Question 1

Most of the small businesses today are run by Caucasian males.

Accepted Answer

A) True 
 B)False

Question 2

Sole proprietorships have all of the following advantages EXCEPT _____.

Accepted Answer

A)  unlimited life 
B)  ease of formation 
C)  profits subject only to a single tax 
D)  ease of liquidation 
A)  unlimited life 
B)  ease of formation 
C)  profits subject only to a single tax 
D)  ease of liquidation

Question 3

If you are a highly independent individual used to having your own way, the best business format for you is a _____.

Accepted Answer

A)  partnership 
B)  corporation 
C)  sole proprietorship 
D)  limited liability corporation 
A)  partnership 
B)  corporation 
C)  sole proprietorship 
D)  limited liability corporation

Question 4

Describe the complexity of franchise agreements.

Accepted Answer

Franchise agreements can be complex. The

Question 5

Strict franchise agreements help to maintain the integrity of the brand.

Accepted Answer

A) True 
 B)False

Question 6

Which of the following is a trend in the area of franchising?

Accepted Answer

A)  More franchises are opening outside the United States. 
B)  Franchises are becoming less expensive to fund. 
C)  Franchisees are determining their own pricing and marketing. 
D)  Franchisees are able to negotiate better pricing than franchisors. 
A)  More franchises are opening outside the United States. 
B)  Franchises are becoming less expensive to fund. 
C)  Franchisees are determining their own pricing and marketing. 
D)  Franchisees are able to negotiate better pricing than franchisors.

Question 7

Franchises often minimize the amount of expansion opportunities.

Accepted Answer

A) True 
 B)False

Question 8

Alternatives to private ownership include _____.

Accepted Answer

A)  public ownership and collective ownership 
B)  employee ownership and foreign corporations 
C)  foreign corporations and public ownership 
D)  employee ownership and collective ownership 
A)  public ownership and collective ownership 
B)  employee ownership and foreign corporations 
C)  foreign corporations and public ownership 
D)  employee ownership and collective ownership

Question 9

Franchisors generally find it more challenging to build a large customer base.

Accepted Answer

A) True 
 B)False

Question 10

Jose is a stockholder in a software consulting firm. He gets a share of the earnings of the firm, on which he has to pay taxes. Moreover, the firm pays taxes on its earnings. As an individual, Jose is not legally liable to pay off the debts that might be incurred by the firm. In this scenario, the software consulting firm can be regarded as a _____.

Accepted Answer

A)  sole proprietorship 
B)  partnership 
C)  corporation 
D)  franchise 
A)  sole proprietorship 
B)  partnership 
C)  corporation 
D)  franchise

Question 11

First-time business owners often overestimate the funds their firms will generate from initial sales to allow for operations to continue.

Accepted Answer

A) True 
 B)False

Question 12

The management of Javier Investments wants to create more job opportunities in their city. They believe that the best way to create more jobs is to help people start their own business. They invest a portion of the company's profit, along with money received through government loans, to support people trying to start their own business. Javier Investments is an example of:

Accepted Answer

A)  Unit investment trusts (UITs). 
B)  Small Business Investment Companies (SBICs). 
C)  Joint ventures. 
D)  Business incubators. 
A)  Unit investment trusts (UITs). 
B)  Small Business Investment Companies (SBICs). 
C)  Joint ventures. 
D)  Business incubators.

Question 13

Which government agency establishes standards for small businesses?

Accepted Answer

A)  Food and Drug Administration 
B)  Securities and Exchange Commission 
C)  Small Business Administration 
D)  Small Business Investment Company 
A)  Food and Drug Administration 
B)  Securities and Exchange Commission 
C)  Small Business Administration 
D)  Small Business Investment Company

Question 14

Small-business owners want to determine whether their companies meet the standards for small-business designation because:

Accepted Answer

A)  they do not have to pay taxes on their profits. 
B)  government agencies offer benefits designed to help small businesses compete with larger firms. 
C)  incorporation is easier for them. 
D)  banks are more likely to grant them loans. 
A)  they do not have to pay taxes on their profits. 
B)  government agencies offer benefits designed to help small businesses compete with larger firms. 
C)  incorporation is easier for them. 
D)  banks are more likely to grant them loans.

Question 15

All of the following organizations are regularly and directly involved in sponsoring business incubators EXCEPT _____.

Accepted Answer

A)  the federal government 
B)  colleges and universities 
C)  not-for-profit organizations 
D)  profit-seeking businesses 
A)  the federal government 
B)  colleges and universities 
C)  not-for-profit organizations 
D)  profit-seeking businesses

Question 16

A vertical merger joins firms in the same industry in order to cut costs and promote diversification.

Accepted Answer

A) True 
 B)False

Question 17

Small businesses produce over 16 times more patents than large businesses each year.

Accepted Answer

A) True 
 B)False

Question 18

MATCHING
Complete the following using the terms listed.
-The form of business ownership that establishes the firm as a separate legal entity is the _____.

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 19

Why are small businesses especially important to women and minorities?

Accepted Answer

Women, like men, have a variety of reaso

Question 20

The average amount rewarded to owners of small businesses through Small Business Administration (SBA) microloans is $13,000.

Accepted Answer

A) True 
 B)False

Most of the small businesses today are run by Caucasian males.

Sole proprietorships have all of the following advantages EXCEPT _____.

If you are a highly independent individual used to having your own way, the best business format for you is a _____.

Describe the complexity of franchise agreements.

Strict franchise agreements help to maintain the integrity of the brand.

Which of the following is a trend in the area of franchising?

Franchises often minimize the amount of expansion opportunities.

Alternatives to private ownership include _____.

Franchisors generally find it more challenging to build a large customer base.

First-time business owners often overestimate the funds their firms will generate from initial sales to allow for operations to continue.

Which government agency establishes standards for small businesses?

Small-business owners want to determine whether their companies meet the standards for small-business designation because:

All of the following organizations are regularly and directly involved in sponsoring business incubators EXCEPT _____.

A vertical merger joins firms in the same industry in order to cut costs and promote diversification.

Small businesses produce over 16 times more patents than large businesses each year.

MATCHING Complete the following using the terms listed. -The form of business ownership that establishes the firm as a separate legal entity is the _____.

Why are small businesses especially important to women and minorities?

The average amount rewarded to owners of small businesses through Small Business Administration (SBA) microloans is $13,000.

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

Most of the small businesses today are run by Caucasian males.

Sole proprietorships have all of the following advantages EXCEPT _____.

If you are a highly independent individual used to having your own way, the best business format for you is a _____.

Describe the complexity of franchise agreements.

Strict franchise agreements help to maintain the integrity of the brand.

Which of the following is a trend in the area of franchising?

Franchises often minimize the amount of expansion opportunities.

Alternatives to private ownership include _____.

Franchisors generally find it more challenging to build a large customer base.

First-time business owners often overestimate the funds their firms will generate from initial sales to allow for operations to continue.

Which government agency establishes standards for small businesses?

Small-business owners want to determine whether their companies meet the standards for small-business designation because:

All of the following organizations are regularly and directly involved in sponsoring business incubators EXCEPT _____.

A vertical merger joins firms in the same industry in order to cut costs and promote diversification.

Small businesses produce over 16 times more patents than large businesses each year.

MATCHING Complete the following using the terms listed. -The form of business ownership that establishes the firm as a separate legal entity is the _____.

Why are small businesses especially important to women and minorities?

The average amount rewarded to owners of small businesses through Small Business Administration (SBA) microloans is $13,000.

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