Name _______________________________________________________ Hour ___ Date _________
JA Economics Ch.7-The Business of Free Enterprise pp. 98-114
1. On page 99 it says that entrepreneurs are creative, individualistic, and are critical thinkers who
take their ideas and transform them into goods and services. For each of the items below,
explain why they are important in the development of an entrepreneur:
a. Start at an early age
b. Develop and Sell ordinary products
c. Find new ways to sell
d. Spot new markets and develop new products
e. Work to perfect their own ideas
f.
Work within an existing business
2. Read Oprah Winfrey’s story on page 101. Which of the characteristics of an entrepreneur listed
in #1 above apply to her? Explain
3. Of the strategies listed on page 102, which do you think have shown to be the most successful
and lasting as you look at the business landscape today?
4. Explain how Electronic Commerce has changed the way in which the world does business.
5. What is an industry? Why is it that most businesses in America lie outside of the industry label?
6. List the 3 main advantages of small business and the 3 main challenges facing small business.
Advantages
Challenges
7. Compare the advantages and disadvantages of a sole proprietorship versus a partnership in
terms of organization, profits, growth, liability, and raising funds.
8. Explain the conditions under which and reasons why a business would want to incorporate.
9. Explain the differences among corporations, S corporations, limited liability corporations, and
not-for-profit corporations.
10. Under what conditions would a franchise be a good way to start a business? How does the
individual benefit and how does the corporation licensing the product benefit?