Question 1

Corporations enjoy significant tax benefits when compared to sole proprietorships or partnerships.

Accepted Answer

A) True 
 B)False

Question 2

A limited liability corporation is a hybrid of a publicly held corporation and a partnership.

Accepted Answer

A) True 
 B)False

Question 3

Explain the basic issues involved in managing a corporation.

Accepted Answer

Corporations sell shares, called stock,

Question 4

Discuss the advantages and disadvantages of partnerships.

Accepted Answer

Advantages of partnerships include their

Question 5

What type of corporations are those comprised of doctors, lawyers, or accountants most likely to be?

Accepted Answer

A)  private 
B)  public 
C)  subchapter S 
D)  professional 
E)  multinational 
A)  private 
B)  public 
C)  subchapter S 
D)  professional 
E)  multinational

Question 6

Which of the following is the most significant disadvantage of franchising?

Accepted Answer

A)  high start-up costs 
B)  risk of failure 
C)  difficulty in obtaining financing 
D)  lengthy contracts 
E)  high cost of operation 
A)  high start-up costs 
B)  risk of failure 
C)  difficulty in obtaining financing 
D)  lengthy contracts 
E)  high cost of operation

Question 7

Which type of business is legally considered a separate entity from its owners and is liable for its own debts?

Accepted Answer

A)  sole proprietorship 
B)  corporation 
C)  limited partnership 
D)  cooperative 
E)  general partnership 
A)  sole proprietorship 
B)  corporation 
C)  limited partnership 
D)  cooperative 
E)  general partnership

Question 8

The board of directors of a corporation reports to the officers of the corporation.

Accepted Answer

A) True 
 B)False

Question 9

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 10

Which of the following helps entrepreneurs gain skills that are essential for running a business?

Accepted Answer

A)  ESOP 
B)  SBICs 
C)  SEC 
D)  LLC 
E)  SBA 
A)  ESOP 
B)  SBICs 
C)  SEC 
D)  LLC 
E)  SBA

Question 11

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

Accepted Answer

The disadvantages of a private

Question 12

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 13

Neglect is a major factor that contributes to small business failure.

Accepted Answer

A) True 
 B)False

Question 14

The Miller brothers are not sure how to organize their business. What are their options in terms of legal form?

Accepted Answer

The three general forms of business owne

Question 15

Which of the following industry groups is the fastest growing segment of small business enterprise?

Accepted Answer

A)  manufacturing 
B)  wholesaling 
C)  retailing 
D)  transportation 
E)  services 
A)  manufacturing 
B)  wholesaling 
C)  retailing 
D)  transportation 
E)  services

Question 16

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

Accepted Answer

A)  They want their shareholders to be personally liable for the corporation's debts. 
B)  They want to have an unlimited number of shareholders. 
C)  They do not want the company to have to pay a corporate income tax. 
D)  They do not want to have to meet any start-up requirements. 
E)  They don't want to have a board of directors. 
A)  They want their shareholders to be personally liable for the corporation's debts. 
B)  They want to have an unlimited number of shareholders. 
C)  They do not want the company to have to pay a corporate income tax. 
D)  They do not want to have to meet any start-up requirements. 
E)  They don't want to have a board of directors.

Question 17

Entrepreneurs often enjoy working for large organizations.

Accepted Answer

A) True 
 B)False

Question 18

Which of the following legal forms of business is owned and usually operated by a person who is responsible for its debts?

Accepted Answer

A)  cartel 
B)  corporation 
C)  general partnership 
D)  sole proprietorship 
E)  limited partnership 
A)  cartel 
B)  corporation 
C)  general partnership 
D)  sole proprietorship 
E)  limited partnership

Question 19

What is the name of the document in which an entrepreneur summarizes his or her business strategy for a proposed new venture?

Accepted Answer

A)  success chart 
B)  director's guideline 
C)  financial blueprint 
D)  business plan 
E)  balance sheet 
A)  success chart 
B)  director's guideline 
C)  financial blueprint 
D)  business plan 
E)  balance sheet

Question 20

Explain entrepreneurship and describe key entrepreneurial characteristics.

Accepted Answer

Entrepreneurs are people who assume the

Corporations enjoy significant tax benefits when compared to sole proprietorships or partnerships.

A limited liability corporation is a hybrid of a publicly held corporation and a partnership.

Explain the basic issues involved in managing a corporation.

Discuss the advantages and disadvantages of partnerships.

What type of corporations are those comprised of doctors, lawyers, or accountants most likely to be?

Which of the following is the most significant disadvantage of franchising?

Which type of business is legally considered a separate entity from its owners and is liable for its own debts?

The board of directors of a corporation reports to the officers of the corporation.

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 helps entrepreneurs gain skills that are essential for running a business?

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

What is the major drawback of accepting venture capital?

Neglect is a major factor that contributes to small business failure.

The Miller brothers are not sure how to organize their business. What are their options in terms of legal form?

Which of the following industry groups is the fastest growing segment of small business enterprise?

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

Entrepreneurs often enjoy working for large organizations.

Which of the following legal forms of business is owned and usually operated by a person who is responsible for its debts?

What is the name of the document in which an entrepreneur summarizes his or her business strategy for a proposed new venture?

Explain entrepreneurship and describe key entrepreneurial characteristics.

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

Corporations enjoy significant tax benefits when compared to sole proprietorships or partnerships.

A limited liability corporation is a hybrid of a publicly held corporation and a partnership.

Explain the basic issues involved in managing a corporation.

Discuss the advantages and disadvantages of partnerships.

What type of corporations are those comprised of doctors, lawyers, or accountants most likely to be?

Which of the following is the most significant disadvantage of franchising?

Which type of business is legally considered a separate entity from its owners and is liable for its own debts?

The board of directors of a corporation reports to the officers of the corporation.

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 helps entrepreneurs gain skills that are essential for running a business?

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

What is the major drawback of accepting venture capital?

Neglect is a major factor that contributes to small business failure.

The Miller brothers are not sure how to organize their business. What are their options in terms of legal form?

Which of the following industry groups is the fastest growing segment of small business enterprise?

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

Entrepreneurs often enjoy working for large organizations.

Which of the following legal forms of business is owned and usually operated by a person who is responsible for its debts?

What is the name of the document in which an entrepreneur summarizes his or her business strategy for a proposed new venture?

Explain entrepreneurship and describe key entrepreneurial characteristics.

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