Question 1

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 2

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

Accepted Answer

Financing for starting up a new business

Question 3

Why might an entrepreneur wish to purchase an existing business rather than start one from scratch?

Accepted Answer

An entrepreneur may wish to purchase an

Question 4

Explain a tender offer.

Accepted Answer

A tender offer is an offer to buy shares

Question 5

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

Accepted Answer

A) True 
 B)False

Question 6

What type of partner invests all funds in the organization but plays no role in its management?

Accepted Answer

A)  Limited partnership 
B)  General partner 
C)  Silent partner 
D)  Active partner 
E)  Master limited partnership 
A)  Limited partnership 
B)  General partner 
C)  Silent partner 
D)  Active partner 
E)  Master limited partnership

Question 7

What is the advantage to starting a business from scratch instead of buying an existing business?

Accepted Answer

A)  There is a proven ability to attract customers. 
B)  Profit is generated sooner. 
C)  There is a stronger relationship with lenders and other stakeholders. 
D)  There are no ill-effects from the previous owner. 
E)  There is a clearer picture of what to expect in terms of start-up. 
A)  There is a proven ability to attract customers. 
B)  Profit is generated sooner. 
C)  There is a stronger relationship with lenders and other stakeholders. 
D)  There are no ill-effects from the previous owner. 
E)  There is a clearer picture of what to expect in terms of start-up.

Question 8

A limited liability corporation is a hybrid of a publicly held corporation and a partnership.

Accepted Answer

A) True 
 B)False

Question 9

What do both sole proprietorships and partnerships lack?

Accepted Answer

A)  Trust 
B)  Legal standing 
C)  Continuity 
D)  Shared vision 
E)  Adaptable processes 
A)  Trust 
B)  Legal standing 
C)  Continuity 
D)  Shared vision 
E)  Adaptable processes

Question 10

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

Accepted Answer

A) True 
 B)False

Question 11

An organization's president is usually responsible for the overall performance of the firm.

Accepted Answer

A) True 
 B)False

Question 12

Which of the following factors MOST contributes to small business failure?

Accepted Answer

A)  Managerial incompetence or inexperience 
B)  Bad product design 
C)  Legal problems 
D)  Time spent raising capital 
E)  Personnel issues 
A)  Managerial incompetence or inexperience 
B)  Bad product design 
C)  Legal problems 
D)  Time spent raising capital 
E)  Personnel issues

Question 13

Explain limited liability in a corporation.

Accepted Answer

Limited liability is the legal principle

Question 14

In which business sector are cooperatives still important?

Accepted Answer

A)  Manufacturing 
B)  Automotive 
C)  Public utilities 
D)  Agriculture 
E)  Health care 
A)  Manufacturing 
B)  Automotive 
C)  Public utilities 
D)  Agriculture 
E)  Health care

Question 15

Which type of business is legally considered a separate entity from its owners and is liable for its own debts?

Accepted Answer

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

Question 16

The board of directors of a corporation reports to the officers of the corporation.

Accepted Answer

A) True 
 B)False

Question 17

Explain the difference between mergers and acquisitions and why they are important forms of corporate strategy.

Accepted Answer

In an acquisition,one firm buys another

Question 18

Most institutional investors are large investors who purchase shares of an organization through

Accepted Answer

A)  employee stock ownership plans. 
B)  spin offs. 
C)  strategic alliances. 
D)  joint ventures. 
E)  mutual funds. 
A)  employee stock ownership plans. 
B)  spin offs. 
C)  strategic alliances. 
D)  joint ventures. 
E)  mutual funds.

Question 19

Who invests all of the funds needed for a business but plays no role in its management?

Accepted Answer

A)  Silent partner 
B)  Sole proprietor 
C)  General partner 
D)  Principal 
E)  Director 
A)  Silent partner 
B)  Sole proprietor 
C)  General partner 
D)  Principal 
E)  Director

Question 20

Which of the following is an advantage of sole proprietorships?

Accepted Answer

A)  Ease in attracting a silent partner 
B)  Sales and expenses are treated as part of personal finances 
C)  It is easier to borrow money. 
D)  There is increased continuity 
E)  Bills are paid out of pocket 
A)  Ease in attracting a silent partner 
B)  Sales and expenses are treated as part of personal finances 
C)  It is easier to borrow money. 
D)  There is increased continuity 
E)  Bills are paid out of pocket

Why are lenders most willing to loan to corporations?

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

Why might an entrepreneur wish to purchase an existing business rather than start one from scratch?

Explain a tender offer.

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

What type of partner invests all funds in the organization but plays no role in its management?

What is the advantage to starting a business from scratch instead of buying an existing business?

A limited liability corporation is a hybrid of a publicly held corporation and a partnership.

What do both sole proprietorships and partnerships lack?

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

An organization's president is usually responsible for the overall performance of the firm.

Which of the following factors MOST contributes to small business failure?

Explain limited liability in a corporation.

In which business sector are cooperatives still important?

Which type of business is legally considered a separate entity from its owners and is liable for its own debts?

The board of directors of a corporation reports to the officers of the corporation.

Explain the difference between mergers and acquisitions and why they are important forms of corporate strategy.

Most institutional investors are large investors who purchase shares of an organization through

Who invests all of the funds needed for a business but plays no role in its management?

Which of the following is an advantage of sole proprietorships?

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

Why are lenders most willing to loan to corporations?

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

Why might an entrepreneur wish to purchase an existing business rather than start one from scratch?

Explain a tender offer.

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

What type of partner invests all funds in the organization but plays no role in its management?

What is the advantage to starting a business from scratch instead of buying an existing business?

A limited liability corporation is a hybrid of a publicly held corporation and a partnership.

What do both sole proprietorships and partnerships lack?

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

An organization's president is usually responsible for the overall performance of the firm.

Which of the following factors MOST contributes to small business failure?

Explain limited liability in a corporation.

In which business sector are cooperatives still important?

Which type of business is legally considered a separate entity from its owners and is liable for its own debts?

The board of directors of a corporation reports to the officers of the corporation.

Explain the difference between mergers and acquisitions and why they are important forms of corporate strategy.

Most institutional investors are large investors who purchase shares of an organization through

Who invests all of the funds needed for a business but plays no role in its management?

Which of the following is an advantage of sole proprietorships?

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