BUSI 1301 FINAL EXAM VERIFIED STUDY GUIDE
Business - Answers - What is an entity that seeks to earn a profit by providing a good or
service?
Economics - Answers - The study of how society chooses to employ resources to
produce goods and services and distribute them for consumption among various
competing groups and individuals.
Importing vs. Exporting - Answers - Exporting - Selling products to another country
Importing - Buying products from another country
Ethics - Answers - Standards of moral behavior; that is behavior accepted by society as
right versus wrong
Is it legal? - Answers - The first and most basic step when facing an ethical dilemma is
to ask?
Limited Partner vs. General Partner - Answers - Limited Partner - Owner who invests
money in the business but does not have any management responsibility for losses
beyond the investment
General Partner - Unlimited liability and active in the firm
Sole Proprietorship - Answers - Advantages - Ease of starting and ending the business,
being your own boss, pride of ownership, leaving a legacy, retention of company profits,
and no special taxes
Disadvantages - Unlimited liability, limited financial resources, management difficulties,
overwhelming time commitments, and limited growth
Franchises - Answers - Advantages - Management and marketing assistance, personal
ownership, nationally recognized name, financial advice and assistance, lower failure
rate
Disadvantages - Large start-up costs, shared profits, management regulation, coattail
effects, restrictions on selling, and fraudulent franchisors
Entrepreneurship - Answers - Accepting the risk of starting and running a business.
Business Plan - Answers - A detailed written statement that describes the nature of the
business, the target market, the advantages the business will have in relation to
competition, and the resources and qualification of the owners.
Business - Answers - What is an entity that seeks to earn a profit by providing a good or
service?
Economics - Answers - The study of how society chooses to employ resources to
produce goods and services and distribute them for consumption among various
competing groups and individuals.
Importing vs. Exporting - Answers - Exporting - Selling products to another country
Importing - Buying products from another country
Ethics - Answers - Standards of moral behavior; that is behavior accepted by society as
right versus wrong
Is it legal? - Answers - The first and most basic step when facing an ethical dilemma is
to ask?
Limited Partner vs. General Partner - Answers - Limited Partner - Owner who invests
money in the business but does not have any management responsibility for losses
beyond the investment
General Partner - Unlimited liability and active in the firm
Sole Proprietorship - Answers - Advantages - Ease of starting and ending the business,
being your own boss, pride of ownership, leaving a legacy, retention of company profits,
and no special taxes
Disadvantages - Unlimited liability, limited financial resources, management difficulties,
overwhelming time commitments, and limited growth
Franchises - Answers - Advantages - Management and marketing assistance, personal
ownership, nationally recognized name, financial advice and assistance, lower failure
rate
Disadvantages - Large start-up costs, shared profits, management regulation, coattail
effects, restrictions on selling, and fraudulent franchisors
Entrepreneurship - Answers - Accepting the risk of starting and running a business.
Business Plan - Answers - A detailed written statement that describes the nature of the
business, the target market, the advantages the business will have in relation to
competition, and the resources and qualification of the owners.
