Section 8 Study Questions

Section 8 Study Questions (9.0 points) Answer each question fully. Complete sentences are not necessary. Lesson 1 (3.0 points) 1. What is the Exit stage of a business? (0.5 points) -When a business owner gets out of their day-to-day commitment to running the company.
2. What does the human resources department of a company do? (0.5 points)
-Handles things like employee hiring, firing, insurance and retirement benefits, payroll, and employee complaints.
3. What is information utility? (0.5 points) -The value added to a product by providing the consumer with useful information.

4. List the six stages of a business. (1.5 points) -Identify
-Plan
-Start
-Operate
-Improve
-Exit
Lesson 2 (3.0 points) 1. What is pass-through taxation? (0.5 points) -Taxes on the company's income are paid on the personal tax forms of the company's owners.

2. What is an advantage of a sole proprietorship? (0.5 points) -Easy to set up
3. What is an S corporation? (0.5 points) -Subchapter S Corporation, is a corporation with special tax status.
4. What is franchising? (0.5 points)
-A way of turning a company into a parent company with smaller retail outlets owned by independent operators.

5. What can happen to a business owner who has personal
-Liability for their company? (0.5 points) can be held personally accountable for the financial debts and illegal actions of the company.

6. What is an entity? (0.5 points)
-A being, such as a person or company.

Lesson 3 (3.0 points) 1. Why does doing research help a company succeed? (0.5 points)
-A strong understanding of the market and the competition is important to a company's success. 2. What is a target market? (0.5 points) -A specific group of people who are likely to want a product.

3. What are human risks? (0.5 points) -Risks created by people.

4. What is risk management? (0.5 points) -The attempt to protect against risk by identifying and minimizing it.

5. What is quality control? (0.5 points)