Understanding Ownership and...
True or False

1 .       Large firms are the first to hire in times of economic recovery. 

 
 


2 .       Major innovations are as likely to come from small businesses (or individuals) as from big ones. 

 
 


3 .       Entrepreneurs are people who assume the risk of business ownership with a primary goal of growth and expansion. 

 
 


4 .       The risks of starting a business from scratch are less than those of buying an existing business. 

 
 


5 .       Lending institutions are less likely to help finance the purchase of an existing business than a business started from scratch. 

 
 


6 .       Under the SBA?s guaranteed loan programs small businesses can borrow from commercial lenders and the SBA guarantees to repay 75 to 85 percent of the loan up to $750,000. 

 
 


7 .       The number of businesses owned by African Americans is greater than those owned by Hispanics. 

 
 


8 .       Common sense and hard work will ensure entrepreneurial success. 

 
 


9 .       In the United States, the sole proprietorship form of business ownership contains the most businesses and represents the least amount of total business revenues. 

 
 


10 .       A sole proprietorship exists forever. 

 
 


11 .       In a partnership, partners may invest equal or unequal sums of money and may earn profits that bear no relation to their investments. 

 
 


12 .       Under a master limited partnership, the master partner retains at least 50-percent ownership and runs the business. 

 
 






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