Question 1

The CEO of a corporation is automatically the chair of the board of directors.

Accepted Answer

A) True 
 B)False

Question 2

Most business incubators are run by not-for-profit organizations focused on economic development.

Accepted Answer

A) True 
 B)False

Question 3

MATCHING
Complete the following using the terms listed.
-Owners of _____ have limited voting rights, but are entitled to the earliest dividends.

Accepted Answer

A) sole proprietorship 
B) small business 
C) corporation 
D) merger 
E) acquisition
F)horizontal merger
G)conglomerate merger
H)cooperative
I)vertical merger
J)business incubators
K)business plan
L)alien corporation
M)preferred stock
N)franchising 
A) sole proprietorship 
B) small business 
C) corporation 
D) merger 
E) acquisition
F)horizontal merger
G)conglomerate merger
H)cooperative
I)vertical merger
J)business incubators
K)business plan
L)alien corporation
M)preferred stock
N)franchising

Question 4

The two principal parties in a franchising agreement are the _____.

Accepted Answer

A)  manager and worker 
B)  franchiser and partners 
C)  franchisor and franchisee 
D)  venture capitalist and SBA 
A)  manager and worker 
B)  franchiser and partners 
C)  franchisor and franchisee 
D)  venture capitalist and SBA

Question 5

The maximum number of shareholders is limited to _____ for a firm to qualify as a subchapter S corporation.

Accepted Answer

A)  25 
B)  50 
C)  75 
D)  100 
A)  25 
B)  50 
C)  75 
D)  100

Question 6

Explain how small businesses create new industries.

Accepted Answer

New industries are sometimes created whe

Question 7

A conglomerate merger is a merger of unrelated firms.

Accepted Answer

A) True 
 B)False

Question 8

Owners of corporations may owe personal income taxes on dividends, which are paid from after-tax corporate profits. This is an example of double taxation.

Accepted Answer

A) True 
 B)False

Question 9

Most owners of small businesses rely on loans from financial institutions for their start-up funds.

Accepted Answer

A) True 
 B)False

Question 10

MATCHING
Complete the following using the terms listed.
-A(n) _____ is a type of business ownership formed in one country but that operates in another country.

Accepted Answer

A) sole proprietorship 
B) small business 
C) corporation 
D) merger 
E) acquisition
F)horizontal merger
G)conglomerate merger
H)cooperative
I)vertical merger
J)business incubators
K)business plan
L)alien corporation
M)preferred stock
N)franchising 
A) sole proprietorship 
B) small business 
C) corporation 
D) merger 
E) acquisition
F)horizontal merger
G)conglomerate merger
H)cooperative
I)vertical merger
J)business incubators
K)business plan
L)alien corporation
M)preferred stock
N)franchising

Question 11

Franchising combines the freedom of business ownership with the support of a large company.

Accepted Answer

A) True 
 B)False

Question 12

MATCHING
Complete the following using the terms listed.
-A(n) _____ combines firms operating at different levels in the production and marketing process.

Accepted Answer

A) sole proprietorship 
B) small business 
C) corporation 
D) merger 
E) acquisition
F)horizontal merger
G)conglomerate merger
H)cooperative
I)vertical merger
J)business incubators
K)business plan
L)alien corporation
M)preferred stock
N)franchising 
A) sole proprietorship 
B) small business 
C) corporation 
D) merger 
E) acquisition
F)horizontal merger
G)conglomerate merger
H)cooperative
I)vertical merger
J)business incubators
K)business plan
L)alien corporation
M)preferred stock
N)franchising

Question 13

Most managers of home-based businesses struggle to establish business hours that correspond with customer availability.

Accepted Answer

A) True 
 B)False

Question 14

Maria is the owner of a very small technology start-up. She shares clerical staff, computers, and other business services with other small business owners. Maria is part of a:

Accepted Answer

A)  business incubator. 
B)  venture capital company. 
C)  joint venture. 
D)  microloan company. 
A)  business incubator. 
B)  venture capital company. 
C)  joint venture. 
D)  microloan company.

Question 15

Large businesses must be organized as corporations.

Accepted Answer

A) True 
 B)False

Question 16

If JNK steel buys Ramirez Iron Ore to assure itself of a constant flow of ore, it will be an example of a _____.

Accepted Answer

A)  conglomerate company 
B)  domestic company 
C)  vertical merger 
D)  subsidiary corporation 
A)  conglomerate company 
B)  domestic company 
C)  vertical merger 
D)  subsidiary corporation

Question 17

A corporation operating outside its state of incorporation is known as a domestic corporation.

Accepted Answer

A) True 
 B)False

Question 18

If business owners in a partnership wish to limit liability, they have the option to _____.

Accepted Answer

A)  pledge funds 
B)  limit expenditure 
C)  set up a limited-liability partnership 
D)  dissolve the partnership 
A)  pledge funds 
B)  limit expenditure 
C)  set up a limited-liability partnership 
D)  dissolve the partnership

Question 19

Neehara owns a small business and needs assistance on a variety of issues. The Small Business Administration (SBA) can help her by providing _____.

Accepted Answer

A)  an accountant 
B)  a business incubator 
C)  government procurement 
D)  direct business loans 
A)  an accountant 
B)  a business incubator 
C)  government procurement 
D)  direct business loans

Question 20

Mariana wants to start an event management firm with two of her friends. She decides to create a business plan that will help her in securing financing for her firm. Which of the following should she include in the business plan?

Accepted Answer

A)  A list of her previous clients 
B)  A list of the potential lenders 
C)  An introduction that includes the objectives of her business 
D)  A time frame for selling stock to investors 
A)  A list of her previous clients 
B)  A list of the potential lenders 
C)  An introduction that includes the objectives of her business 
D)  A time frame for selling stock to investors

The CEO of a corporation is automatically the chair of the board of directors.

Most business incubators are run by not-for-profit organizations focused on economic development.

MATCHING Complete the following using the terms listed. -Owners of _____ have limited voting rights, but are entitled to the earliest dividends.

The two principal parties in a franchising agreement are the _____.

The maximum number of shareholders is limited to _____ for a firm to qualify as a subchapter S corporation.

Explain how small businesses create new industries.

A conglomerate merger is a merger of unrelated firms.

Owners of corporations may owe personal income taxes on dividends, which are paid from after-tax corporate profits. This is an example of double taxation.

Most owners of small businesses rely on loans from financial institutions for their start-up funds.

MATCHING Complete the following using the terms listed. -A(n) _____ is a type of business ownership formed in one country but that operates in another country.

Franchising combines the freedom of business ownership with the support of a large company.

MATCHING Complete the following using the terms listed. -A(n) _____ combines firms operating at different levels in the production and marketing process.

Most managers of home-based businesses struggle to establish business hours that correspond with customer availability.

Maria is the owner of a very small technology start-up. She shares clerical staff, computers, and other business services with other small business owners. Maria is part of a:

Large businesses must be organized as corporations.

If JNK steel buys Ramirez Iron Ore to assure itself of a constant flow of ore, it will be an example of a _____.

A corporation operating outside its state of incorporation is known as a domestic corporation.

If business owners in a partnership wish to limit liability, they have the option to _____.

Neehara owns a small business and needs assistance on a variety of issues. The Small Business Administration (SBA) can help her by providing _____.

Mariana wants to start an event management firm with two of her friends. She decides to create a business plan that will help her in securing financing for her firm. Which of the following should she include in the business plan?

The Changing Face of Business

Business Ethics and Social Responsibility

Economic Challenges Facing Contemporary Business

Competing in World Markets

Starting Your Own Business: the Entrepreneurship Alternative

Management, Leadership, and the Internal Organization

Human Resource Management: From Recruitment to Labor Relations

Top Performance Through Empowerment, Teamwork, and Communication

Production and Operations Management

Customer-Driven Marketing

Product and Distribution Strategies

Promotion and Pricing Strategies

Using Technology to Manage Information

Understanding Accounting and Financial Statements

The Financial System

Financial Management

Filters

Exam 5: Forms of Business Ownership and Organization

The CEO of a corporation is automatically the chair of the board of directors.

Most business incubators are run by not-for-profit organizations focused on economic development.

MATCHING Complete the following using the terms listed. -Owners of _____ have limited voting rights, but are entitled to the earliest dividends.

The two principal parties in a franchising agreement are the _____.

The maximum number of shareholders is limited to _____ for a firm to qualify as a subchapter S corporation.

Explain how small businesses create new industries.

A conglomerate merger is a merger of unrelated firms.

Owners of corporations may owe personal income taxes on dividends, which are paid from after-tax corporate profits. This is an example of double taxation.

Most owners of small businesses rely on loans from financial institutions for their start-up funds.

MATCHING Complete the following using the terms listed. -A(n) _____ is a type of business ownership formed in one country but that operates in another country.

Franchising combines the freedom of business ownership with the support of a large company.

MATCHING Complete the following using the terms listed. -A(n) _____ combines firms operating at different levels in the production and marketing process.

Most managers of home-based businesses struggle to establish business hours that correspond with customer availability.

Maria is the owner of a very small technology start-up. She shares clerical staff, computers, and other business services with other small business owners. Maria is part of a:

Large businesses must be organized as corporations.

If JNK steel buys Ramirez Iron Ore to assure itself of a constant flow of ore, it will be an example of a _____.

A corporation operating outside its state of incorporation is known as a domestic corporation.

If business owners in a partnership wish to limit liability, they have the option to _____.

Neehara owns a small business and needs assistance on a variety of issues. The Small Business Administration (SBA) can help her by providing _____.

Mariana wants to start an event management firm with two of her friends. She decides to create a business plan that will help her in securing financing for her firm. Which of the following should she include in the business plan?

The Changing Face of Business

Business Ethics and Social Responsibility

Economic Challenges Facing Contemporary Business

Competing in World Markets

Starting Your Own Business: the Entrepreneurship Alternative

Management, Leadership, and the Internal Organization

Human Resource Management: From Recruitment to Labor Relations

Top Performance Through Empowerment, Teamwork, and Communication

Production and Operations Management

Customer-Driven Marketing

Product and Distribution Strategies

Promotion and Pricing Strategies

Using Technology to Manage Information

Understanding Accounting and Financial Statements

The Financial System

Financial Management

Filters