New BUSM Exam 1 Study Guide
Questions And Answer 2023 Update
What is a business? - Correct Answer-Any enterprise that provides goods and services
to
... [Show More] others with the goal of adding value to anyone associated with that business
Business Owners - Correct Answer-Groups of individuals who also have a stake in the
success of a particular business
Business exists to fulfill our ______ - Correct Answer-Wants, needs, and desires
Entrepreneur - Correct Answer-A person who organizes, manages, and takes on the
risks of a business.
What is a demand? - Correct Answer-the desire to own something and the ability to pay
for it
Market Size - Correct Answer-How many people would be interested in your product
economic indicators - Correct Answer-Income range and employment rate
market saturation - Correct Answer-How many similar options are already available to
consumers?
Sole Proprietorship (Simplest Business) - Correct Answer-Businesses owned and
operated by a single person and are very easy to set up
example of sole proprietorship - Correct Answer-lemonade stand
Partnership - Correct Answer-Business owned by two or more people who share
responsibilities and profits. This type of business doesn't have to be registered with the
state.
example of partnership - Correct Answer-law firm
The Fours Types of Partnerships - Correct Answer-General Partnership, Limited
Partnership, Limited Liability Partnership(LLP), and Limited Liability Limited Partnership
limited partnership - Correct Answer-Business partnership, often between operating
managers, i.e. general partnership, and passive investors. At least one general partner
who is fully responsible. One or more limited partners who provide money but do not
actively manage the business. Limited partners invest for financial returns and aren't
responsible for debt/loss.
Example of limited partnership - Correct Answer-Enterprise products
Corporation (Most Complex Business) - Correct Answer-Business with shareholders
Limited Liability Company (LLC) (Most Popular for Startups) - Correct Answer-A mixture
of a partnership/corporation, designed o make it easier to start a small business.
General Partnership - Correct Answer-... [Show Less]