Question 1

The board of directors of a corporation reports to the officers of the corporation.

Accepted Answer

A) True 
 B)False

Question 2

Discuss the advantages and disadvantages of corporations.

Accepted Answer

The advantages include limited liability

Question 3

Major innovations are most likely to come from large corporations.

Accepted Answer

A) True 
 B)False

Question 4

A corporation must be managed on the principles of corporate governance. Explain what this is.

Accepted Answer

Corporate governance is the role of shar

Question 5

What type of ownership is created when a firm buys another outright?

Accepted Answer

A)  Merger 
B)  Acquisition 
C)  Spin-off 
D)  Divestiture 
E)  Institutional 
A)  Merger 
B)  Acquisition 
C)  Spin-off 
D)  Divestiture 
E)  Institutional

Question 6

What is the process of seeking business opportunities under conditions of risk?

Accepted Answer

A)  Investment 
B)  Entrepreneurship 
C)  Leadership 
D)  Diversification 
E)  Growth 
A)  Investment 
B)  Entrepreneurship 
C)  Leadership 
D)  Diversification 
E)  Growth

Question 7

Which of the follow BEST defines those who assume the risk of business ownership?

Accepted Answer

A)  Entrepreneurs 
B)  Customers 
C)  Corporate partners 
D)  The Small Business Administration 
E)  Banks 
A)  Entrepreneurs 
B)  Customers 
C)  Corporate partners 
D)  The Small Business Administration 
E)  Banks

Question 8

How can competing firms collaborate on a new business without losing control of their existing firm?

Accepted Answer

A)  Establish a joint venture 
B)  Buy large blocks of the competitor's stock 
C)  Hire a new chief executive office 
D)  Sell off similar operations 
E)  Change the corporate governance of both firms 
A)  Establish a joint venture 
B)  Buy large blocks of the competitor's stock 
C)  Hire a new chief executive office 
D)  Sell off similar operations 
E)  Change the corporate governance of both firms

Question 9

Most successful entrepreneurs have a strong desire to be their own bosses.

Accepted Answer

A) True 
 B)False

Question 10

Which of the following occurs when two firms combine to create a new company?

Accepted Answer

A)  Acquisition 
B)  Takeover 
C)  Venture 
D)  Divestiture 
E)  Merger 
A)  Acquisition 
B)  Takeover 
C)  Venture 
D)  Divestiture 
E)  Merger

Question 11

When an entrepreneur has the goals of growth and expansion, with the vision of turning the business into a large business, what term is used when referring to the business?

Accepted Answer

A)  Visionary 
B)  Small Business 
C)  Diversification 
D)  Start-up 
E)  Expansionist 
A)  Visionary 
B)  Small Business 
C)  Diversification 
D)  Start-up 
E)  Expansionist

Question 12

Which type of business is legally considered a separate entity from its owners and is liable for its own debts?

Accepted Answer

A)  Sole proprietorship 
B)  Corporation 
C)  Limited partnership 
D)  Cooperative 
E)  General partnership 
A)  Sole proprietorship 
B)  Corporation 
C)  Limited partnership 
D)  Cooperative 
E)  General partnership

Question 13

Why might an entrepreneur wish to purchase an existing business rather than start one from scratch?

Accepted Answer

An entrepreneur may wish to purchase an

Question 14

Where can a new business owner go to seek help and learn from other institutions and disciplines?

Accepted Answer

A)  The Service Corps of Retired Executives (SCOR
E)  
B)  The Small Business Development Center (SBD
C)  
C)  Small business investment companies (SBICs) 
D)  Venture capitalist 
E)  Minority Enterprise Small Business Investment Companies (MESBICs) 
A)  The Service Corps of Retired Executives (SCOR
E)  
B)  The Small Business Development Center (SBD
C)  
C)  Small business investment companies (SBICs) 
D)  Venture capitalist 
E)  Minority Enterprise Small Business Investment Companies (MESBICs)

Question 15

In a small business, who determines prices for wholesalers and customers?

Accepted Answer

A)  Customers 
B)  Franchise owners 
C)  Market forces 
D)  Small business administration 
E)  Small business owner 
A)  Customers 
B)  Franchise owners 
C)  Market forces 
D)  Small business administration 
E)  Small business owner

Question 16

Which of the following industry groups is the fastest growing segment of small business enterprise?

Accepted Answer

A)  Manufacturing 
B)  Wholesaling 
C)  Retailing 
D)  Transportation 
E)  Services 
A)  Manufacturing 
B)  Wholesaling 
C)  Retailing 
D)  Transportation 
E)  Services

Question 17

What is the main reason why women start new businesses?

Accepted Answer

A)  Need to earn more money 
B)  Preference for working alone 
C)  Opportunities for family members 
D)  Control in organizing their time 
E)  Desire to employ other women 
A)  Need to earn more money 
B)  Preference for working alone 
C)  Opportunities for family members 
D)  Control in organizing their time 
E)  Desire to employ other women

Question 18

When income is taxed at the corporate level and on shareholder returns as dividends, what is this situation known as?

Accepted Answer

A)  Dual costs 
B)  Double taxation 
C)  Regulatory costs 
D)  Double ownership 
E)  Financial balancing 
A)  Dual costs 
B)  Double taxation 
C)  Regulatory costs 
D)  Double ownership 
E)  Financial balancing

Question 19

What is the major drawback of accepting venture capital?

Accepted Answer

A)  Sharing company control 
B)  Having to pay high interest rates 
C)  Limiting expansion 
D)  Facing a short repayment period 
E)  Having to write proposals 
A)  Sharing company control 
B)  Having to pay high interest rates 
C)  Limiting expansion 
D)  Facing a short repayment period 
E)  Having to write proposals

Question 20

Which entity is defined as independent and has little influence on its market?

Accepted Answer

A)  Corporation 
B)  Joint venture 
C)  Small business 
D)  Partnership 
E)  Government agency 
A)  Corporation 
B)  Joint venture 
C)  Small business 
D)  Partnership 
E)  Government agency

The board of directors of a corporation reports to the officers of the corporation.

Discuss the advantages and disadvantages of corporations.

Major innovations are most likely to come from large corporations.

A corporation must be managed on the principles of corporate governance. Explain what this is.

What type of ownership is created when a firm buys another outright?

What is the process of seeking business opportunities under conditions of risk?

Which of the follow BEST defines those who assume the risk of business ownership?

How can competing firms collaborate on a new business without losing control of their existing firm?

Most successful entrepreneurs have a strong desire to be their own bosses.

Which of the following occurs when two firms combine to create a new company?

When an entrepreneur has the goals of growth and expansion, with the vision of turning the business into a large business, what term is used when referring to the business?

Which type of business is legally considered a separate entity from its owners and is liable for its own debts?

Why might an entrepreneur wish to purchase an existing business rather than start one from scratch?

Where can a new business owner go to seek help and learn from other institutions and disciplines?

In a small business, who determines prices for wholesalers and customers?

Which of the following industry groups is the fastest growing segment of small business enterprise?

What is the main reason why women start new businesses?

When income is taxed at the corporate level and on shareholder returns as dividends, what is this situation known as?

What is the major drawback of accepting venture capital?

Which entity is defined as independent and has little influence on its market?

The U.S. Business Environment

Understanding Business Ethics and Social Responsibility

Understanding the Global Context of Business

Managing the Business

Organizing the Business

Operations Management and Quality

Employee Behavior and Motivation

Leadership and Decision Making

Human Resource Management and Labor Relations

Marketing Processes and Consumer Behavior

Developing and Pricing Products

Distributing and Promoting Products

Information Technology (IT)for Business

The Role of Accountants and Accounting Information

Understanding Money and the Role of Banking

Managing Business Finances

Filters

Exam 3: Entrepreneurship, New Ventures, and Business Ownership

The board of directors of a corporation reports to the officers of the corporation.

Discuss the advantages and disadvantages of corporations.

Major innovations are most likely to come from large corporations.

A corporation must be managed on the principles of corporate governance. Explain what this is.

What type of ownership is created when a firm buys another outright?

What is the process of seeking business opportunities under conditions of risk?

Which of the follow BEST defines those who assume the risk of business ownership?

How can competing firms collaborate on a new business without losing control of their existing firm?

Most successful entrepreneurs have a strong desire to be their own bosses.

Which of the following occurs when two firms combine to create a new company?

When an entrepreneur has the goals of growth and expansion, with the vision of turning the business into a large business, what term is used when referring to the business?

Which type of business is legally considered a separate entity from its owners and is liable for its own debts?

Why might an entrepreneur wish to purchase an existing business rather than start one from scratch?

Where can a new business owner go to seek help and learn from other institutions and disciplines?

In a small business, who determines prices for wholesalers and customers?

Which of the following industry groups is the fastest growing segment of small business enterprise?

What is the main reason why women start new businesses?

When income is taxed at the corporate level and on shareholder returns as dividends, what is this situation known as?

What is the major drawback of accepting venture capital?

Which entity is defined as independent and has little influence on its market?

The U.S. Business Environment

Understanding Business Ethics and Social Responsibility

Understanding the Global Context of Business

Managing the Business

Organizing the Business

Operations Management and Quality

Employee Behavior and Motivation

Leadership and Decision Making

Human Resource Management and Labor Relations

Marketing Processes and Consumer Behavior

Developing and Pricing Products

Distributing and Promoting Products

Information Technology (IT)for Business

The Role of Accountants and Accounting Information

Understanding Money and the Role of Banking

Managing Business Finances

Filters