Chapter # 5 How to Form a Business TRUE/FALSE - Write 'T' if the statement is true and 'F' if the statement is false.

1) Partnerships are the most common form of business ownership. o true o false

2) The three major forms of business ownership in the United States are sole proprietorships, partnerships, and corporations. o true o false

3) Few people today start their own business. o true o false

4) Once a business is established. it's almost impossible to change from one form of business ownership to another. o true o false

5) When two or more people legally agree to become co-owners of a business, the form o1 business is called a partnership. o true o false

6) A legal entity with authority to act and have liability separate from its owners is called a sole proprietorship. o true o false

7) Corporations represent 20% of all the businesses in the United States and earn over 80% of the total U.S. business receipts. o true o false

Chapter # 6 Entrepreneurship and Starting a Small Business TRUE/FALSE - Write 'T' if the statement is true and 'F if the statement is false.

1) Entrepreneurship involves accepting the risk of starting and running a business. o true o false

2) Entrepreneurship is another name for management. o true o false

3) Entrepreneurs are less important now than in the past to the U.S. economy. o true o false

4) While entrepreneurs frequently earn significant profits for themselves, their impact on society is quite small. o true o false

5) Many businesses started by entrepreneurs have grown into major corporations employing thousands of workers. o true o false

6) Entrepreneurs are motivated by the desire to earn a profit. o true o false 7) Entrepreneurs take calculated risks. o true o false

Chapter # 7 Management and Leadership 1) The main job of modem managers is to watch over people to be sure they do what the manager asks of them. o true o false

2) The best way to get people to do what a manager wants is for the manager to reprimand those who don't do things correctly. o true o false

3) Manages in progressive terms of all kinds tend to guide and motivate employees. o true o false

4) Managers must earn the trust of their employees. o true o false

5) A modem manager's main job is to issue orders, then follow up to make sure employees do as they were told. o true o false

6) Managers in progressive organizations tend to emphasize teamwork and cooperation rather than discipline and giving orders. o true o false

7) Despite all of the changes in the business environment, the basic way a manager performs his or her job has remained remarkably constant. o true o false