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MULTIPLE-CHOICE QUESTIONS CHAPTER 6

1. The person who takes the risk of starting and managing a business to make a profit is called a(n):
A. entrepreneur
B. venture capitalist
C. capitalistic adventurer
D. franchiser
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E. ultra capitalist

2. Andy Yocom saw prime advertising space on the flags on the golf course. He reasoned that any marketing messages would get prominent attention if they were placed on the flags since golfers focus on them when they take their shots. As a result Yocom used his own initiative and money to start Invision Golf Group Inc. Yocom is an example of a(n):
A. entrepreneur
B. venture capitalist
C. capitalistic adventurer
D. franchiser
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E. ultra capitalist

3. Jon P. Farmer is the founder of Kolopua Hawaii LLC, a company that markets Pure Hawaiian Air. Bottles of Pure Hawaiian Air contain air that smells like the floral bouquet that greets tourists as they get off the plane in Hawaii. Retailing for about $5 apiece, the bottles are sold at gift shops in Hawaii, as well as to travel agents nationwide who give them to clients. As a(n) _____, Farmer's annual income exceeds $100,000 annually.
A. venture capitalist
B. franchisee
C. franchisor
D. entrepreneur
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E. financier 4. An entrepreneur is a person who _____ a business.
A. finances
B. manages
C. locates
D. owns and operates
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E. works for

5. The difference between the small business owner and the entrepreneur is that the entrepreneur:
A. manages the business
B. files taxes for the business
C. assumes the risk of the business
D. is responsible for the profits of the business