Question 1

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 2

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 3

What is formed when a corporation establishes a trust on behalf of employees for the purpose of buying shares of ownership?

Accepted Answer

A)  Institutional ownership 
B)  Divestiture 
C)  Strategic alliance 
D)  Corporate governance 
E)  Employee stock ownership plan (ESOP) 
A)  Institutional ownership 
B)  Divestiture 
C)  Strategic alliance 
D)  Corporate governance 
E)  Employee stock ownership plan (ESOP)

Question 4

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 5

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

Accepted Answer

A) True 
 B)False

Question 6

What is the MOST important advantage of general partnerships?

Accepted Answer

A)  The unlimited liability of the partnership 
B)  The ability to grow with the addition of new talent and money 
C)  The ease of implementing an effective control system 
D)  The increased role of luck 
E)  The need for minority partners 
A)  The unlimited liability of the partnership 
B)  The ability to grow with the addition of new talent and money 
C)  The ease of implementing an effective control system 
D)  The increased role of luck 
E)  The need for minority partners

Question 7

Small-business investment companies (SBICs)may be sponsored by the federal government.

Accepted Answer

A) True 
 B)False

Question 8

Which form of business ownership generates the MOST sales in the United States?

Accepted Answer

A)  Sole proprietorship 
B)  General partnership 
C)  Cooperative 
D)  Corporation 
E)  Limited partnership 
A)  Sole proprietorship 
B)  General partnership 
C)  Cooperative 
D)  Corporation 
E)  Limited partnership

Question 9

What is first mover advantage?

Accepted Answer

A)  The concept that the first in the market will make the most money 
B)  The concept that a firm who exploits an opportunity before others has an advantage 
C)  The concept that there is an advantage in leaving a market when it becomes flooded 
D)  The concept that large organizations cannot take advantage of an opportunity as quickly as an entrepreneur 
E)  The concept that there is more risk being first, but also more reward, if successful 
A)  The concept that the first in the market will make the most money 
B)  The concept that a firm who exploits an opportunity before others has an advantage 
C)  The concept that there is an advantage in leaving a market when it becomes flooded 
D)  The concept that large organizations cannot take advantage of an opportunity as quickly as an entrepreneur 
E)  The concept that there is more risk being first, but also more reward, if successful

Question 10

What is the term for the profits that are distributed to all owners of a corporation?

Accepted Answer

A)  Tender 
B)  Interests 
C)  ESOP 
D)  Dividends 
E)  Yield 
A)  Tender 
B)  Interests 
C)  ESOP 
D)  Dividends 
E)  Yield

Question 11

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 proposals 
A)  Sharing company control 
B)  Having to pay high interest rates 
C)  Limiting expansion 
D)  Facing a short repayment period 
E)  Having to write proposals

Question 12

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 13

An employee stock ownership plan allows employees to join together and influence corporate managers and how they run the company.

Accepted Answer

A) True 
 B)False

Question 14

What is the first step in becoming an entrepreneur?

Accepted Answer

A)  Deciding to proceed 
B)  Formulating a business plan 
C)  Identifying distinctive competencies 
D)  Searching for capital to invest 
E)  Implementing plans and opening 
A)  Deciding to proceed 
B)  Formulating a business plan 
C)  Identifying distinctive competencies 
D)  Searching for capital to invest 
E)  Implementing plans and opening

Question 15

What is the advantage of forming a strategic alliance with a competitor or supplier?

Accepted Answer

A)  Mutual gain 
B)  Increased shares of stock 
C)  The ability to influence the price of stock 
D)  To legally join the two organizations 
E)  The ability to sell a section of the business but still retain control 
A)  Mutual gain 
B)  Increased shares of stock 
C)  The ability to influence the price of stock 
D)  To legally join the two organizations 
E)  The ability to sell a section of the business but still retain control

Question 16

What is considered to be a significant disadvantage of owning a franchise?

Accepted Answer

A)  Start-up costs 
B)  Operational guidelines 
C)  Difficulty obtaining loans 
D)  Double taxation 
E)  Competition 
A)  Start-up costs 
B)  Operational guidelines 
C)  Difficulty obtaining loans 
D)  Double taxation 
E)  Competition

Question 17

A joint venture occurs when partners share ownership of a new enterprise.

Accepted Answer

A) True 
 B)False

Question 18

Which of the following is federally licensed to borrow money from the Small Business Administration to invest in or lend to small businesses?

Accepted Answer

A)  SCORE 
B)  SBICs 
C)  SBDC 
D)  FDIC 
E)  SEC 
A)  SCORE 
B)  SBICs 
C)  SBDC 
D)  FDIC 
E)  SEC

Question 19

What does an entrepreneur use to summarize 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

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

Accepted Answer

A) True 
 B)False

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

What is the MOST common type of partnership?

What is formed when a corporation establishes a trust on behalf of employees for the purpose of buying shares of ownership?

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

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

What is the MOST important advantage of general partnerships?

Small-business investment companies (SBICs)may be sponsored by the federal government.

Which form of business ownership generates the MOST sales in the United States?

What is first mover advantage?

What is the term for the profits that are distributed to all owners of a corporation?

What is the major drawback of accepting venture capital?

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

An employee stock ownership plan allows employees to join together and influence corporate managers and how they run the company.

What is the first step in becoming an entrepreneur?

What is the advantage of forming a strategic alliance with a competitor or supplier?

What is considered to be a significant disadvantage of owning a franchise?

A joint venture occurs when partners share ownership of a new enterprise.

Which of the following is federally licensed to borrow money from the Small Business Administration to invest in or lend to small businesses?

What does an entrepreneur use to summarize his or her business strategy for a proposed new venture?

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

The US Business Environment

Understanding Business Ethics and Social Responsibility

Understanding the Global Context of Business

Managing the Business

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

Developing and Pricing Products

Distributing and Promoting Products

Information Technology Itfor Business

The Role of Accountants and Accounting Information

Understanding Money and the Role of Banking

Managing Business Finances

Filters

Exam 3: Entrepreneurship, New Ventures, and Business Ownership

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

What is the MOST common type of partnership?

What is formed when a corporation establishes a trust on behalf of employees for the purpose of buying shares of ownership?

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

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

What is the MOST important advantage of general partnerships?

Small-business investment companies (SBICs)may be sponsored by the federal government.

Which form of business ownership generates the MOST sales in the United States?

What is first mover advantage?

What is the term for the profits that are distributed to all owners of a corporation?

What is the major drawback of accepting venture capital?

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

An employee stock ownership plan allows employees to join together and influence corporate managers and how they run the company.

What is the first step in becoming an entrepreneur?

What is the advantage of forming a strategic alliance with a competitor or supplier?

What is considered to be a significant disadvantage of owning a franchise?

A joint venture occurs when partners share ownership of a new enterprise.

Which of the following is federally licensed to borrow money from the Small Business Administration to invest in or lend to small businesses?

What does an entrepreneur use to summarize his or her business strategy for a proposed new venture?

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

The US Business Environment

Understanding Business Ethics and Social Responsibility

Understanding the Global Context of Business

Managing the Business

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

Developing and Pricing Products

Distributing and Promoting Products

Information Technology Itfor Business

The Role of Accountants and Accounting Information

Understanding Money and the Role of Banking

Managing Business Finances

Filters