An individual's desire to create a new business is referred to as
A) the entrepreneurial spirit.
B) the desire for ownership.
C) self-determination.
D) self-evaluation.
E) the laissez-faire spirit.
Question 2 - For a corporation such as AT&T, what are the two primary advantages of equity financing?
A) It never has to be paid back and flotation costs are low.
B) There is no obligation to pay dividends or to repay the money obtained from the sale of stock.
C) Interest payments are less than debt financing and principal does not have to be repaid.
D) Ownership is spread among many individuals and no interest payments are required.
E) Investors pay top dollar for stock issues and the corporation has higher ongoing expenses.
Question 3 - Western Civic Club's goals differ from those of a profit-driven business, meaning that it is part of a(n) ____ market.
A) producer
B) governmental
C) institutional
D) consumer
E) organizational
Question 4 - When Bonanza Bakery reached an agreement with Candy Conniption to include the candy in one of its ready-to-bake cookie dough products, the two companies were using a strategy known as cobranding.
Indicate whether the statement is true or false
Question 5 - Kim Nguyen is planning to open a boutique stocked with exotic imports from around the world. Most probably, this new business will be managed by
A) Kim Nguyen.
B) her friends.
C) her relatives.
D) a professional manager.
E) her family.
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