Question 1

The board of directors of a corporation sets the company's policies, goals and decisions, and approves the distribution of dividends.

Accepted Answer

A) True 
 B)False

Question 2

The Bill and Melinda Gates Foundation is an example of a _____.

Accepted Answer

A) cooperative 
B) limited liability company 
C) not-for-profit organization 
D) partnership 
A) cooperative 
B) limited liability company 
C) not-for-profit organization 
D) partnership

Question 3

It is necessary to decide if the business should survive the owner(s) in the
startup stage.

Accepted Answer

A) True 
 B)False

Question 4

What action could any of Rock City's dentists take to limit their exposure to liability as well as make it easier to find capital for expansion?

Accepted Answer

A) form a silent partnership 
B) incorporate 
C) obtain a Small Business Administration loan 
D) create a limited partnership 
A) form a silent partnership 
B) incorporate 
C) obtain a Small Business Administration loan 
D) create a limited partnership

Question 5

To maximize the likelihood of obtaining financing from the bank to
expand, the three brothers should form a partnership.

Accepted Answer

A) True 
 B)False

Question 6

Maria Martin owns an advertising company.She gets to keep all of the income earned by the business.She operates it as a(n) _____.

Accepted Answer

A) partnership 
B) sole proprietorship 
C) S Corporation 
D) corporation 
A) partnership 
B) sole proprietorship 
C) S Corporation 
D) corporation

Question 7

Studies show that partnerships are more successful than sole proprietorships.

Accepted Answer

A) True 
 B)False

Question 8

The shareholders elect a board of directors, primarily from within the
corporation, who manage the company.

Accepted Answer

A) True 
 B)False

Question 9

Scenario-Based
Pat Smith and George Johnson own five flower shops in Manhattan.They want to
open a wholesale flower business to supply their shops as well as others in their
geographical area.They currently operate as a partnership but are considering
changing their legal form of organization.One reason for doing this is to
increase the likelihood that they will be able to raise the funds needed to expand.
-The partners should consider converting to a corporation.

Accepted Answer

A) True 
 B)False

Question 10

The vast majority of not-for-profit corporations are neither rich nor famous,
but nevertheless make significant contributions to society.

Accepted Answer

A) True 
 B)False

Question 11

Some people with substantial assets may hesitate to enter a partnership.
They don't want to lose some or all of these assets because of the mistakes of other
partners.To offset this possible loss they can form an unlimited partnership.

Accepted Answer

A) True 
 B)False

Question 12

The rationale behind growth through merger or acquisition is that one plus
one equals three: the combined company is more valuable than the sum of the
two separate companies.

Accepted Answer

A) True 
 B)False

Question 13

Any corporation can raise more money than a partnership because it has better
credit.

Accepted Answer

A) True 
 B)False

Question 14

With a sole proprietorship, you -- the owner -- are, in effect, the business.

Accepted Answer

A) True 
 B)False

Question 15

Pinnacle Games will be able to form an S-corporation because it has
128 employees-fewer than the 200 maximum allowed by law.

Accepted Answer

A) True 
 B)False

Question 16

A limited partnership is restricted to joint ownership by two people.

Accepted Answer

A) True 
 B)False

Question 17

If George Johnson died, the company would cease to exist.

Accepted Answer

A) True 
 B)False

Question 18

When it distributes a portion of its income to shareholders in the form of cash payments, a corporation pays out _____.

Accepted Answer

A) dividends 
B) shares 
C) allotments 
D) capital surpluses 
A) dividends 
B) shares 
C) allotments 
D) capital surpluses

Question 19

The shareholders elect a ___________, a group of people who are legally responsible for governing the corporation.

Accepted Answer

A) governing board 
B) board of directors 
C) oversight board 
D) group of shareholder representatives 
A) governing board 
B) board of directors 
C) oversight board 
D) group of shareholder representatives

Question 20

Realizing more efficient economies of scale is not practical through mergers or acquisitions.

Accepted Answer

A) True 
 B)False

The board of directors of a corporation sets the company's policies, goals and decisions, and approves the distribution of dividends.

The Bill and Melinda Gates Foundation is an example of a _____.

It is necessary to decide if the business should survive the owner(s) in the startup stage.

What action could any of Rock City's dentists take to limit their exposure to liability as well as make it easier to find capital for expansion?

To maximize the likelihood of obtaining financing from the bank to expand, the three brothers should form a partnership.

Maria Martin owns an advertising company.She gets to keep all of the income earned by the business.She operates it as a(n) _____.

Studies show that partnerships are more successful than sole proprietorships.

The shareholders elect a board of directors, primarily from within the corporation, who manage the company.

The vast majority of not-for-profit corporations are neither rich nor famous, but nevertheless make significant contributions to society.

Some people with substantial assets may hesitate to enter a partnership. They don't want to lose some or all of these assets because of the mistakes of other partners.To offset this possible loss they can form an unlimited partnership.

The rationale behind growth through merger or acquisition is that one plus one equals three: the combined company is more valuable than the sum of the two separate companies.

Any corporation can raise more money than a partnership because it has better credit.

With a sole proprietorship, you -- the owner -- are, in effect, the business.

Pinnacle Games will be able to form an S-corporation because it has 128 employees-fewer than the 200 maximum allowed by law.

A limited partnership is restricted to joint ownership by two people.

If George Johnson died, the company would cease to exist.

When it distributes a portion of its income to shareholders in the form of cash payments, a corporation pays out _____.

The shareholders elect a ___________, a group of people who are legally responsible for governing the corporation.

Realizing more efficient economies of scale is not practical through mergers or acquisitions.

The Foundations of Business

Entrepreneurship

Business Ethics and Social Responsibility

Managing for Business Success

Recruiting, Motivating, and Keeping Quality Employees

Product Design and Development

Operations Management in Manufacturing and Service Industries

Business in a Global Environment

Marketing: Providing Value to Customers

Operating in a Digital Marketing and Social Networking

The Role of Accounting in Business

Managing Financial Resources

Teamwork and Communications

Personal Finances

Managing Information and Technology

The Legal and Regulatory Environment of Business

Filters

Exam 3: Selecting a Form of Business Ownership

The board of directors of a corporation sets the company's policies, goals and decisions, and approves the distribution of dividends.

The Bill and Melinda Gates Foundation is an example of a _____.

It is necessary to decide if the business should survive the owner(s) in the startup stage.

What action could any of Rock City's dentists take to limit their exposure to liability as well as make it easier to find capital for expansion?

To maximize the likelihood of obtaining financing from the bank to expand, the three brothers should form a partnership.

Maria Martin owns an advertising company.She gets to keep all of the income earned by the business.She operates it as a(n) _____.

Studies show that partnerships are more successful than sole proprietorships.

The shareholders elect a board of directors, primarily from within the corporation, who manage the company.

The vast majority of not-for-profit corporations are neither rich nor famous, but nevertheless make significant contributions to society.

Some people with substantial assets may hesitate to enter a partnership. They don't want to lose some or all of these assets because of the mistakes of other partners.To offset this possible loss they can form an unlimited partnership.

The rationale behind growth through merger or acquisition is that one plus one equals three: the combined company is more valuable than the sum of the two separate companies.

Any corporation can raise more money than a partnership because it has better credit.

With a sole proprietorship, you -- the owner -- are, in effect, the business.

Pinnacle Games will be able to form an S-corporation because it has 128 employees-fewer than the 200 maximum allowed by law.

A limited partnership is restricted to joint ownership by two people.

If George Johnson died, the company would cease to exist.

When it distributes a portion of its income to shareholders in the form of cash payments, a corporation pays out _____.

The shareholders elect a ___________, a group of people who are legally responsible for governing the corporation.

Realizing more efficient economies of scale is not practical through mergers or acquisitions.

The Foundations of Business

Entrepreneurship

Business Ethics and Social Responsibility

Managing for Business Success

Recruiting, Motivating, and Keeping Quality Employees

Product Design and Development

Operations Management in Manufacturing and Service Industries

Business in a Global Environment

Marketing: Providing Value to Customers

Operating in a Digital Marketing and Social Networking

The Role of Accounting in Business

Managing Financial Resources

Teamwork and Communications

Personal Finances

Managing Information and Technology

The Legal and Regulatory Environment of Business

Filters