Question 1

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 a proposal 
A)  sharing company control 
B)  having to pay high interest rates 
C)  limiting expansion 
D)  facing a short repayment period 
E)  having to write a proposal

Question 2

Which of the following BEST explains why flexibility is an important quality that Christina needs for success?

Accepted Answer

A)  It takes a certain amount of money to start a business. 
B)  It often helps to have a business partner in a new business. 
C)  Starting a new business requires a great deal of planning. 
D)  Starting and running a new business involves many unpredictable factors. 
E)  An entrepreneur must be extremely competent in business skills. 
A)  It takes a certain amount of money to start a business. 
B)  It often helps to have a business partner in a new business. 
C)  Starting a new business requires a great deal of planning. 
D)  Starting and running a new business involves many unpredictable factors. 
E)  An entrepreneur must be extremely competent in business skills.

Question 3

According to SBA estimates,what percent of all new businesses can expect to survive for at least four years?

Accepted Answer

A)  14 percent 
B)  24 percent 
C)  44 percent 
D)  64 percent 
E)  84 percent 
A)  14 percent 
B)  24 percent 
C)  44 percent 
D)  64 percent 
E)  84 percent

Question 4

Which of the following is a partner who actively manages a firm and has unlimited liability for its debts?

Accepted Answer

A)  limited partner 
B)  general partner 
C)  stockholding partner 
D)  public partner 
E)  silent partner 
A)  limited partner 
B)  general partner 
C)  stockholding partner 
D)  public partner 
E)  silent partner

Question 5

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 6

Which of the following,if true about the owners' plan for the new business,would weaken the case that it should be registered as an S corporation?

Accepted Answer

A)  They want the company to be able to change its procedures over time. 
B)  They want the company to be able to change its board membership, if needed. 
C)  They want the company to grow as quickly as they can grow it. 
D)  They want the company to be able to issue multiple classes of stock. 
E)  They want to pay income taxes via the individual tax returns of the shareholders. 
A)  They want the company to be able to change its procedures over time. 
B)  They want the company to be able to change its board membership, if needed. 
C)  They want the company to grow as quickly as they can grow it. 
D)  They want the company to be able to issue multiple classes of stock. 
E)  They want to pay income taxes via the individual tax returns of the shareholders.

Question 7

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

Accepted Answer

The disadvantages of a limited

Question 8

What type of business has two or more owners who share in the operation of the firm and are financially responsible for its debts?

Accepted Answer

A)  corporation 
B)  partnership 
C)  cooperative 
D)  conglomerate 
E)  nonprofit 
A)  corporation 
B)  partnership 
C)  cooperative 
D)  conglomerate 
E)  nonprofit

Question 9

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

Question 10

Which of the following,if true about the owners' plan for the new business,would strengthen the case that it should be registered as a limited liability corporation (LLC)?

Accepted Answer

A)  They want the company to be able to issue stock and offer stock benefits to employees. 
B)  They want to form the company quickly and inexpensively. 
C)  They don't want owners to have to pay personal taxes on company profits. 
D)  They want the company's profits to be distributed however they choose. 
E)  They want to operate consistently in multiple states. 
A)  They want the company to be able to issue stock and offer stock benefits to employees. 
B)  They want to form the company quickly and inexpensively. 
C)  They don't want owners to have to pay personal taxes on company profits. 
D)  They want the company's profits to be distributed however they choose. 
E)  They want to operate consistently in multiple states.

Question 11

Today,what percent of all businesses in the United States are registered as sole proprietors?

Accepted Answer

A)  94 percent 
B)  74 percent 
C)  54 percent 
D)  28 percent 
E)  10 percent 
A)  94 percent 
B)  74 percent 
C)  54 percent 
D)  28 percent 
E)  10 percent

Question 12

What is a major drawback of sole proprietorships?

Accepted Answer

A)  short-term focus of shareholders 
B)  work flexibility 
C)  low start-up costs 
D)  unlimited liability 
E)  structured hours 
A)  short-term focus of shareholders 
B)  work flexibility 
C)  low start-up costs 
D)  unlimited liability 
E)  structured hours

Question 13

Entrepreneurs often enjoy working for large organizations.

Accepted Answer

A) True 
 B)False

Question 14

Assuming the farm is organized as an S corporation,what are the disadvantages?

Accepted Answer

The disadvantages of an S corp

Question 15

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

Accepted Answer

A) True 
 B)False

Question 16

What is the MOST effective way for an entrepreneur to become a competent manager?

Accepted Answer

A)  working alone 
B)  relying on luck 
C)  getting a college degree 
D)  being open to opportunities 
E)  working for a successful company first 
A)  working alone 
B)  relying on luck 
C)  getting a college degree 
D)  being open to opportunities 
E)  working for a successful company first

Question 17

Which of the following factors MOST contributes to small business failure?

Accepted Answer

A)  managerial incompetence or inexperience 
B)  bad product design 
C)  legal problems 
D)  time spent raising capital 
E)  personnel issues 
A)  managerial incompetence or inexperience 
B)  bad product design 
C)  legal problems 
D)  time spent raising capital 
E)  personnel issues

Question 18

Which of the following represents the fastest-growing segment of minority business ownership?

Accepted Answer

A)  African Americans 
B)  Asians 
C)  Hispanics 
D)  Pacific Islanders 
E)  Europeans 
A)  African Americans 
B)  Asians 
C)  Hispanics 
D)  Pacific Islanders 
E)  Europeans

Question 19

What is a merger?

Accepted Answer

A merger occurs when two firms

Question 20

Which of the following types of businesses is MOST common in the United States?

Accepted Answer

A)  sole proprietorships 
B)  general partnerships 
C)  cooperatives 
D)  corporations 
E)  limited partnerships 
A)  sole proprietorships 
B)  general partnerships 
C)  cooperatives 
D)  corporations 
E)  limited partnerships

What is the major drawback of accepting venture capital?

Which of the following BEST explains why flexibility is an important quality that Christina needs for success?

According to SBA estimates,what percent of all new businesses can expect to survive for at least four years?

Which of the following is a partner who actively manages a firm and has unlimited liability for its debts?

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

Which of the following,if true about the owners' plan for the new business,would weaken the case that it should be registered as an S corporation?

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

What type of business has two or more owners who share in the operation of the firm and are financially responsible for its debts?

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

Which of the following,if true about the owners' plan for the new business,would strengthen the case that it should be registered as a limited liability corporation (LLC)?

Today,what percent of all businesses in the United States are registered as sole proprietors?

What is a major drawback of sole proprietorships?

Entrepreneurs often enjoy working for large organizations.

Assuming the farm is organized as an S corporation,what are the disadvantages?

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

What is the MOST effective way for an entrepreneur to become a competent manager?

Which of the following factors MOST contributes to small business failure?

Which of the following represents the fastest-growing segment of minority business ownership?

What is a merger?

Which of the following types of businesses is MOST common in the United States?

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

What is the major drawback of accepting venture capital?

Which of the following BEST explains why flexibility is an important quality that Christina needs for success?

According to SBA estimates,what percent of all new businesses can expect to survive for at least four years?

Which of the following is a partner who actively manages a firm and has unlimited liability for its debts?

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

Which of the following,if true about the owners' plan for the new business,would weaken the case that it should be registered as an S corporation?

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

What type of business has two or more owners who share in the operation of the firm and are financially responsible for its debts?

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

Which of the following,if true about the owners' plan for the new business,would strengthen the case that it should be registered as a limited liability corporation (LLC)?

Today,what percent of all businesses in the United States are registered as sole proprietors?

What is a major drawback of sole proprietorships?

Entrepreneurs often enjoy working for large organizations.

Assuming the farm is organized as an S corporation,what are the disadvantages?

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

What is the MOST effective way for an entrepreneur to become a competent manager?

Which of the following factors MOST contributes to small business failure?

Which of the following represents the fastest-growing segment of minority business ownership?

What is a merger?

Which of the following types of businesses is MOST common in the United States?

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