Question 1

Which of the following are groups of small investors seeking to make profits on companies with rapid growth potential?

Accepted Answer

A)  community banks 
B)  venture capital companies 
C)  equity managers 
D)  government securities dealers 
E)  stock brokers 
A)  community banks 
B)  venture capital companies 
C)  equity managers 
D)  government securities dealers 
E)  stock brokers

Question 2

Which of the following BEST explains why flexibility is an important quality that Christina needs for success?

Accepted Answer

A)  It takes a certain amount of money to start a business. 
B)  It often helps to have a business partner in a new business. 
C)  Starting a new business requires a great deal of planning. 
D)  Starting and running a new business involves many unpredictable factors. 
E)  An entrepreneur must be extremely competent in business skills. 
A)  It takes a certain amount of money to start a business. 
B)  It often helps to have a business partner in a new business. 
C)  Starting a new business requires a great deal of planning. 
D)  Starting and running a new business involves many unpredictable factors. 
E)  An entrepreneur must be extremely competent in business skills.

Question 3

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

Accepted Answer

A)  Sam and Nina have very different personalities. 
B)  Sam and Nina have the same skill sets. 
C)  Sam and Nina are both motivated and energetic. 
D)  Nina has good leadership qualities. 
E)  Sam has a strong marketing background. 
A)  Sam and Nina have very different personalities. 
B)  Sam and Nina have the same skill sets. 
C)  Sam and Nina are both motivated and energetic. 
D)  Nina has good leadership qualities. 
E)  Sam has a strong marketing background.

Question 4

What is a merger?

Accepted Answer

A merger occurs when two firms

Question 5

Why are lenders most willing to loan to corporations?

Accepted Answer

A)  Continuity and legal status are assured. 
B)  Links with owners and founders are established. 
C)  Professional management teams can be changed. 
D)  Commitment to expansion is readily available. 
E)  Brand and marketing strategies can be diversified. 
A)  Continuity and legal status are assured. 
B)  Links with owners and founders are established. 
C)  Professional management teams can be changed. 
D)  Commitment to expansion is readily available. 
E)  Brand and marketing strategies can be diversified.

Question 6

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

Accepted Answer

The advantages of a private corporation

Question 7

What is a major drawback of sole proprietorships?

Accepted Answer

A)  limited funding 
B)  work flexibility 
C)  low start-up costs 
D)  unlimited liability 
E)  structured hours 
A)  limited funding 
B)  work flexibility 
C)  low start-up costs 
D)  unlimited liability 
E)  structured hours

Question 8

Viola wants to be a business owner, and is contemplating whether to start her own business or open a franchise. Which of the following, if True, would be a compelling reason for Viola to open a franchise rather than start a new business?

Accepted Answer

A)  The franchiser requires $3,000 in start-up costs and a 5 percent monthly royalty fee. 
B)  The franchiser tightly controls and monitors the service protocol. 
C)  The franchisee is responsible for developing all marketing materials. 
D)  The company has only recently become a franchise. 
E)  There are several other franchises with the same company in the area. 
A)  The franchiser requires $3,000 in start-up costs and a 5 percent monthly royalty fee. 
B)  The franchiser tightly controls and monitors the service protocol. 
C)  The franchisee is responsible for developing all marketing materials. 
D)  The company has only recently become a franchise. 
E)  There are several other franchises with the same company in the area.

Question 9

Explain the role of a corporation's board of directors.

Accepted Answer

The board of directors is responsible fo

Question 10

What is the most common type of partnership?

Accepted Answer

A)  limited partnership 
B)  corporate partnership 
C)  general partnership 
D)  sole partnership 
E)  cooperative partnership 
A)  limited partnership 
B)  corporate partnership 
C)  general partnership 
D)  sole partnership 
E)  cooperative partnership

Question 11

What are shares in a business that the business sells called?

Accepted Answer

A)  bonds 
B)  profits 
C)  stocks 
D)  dividends 
E)  loans 
A)  bonds 
B)  profits 
C)  stocks 
D)  dividends 
E)  loans

Question 12

The number of minority-owned businesses has decreased in recent years.

Accepted Answer

A) True 
 B)False

Question 13

American Business Machines is organized as a corporation. Its income will be taxed at the corporate level and also on shareholder returns as dividends. What is this situation known as?

Accepted Answer

A)  dual costs 
B)  double taxation 
C)  regulatory costs 
D)  double ownership 
E)  financial balancing 
A)  dual costs 
B)  double taxation 
C)  regulatory costs 
D)  double ownership 
E)  financial balancing

Question 14

What are the advantages and disadvantages for a franchisee?

Accepted Answer

The advantages of franchising include ac

Question 15

A new business should have enough capital to operate at least how many months without earning a profit?

Accepted Answer

A)  1 
B)  2 
C)  4 
D)  6 
E)  9 
A)  1 
B)  2 
C)  4 
D)  6 
E)  9

Question 16

Low start-up costs and tax benefits are advantages of sole proprietorships.

Accepted Answer

A) True 
 B)False

Question 17

The U.S. Department of Commerce considers a business "small" if it has fewer than how many employees?

Accepted Answer

A)  10 
B)  50 
C)  100 
D)  500 
E)  1,500 
A)  10 
B)  50 
C)  100 
D)  500 
E)  1,500

Question 18

Approximately what percent of all U.S. businesses employ 20 or fewer people?

Accepted Answer

A)  86 percent 
B)  66 percent 
C)  46 percent 
D)  26 percent 
E)  16 percent 
A)  86 percent 
B)  66 percent 
C)  46 percent 
D)  26 percent 
E)  16 percent

Question 19

Which of the following, if True, would strengthen the case that Christina has a good opportunity in opening a new pizza restaurant?

Accepted Answer

A)  There are many existing pizza restaurants in Christina's city. 
B)  The pizza business in Christina's city has remained largely unchanged for many years. 
C)  Restaurant consumers in Christina's city mostly frequent Mexican restaurants. 
D)  Pizza restaurants require several experienced employees to be successful. 
E)  Pizza restaurants can be found in almost any town in the United States. 
A)  There are many existing pizza restaurants in Christina's city. 
B)  The pizza business in Christina's city has remained largely unchanged for many years. 
C)  Restaurant consumers in Christina's city mostly frequent Mexican restaurants. 
D)  Pizza restaurants require several experienced employees to be successful. 
E)  Pizza restaurants can be found in almost any town in the United States.

Question 20

Manufacturing is overwhelmingly handled by big business.

Accepted Answer

A) True 
 B)False

Which of the following are groups of small investors seeking to make profits on companies with rapid growth potential?

Which of the following BEST explains why flexibility is an important quality that Christina needs for success?

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

What is a merger?

Why are lenders most willing to loan to corporations?

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

What is a major drawback of sole proprietorships?

Viola wants to be a business owner, and is contemplating whether to start her own business or open a franchise. Which of the following, if True, would be a compelling reason for Viola to open a franchise rather than start a new business?

Explain the role of a corporation's board of directors.

What is the most common type of partnership?

What are shares in a business that the business sells called?

The number of minority-owned businesses has decreased in recent years.

American Business Machines is organized as a corporation. Its income will be taxed at the corporate level and also on shareholder returns as dividends. What is this situation known as?

What are the advantages and disadvantages for a franchisee?

A new business should have enough capital to operate at least how many months without earning a profit?

Low start-up costs and tax benefits are advantages of sole proprietorships.

The U.S. Department of Commerce considers a business "small" if it has fewer than how many employees?

Approximately what percent of all U.S. businesses employ 20 or fewer people?

Which of the following, if True, would strengthen the case that Christina has a good opportunity in opening a new pizza restaurant?

Manufacturing is overwhelmingly handled by big business.

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

Which of the following are groups of small investors seeking to make profits on companies with rapid growth potential?

Which of the following BEST explains why flexibility is an important quality that Christina needs for success?

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

What is a merger?

Why are lenders most willing to loan to corporations?

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

What is a major drawback of sole proprietorships?

Viola wants to be a business owner, and is contemplating whether to start her own business or open a franchise. Which of the following, if True, would be a compelling reason for Viola to open a franchise rather than start a new business?

Explain the role of a corporation's board of directors.

What is the most common type of partnership?

What are shares in a business that the business sells called?

The number of minority-owned businesses has decreased in recent years.

American Business Machines is organized as a corporation. Its income will be taxed at the corporate level and also on shareholder returns as dividends. What is this situation known as?

What are the advantages and disadvantages for a franchisee?

A new business should have enough capital to operate at least how many months without earning a profit?

Low start-up costs and tax benefits are advantages of sole proprietorships.

The U.S. Department of Commerce considers a business "small" if it has fewer than how many employees?

Approximately what percent of all U.S. businesses employ 20 or fewer people?

Which of the following, if True, would strengthen the case that Christina has a good opportunity in opening a new pizza restaurant?

Manufacturing is overwhelmingly handled by big business.

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