NAME: ___________________________________

2015

Score_________
October 14,
Quiz # 5

I.

FILL IN THE BLANKS (10 pts)

1. _____________ is a small number of people with a 2.

________________________ who are committed to a 3. ___________________, 4.
___________________, and 5. ______________ for which they hold themselves
mutually accountable.
II.

IDENTIFICATION (10 pts)

1.
2.

3.

4.

5.

6.

7.

Unchangeable characteristics such as the gender and ethnicity

of the entrepreneur.
Professionals who typically specialize in one area of the law (such
as taxes, real estate, business, or intellectual property) and can
provide a wealth of support for the new venture.
Is a fairly complex field that entrepreneurs need to understand at
least at a basic level in order to communicate with accountants,
auditors, lenders, bankers, and investors, in addition to internal
and external stakeholders.
A document that allows a companys partner or other
shareholders to purchase the interest or shares of a partner who
is deceased, incapacitated or retiring. Cross-purchase agreement
is used in business continuation planning.
Is a binding agreement that is implemented by the owners of a
business to facilitate the orderly transition of a business interest
in the event of the death, disability or retirement of a business
owner.
A group of individuals who've been selected to help advise a
business owner regarding any number of business issues,
including marketing, sales, financing, expansion and so on; a
body that advises the board of directors and management of a
corporation but does not have authority to vote on corporate
matters.
Is a type of insurance coverage that covers the cost of an insured
individuals medical and surgical expenses. The provider is a
clinic, hospital, doctor, laboratory health care practitioner or
pharmacy.

8. Is an insurance against loss of wages during the time that an

able bodied worker is involuntarily unemployed. The goal of such

insurance is to provide a minimal livelihood to unemployed
workers until they are once again employed.
9. The extent to which the characteristics of founding team
members such as gender, race, age, values and beliefs are
similar.
10.
Is a body of elected or appointed by shareholders who
jointly oversee the activities and the overall managerial and
operational aspects of the corporation.

III.

TRUE or FALSE (10 pts)

1. Ensuring the availability of adequate financial resources is one of
the duties of the Board of Directors.
2. The goal of unemployment insurance is to provide a minimal
livelihood to unemployed workers until they are once again
employed.
3. Entity buy-sell agreement is used in business combination
planning.
4. Auditors may require a physical inventory.
5. It is important to clearly understand what each team member is
contributing and value it appropriately.
6. Errors and omissions is an insurance that protects company and
individual against claims made by the client for the intentionally
wrongful acts/fraud.
7. Property and casualty does not cover the personal belongings of
the injured party.
8. Entrepreneurs with new technologies frequently suffer from a
lack of opportunities.
9. For beta customers, the value is free.
10.
Teams are formed when individuals with a common taste,
preference, liking, and attitude come and work together for a
common goal.