Question 1

What does an entrepreneur use to summarize his or her business strategy for a proposed new venture?

Accepted Answer

A)  Success chart 
B)  Director's guideline 
C)  Financial blueprint 
D)  Business plan 
E)  Balance sheet 
A)  Success chart 
B)  Director's guideline 
C)  Financial blueprint 
D)  Business plan 
E)  Balance sheet

Question 2

Who constitutes the membership of SCORE?

Accepted Answer

A)  Retired executives 
B)  Venture capitalists 
C)  Company officers 
D)  Commercial lenders 
E)  Successful entrepreneurs 
A)  Retired executives 
B)  Venture capitalists 
C)  Company officers 
D)  Commercial lenders 
E)  Successful entrepreneurs

Question 3

What is the MOST important source of money for new business start-ups?

Accepted Answer

A)  Banks 
B)  The SBA 
C)  Personal resources 
D)  Government grants 
E)  Venture capital 
A)  Banks 
B)  The SBA 
C)  Personal resources 
D)  Government grants 
E)  Venture capital

Question 4

Explain the difference between mergers and acquisitions, and why they are important forms of corporate strategy.

Accepted Answer

In an acquisition, one firm buys another

Question 5

Which form of business ownership generates the MOST sales in the United States?

Accepted Answer

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

Question 6

Which of the following types of venue is favored by small-business retailers?

Accepted Answer

A)  Superstore 
B)  Catalog showroom 
C)  Specialty shop 
D)  Department store 
E)  Studio workroom 
A)  Superstore 
B)  Catalog showroom 
C)  Specialty shop 
D)  Department store 
E)  Studio workroom

Question 7

Describe the three distinct bodies of corporate governance that are specified in a corporation's bylaws.

Accepted Answer

Stockholders are the owners of a corpora

Question 8

Small businesses produce more patents per employee than large patenting firms.

Accepted Answer

A) True 
 B)False

Question 9

The Small Business Administration is the government agency charged with owning small businesses.

Accepted Answer

A) True 
 B)False

Question 10

Low start-up costs and tax benefits are advantages of sole proprietorships.

Accepted Answer

A) True 
 B)False

Question 11

A joint venture occurs when partners share ownership of a new enterprise.

Accepted Answer

A) True 
 B)False

Question 12

In which business sector are cooperatives still important?

Accepted Answer

A)  Manufacturing 
B)  Automotive 
C)  Public utilities 
D)  Agriculture 
E)  Health care 
A)  Manufacturing 
B)  Automotive 
C)  Public utilities 
D)  Agriculture 
E)  Health care

Question 13

Small-business investment companies (SBICs)may be sponsored by the federal government.

Accepted Answer

A) True 
 B)False

Question 14

What is the advantage of forming a strategic alliance with a competitor or supplier?

Accepted Answer

A)  Mutual gain 
B)  Increased shares of stock 
C)  The ability to influence the price of stock 
D)  To legally join the two organizations 
E)  The ability to sell a section of the business but still retain control 
A)  Mutual gain 
B)  Increased shares of stock 
C)  The ability to influence the price of stock 
D)  To legally join the two organizations 
E)  The ability to sell a section of the business but still retain control

Question 15

What do both sole proprietorships and partnerships lack?

Accepted Answer

A)  Trust 
B)  Legal standing 
C)  Continuity 
D)  Shared vision 
E)  Adaptable processes 
A)  Trust 
B)  Legal standing 
C)  Continuity 
D)  Shared vision 
E)  Adaptable processes

Question 16

People who assume the risk of business ownership with a primary goal of growth and expansion are called entrepreneurs.

Accepted Answer

A) True 
 B)False

Question 17

What is formed when a corporation establishes a trust on behalf of employees for the purpose of buying shares of ownership?

Accepted Answer

A)  Institutional ownership 
B)  Divestiture 
C)  Strategic alliance 
D)  Corporate governance 
E)  Employee stock ownership plan (ESOP) 
A)  Institutional ownership 
B)  Divestiture 
C)  Strategic alliance 
D)  Corporate governance 
E)  Employee stock ownership plan (ESOP)

Question 18

Franchisees may be obligated to contribute a percentage of sales to parent corporations.

Accepted Answer

A) True 
 B)False

Question 19

When a business owner forms a master limited partnership, what responsibilities does the master partner have toward the minority partner(s)?

Accepted Answer

A)  The master partner must provide detailed operating and financial reports. 
B)  The master partner must allow the partners a vote on all major business changes and transactions. 
C)  The master partner must make all liabilities clear before the partnership is formed. 
D)  The master partner must give up majority ownership. 
E)  The master partner must allow the partners to take an active role in the business. 
A)  The master partner must provide detailed operating and financial reports. 
B)  The master partner must allow the partners a vote on all major business changes and transactions. 
C)  The master partner must make all liabilities clear before the partnership is formed. 
D)  The master partner must give up majority ownership. 
E)  The master partner must allow the partners to take an active role in the business.

Question 20

Which of the following are groups of small investors seeking to make profits on companies with rapid growth potential?

Accepted Answer

A)  Community banks 
B)  Venture capital companies 
C)  Equity managers 
D)  Government securities dealers 
E)  Stock brokers 
A)  Community banks 
B)  Venture capital companies 
C)  Equity managers 
D)  Government securities dealers 
E)  Stock brokers

What does an entrepreneur use to summarize his or her business strategy for a proposed new venture?

Who constitutes the membership of SCORE?

What is the MOST important source of money for new business start-ups?

Explain the difference between mergers and acquisitions, and why they are important forms of corporate strategy.

Which form of business ownership generates the MOST sales in the United States?

Which of the following types of venue is favored by small-business retailers?

Describe the three distinct bodies of corporate governance that are specified in a corporation's bylaws.

Small businesses produce more patents per employee than large patenting firms.

The Small Business Administration is the government agency charged with owning small businesses.

Low start-up costs and tax benefits are advantages of sole proprietorships.

A joint venture occurs when partners share ownership of a new enterprise.

In which business sector are cooperatives still important?

Small-business investment companies (SBICs)may be sponsored by the federal government.

What is the advantage of forming a strategic alliance with a competitor or supplier?

What do both sole proprietorships and partnerships lack?

People who assume the risk of business ownership with a primary goal of growth and expansion are called entrepreneurs.

What is formed when a corporation establishes a trust on behalf of employees for the purpose of buying shares of ownership?

Franchisees may be obligated to contribute a percentage of sales to parent corporations.

When a business owner forms a master limited partnership, what responsibilities does the master partner have toward the minority partner(s)?

Which of the following are groups of small investors seeking to make profits on companies with rapid growth potential?

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

What does an entrepreneur use to summarize his or her business strategy for a proposed new venture?

Who constitutes the membership of SCORE?

What is the MOST important source of money for new business start-ups?

Explain the difference between mergers and acquisitions, and why they are important forms of corporate strategy.

Which form of business ownership generates the MOST sales in the United States?

Which of the following types of venue is favored by small-business retailers?

Describe the three distinct bodies of corporate governance that are specified in a corporation's bylaws.

Small businesses produce more patents per employee than large patenting firms.

The Small Business Administration is the government agency charged with owning small businesses.

Low start-up costs and tax benefits are advantages of sole proprietorships.

A joint venture occurs when partners share ownership of a new enterprise.

In which business sector are cooperatives still important?

Small-business investment companies (SBICs)may be sponsored by the federal government.

What is the advantage of forming a strategic alliance with a competitor or supplier?

What do both sole proprietorships and partnerships lack?

People who assume the risk of business ownership with a primary goal of growth and expansion are called entrepreneurs.

What is formed when a corporation establishes a trust on behalf of employees for the purpose of buying shares of ownership?

Franchisees may be obligated to contribute a percentage of sales to parent corporations.

When a business owner forms a master limited partnership, what responsibilities does the master partner have toward the minority partner(s)?

Which of the following are groups of small investors seeking to make profits on companies with rapid growth potential?

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