Question 1

What type of company has stock that is widely held and available for sale to the general public?

Accepted Answer

A)  private corporation 
B)  public corporation 
C)  general partnership 
D)  limited liability corporation 
E)  professional corporation 
A)  private corporation 
B)  public corporation 
C)  general partnership 
D)  limited liability corporation 
E)  professional corporation

Question 2

Franchisees may be obligated to contribute a percentage of sales to parent corporations.

Accepted Answer

A) True 
 B)False

Question 3

Most venture capital companies do not lend money.

Accepted Answer

A) True 
 B)False

Question 4

Olivia has found a viable business, a small furniture store, she is interested in purchasing. She has learned that the store is supplied by reliable vendors and has a steady stream of local and online buyers. What should be Olivia's next step at this point?

Accepted Answer

A)  Analyze the furniture store's past financial statements. 
B)  Start negotiating a purchase price with the current owner. 
C)  Approach a banking institution about financing her purchase. 
D)  Consult a marketing agency about ways to reach more customers. 
E)  Search for vendors that can provide similar products at lower costs. 
A)  Analyze the furniture store's past financial statements. 
B)  Start negotiating a purchase price with the current owner. 
C)  Approach a banking institution about financing her purchase. 
D)  Consult a marketing agency about ways to reach more customers. 
E)  Search for vendors that can provide similar products at lower costs.

Question 5

Small businesses produce more patents per employee than large patenting firms.

Accepted Answer

A) True 
 B)False

Question 6

Shirley is opening a flower shop and has decided to operate as a sole proprietorship. Which of the following is NOT an advantage Shirley will have in operating her business?

Accepted Answer

A)  freedom 
B)  simplicity of operation 
C)  limited liability 
D)  low start-up costs 
E)  choice of location 
A)  freedom 
B)  simplicity of operation 
C)  limited liability 
D)  low start-up costs 
E)  choice of location

Question 7

Which of the following, if True, would strengthen the case for Short and Shearer buying an existing business?

Accepted Answer

A)  Short and Shearer have a lot of ideas as to the kind of business they would like to own. 
B)  An existing business would have an existing customer base that Short and Shearer would inherit. 
C)  An existing business for sale might have difficulties that Short and Shearer would inherit. 
D)  Short and Shearer greatly value independence. 
E)  Existing small businesses are usually carrying debts. 
A)  Short and Shearer have a lot of ideas as to the kind of business they would like to own. 
B)  An existing business would have an existing customer base that Short and Shearer would inherit. 
C)  An existing business for sale might have difficulties that Short and Shearer would inherit. 
D)  Short and Shearer greatly value independence. 
E)  Existing small businesses are usually carrying debts.

Question 8

What percent of all businesses in the United States are corporations?

Accepted Answer

A)  15 percent 
B)  20 percent 
C)  50 percent 
D)  75 percent 
E)  85 percent 
A)  15 percent 
B)  20 percent 
C)  50 percent 
D)  75 percent 
E)  85 percent

Question 9

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

Accepted Answer

A)  Sam is experienced in dry-cleaning. 
B)  Sam has a wide base of existing customer contacts. 
C)  Sam is not willing to take on legal liability in the company. 
D)  Nina is relatively new to the dry-cleaning business. 
E)  Nina is not much of a "people person." 
A)  Sam is experienced in dry-cleaning. 
B)  Sam has a wide base of existing customer contacts. 
C)  Sam is not willing to take on legal liability in the company. 
D)  Nina is relatively new to the dry-cleaning business. 
E)  Nina is not much of a "people person."

Question 10

Which of the following, if True, would NOT strengthen the case that Christina has personal characteristics necessary for her new business to succeed?

Accepted Answer

A)  She is willing to take risks. 
B)  She is motivated. 
C)  She works well with others. 
D)  She is a "big picture" thinker. 
E)  She follows directions carefully. 
A)  She is willing to take risks. 
B)  She is motivated. 
C)  She works well with others. 
D)  She is a "big picture" thinker. 
E)  She follows directions carefully.

Question 11

Most successful entrepreneurs have a strong desire to be their own bosses.

Accepted Answer

A) True 
 B)False

Question 12

A good rule of thumb for individuals starting a new business is to not rely on personal resources.

Accepted Answer

A) True 
 B)False

Question 13

Suppose BrightLights Online Video purchases another company, QuikFlix. What is this an example of?

Accepted Answer

A)  merger 
B)  spin-off 
C)  divestiture 
D)  acquisition 
E)  collapse 
A)  merger 
B)  spin-off 
C)  divestiture 
D)  acquisition 
E)  collapse

Question 14

Discuss the advantages and disadvantages of corporations.

Accepted Answer

The advantages include limited liability

Question 15

Assuming the farm is organized as a general partnership, what are the disadvantages?

Accepted Answer

The disadvantages of a general partnersh

Question 16

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

Accepted Answer

The disadvantages of sole proprietorship

Question 17

Discuss four sources of financing for starting up a small business.

Accepted Answer

Financing for starting up a new business

Question 18

Describe corporations. List their advantages and disadvantages.

Accepted Answer

A corporation is a business that is lega

Question 19

What is the main reason why women start new businesses?

Accepted Answer

A)  need to earn more money 
B)  preference for working alone 
C)  opportunities for family members 
D)  control in organizing their time 
E)  desire to employ other women 
A)  need to earn more money 
B)  preference for working alone 
C)  opportunities for family members 
D)  control in organizing their time 
E)  desire to employ other women

Question 20

The Small Business Administration (SBA) may consider a business with many employees to be small as long as it has low annual revenues.

Accepted Answer

A) True 
 B)False

What type of company has stock that is widely held and available for sale to the general public?

Franchisees may be obligated to contribute a percentage of sales to parent corporations.

Most venture capital companies do not lend money.

Olivia has found a viable business, a small furniture store, she is interested in purchasing. She has learned that the store is supplied by reliable vendors and has a steady stream of local and online buyers. What should be Olivia's next step at this point?

Small businesses produce more patents per employee than large patenting firms.

Shirley is opening a flower shop and has decided to operate as a sole proprietorship. Which of the following is NOT an advantage Shirley will have in operating her business?

Which of the following, if True, would strengthen the case for Short and Shearer buying an existing business?

What percent of all businesses in the United States are corporations?

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

Which of the following, if True, would NOT strengthen the case that Christina has personal characteristics necessary for her new business to succeed?

Most successful entrepreneurs have a strong desire to be their own bosses.

A good rule of thumb for individuals starting a new business is to not rely on personal resources.

Suppose BrightLights Online Video purchases another company, QuikFlix. What is this an example of?

Discuss the advantages and disadvantages of corporations.

Assuming the farm is organized as a general partnership, what are the disadvantages?

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

Discuss four sources of financing for starting up a small business.

Describe corporations. List their advantages and disadvantages.

What is the main reason why women start new businesses?

The Small Business Administration (SBA) may consider a business with many employees to be small as long as it has low annual revenues.

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

What type of company has stock that is widely held and available for sale to the general public?

Franchisees may be obligated to contribute a percentage of sales to parent corporations.

Most venture capital companies do not lend money.

Olivia has found a viable business, a small furniture store, she is interested in purchasing. She has learned that the store is supplied by reliable vendors and has a steady stream of local and online buyers. What should be Olivia's next step at this point?

Small businesses produce more patents per employee than large patenting firms.

Shirley is opening a flower shop and has decided to operate as a sole proprietorship. Which of the following is NOT an advantage Shirley will have in operating her business?

Which of the following, if True, would strengthen the case for Short and Shearer buying an existing business?

What percent of all businesses in the United States are corporations?

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

Which of the following, if True, would NOT strengthen the case that Christina has personal characteristics necessary for her new business to succeed?

Most successful entrepreneurs have a strong desire to be their own bosses.

A good rule of thumb for individuals starting a new business is to not rely on personal resources.

Suppose BrightLights Online Video purchases another company, QuikFlix. What is this an example of?

Discuss the advantages and disadvantages of corporations.

Assuming the farm is organized as a general partnership, what are the disadvantages?

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

Discuss four sources of financing for starting up a small business.

Describe corporations. List their advantages and disadvantages.

What is the main reason why women start new businesses?

The Small Business Administration (SBA) may consider a business with many employees to be small as long as it has low annual revenues.

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