EEE 2023 Exam 2 chapters 6-10 2026
Questions and Answers
Market analysis - Correct answer-definition of overall market
Bottoms up approach - Correct answer-How do i get my first then second and so
on to build it up
Top down - Correct answer-Sets realistic expectations
Doesnt say how you get there
Most investors look for an______ - Correct answer-exit strategy
Diwight Eisenhower - Correct answer-"Plans are worthless planning is everything"
Training programs - Correct answer-teach business ethics to help employees deal
with ethical dilemmas and improve ethical conduct
Ethical dilemma - Correct answer-situation involves doing something beneficial
for one's self or business but maybe an unethical conflict of values
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,Founders Agreement - Correct answer-written dc that deals with how a company is
agreed to be formed structured and how decisions are made ownership status and
responsibility of owners
Operating agreement - Correct answer-Details of how the company is run included
everything from founders' agreement how to buy out a founder and more
Partial list to include in a founder's agreement - Correct answer-Nature of
prospective business
Identity and proposed titles of the founders
apportion of stock or division of ownership
consideration paid of stock or ownership share of each of the founders
identification of any intellectual property signed over to the business
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, description of how founders will be compensated and how profits in the business
will be divided
provisions for resolving disputes
buyback clause
Nondisclosure agreement (NDA) - Correct answer-cannot disclose company's trade
secrets
Noncompete agreement - Correct answer-prevents an individual from competing
against a former employer for a specific period of time
easy paperwork and little protection to lots of protection and paperwork - Correct
answer-1. sole proprietorship
2. partnership
3. limited partnership
4. LLC limited liability company
5. S corporation
6. C corporation
©COPYRIGHT 2025, ALL RIGHTS RESERVED 3
Questions and Answers
Market analysis - Correct answer-definition of overall market
Bottoms up approach - Correct answer-How do i get my first then second and so
on to build it up
Top down - Correct answer-Sets realistic expectations
Doesnt say how you get there
Most investors look for an______ - Correct answer-exit strategy
Diwight Eisenhower - Correct answer-"Plans are worthless planning is everything"
Training programs - Correct answer-teach business ethics to help employees deal
with ethical dilemmas and improve ethical conduct
Ethical dilemma - Correct answer-situation involves doing something beneficial
for one's self or business but maybe an unethical conflict of values
©COPYRIGHT 2025, ALL RIGHTS RESERVED 1
,Founders Agreement - Correct answer-written dc that deals with how a company is
agreed to be formed structured and how decisions are made ownership status and
responsibility of owners
Operating agreement - Correct answer-Details of how the company is run included
everything from founders' agreement how to buy out a founder and more
Partial list to include in a founder's agreement - Correct answer-Nature of
prospective business
Identity and proposed titles of the founders
apportion of stock or division of ownership
consideration paid of stock or ownership share of each of the founders
identification of any intellectual property signed over to the business
©COPYRIGHT 2025, ALL RIGHTS RESERVED 2
, description of how founders will be compensated and how profits in the business
will be divided
provisions for resolving disputes
buyback clause
Nondisclosure agreement (NDA) - Correct answer-cannot disclose company's trade
secrets
Noncompete agreement - Correct answer-prevents an individual from competing
against a former employer for a specific period of time
easy paperwork and little protection to lots of protection and paperwork - Correct
answer-1. sole proprietorship
2. partnership
3. limited partnership
4. LLC limited liability company
5. S corporation
6. C corporation
©COPYRIGHT 2025, ALL RIGHTS RESERVED 3
