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5.Unsystematic risk deals with risk from economic, political,and sociological factors.
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6. A market is simply a mechanism through which the exchange ofgoods and services takes place.
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7. The mental and physical talents of human beings areentrepreneurial resources.
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8. The stocks and bonds issued by a corporation are examples ofeconomic capital resources of the corporation.
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9. In the market for loanable funds, as the interest rateincreases, the amount of funds supplied to the financial marketswill increase, other things constant (ceteris paribus).
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10. The Federal Reserve is the central bank of the UnitedStates, and has these as some of its basic functions: monetarypolicy, fiscal policy, supervisory functions, servicefunctions.
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11. A plan that relates to a specific area of business, such asmarketing, is known as a strategic plan.
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12. A goal is a measurable objective that can be reached in aspecified time frame.
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13. Public corporations have double taxation, unlimitedliability for owners, and can raise large amounts of cash byselling stocks or bonds.
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14. Limited partnerships have limited liability for all of thepartners.
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15. A Subchapter S Corporation can sell its stock to any numberof shareholders.
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16. Franchisers purchase the right to sell products or servicesof the franchisee.
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17. One common clause in a franchise agreement is that whichspecifies what the royalty fee is to be paid.
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18. The Service Core of Retired Executives (SCORE) is a group ofretired government bureaucrats who provide help to small businessowners.
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19. Business income for sole proprietors is included on theowner’s personal income tax return, on Schedule C and Form1040.
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