Page 185 - Introduction to Business

CHAPTER 4 Small Business and Entrepreneurship 159

7. If you bought a share of common stock for 9. Which of the following is an internal (as
$10 and its price rose to $15, you would earn opposed to external) business risk?
a ______________ of $5. a. Competitor firms
a. capital gain b. Downturn in the general economy
b. dividend c. Catastrophic losses from property damage
c. payment of interest d. Sudden changes in customer preferences
d. value in exchange and demand
e. total value e. Large amounts of debt within the firm
8. A franchise has the disadvantage of 10. Which of the following types of insurance
a. training of employees and managers. pays a death benefit to a beneficiary?
b. brand name recognition. a. Life insurance
c. payment of an initial franchising fee. b. Health insurance
d. franchisor reputation. c. Liability insurance
e. financial assistance from the franchisor. d. Property insurance
e. Credit insurance

self-test
ACE Want more questions? Visit the student website at http://college.hmco.com/business/student/ (select Gaspar,
Introduction to Business) and take the ACE quizzes for more practice.

Copyright 2010 Cengage Learning, Inc. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part.