Question 1

The Small Business Administration is the government agency charged with owning small businesses.

Accepted Answer

A) True 
 B)False

Question 2

Many new businesses are started by people who have left big corporations.

Accepted Answer

A) True 
 B)False

Question 3

Loans are the most important sources of money for new businesses.

Accepted Answer

A) True 
 B)False

Question 4

By law, each general partner is liable for all debts incurred in the name of the partnership.

Accepted Answer

A) True 
 B)False

Question 5

Which of the following represents the fastest-growing segment of minority business ownership?

Accepted Answer

A)  African Americans 
B)  Asians 
C)  Hispanics 
D)  Pacific Islanders 
E)  Europeans 
A)  African Americans 
B)  Asians 
C)  Hispanics 
D)  Pacific Islanders 
E)  Europeans

Question 6

Lucy has organized her craft shop as a sole proprietorship. Her sister has warned Lucy about the legal principle holding her responsible for paying off all of the debts of the business. What is the name of this principle?

Accepted Answer

A)  unlimited liability 
B)  limited liability 
C)  privity 
D)  unrestricted debt 
E)  accountability 
A)  unlimited liability 
B)  limited liability 
C)  privity 
D)  unrestricted debt 
E)  accountability

Question 7

Assuming the farm is organized as an S corporation, what are the disadvantages?

Accepted Answer

The disadvantages of an S corp

Question 8

What is the most important source of money for new business start-ups?

Accepted Answer

A)  banks 
B)  the SBA 
C)  personal resources 
D)  government grants 
E)  venture capital 
A)  banks 
B)  the SBA 
C)  personal resources 
D)  government grants 
E)  venture capital

Question 9

Each year, between 600,000 and 650,000 new businesses are launched in the United States. Approximately how many businesses fail each year?

Accepted Answer

A)  50,000 to 100,000 
B)  100,000 to 250,000 
C)  250,000 to 500,000 
D)  500,000 to 700,000 
E)  700,000 to 1 million 
A)  50,000 to 100,000 
B)  100,000 to 250,000 
C)  250,000 to 500,000 
D)  500,000 to 700,000 
E)  700,000 to 1 million

Question 10

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 S corporation?

Accepted Answer

A)  They want the company to be able to change its procedures over time. 
B)  They want the company to be able to change its board membership if needed. 
C)  They want the company to grow as quickly as they can grow it. 
D)  They want the company to be able to issue multiple classes of stock. 
E)  They want to pay income taxes via the individual tax returns of the shareholders. 
A)  They want the company to be able to change its procedures over time. 
B)  They want the company to be able to change its board membership if needed. 
C)  They want the company to grow as quickly as they can grow it. 
D)  They want the company to be able to issue multiple classes of stock. 
E)  They want to pay income taxes via the individual tax returns of the shareholders.

Question 11

Which of the following types of venue is favored by small-business retailers?

Accepted Answer

A)  superstore 
B)  catalog showroom 
C)  specialty shop 
D)  department store 
E)  studio workroom 
A)  superstore 
B)  catalog showroom 
C)  specialty shop 
D)  department store 
E)  studio workroom

Question 12

What is an entrepreneur?

Accepted Answer

An entrepreneur is a business person who

Question 13

Assuming the farm is organized as an S corporation, what are the advantages?

Accepted Answer

The advantages of an S corpora

Question 14

Why is it difficult to compare relative job growth for different-sized businesses?

Accepted Answer

A)  Sourcing up-to-date employment figures is difficult. 
B)  Many small businesses experience rapid unreported growth. 
C)  Spheres of influence overlap between the small and big business sectors. 
D)  Staff size of small businesses tends to change faster than staff size of big businesses. 
E)  It is hard to determine the cutoff point at which a small business becomes a large business. 
A)  Sourcing up-to-date employment figures is difficult. 
B)  Many small businesses experience rapid unreported growth. 
C)  Spheres of influence overlap between the small and big business sectors. 
D)  Staff size of small businesses tends to change faster than staff size of big businesses. 
E)  It is hard to determine the cutoff point at which a small business becomes a large business.

Question 15

Who are the owners of a corporation?

Accepted Answer

A)  board of directors 
B)  financial officers 
C)  stockholders 
D)  top managers 
E)  entrepreneurs 
A)  board of directors 
B)  financial officers 
C)  stockholders 
D)  top managers 
E)  entrepreneurs

Question 16

The least common type of partnership is the general partnership.

Accepted Answer

A) True 
 B)False

Question 17

Why do attitudes about entrepreneurship vary internationally?

Accepted Answer

A)  Decision making in big business can overlook local customs. 
B)  Attitudes towards risk-taking in business are culturally determined. 
C)  Consumer attitudes are influenced by economic cycles. 
D)  Foreign-owned companies can be unresponsive to local markets. 
E)  International business is creating a global village. 
A)  Decision making in big business can overlook local customs. 
B)  Attitudes towards risk-taking in business are culturally determined. 
C)  Consumer attitudes are influenced by economic cycles. 
D)  Foreign-owned companies can be unresponsive to local markets. 
E)  International business is creating a global village.

Question 18

According to SBA estimates, what percent of all new businesses can expect to survive for at least four years?

Accepted Answer

A)  14 percent 
B)  24 percent 
C)  44 percent 
D)  64 percent 
E)  84 percent 
A)  14 percent 
B)  24 percent 
C)  44 percent 
D)  64 percent 
E)  84 percent

Question 19

When can a sole proprietorship legally be dissolved?

Accepted Answer

A)  sales exceed $1 million 
B)  the partners reorganize the firm's structure 
C)  earnings are less than $500,000 
D)  the owner donates profits 
E)  the owner dies 
A)  sales exceed $1 million 
B)  the partners reorganize the firm's structure 
C)  earnings are less than $500,000 
D)  the owner donates profits 
E)  the owner dies

Question 20

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

Accepted Answer

The advantages of a limited li

The Small Business Administration is the government agency charged with owning small businesses.

Many new businesses are started by people who have left big corporations.

Loans are the most important sources of money for new businesses.

By law, each general partner is liable for all debts incurred in the name of the partnership.

Which of the following represents the fastest-growing segment of minority business ownership?

Lucy has organized her craft shop as a sole proprietorship. Her sister has warned Lucy about the legal principle holding her responsible for paying off all of the debts of the business. What is the name of this principle?

Assuming the farm is organized as an S corporation, what are the disadvantages?

What is the most important source of money for new business start-ups?

Each year, between 600,000 and 650,000 new businesses are launched in the United States. Approximately how many businesses fail each year?

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 S corporation?

Which of the following types of venue is favored by small-business retailers?

What is an entrepreneur?

Assuming the farm is organized as an S corporation, what are the advantages?

Why is it difficult to compare relative job growth for different-sized businesses?

Who are the owners of a corporation?

The least common type of partnership is the general partnership.

Why do attitudes about entrepreneurship vary internationally?

According to SBA estimates, what percent of all new businesses can expect to survive for at least four years?

When can a sole proprietorship legally be dissolved?

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

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

The Small Business Administration is the government agency charged with owning small businesses.

Many new businesses are started by people who have left big corporations.

Loans are the most important sources of money for new businesses.

By law, each general partner is liable for all debts incurred in the name of the partnership.

Which of the following represents the fastest-growing segment of minority business ownership?

Lucy has organized her craft shop as a sole proprietorship. Her sister has warned Lucy about the legal principle holding her responsible for paying off all of the debts of the business. What is the name of this principle?

Assuming the farm is organized as an S corporation, what are the disadvantages?

What is the most important source of money for new business start-ups?

Each year, between 600,000 and 650,000 new businesses are launched in the United States. Approximately how many businesses fail each year?

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 S corporation?

Which of the following types of venue is favored by small-business retailers?

What is an entrepreneur?

Assuming the farm is organized as an S corporation, what are the advantages?

Why is it difficult to compare relative job growth for different-sized businesses?

Who are the owners of a corporation?

The least common type of partnership is the general partnership.

Why do attitudes about entrepreneurship vary internationally?

According to SBA estimates, what percent of all new businesses can expect to survive for at least four years?

When can a sole proprietorship legally be dissolved?

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

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