MGMT 3000 GUHDE REVISION EXAM 2025/2026
QUESTIONS WITH ANSWERS GRADED A+
✔✔8 characteristics of a business plan - ✔✔1. clear, compelling vision
2. clear, realistic financial projections
3. profile of potential customers and target market
4. details about the industry and competitors
5. evidence of an effective management team
6. critical risks
7. sources and uses of start-up funds and operating funds
8. summary
✔✔sole proprietorship - ✔✔unincorporated business owned by an individual for profit
✔✔sole proprietorship characteristics (3) - ✔✔1. few legal requirements
2. proprietary has total ownership and control
3. owner has unlimited liability
✔✔partnership - ✔✔unincorporated business owned by two or more people
✔✔partnership characteristics (3) - ✔✔1. easy to start
2. use a formal partnership agreement
3. unlimited liability
✔✔a formal partnership agreement specifies... - ✔✔how partners share
responsibility/resources and contribute expertise
✔✔partnerships often dissolve within _____ years - ✔✔5
✔✔corporation - ✔✔artificial entity created by the state and existing apart from its
owners
✔✔corporation characteristics (6) - ✔✔1. separate legal entity liable for its actions
2. limits owners' liability
3. must pay taxes on its income
4. provides continuity
5. more complex paperwork
6. can raise funds through the sale of stock to investors
✔✔majority of businesses in the US are which legal structure? - ✔✔sole proprietorships
✔✔debt financing - ✔✔borrowing money that must be repaid at a later date to start a
business
, ✔✔5 sources of debt financing - ✔✔1. family and friends
2. personal credit cards
3. bank loans
4. finance companies
5. small business administration (SBA)
✔✔equity financing - ✔✔funds that are investing in exchange for ownership in the
company
✔✔does money always come back in equity financing? - ✔✔no, it only comes back if
you're successful
✔✔angel financing - ✔✔wealthy individual who believes in a start-up provides personal
funds and advice to help the business get started
✔✔venture capital firms - ✔✔group that invests money in new or expanding businesses
for ownership and potential profits
✔✔crowdfunding - ✔✔raising capital from small amounts from many investors, usually
through social media and the Internet
✔✔what percentage of the sources of start-up capital for entrepreneurs is from personal
savings? - ✔✔78%
✔✔business incubator - ✔✔typically provides shared office space, management support
services, and management and legal advice to entrepreneurs (ex. atlanta tech village)
✔✔co-working facility - ✔✔open office environment shared by multiple freelance
entrepreneurs as well as corporate telecommuting employees or others who don't have
a regular office
✔✔3 advantages of franchising - ✔✔1. franchise power provides management help and
expertise
2. known brand name
3. reliable financial projections
✔✔3 disadvantages of franchising - ✔✔1. lack of control
2. franchisors dictates the prices
3. must purchase equipment, building, and new product offerings
✔✔what percent of mcdonald's are franchise operations? - ✔✔93%
✔✔what does peter drucker say about objectives and goals? - ✔✔any business
enterprise must build a true team and weld individual efforts into a common effort; each
QUESTIONS WITH ANSWERS GRADED A+
✔✔8 characteristics of a business plan - ✔✔1. clear, compelling vision
2. clear, realistic financial projections
3. profile of potential customers and target market
4. details about the industry and competitors
5. evidence of an effective management team
6. critical risks
7. sources and uses of start-up funds and operating funds
8. summary
✔✔sole proprietorship - ✔✔unincorporated business owned by an individual for profit
✔✔sole proprietorship characteristics (3) - ✔✔1. few legal requirements
2. proprietary has total ownership and control
3. owner has unlimited liability
✔✔partnership - ✔✔unincorporated business owned by two or more people
✔✔partnership characteristics (3) - ✔✔1. easy to start
2. use a formal partnership agreement
3. unlimited liability
✔✔a formal partnership agreement specifies... - ✔✔how partners share
responsibility/resources and contribute expertise
✔✔partnerships often dissolve within _____ years - ✔✔5
✔✔corporation - ✔✔artificial entity created by the state and existing apart from its
owners
✔✔corporation characteristics (6) - ✔✔1. separate legal entity liable for its actions
2. limits owners' liability
3. must pay taxes on its income
4. provides continuity
5. more complex paperwork
6. can raise funds through the sale of stock to investors
✔✔majority of businesses in the US are which legal structure? - ✔✔sole proprietorships
✔✔debt financing - ✔✔borrowing money that must be repaid at a later date to start a
business
, ✔✔5 sources of debt financing - ✔✔1. family and friends
2. personal credit cards
3. bank loans
4. finance companies
5. small business administration (SBA)
✔✔equity financing - ✔✔funds that are investing in exchange for ownership in the
company
✔✔does money always come back in equity financing? - ✔✔no, it only comes back if
you're successful
✔✔angel financing - ✔✔wealthy individual who believes in a start-up provides personal
funds and advice to help the business get started
✔✔venture capital firms - ✔✔group that invests money in new or expanding businesses
for ownership and potential profits
✔✔crowdfunding - ✔✔raising capital from small amounts from many investors, usually
through social media and the Internet
✔✔what percentage of the sources of start-up capital for entrepreneurs is from personal
savings? - ✔✔78%
✔✔business incubator - ✔✔typically provides shared office space, management support
services, and management and legal advice to entrepreneurs (ex. atlanta tech village)
✔✔co-working facility - ✔✔open office environment shared by multiple freelance
entrepreneurs as well as corporate telecommuting employees or others who don't have
a regular office
✔✔3 advantages of franchising - ✔✔1. franchise power provides management help and
expertise
2. known brand name
3. reliable financial projections
✔✔3 disadvantages of franchising - ✔✔1. lack of control
2. franchisors dictates the prices
3. must purchase equipment, building, and new product offerings
✔✔what percent of mcdonald's are franchise operations? - ✔✔93%
✔✔what does peter drucker say about objectives and goals? - ✔✔any business
enterprise must build a true team and weld individual efforts into a common effort; each
