Sophia - Introduction to Business Challenges
Practice Questions with Verified A+ Solutions
Which of the following primary goals differentiates entrepreneurs from other small business owners? -
Answer To achieve large growth and expansion
What happens when expenses become larger or greater than sales or revenue? - Answer The business
experiences a loss.
Entrepreneurs take on businesses with the main goal of creating __________. - Answer growth and
expansion
Which of the following considerations is related to the domestic business environment? - Answer
Feedback from local customers provides a business with a competitive advantage.
Which of the following scenarios best reflects the impact of the sociocultural environment on a
company's operations? - Answer It will be easier to hire more part-time workers now that the younger
generation values workplace flexibility.
Which of the following is an example of capital? - Answer Money needed for a coffee shop's day-to-day
operations
A national fast-food chain competes with other fast-food companies by pricing its fried chicken
sandwiches low and advertising its special seasonings.
In which of the following economic markets is the fast-food chain operating? - Answer Monopolistic
competition
A large smartphone company is one of only three firms that dominate the global market for
smartphones. Therefore, it has a significant influence over pricing.
In which of the following economic markets is the smartphone company operating? - Answer Oligopoly
,In which market structure is it most difficult to gain an advantage over competing firms in the market? -
Answer Perfect competition
Which of the following is a trait of small businesses? - Answer They are independently owned.
Why are small businesses important? - Answer Over 50% of sales in the United States go to small
businesses.
What is the main difference between small business owners and entrepreneurs? - Answer
Entrepreneurs take on businesses with the goal of growth and expansion, but it is not always the same
for small business owners.
Oliver wants to launch a new business venture and is deciding between being a sole proprietor or
entering a general partnership with Kyle.
Which of the following is a reason Oliver should choose a general partnership with Kyle over a sole
proprietorship? - Answer Oliver has less experience than Kyle in managing business operations.
Which of the following is a reason to form a partnership rather than a sole proprietorship? - Answer A
partner would contribute specific skills to make the business successful.
What type of partnership would Luis and Derick most likely enter into if both of them want to take an
active role in the business? - Answer General partnership
Which of the following features makes corporations unique from other types of businesses? - Answer A
corporation is legally considered a person.
Which of the following statements would support the conclusion that Global Hotel Group (GHG) is a
corporation? - Answer GHG can be sued by a disgruntled former employee.
Which of the following is characteristic of a corporation? - Answer It can lend and borrow money.
, Which of the following is an example of a financial plan? - Answer Tarheel Coffee needs an investment
of $125,000 to open and is estimated to break even within the first 8 months of opening.
Which of the following is an example of a sales forecast? - Answer Market research shows that four
similar coffee shops in the surrounding areas earned an average profit of $400,000 during Year 1.
Tarheel Coffee expects to earn a profit of $350,000 during the first year of business.
Which of the following is an example of a business plan's goals and objectives? - Answer It includes the
specific milestones or outcomes that Tarheel Coffee hopes to achieve as a business.
Which of the following is an advantage of starting a franchise? - Answer A franchisee can utilize proven
methods for doing business.
Which of the following is an advantage of starting a franchise? - Answer The customer base is already
established.
Which of the following is an advantage of starting a new business rather than a franchise? - Answer The
owner may have lower start-up fees to pay.
One factor that drives business success is __________. - Answer retaining good employees
Which of these factors lead to business failure? - Answer Uncontrolled resources
Through the correct analysis of demand, a business may succeed with __________. - Answer planning
and organization
Greyson Hotel Group (GHG) was formed as a corporation that has several hotel brands in major cities
across the United States.
Which of the following ethical issues at GHG would directly impact the organization as a conflict of
interest? - Answer A member of the GHG board of directors accepts fees for providing advice to one of
its biggest competitors.
Practice Questions with Verified A+ Solutions
Which of the following primary goals differentiates entrepreneurs from other small business owners? -
Answer To achieve large growth and expansion
What happens when expenses become larger or greater than sales or revenue? - Answer The business
experiences a loss.
Entrepreneurs take on businesses with the main goal of creating __________. - Answer growth and
expansion
Which of the following considerations is related to the domestic business environment? - Answer
Feedback from local customers provides a business with a competitive advantage.
Which of the following scenarios best reflects the impact of the sociocultural environment on a
company's operations? - Answer It will be easier to hire more part-time workers now that the younger
generation values workplace flexibility.
Which of the following is an example of capital? - Answer Money needed for a coffee shop's day-to-day
operations
A national fast-food chain competes with other fast-food companies by pricing its fried chicken
sandwiches low and advertising its special seasonings.
In which of the following economic markets is the fast-food chain operating? - Answer Monopolistic
competition
A large smartphone company is one of only three firms that dominate the global market for
smartphones. Therefore, it has a significant influence over pricing.
In which of the following economic markets is the smartphone company operating? - Answer Oligopoly
,In which market structure is it most difficult to gain an advantage over competing firms in the market? -
Answer Perfect competition
Which of the following is a trait of small businesses? - Answer They are independently owned.
Why are small businesses important? - Answer Over 50% of sales in the United States go to small
businesses.
What is the main difference between small business owners and entrepreneurs? - Answer
Entrepreneurs take on businesses with the goal of growth and expansion, but it is not always the same
for small business owners.
Oliver wants to launch a new business venture and is deciding between being a sole proprietor or
entering a general partnership with Kyle.
Which of the following is a reason Oliver should choose a general partnership with Kyle over a sole
proprietorship? - Answer Oliver has less experience than Kyle in managing business operations.
Which of the following is a reason to form a partnership rather than a sole proprietorship? - Answer A
partner would contribute specific skills to make the business successful.
What type of partnership would Luis and Derick most likely enter into if both of them want to take an
active role in the business? - Answer General partnership
Which of the following features makes corporations unique from other types of businesses? - Answer A
corporation is legally considered a person.
Which of the following statements would support the conclusion that Global Hotel Group (GHG) is a
corporation? - Answer GHG can be sued by a disgruntled former employee.
Which of the following is characteristic of a corporation? - Answer It can lend and borrow money.
, Which of the following is an example of a financial plan? - Answer Tarheel Coffee needs an investment
of $125,000 to open and is estimated to break even within the first 8 months of opening.
Which of the following is an example of a sales forecast? - Answer Market research shows that four
similar coffee shops in the surrounding areas earned an average profit of $400,000 during Year 1.
Tarheel Coffee expects to earn a profit of $350,000 during the first year of business.
Which of the following is an example of a business plan's goals and objectives? - Answer It includes the
specific milestones or outcomes that Tarheel Coffee hopes to achieve as a business.
Which of the following is an advantage of starting a franchise? - Answer A franchisee can utilize proven
methods for doing business.
Which of the following is an advantage of starting a franchise? - Answer The customer base is already
established.
Which of the following is an advantage of starting a new business rather than a franchise? - Answer The
owner may have lower start-up fees to pay.
One factor that drives business success is __________. - Answer retaining good employees
Which of these factors lead to business failure? - Answer Uncontrolled resources
Through the correct analysis of demand, a business may succeed with __________. - Answer planning
and organization
Greyson Hotel Group (GHG) was formed as a corporation that has several hotel brands in major cities
across the United States.
Which of the following ethical issues at GHG would directly impact the organization as a conflict of
interest? - Answer A member of the GHG board of directors accepts fees for providing advice to one of
its biggest competitors.
