Question 1

What is a business incubator?

Accepted Answer

In recent years, local community agencie

Question 2

Assume that a tech firm decides to invest some of its excess cash by acquiring a coffeehouse chain. This would be a _____.

Accepted Answer

A)  conglomerate company 
B)  vertical merger 
C)  horizontal merger 
D)  joint venture 
A)  conglomerate company 
B)  vertical merger 
C)  horizontal merger 
D)  joint venture

Question 3

Breaking up a partnership is more complicated than dissolving a sole proprietorship.

Accepted Answer

A) True 
 B)False

Question 4

MATCHING
Complete the following using the terms listed.
-A merger of firms in unrelated industries is called a(n) _____.

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 5

Latifa is a chief financial officer in a large corporation. She has the full financial authority to make appropriations and authorize expenditures. Latifa is likely to be a member of _____ management.

Accepted Answer

A)  Middle 
B)  advisory 
C)  supervisory 
D)  Top 
A)  Middle 
B)  advisory 
C)  supervisory 
D)  Top

Question 6

Which of the following statements regarding franchising is FALSE?

Accepted Answer

A)  Franchises are riskier than other forms of business ownership. 
B)  Franchisees have the benefit of name recognition. 
C)  Franchisors provide a wide range of support to franchisees. 
D)  Benefits for the franchisor include opportunities for expansion that might not otherwise be available. 
A)  Franchises are riskier than other forms of business ownership. 
B)  Franchisees have the benefit of name recognition. 
C)  Franchisors provide a wide range of support to franchisees. 
D)  Benefits for the franchisor include opportunities for expansion that might not otherwise be available.

Question 7

Franchising offers all of the following advantages EXCEPT _____.

Accepted Answer

A)  a recognizable company name 
B)  prior performance record 
C)  training 
D)  guaranteed level of profitability 
A)  a recognizable company name 
B)  prior performance record 
C)  training 
D)  guaranteed level of profitability

Question 8

Government agencies offer benefits designed to help small businesses compete with larger firms.

Accepted Answer

A) True 
 B)False

Question 9

Catalina owns 100 _____ stock of NxtGen Solutions, a software firm. It means that she has voting rights on company decisions at NxtGen Solutions, but only residual claims on the company's assets.

Accepted Answer

A)  preferred 
B)  principal 
C)  management 
D)  common 
A)  preferred 
B)  principal 
C)  management 
D)  common

Question 10

Discuss two alternatives to private ownership and give an example of each.

Accepted Answer

Public ownership and cooperatives are al

Question 11

Which of the following is most likely an example of public ownership?

Accepted Answer

A)  A movie theater 
B)  The city sewer system 
C)  A trucking company 
D)  A television company 
A)  A movie theater 
B)  The city sewer system 
C)  A trucking company 
D)  A television company

Question 12

Each state mandates a specific procedure for incorporating a business.

Accepted Answer

A) True 
 B)False

Question 13

Star Airlines' purchase of Hispania Airlines combines the resources and capabilities of both firms to create the world's largest airline. The newly formed company is an example of a _____.

Accepted Answer

A)  vertical merger 
B)  joint venture 
C)  horizontal merger 
D)  conglomerate company 
A)  vertical merger 
B)  joint venture 
C)  horizontal merger 
D)  conglomerate company

Question 14

The heaviest users of credit cards for business financing are firms with fewer than 10 employees.

Accepted Answer

A) True 
 B)False

Question 15

News 24/7, a newspaper group, merged with Alfalah Finance, an investment firm. The two companies merged together to diversify their business and to generate more revenue. This merger will be an example of a _____.

Accepted Answer

A)  conglomerate merger 
B)  horizontal merger 
C)  vertical merger 
D)  joint venture 
A)  conglomerate merger 
B)  horizontal merger 
C)  vertical merger 
D)  joint venture

Question 16

A business plan should include résumés of the company's principal owners.

Accepted Answer

A) True 
 B)False

Question 17

Compared to large businesses, which of the following statements regarding small businesses is correct?

Accepted Answer

A)  Small businesses are less likely to hire young employees. 
B)  Small businesses are less likely to develop new products. 
C)  Small businesses are more likely be eligible for government loans or for government purchasing programs. 
D)  Small businesses are more likely to be franchises. 
A)  Small businesses are less likely to hire young employees. 
B)  Small businesses are less likely to develop new products. 
C)  Small businesses are more likely be eligible for government loans or for government purchasing programs. 
D)  Small businesses are more likely to be franchises.

Question 18

Provide an example of how innovation drives small business.

Accepted Answer

Responses will vary

Question 19

Diya owns FoodMart, the franchisee of a local retail shop. Which of the following will be one of Diya's chief concerns regarding owning the franchise?

Accepted Answer

A)  The franchisor does not provide her with the required supplies. 
B)  The franchising agreement is too restrictive. 
C)  The franchise has the benefit of name recognition. 
D)  The franchisor can negotiate better deals on ingredients, supplies, and real estate, because of its financial strength. 
A)  The franchisor does not provide her with the required supplies. 
B)  The franchising agreement is too restrictive. 
C)  The franchise has the benefit of name recognition. 
D)  The franchisor can negotiate better deals on ingredients, supplies, and real estate, because of its financial strength.

Question 20

Salma and Debbie opened a restaurant in partnership. Two years later, Debbie left the restaurant, and Salma discovered that Debbie had incurred numerous expenses to their account. These expenses resulted in thousands of dollars' worth of debt for the restaurant. From the following, identify an accurate statement about this situation.

Accepted Answer

A)  Salma doesn't have to worry because, according to law, everyone is responsible for his/her own debts. 
B)  Salma doesn't have to worry because business creditors will pursue Debbie alone since her signature authorized payments. 
C)  Business creditors will expect Salma to pay at least half the debt since she owns 50 percent of the business. 
D)  Business creditors will expect full payment from Salma. 
A)  Salma doesn't have to worry because, according to law, everyone is responsible for his/her own debts. 
B)  Salma doesn't have to worry because business creditors will pursue Debbie alone since her signature authorized payments. 
C)  Business creditors will expect Salma to pay at least half the debt since she owns 50 percent of the business. 
D)  Business creditors will expect full payment from Salma.

What is a business incubator?

Assume that a tech firm decides to invest some of its excess cash by acquiring a coffeehouse chain. This would be a _____.

Breaking up a partnership is more complicated than dissolving a sole proprietorship.

MATCHING Complete the following using the terms listed. -A merger of firms in unrelated industries is called a(n) _____.

Latifa is a chief financial officer in a large corporation. She has the full financial authority to make appropriations and authorize expenditures. Latifa is likely to be a member of _____ management.

Which of the following statements regarding franchising is FALSE?

Franchising offers all of the following advantages EXCEPT _____.

Government agencies offer benefits designed to help small businesses compete with larger firms.

Catalina owns 100 _____ stock of NxtGen Solutions, a software firm. It means that she has voting rights on company decisions at NxtGen Solutions, but only residual claims on the company's assets.

Discuss two alternatives to private ownership and give an example of each.

Which of the following is most likely an example of public ownership?

Each state mandates a specific procedure for incorporating a business.

Star Airlines' purchase of Hispania Airlines combines the resources and capabilities of both firms to create the world's largest airline. The newly formed company is an example of a _____.

The heaviest users of credit cards for business financing are firms with fewer than 10 employees.

News 24/7, a newspaper group, merged with Alfalah Finance, an investment firm. The two companies merged together to diversify their business and to generate more revenue. This merger will be an example of a _____.

A business plan should include résumés of the company's principal owners.

Compared to large businesses, which of the following statements regarding small businesses is correct?

Provide an example of how innovation drives small business.

Diya owns FoodMart, the franchisee of a local retail shop. Which of the following will be one of Diya's chief concerns regarding owning the franchise?

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

What is a business incubator?

Assume that a tech firm decides to invest some of its excess cash by acquiring a coffeehouse chain. This would be a _____.

Breaking up a partnership is more complicated than dissolving a sole proprietorship.

MATCHING Complete the following using the terms listed. -A merger of firms in unrelated industries is called a(n) _____.

Latifa is a chief financial officer in a large corporation. She has the full financial authority to make appropriations and authorize expenditures. Latifa is likely to be a member of _____ management.

Which of the following statements regarding franchising is FALSE?

Franchising offers all of the following advantages EXCEPT _____.

Government agencies offer benefits designed to help small businesses compete with larger firms.

Catalina owns 100 _____ stock of NxtGen Solutions, a software firm. It means that she has voting rights on company decisions at NxtGen Solutions, but only residual claims on the company's assets.

Discuss two alternatives to private ownership and give an example of each.

Which of the following is most likely an example of public ownership?

Each state mandates a specific procedure for incorporating a business.

Star Airlines' purchase of Hispania Airlines combines the resources and capabilities of both firms to create the world's largest airline. The newly formed company is an example of a _____.

The heaviest users of credit cards for business financing are firms with fewer than 10 employees.

News 24/7, a newspaper group, merged with Alfalah Finance, an investment firm. The two companies merged together to diversify their business and to generate more revenue. This merger will be an example of a _____.

A business plan should include résumés of the company's principal owners.

Compared to large businesses, which of the following statements regarding small businesses is correct?

Provide an example of how innovation drives small business.

Diya owns FoodMart, the franchisee of a local retail shop. Which of the following will be one of Diya's chief concerns regarding owning the franchise?

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