Question 1

What is a divestiture?

Accepted Answer

With a divestiture, a corporation decide

Question 2

Explain limited liability in a corporation.

Accepted Answer

Limited liability is the legal principle

Question 3

Kent and Patrick have decided to start a landscaping business. One of the first things that they do is sign a document that describes the investments and responsibilities of the partners and makes provisions for the allocation of profits and dissolution of the business. What is the name of this document?

Accepted Answer

A)  articles of incorporation 
B)  partnership charter 
C)  partnership agreement 
D)  corporate charter 
E)  financial proposal 
A)  articles of incorporation 
B)  partnership charter 
C)  partnership agreement 
D)  corporate charter 
E)  financial proposal

Question 4

What are specific locations of Ramada, McDonald's, and Subway examples of?

Accepted Answer

A)  government entities 
B)  university sponsored businesses 
C)  franchises 
D)  networking businesses 
E)  cooperatives 
A)  government entities 
B)  university sponsored businesses 
C)  franchises 
D)  networking businesses 
E)  cooperatives

Question 5

Which entity is defined as independent and has little influence on its market?

Accepted Answer

A)  corporation 
B)  joint venture 
C)  small business 
D)  partnership 
E)  government agency 
A)  corporation 
B)  joint venture 
C)  small business 
D)  partnership 
E)  government agency

Question 6

Corporations generate sales revenues proportionate to their number.

Accepted Answer

A) True 
 B)False

Question 7

Which of the following is the most significant recent trend in small-business start-ups?

Accepted Answer

A)  entrepreneurs who cross over from big business 
B)  increased opportunities for minorities 
C)  increased opportunities for women 
D)  emergence of e-commerce 
E)  global economic downturn 
A)  entrepreneurs who cross over from big business 
B)  increased opportunities for minorities 
C)  increased opportunities for women 
D)  emergence of e-commerce 
E)  global economic downturn

Question 8

What percent of a business is the least amount that a master partner will retain?

Accepted Answer

A)  10 percent 
B)  25 percent 
C)  50 percent 
D)  75 percent 
E)  80 percent 
A)  10 percent 
B)  25 percent 
C)  50 percent 
D)  75 percent 
E)  80 percent

Question 9

What is a small business?

Accepted Answer

A small business is an independently own

Question 10

Who constitutes the membership of SCORE?

Accepted Answer

A)  retired executives 
B)  venture capitalists 
C)  company officers 
D)  commercial lenders 
E)  successful entrepreneurs 
A)  retired executives 
B)  venture capitalists 
C)  company officers 
D)  commercial lenders 
E)  successful entrepreneurs

Question 11

How is the U.S. economy affected by small businesses?

Accepted Answer

Small businesses affect the U.S. economy

Question 12

Which of the following, if True about the owners' plan for the new business, would strengthen the case that it should be registered as a limited liability corporation (LLC)?

Accepted Answer

A)  They want the company to be able to issue stock and offer stock benefits to employees. 
B)  They want to form the company quickly and inexpensively. 
C)  They don't want owners to have to pay personal taxes on company profits. 
D)  They want the company's profits to be distributed however they choose. 
E)  They want to operate consistently in multiple states. 
A)  They want the company to be able to issue stock and offer stock benefits to employees. 
B)  They want to form the company quickly and inexpensively. 
C)  They don't want owners to have to pay personal taxes on company profits. 
D)  They want the company's profits to be distributed however they choose. 
E)  They want to operate consistently in multiple states.

Question 13

A corporation must be managed on the principles of corporate governance. Explain what this is.

Accepted Answer

Corporate governance is the role of shar

Question 14

In order to help ensure success for their new business, which of the following questions would be LEAST helpful for Short and Shearer to periodically ask themselves?

Accepted Answer

A)  How well does our firm's operation align with the business plan? 
B)  How many employees do we have? 
C)  How are we handling our finances? 
D)  How are our employees performing? 
E)  How much debt can we afford to carry? 
A)  How well does our firm's operation align with the business plan? 
B)  How many employees do we have? 
C)  How are we handling our finances? 
D)  How are our employees performing? 
E)  How much debt can we afford to carry?

Question 15

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

Accepted Answer

The disadvantages of a limited

Question 16

Many entrepreneurs are finding new opportunities in foreign markets.

Accepted Answer

A) True 
 B)False

Question 17

Two businesses, Rio Books and Devereaux Holdings, collaborate to create and run a new bookselling business. What is this action called?

Accepted Answer

A)  corporatization 
B)  vertical merger 
C)  joint venture 
D)  strategic alliance 
E)  institutional investment 
A)  corporatization 
B)  vertical merger 
C)  joint venture 
D)  strategic alliance 
E)  institutional investment

Question 18

The failure rate among small businesses has been increasing in recent years.

Accepted Answer

A) True 
 B)False

Question 19

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

Accepted Answer

A)  They want the company to maintain its current membership. 
B)  They do not want to be liable for the company's debts. 
C)  They want the company's funding to come from shareholders. 
D)  They want to set the management details in advance. 
E)  They want the company to be registered both federally and with the state. 
A)  They want the company to maintain its current membership. 
B)  They do not want to be liable for the company's debts. 
C)  They want the company's funding to come from shareholders. 
D)  They want to set the management details in advance. 
E)  They want the company to be registered both federally and with the state.

Question 20

People who assume the risk of business ownership with a primary goal of growth and expansion are called entrepreneurs.

Accepted Answer

A) True 
 B)False

What is a divestiture?

Explain limited liability in a corporation.

What are specific locations of Ramada, McDonald's, and Subway examples of?

Which entity is defined as independent and has little influence on its market?

Corporations generate sales revenues proportionate to their number.

Which of the following is the most significant recent trend in small-business start-ups?

What percent of a business is the least amount that a master partner will retain?

What is a small business?

Who constitutes the membership of SCORE?

How is the U.S. economy affected by small businesses?

Which of the following, if True about the owners' plan for the new business, would strengthen the case that it should be registered as a limited liability corporation (LLC)?

A corporation must be managed on the principles of corporate governance. Explain what this is.

In order to help ensure success for their new business, which of the following questions would be LEAST helpful for Short and Shearer to periodically ask themselves?

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

Many entrepreneurs are finding new opportunities in foreign markets.

Two businesses, Rio Books and Devereaux Holdings, collaborate to create and run a new bookselling business. What is this action called?

The failure rate among small businesses has been increasing in recent years.

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

People who assume the risk of business ownership with a primary goal of growth and expansion are called entrepreneurs.

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 is a divestiture?

Explain limited liability in a corporation.

What are specific locations of Ramada, McDonald's, and Subway examples of?

Which entity is defined as independent and has little influence on its market?

Corporations generate sales revenues proportionate to their number.

Which of the following is the most significant recent trend in small-business start-ups?

What percent of a business is the least amount that a master partner will retain?

What is a small business?

Who constitutes the membership of SCORE?

How is the U.S. economy affected by small businesses?

Which of the following, if True about the owners' plan for the new business, would strengthen the case that it should be registered as a limited liability corporation (LLC)?

A corporation must be managed on the principles of corporate governance. Explain what this is.

In order to help ensure success for their new business, which of the following questions would be LEAST helpful for Short and Shearer to periodically ask themselves?

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

Many entrepreneurs are finding new opportunities in foreign markets.

Two businesses, Rio Books and Devereaux Holdings, collaborate to create and run a new bookselling business. What is this action called?

The failure rate among small businesses has been increasing in recent years.

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

People who assume the risk of business ownership with a primary goal of growth and expansion are called entrepreneurs.

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