Indicate whether the sentence or statement is true or false.

1.Traditional definitions of a small business center around defining a business along functional lines, or according to a firms operating characteristics.

2. Lifestylers are those business owners who are very growth-oriented in their approach to starting and maintaining a business.

3. Finance can be studied from either a micro or macro perspective.

4. In a totally free financial market system, the supply and demand for money would NOT be the only determinants of interest rates in any market for loanable funds.

5.Unsystematic risk deals with risk from economic, political, and sociological factors.

6. A market is simply a mechanism through which the exchange of goods and services takes place.

7. The mental and physical talents of human beings are entrepreneurial resources.

8. The stocks and bonds issued by a corporation are examples of economic capital resources of the corporation.

9. In the market for loanable funds, as the interest rate increases, the amount of funds supplied to the financial markets will increase, other things constant (ceteris paribus).

10. The Federal Reserve is the central bank of the United States, and has these as some of its basic functions: monetary policy, fiscal policy, supervisory functions, service functions.

11. A plan that relates to a specific area of business, such as marketing, is known as a strategic plan.

12. A goal is a measurable objective that can be reached in a specified time frame.

13. Public corporations have double taxation, unlimited liability for owners, and can raise large amounts of cash by selling stocks or bonds.

14. Limited partnerships have limited liability for all of the partners.

15. A Subchapter S Corporation can sell its stock to any number of shareholders.

16. Franchisers purchase the right to sell products or services of the franchisee.

17. One common clause in a franchise agreement is that which specifies what the royalty fee is to be paid.

18. The Service Core of Retired Executives (SCORE) is a group of retired government bureaucrats who provide help to small business owners.

19. Business income for sole proprietors is included on the owners personal income tax return, on Schedule C and Form 1040.

20. If an owner has employees in his/her business, then they must file with the IRS to receive an employment identification number (EIN). This number is the same as business sales-tax exempt number.