Question 1

Explain limited liability in a corporation.

Accepted Answer

The biggest advantage of corporations is

Question 2

New businesses need a(n)________ to estimate the required size of a plant,store,or office,to decide how much inventory to carry,and to determine how many employees to hire.

Accepted Answer

A)  sales forecast 
B)  financial plan 
C)  objective 
D)  cash budget 
A)  sales forecast 
B)  financial plan 
C)  objective 
D)  cash budget

Question 3

A small business is classified as an independent business that is part of a larger business.

Accepted Answer

A) True 
 B)False

Question 4

A master partner retains at least ________ ownership and runs the business.

Accepted Answer

A)  10 percent 
B)  25 percent 
C)  50 percent 
D)  90 percent 
A)  10 percent 
B)  25 percent 
C)  50 percent 
D)  90 percent

Question 5

Which of the following is NOT an advantage of the corporate form of organization?

Accepted Answer

A)  continuity 
B)  professional management 
C)  limited liability 
D)  low startup costs 
A)  continuity 
B)  professional management 
C)  limited liability 
D)  low startup costs

Question 6

Company A sold its pet food division to Ralston-Purina so that it could focus on its core businesses.This is an example of a ________.

Accepted Answer

A)  spin-off 
B)  divestiture 
C)  strategic alliance 
D)  merger 
A)  spin-off 
B)  divestiture 
C)  strategic alliance 
D)  merger

Question 7

According to authors of your textbook,a new business should have enough capital to operate at least how many months without earning a profit?

Accepted Answer

A)  1 
B)  2 
C)  4 
D)  6 
A)  1 
B)  2 
C)  4 
D)  6

Question 8

Which of the following specializes in financing businesses that are owned and operated by minorities?

Accepted Answer

A)  MESBICs 
B)  UNESCO 
C)  UNSCOMs 
D)  SEC 
A)  MESBICs 
B)  UNESCO 
C)  UNSCOMs 
D)  SEC

Question 9

Describe three advantages of operating a business as a sole proprietorship.

Accepted Answer

The advantages of sole proprietorships i

Question 10

Manufacturing,more than any other industry,lends itself to big business.

Accepted Answer

A) True 
 B)False

Question 11

________ is the process of seeking business opportunities under conditions of risk.

Accepted Answer

A)  Leverage 
B)  Entrepreneurship 
C)  Goal setting 
D)  Wholesaling 
A)  Leverage 
B)  Entrepreneurship 
C)  Goal setting 
D)  Wholesaling

Question 12

Low startup costs and tax benefits are advantages of sole proprietorships.

Accepted Answer

A) True 
 B)False

Question 13

Corporate officers are ________.

Accepted Answer

A)  top managers 
B)  members of the board 
C)  non-voting stockholders 
D)  none of the above 
A)  top managers 
B)  members of the board 
C)  non-voting stockholders 
D)  none of the above

Question 14

Short Case Scenario 3-1
The Miller brothers (Jack, Bill, and Evan) are about to fulfill a life-long dream. They are buying a thousand-acre farm and plan to grow cotton. Seeking independence, they are not interested in bringing in any outside owners. They have obtained financing from the Farm Credit Bureau that will allow them to finance the purchase of the farm and some equipment. The brothers are realistic and expect to work very long hours. However, they have a few critical decisions left to make.
-Assuming the farm is organized as a general partnership,what are the advantages?

Accepted Answer

The advantages of a general partnership

Question 15

In what business sector are cooperatives still important?

Accepted Answer

A)  manufacturing 
B)  automotive 
C)  public utilities 
D)  agriculture 
A)  manufacturing 
B)  automotive 
C)  public utilities 
D)  agriculture

Question 16

Explain a tender offer.

Accepted Answer

A tender offer is an offer to

Question 17

As a small-business ownership option,small business consultants often recommend ________ because the odds of success are better.

Accepted Answer

A)  external financing 
B)  starting the business from scratch 
C)  buying an existing business 
D)  investing overseas 
A)  external financing 
B)  starting the business from scratch 
C)  buying an existing business 
D)  investing overseas

Question 18

In a ________,an entrepreneur summarizes the business strategy for a new venture and shows how it will be implemented.

Accepted Answer

A)  venture capital plan 
B)  business plan 
C)  franchise agreement 
D)  master limited partnership 
A)  venture capital plan 
B)  business plan 
C)  franchise agreement 
D)  master limited partnership

Question 19

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

Accepted Answer

A)  banks 
B)  the SBA 
C)  personal resources 
D)  grants 
A)  banks 
B)  the SBA 
C)  personal resources 
D)  grants

Question 20

The U.S.Department of Commerce considers a business "small" if it has fewer than how many employees?

Accepted Answer

A)  10 
B)  50 
C)  100 
D)  1,500 
A)  10 
B)  50 
C)  100 
D)  1,500

Explain limited liability in a corporation.

New businesses need a(n)________ to estimate the required size of a plant,store,or office,to decide how much inventory to carry,and to determine how many employees to hire.

A small business is classified as an independent business that is part of a larger business.

A master partner retains at least ________ ownership and runs the business.

Which of the following is NOT an advantage of the corporate form of organization?

Company A sold its pet food division to Ralston-Purina so that it could focus on its core businesses.This is an example of a ________.

According to authors of your textbook,a new business should have enough capital to operate at least how many months without earning a profit?

Which of the following specializes in financing businesses that are owned and operated by minorities?

Describe three advantages of operating a business as a sole proprietorship.

Manufacturing,more than any other industry,lends itself to big business.

________ is the process of seeking business opportunities under conditions of risk.

Low startup costs and tax benefits are advantages of sole proprietorships.

Corporate officers are ________.

In what business sector are cooperatives still important?

Explain a tender offer.

As a small-business ownership option,small business consultants often recommend ________ because the odds of success are better.

In a ________,an entrepreneur summarizes the business strategy for a new venture and shows how it will be implemented.

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

The U.S.Department of Commerce considers a business "small" if it has fewer than how many employees?

The U.S.Business Environment

Business Ethics and Social Responsibility

The Global Context of Business

Business Management

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

Pricing, Distributing, and Promoting Products

The Role of Accountants and Accounting Information

Money and Banking

Managing Finances

Filters

Exam 3: Entrepreneurship, New Ventures, and Business Ownership

Explain limited liability in a corporation.

New businesses need a(n)________ to estimate the required size of a plant,store,or office,to decide how much inventory to carry,and to determine how many employees to hire.

A small business is classified as an independent business that is part of a larger business.

A master partner retains at least ________ ownership and runs the business.

Which of the following is NOT an advantage of the corporate form of organization?

Company A sold its pet food division to Ralston-Purina so that it could focus on its core businesses.This is an example of a ________.

According to authors of your textbook,a new business should have enough capital to operate at least how many months without earning a profit?

Which of the following specializes in financing businesses that are owned and operated by minorities?

Describe three advantages of operating a business as a sole proprietorship.

Manufacturing,more than any other industry,lends itself to big business.

________ is the process of seeking business opportunities under conditions of risk.

Low startup costs and tax benefits are advantages of sole proprietorships.

Corporate officers are ________.

In what business sector are cooperatives still important?

Explain a tender offer.

As a small-business ownership option,small business consultants often recommend ________ because the odds of success are better.

In a ________,an entrepreneur summarizes the business strategy for a new venture and shows how it will be implemented.

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

The U.S.Department of Commerce considers a business "small" if it has fewer than how many employees?

The U.S.Business Environment

Business Ethics and Social Responsibility

The Global Context of Business

Business Management

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

Pricing, Distributing, and Promoting Products

The Role of Accountants and Accounting Information

Money and Banking

Managing Finances

Filters