Question 1

Manufacturing is overwhelmingly handled by big business.

Accepted Answer

A) True 
 B)False

Question 2

Lending institutions are more likely to help finance the purchase of an existing business rather than the start-up of a business from scratch.

Accepted Answer

A) True 
 B)False

Question 3

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 4

What type of company has stock that is widely held and available for sale to the general public?

Accepted Answer

A)  private corporation 
B)  public corporation 
C)  general partnership 
D)  limited liability corporation 
E)  professional corporation 
A)  private corporation 
B)  public corporation 
C)  general partnership 
D)  limited liability corporation 
E)  professional corporation

Question 5

Which of the following is federally licensed to borrow money from the Small Business Administration to invest in or lend to small businesses?

Accepted Answer

A)  SCORE 
B)  SBICs 
C)  SBDC 
D)  FDIC 
E)  SEC 
A)  SCORE 
B)  SBICs 
C)  SBDC 
D)  FDIC 
E)  SEC

Question 6

Shirley is opening a flower shop and has decided to operate as a sole proprietorship.Which of the following is NOT an advantage Shirley will have in operating her business?

Accepted Answer

A)  freedom 
B)  simplicity of operation 
C)  limited liability 
D)  low start-up costs 
E)  choice of location 
A)  freedom 
B)  simplicity of operation 
C)  limited liability 
D)  low start-up costs 
E)  choice of location

Question 7

Which of the following is the MOST significant disadvantage of starting a business from scratch?

Accepted Answer

A)  having few employees 
B)  inability to franchise 
C)  having competition 
D)  coming up with new ideas 
E)  the risk of failure 
A)  having few employees 
B)  inability to franchise 
C)  having competition 
D)  coming up with new ideas 
E)  the risk of failure

Question 8

Kent and Patrick have decided to start a landscaping business.One of the first things that they do is sign a document that describes the investments and responsibilities of the partners and makes provisions for the allocation of profits and dissolution of the business.What is the name of this document?

Accepted Answer

A)  articles of incorporation 
B)  partnership charter 
C)  partnership agreement 
D)  corporate charter 
E)  financial proposal 
A)  articles of incorporation 
B)  partnership charter 
C)  partnership agreement 
D)  corporate charter 
E)  financial proposal

Question 9

Christina is trying to identify potential problems in order to avoid them or at least be better positioned to react if they cannot be avoided.In doing so,Christina should account for all of the following possibilities EXCEPT:

Accepted Answer

A)  the possibility that years in the future scientists may give a new communicable disease a name that sounds similar to "Redenda" 
B)  the possibility that a significant number of her potential customers could be allergic to one or more of her ingredients 
C)  the possibility that seasonal variations in the availability of ingredients could affect the price of those ingredients 
D)  the possibility that advertising "fresh" ingredients may prevent Redenda Pizza from using less-expensive ingredients 
E)  the possibility that many customers are reluctant to try new pizza recipes 
A)  the possibility that years in the future scientists may give a new communicable disease a name that sounds similar to "Redenda" 
B)  the possibility that a significant number of her potential customers could be allergic to one or more of her ingredients 
C)  the possibility that seasonal variations in the availability of ingredients could affect the price of those ingredients 
D)  the possibility that advertising "fresh" ingredients may prevent Redenda Pizza from using less-expensive ingredients 
E)  the possibility that many customers are reluctant to try new pizza recipes

Question 10

Assuming the farm is organized as a private corporation,what are the disadvantages?

Accepted Answer

The disadvantages of a private

Question 11

Corporations generate sales revenues proportionate to their number as compared to other forms of ownership.

Accepted Answer

A) True 
 B)False

Question 12

Which figures reflect the current number and the growth in Hispanic-owned businesses for the last five years?

Accepted Answer

A)  2.25 million and 44 percent 
B)  2.75 million and 58 percent 
C)  3.15 million and 74 percent 
D)  3.55 million and 58 percent 
E)  4.25 million and 44 percent 
A)  2.25 million and 44 percent 
B)  2.75 million and 58 percent 
C)  3.15 million and 74 percent 
D)  3.55 million and 58 percent 
E)  4.25 million and 44 percent

Question 13

Which of the following,if true,would weaken the case for Short and Shearer buying an existing business?

Accepted Answer

A)  Short and Shearer could more easily obtain financing for the purchase. 
B)  Buying an existing business involves fewer legal hurdles than starting a new one. 
C)  Franchises have more potential for success than single-facility businesses. 
D)  Short and Shearer have limited funds to start with. 
E)  Existing businesses cost less to purchase than new ones. 
A)  Short and Shearer could more easily obtain financing for the purchase. 
B)  Buying an existing business involves fewer legal hurdles than starting a new one. 
C)  Franchises have more potential for success than single-facility businesses. 
D)  Short and Shearer have limited funds to start with. 
E)  Existing businesses cost less to purchase than new ones.

Question 14

Assuming the farm is organized as a private corporation,what are the advantages?

Accepted Answer

The advantages of a private corporation

Question 15

Which of the following,if true,would weaken the case for Sam and Nina owning the business in a partnership?

Accepted Answer

A)  Sam and Nina have different personalities. 
B)  Sam and Nina have known each other for many years. 
C)  Sam and Nina have conflicting ideas about what would make a dry-cleaning business succeed. 
D)  Nina is experienced in finance, but not in equipment repair. 
E)  Sam is experienced in dry cleaning, but not skilled as an administrator. 
A)  Sam and Nina have different personalities. 
B)  Sam and Nina have known each other for many years. 
C)  Sam and Nina have conflicting ideas about what would make a dry-cleaning business succeed. 
D)  Nina is experienced in finance, but not in equipment repair. 
E)  Sam is experienced in dry cleaning, but not skilled as an administrator.

Question 16

Approximately what percent of all U.S.businesses employ 20 or fewer people?

Accepted Answer

A)  89 percent 
B)  69 percent 
C)  49 percent 
D)  29 percent 
E)  19 percent 
A)  89 percent 
B)  69 percent 
C)  49 percent 
D)  29 percent 
E)  19 percent

Question 17

The Miller brothers are not sure how to organize their business.What are their options in terms of legal form?

Accepted Answer

The three general forms of business owne

Question 18

A group of small investors who invest money in companies in return for partial ownership is known as a small-business development company.

Accepted Answer

A) True 
 B)False

Question 19

Who are the owners of a corporation?

Accepted Answer

A)  board of directors 
B)  financial officers 
C)  stockholders 
D)  top managers 
E)  entrepreneurs 
A)  board of directors 
B)  financial officers 
C)  stockholders 
D)  top managers 
E)  entrepreneurs

Question 20

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

Accepted Answer

A) True 
 B)False

Manufacturing is overwhelmingly handled by big business.

Lending institutions are more likely to help finance the purchase of an existing business rather than the start-up of a business from scratch.

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

What type of company has stock that is widely held and available for sale to the general public?

Which of the following is federally licensed to borrow money from the Small Business Administration to invest in or lend to small businesses?

Shirley is opening a flower shop and has decided to operate as a sole proprietorship.Which of the following is NOT an advantage Shirley will have in operating her business?

Which of the following is the MOST significant disadvantage of starting a business from scratch?

Christina is trying to identify potential problems in order to avoid them or at least be better positioned to react if they cannot be avoided.In doing so,Christina should account for all of the following possibilities EXCEPT:

Assuming the farm is organized as a private corporation,what are the disadvantages?

Corporations generate sales revenues proportionate to their number as compared to other forms of ownership.

Which figures reflect the current number and the growth in Hispanic-owned businesses for the last five years?

Which of the following,if true,would weaken the case for Short and Shearer buying an existing business?

Assuming the farm is organized as a private corporation,what are the advantages?

Which of the following,if true,would weaken the case for Sam and Nina owning the business in a partnership?

Approximately what percent of all U.S.businesses employ 20 or fewer people?

The Miller brothers are not sure how to organize their business.What are their options in terms of legal form?

A group of small investors who invest money in companies in return for partial ownership is known as a small-business development company.

Who are the owners of a corporation?

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

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 for Producing Goods and Services

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

Manufacturing is overwhelmingly handled by big business.

Lending institutions are more likely to help finance the purchase of an existing business rather than the start-up of a business from scratch.

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

What type of company has stock that is widely held and available for sale to the general public?

Which of the following is federally licensed to borrow money from the Small Business Administration to invest in or lend to small businesses?

Shirley is opening a flower shop and has decided to operate as a sole proprietorship.Which of the following is NOT an advantage Shirley will have in operating her business?

Which of the following is the MOST significant disadvantage of starting a business from scratch?

Christina is trying to identify potential problems in order to avoid them or at least be better positioned to react if they cannot be avoided.In doing so,Christina should account for all of the following possibilities EXCEPT:

Assuming the farm is organized as a private corporation,what are the disadvantages?

Corporations generate sales revenues proportionate to their number as compared to other forms of ownership.

Which figures reflect the current number and the growth in Hispanic-owned businesses for the last five years?

Which of the following,if true,would weaken the case for Short and Shearer buying an existing business?

Assuming the farm is organized as a private corporation,what are the advantages?

Which of the following,if true,would weaken the case for Sam and Nina owning the business in a partnership?

Approximately what percent of all U.S.businesses employ 20 or fewer people?

The Miller brothers are not sure how to organize their business.What are their options in terms of legal form?

A group of small investors who invest money in companies in return for partial ownership is known as a small-business development company.

Who are the owners of a corporation?

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

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 for Producing Goods and Services

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