a better lifestyle
opportunity for profit
Cons of Self Employment
personal liability
uncertain income
long working hours
limited compensation while business grows
,Start Up Process
-innovation or idea
-triggering event
-implementation: form the organization
-growth
-maturity
-harvest: owner removes himself from the business
-environmental and organizational characteristics
Advantages for Starting a Business
-free to mold into anything you want
-pride of creating something
-no carryover baggage from someone else's mistakes
Disadvantages for Starting a Business
-greater risk than buying an existing business
-there may not be a market in your area
-you have to inform people that your business exists
-many details to consider
Home Based Business
-fastest growing method (61% of all)
advantages:
-flexibility and low overhead
, -convenience
-tax advantages
disadvantages:
-domestic interruptions
-informal/insufficient workspace
-lack of respect
-zoning issues
-material/equipment shortage
Starting a Side Business
-start while keeping fulltime job
-extreme organizational skills and discipline
-be sure of company moonlighting policy
Steps for Starting a Business
1. Planning
2. How will you compete
3. License, permits, and regulations
Planning
-write comprehensive plan
-market analysis
-competitive analysis
-startup costs
-legal form of business
