Question 1

Which of the following is not a source of funds for a sole proprietorship?

Accepted Answer

A)  Bank loans 
B)  Family members 
C)  Personal funds 
D)  Selling stock or issuing bonds 
E)  Small Business Administration 
A)  Bank loans 
B)  Family members 
C)  Personal funds 
D)  Selling stock or issuing bonds 
E)  Small Business Administration D

Question 2

A conglomerate merger results when two firms in unrelated industries merge.

Accepted Answer

A) True 
 B)False  True

Question 3

Thomas thinks that organizing as a partnership would be best because

Accepted Answer

A)  it is the most complicated to form. 
B)  they are a small company and do not need to be a corporation. 
C)  it gives them limited liability. 
D)  it would allow them to rely on their own financial resources and talents. 
E)  they would have an easier time selling the business later. 
A)  it is the most complicated to form. 
B)  they are a small company and do not need to be a corporation. 
C)  it gives them limited liability. 
D)  it would allow them to rely on their own financial resources and talents. 
E)  they would have an easier time selling the business later. D

Question 4

All states require partnerships to have articles of partnership.

Accepted Answer

A) True 
 B)False

Question 5

When a firm is facing a hostile takeover attempt,it may issue a poison pill,which is

Accepted Answer

A)  when it fires its board of directors for incompetence. 
B)  when the firm allows stockholders to buy up shares of stock at lower than market value. 
C)  when the executive suite quits en masse before a takeover. 
D)  a term for plummeting stock values. 
E)  a letter that expresses dismay at the maneuver sent to the company attempting the takeover. 
A)  when it fires its board of directors for incompetence. 
B)  when the firm allows stockholders to buy up shares of stock at lower than market value. 
C)  when the executive suite quits en masse before a takeover. 
D)  a term for plummeting stock values. 
E)  a letter that expresses dismay at the maneuver sent to the company attempting the takeover.

Question 6

Corporations distribute profits to their owners in the form of

Accepted Answer

A)  tax-free dividends. 
B)  interest. 
C)  retained earnings. 
D)  dividends. 
E)  bribes. 
A)  tax-free dividends. 
B)  interest. 
C)  retained earnings. 
D)  dividends. 
E)  bribes.

Question 7

How do preferred stockholders differ from the common stockholders of a corporation?

Accepted Answer

While common stockholders usually have v

Question 8

In a partnership,all partners are equally liable.

Accepted Answer

A) True 
 B)False

Question 9

Common stockholders do not have the right to

Accepted Answer

A)  vote for the board of directors. 
B)  share in profits. 
C)  attend the stockholders' meetings. 
D)  exercise preemptive rights. 
E)  receive dividends before preferred stockholders. 
A)  vote for the board of directors. 
B)  share in profits. 
C)  attend the stockholders' meetings. 
D)  exercise preemptive rights. 
E)  receive dividends before preferred stockholders.

Question 10

What is a leveraged buyout? What are some of the advantages of mergers and acquisitions?

Accepted Answer

A leveraged buyout is a purchase in whic

Question 11

If you want to go into business for yourself,the easiest way is with a sole proprietorship.

Accepted Answer

A) True 
 B)False

Question 12

When firms that make and sell similar products to the same customers merge,it is known as a

Accepted Answer

A)  horizontal merger. 
B)  vertical merger. 
C)  acquisition. 
D)  hostile takeover. 
E)  poison pill. 
A)  horizontal merger. 
B)  vertical merger. 
C)  acquisition. 
D)  hostile takeover. 
E)  poison pill.

Question 13

What are some of the advantages and disadvantages of Thomas and Bryan forming a corporation?

Accepted Answer

The major advantages of Thomas and Bryan

Question 14

In a general partnership,each partner is liable only for the debts he or she incurs.

Accepted Answer

A) True 
 B)False

Question 15

In a partnership,if the goals of one partner change,the result may be friction and even legal disputes.

Accepted Answer

A) True 
 B)False

Question 16

A leveraged buyout is an organization composed of small businesses that have banded together to reap the benefits of belonging to a larger organization.

Accepted Answer

A) True 
 B)False

Question 17

When two companies combine to form a new company,it is called a(n)

Accepted Answer

A)  merger. 
B)  acquisition. 
C)  tender offer. 
D)  leveraged buyout. 
E)  white knight. 
A)  merger. 
B)  acquisition. 
C)  tender offer. 
D)  leveraged buyout. 
E)  white knight.

Question 18

A merger occurs when one company buys another by buying its stock.

Accepted Answer

A) True 
 B)False

Question 19

Which organizational form do you think would be best for Thomas and Bryan's company and why?

Accepted Answer

Students' answers will vary because ther

Question 20

Most tender offers are considered hostile.

Accepted Answer

A) True 
 B)False

Which of the following is not a source of funds for a sole proprietorship?

A conglomerate merger results when two firms in unrelated industries merge.

Thomas thinks that organizing as a partnership would be best because

All states require partnerships to have articles of partnership.

When a firm is facing a hostile takeover attempt,it may issue a poison pill,which is

Corporations distribute profits to their owners in the form of

How do preferred stockholders differ from the common stockholders of a corporation?

In a partnership,all partners are equally liable.

Common stockholders do not have the right to

What is a leveraged buyout? What are some of the advantages of mergers and acquisitions?

If you want to go into business for yourself,the easiest way is with a sole proprietorship.

When firms that make and sell similar products to the same customers merge,it is known as a

What are some of the advantages and disadvantages of Thomas and Bryan forming a corporation?

In a general partnership,each partner is liable only for the debts he or she incurs.

In a partnership,if the goals of one partner change,the result may be friction and even legal disputes.

A leveraged buyout is an organization composed of small businesses that have banded together to reap the benefits of belonging to a larger organization.

When two companies combine to form a new company,it is called a(n)

A merger occurs when one company buys another by buying its stock.

Which organizational form do you think would be best for Thomas and Bryan's company and why?

Most tender offers are considered hostile.

The Dynamics of Business and Economics

Business Ethics and Social Responsibility

Business in a Borderless World

Small Business, entrepreneurship, and Franchising

The Nature of Management

Organization, teamwork, and Communication

Managing Service and Manufacturing Operations

Motivating the Workforce

Managing Human Resources

Customer-Driven Marketing

Dimensions of Marketing Strategy

Digital Marketing and Social Networking

Accounting and Financial Statements

Money and the Financial System

Financial Management and Securities Markets

Filters

Exam 4: Options for Organizing Business

Which of the following is not a source of funds for a sole proprietorship?

A conglomerate merger results when two firms in unrelated industries merge.

Thomas thinks that organizing as a partnership would be best because

All states require partnerships to have articles of partnership.

When a firm is facing a hostile takeover attempt,it may issue a poison pill,which is

Corporations distribute profits to their owners in the form of

How do preferred stockholders differ from the common stockholders of a corporation?

In a partnership,all partners are equally liable.

Common stockholders do not have the right to

What is a leveraged buyout? What are some of the advantages of mergers and acquisitions?

If you want to go into business for yourself,the easiest way is with a sole proprietorship.

When firms that make and sell similar products to the same customers merge,it is known as a

What are some of the advantages and disadvantages of Thomas and Bryan forming a corporation?

In a general partnership,each partner is liable only for the debts he or she incurs.

In a partnership,if the goals of one partner change,the result may be friction and even legal disputes.

A leveraged buyout is an organization composed of small businesses that have banded together to reap the benefits of belonging to a larger organization.

When two companies combine to form a new company,it is called a(n)

A merger occurs when one company buys another by buying its stock.

Which organizational form do you think would be best for Thomas and Bryan's company and why?

Most tender offers are considered hostile.

The Dynamics of Business and Economics

Business Ethics and Social Responsibility

Business in a Borderless World

Small Business, entrepreneurship, and Franchising

The Nature of Management

Organization, teamwork, and Communication

Managing Service and Manufacturing Operations

Motivating the Workforce

Managing Human Resources

Customer-Driven Marketing

Dimensions of Marketing Strategy

Digital Marketing and Social Networking

Accounting and Financial Statements

Money and the Financial System

Financial Management and Securities Markets

Filters