Question 1

Which of the following is true of a limited liability corporation?

Accepted Answer

A)  It is commonly identified by the "Inc." designation in a name. 
B)  It consists of a general partner and one or more "limited" partners who do not participate in day-to-day business management. 
C)  The business owner is personally liable for business debts and claims. 
D)  For tax purposes, it functions as a sole proprietorship in the case of a single owner. 
E)  It involves the owners going into debt by borrowing money from another person, bank, or financial institution. 
A)  It is commonly identified by the "Inc." designation in a name. 
B)  It consists of a general partner and one or more "limited" partners who do not participate in day-to-day business management. 
C)  The business owner is personally liable for business debts and claims. 
D)  For tax purposes, it functions as a sole proprietorship in the case of a single owner. 
E)  It involves the owners going into debt by borrowing money from another person, bank, or financial institution.

Question 2

Which of the following is true about a corporation?

Accepted Answer

A)  It combines the advantages of the other forms-sole proprietorship, partnership, and limited liability corporation. 
B)  Only a for-profit business can be registered as a corporation. 
C)  It exists separately from its owners. 
D)  For tax purposes, it functions as a partnership. 
E)  For liability purposes, it functions as a partnership. 
A)  It combines the advantages of the other forms-sole proprietorship, partnership, and limited liability corporation. 
B)  Only a for-profit business can be registered as a corporation. 
C)  It exists separately from its owners. 
D)  For tax purposes, it functions as a partnership. 
E)  For liability purposes, it functions as a partnership.

Question 3

In a standard business plan, an organization's mission, ownership details, and, legal forms are listed under _____.

Accepted Answer

A)  market strategy 
B)  executive summary 
C)  company description 
D)  industry analysis 
E)  staffing description 
A)  market strategy 
B)  executive summary 
C)  company description 
D)  industry analysis 
E)  staffing description

Question 4

Ali, a small business owner, is concerned about passing the business to his heirs after his retirement or death. He should prepare a formal _____ plan.

Accepted Answer

A)  retirement contingency 
B)  business 
C)  succession 
D)  liquidation 
E)  franchising 
A)  retirement contingency 
B)  business 
C)  succession 
D)  liquidation 
E)  franchising

Question 5

Karl takes a loan from a reputed bank to set up a recording studio. Which of the following best represents Karl's source of finance?

Accepted Answer

A)  Initial public offering 
B)  Revolving credit 
C)  Debt financing 
D)  Angel investment 
E)  Venture capital financing 
A)  Initial public offering 
B)  Revolving credit 
C)  Debt financing 
D)  Angel investment 
E)  Venture capital financing

Question 6

In a business plan outline, _____ detail the amount of funds needed to run the business, amount available, and amount requested from new sources.

Accepted Answer

A)  capital needs 
B)  milestones 
C)  performance needs 
D)  liability needs 
E)  capability needs 
A)  capital needs 
B)  milestones 
C)  performance needs 
D)  liability needs 
E)  capability needs

Which of the following is true of a limited liability corporation?

Which of the following is true about a corporation?

In a standard business plan, an organization's mission, ownership details, and, legal forms are listed under _____.

Ali, a small business owner, is concerned about passing the business to his heirs after his retirement or death. He should prepare a formal _____ plan.

Karl takes a loan from a reputed bank to set up a recording studio. Which of the following best represents Karl's source of finance?

In a business plan outline, _____ detail the amount of funds needed to run the business, amount available, and amount requested from new sources.

Management, Managers, and Careers

Management Learning Past to Present

Ethics and Social Responsibility

Environment, Technology, and Sustainability

Global Management and Cultural Diversity

Data and Decision Making

Planning Processes and Techniques

Control Processes and Systems

Strategy and Strategic Management

Organization Structures

Organizational Culture and Change

Human Resource Management

Leading and Leadership Development

Individual Behavior

Motivation Theory and Practice

Teams and Teamwork

Communication and Collaboration

Filters

Exam 6: Entrepreneurship and New Ventures

Which of the following is true of a limited liability corporation?

Which of the following is true about a corporation?

In a standard business plan, an organization's mission, ownership details, and, legal forms are listed under _____.

Ali, a small business owner, is concerned about passing the business to his heirs after his retirement or death. He should prepare a formal _____ plan.

Karl takes a loan from a reputed bank to set up a recording studio. Which of the following best represents Karl's source of finance?

In a business plan outline, _____ detail the amount of funds needed to run the business, amount available, and amount requested from new sources.

Management, Managers, and Careers

Management Learning Past to Present

Ethics and Social Responsibility

Environment, Technology, and Sustainability

Global Management and Cultural Diversity

Data and Decision Making

Planning Processes and Techniques

Control Processes and Systems

Strategy and Strategic Management

Organization Structures

Organizational Culture and Change

Human Resource Management

Leading and Leadership Development

Individual Behavior

Motivation Theory and Practice

Teams and Teamwork

Communication and Collaboration

Filters