Question 1

Explain a tender offer.

Accepted Answer

A tender offer is an offer to buy shares made by a prospective buyer directly to a corporation's shareholders. A corporation can be taken over against the will of its managers through a tender offer.
Explanation:A tender offer is an offer to buy shares made by a prospective buyer directly to a corporation's shareholders, who then make individual decisions about whether to sell.

Question 2

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 A

Question 3

An S corporation has stock that is widely held and available for sale to the general public.

Accepted Answer

A) True 
 B)False  False

Question 4

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 5

What do both sole proprietorships and partnerships lack?

Accepted Answer

A)  trust 
B)  legal standing 
C)  continuity 
D)  shared vision 
E)  adaptable processes 
A)  trust 
B)  legal standing 
C)  continuity 
D)  shared vision 
E)  adaptable processes

Question 6

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 7

Why might an entrepreneur wish to purchase an existing business rather than start one from scratch?

Accepted Answer

An entrepreneur may wish to purchase an

Question 8

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 9

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

Accepted Answer

A)  2.25 million and 31 percent 
B)  2.75 million and 41 percent 
C)  3.15 million and 71 percent 
D)  3.55 million and 81 percent 
E)  4.25 million and 85 percent 
A)  2.25 million and 31 percent 
B)  2.75 million and 41 percent 
C)  3.15 million and 71 percent 
D)  3.55 million and 81 percent 
E)  4.25 million and 85 percent

Question 10

Entrepreneurs often have more than one goal for starting a business and becoming self-employed. Which of the following reasons is the LEAST common goal of entrepreneurs?

Accepted Answer

A)  to seek independence and be their own boss 
B)  to earn a comfortable living for a period of time 
C)  to grow and expand a current business 
D)  to meet community or social obligations 
E)  to provide for their financial needs 
A)  to seek independence and be their own boss 
B)  to earn a comfortable living for a period of time 
C)  to grow and expand a current business 
D)  to meet community or social obligations 
E)  to provide for their financial needs

Question 11

Small-business investment companies (SBICs) may be sponsored by the federal government.

Accepted Answer

A) True 
 B)False

Question 12

Which of the following occurs when two firms combine to create a new company?

Accepted Answer

A)  acquisition 
B)  takeover 
C)  venture 
D)  divestiture 
E)  merger 
A)  acquisition 
B)  takeover 
C)  venture 
D)  divestiture 
E)  merger

Question 13

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 14

Which of the following, if True, would weaken the case for Short and Shearer's starting a new business?

Accepted Answer

A)  Starting a new business allows an entrepreneur to determine their own working hours. 
B)  Starting a new business allows an entrepreneur to establish their own clientele. 
C)  Starting a new business allows an entrepreneur to use their own ideas. 
D)  Starting a new business gives a potential for a feeling of great accomplishment. 
E)  Starting a new business involves using an untested business model. 
A)  Starting a new business allows an entrepreneur to determine their own working hours. 
B)  Starting a new business allows an entrepreneur to establish their own clientele. 
C)  Starting a new business allows an entrepreneur to use their own ideas. 
D)  Starting a new business gives a potential for a feeling of great accomplishment. 
E)  Starting a new business involves using an untested business model.

Question 15

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 16

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 17

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 18

Which of the following, if True, would weaken the case for Nina running the business as a sole proprietorship?

Accepted Answer

A)  Nina has a degree in accounting. 
B)  Nina's parents also ran a dry-cleaning business. 
C)  Nina had the initial idea to start the new business. 
D)  Sam is anxious to take on a lead role in the business. 
E)  Sam does not have any previous dry-cleaning experience. 
A)  Nina has a degree in accounting. 
B)  Nina's parents also ran a dry-cleaning business. 
C)  Nina had the initial idea to start the new business. 
D)  Sam is anxious to take on a lead role in the business. 
E)  Sam does not have any previous dry-cleaning experience.

Question 19

By what percent has the number of African American-owned businesses increased over the past five-year period?

Accepted Answer

A)  18 percent 
B)  28 percent 
C)  48 percent 
D)  68 percent 
E)  78 percent 
A)  18 percent 
B)  28 percent 
C)  48 percent 
D)  68 percent 
E)  78 percent

Question 20

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

Explain a tender offer.

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

An S corporation has stock that is widely held and available for sale to the general public.

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

What do both sole proprietorships and partnerships lack?

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

Why might an entrepreneur wish to purchase an existing business rather than start one from scratch?

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

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

Entrepreneurs often have more than one goal for starting a business and becoming self-employed. Which of the following reasons is the LEAST common goal of entrepreneurs?

Small-business investment companies (SBICs) may be sponsored by the federal government.

Which of the following occurs when two firms combine to create a new company?

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

Which of the following, if True, would weaken the case for Short and Shearer's starting a new business?

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

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

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 of the following, if True, would weaken the case for Nina running the business as a sole proprietorship?

By what percent has the number of African American-owned businesses increased over the past five-year period?

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:

The Us 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

Information Technology for Business

The Role of Accountants and Accounting Information

Money and Banking

Managing Finances

Filters

Exam 3: Entrepreneurship, New Ventures, and Business Ownership

Explain a tender offer.

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

An S corporation has stock that is widely held and available for sale to the general public.

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

What do both sole proprietorships and partnerships lack?

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

Why might an entrepreneur wish to purchase an existing business rather than start one from scratch?

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

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

Entrepreneurs often have more than one goal for starting a business and becoming self-employed. Which of the following reasons is the LEAST common goal of entrepreneurs?

Small-business investment companies (SBICs) may be sponsored by the federal government.

Which of the following occurs when two firms combine to create a new company?

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

Which of the following, if True, would weaken the case for Short and Shearer's starting a new business?

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

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

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 of the following, if True, would weaken the case for Nina running the business as a sole proprietorship?

By what percent has the number of African American-owned businesses increased over the past five-year period?

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:

The Us 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

Information Technology for Business

The Role of Accountants and Accounting Information

Money and Banking

Managing Finances

Filters