Question 1

An American retail chain started doing business in India by forming a _____ with one of India's leading business groups.

Accepted Answer

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

Question 2

In a partnership, each partner is liable for the business-related debts of the other partner.

Accepted Answer

A) True 
 B)False

Question 3

The vast majority of firms have fewer than 500 employees.

Accepted Answer

A) True 
 B)False

Question 4

List the elements contained in a business plan.

Accepted Answer

A typical business plan contains the fol

Question 5

All of the following are duties of the board of directors of a corporation EXCEPT _____.

Accepted Answer

A)  guaranteeing the payment of cash dividends every year 
B)  electing its own officers 
C)  hiring the corporation's chief executive officer 
D)  authorizing major transactions of the corporation 
A)  guaranteeing the payment of cash dividends every year 
B)  electing its own officers 
C)  hiring the corporation's chief executive officer 
D)  authorizing major transactions of the corporation

Question 6

MATCHING
Complete the following using the terms listed.
-A(n) _____ joins firms in the same industry that wish to diversify, increase their customer base, cut costs, or offer expanded product lines.

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 7

Which of the following statements is true regarding employee-owned corporations?

Accepted Answer

A)  The number of employee-owned corporations is declining in the United States. 
B)  Employee-owned corporations may not publicly trade their stock. 
C)  Employees buy shares of stock in the company that employs them. 
D)  Stock prices in employee-owned corporations typically decrease. 
A)  The number of employee-owned corporations is declining in the United States. 
B)  Employee-owned corporations may not publicly trade their stock. 
C)  Employees buy shares of stock in the company that employs them. 
D)  Stock prices in employee-owned corporations typically decrease.

Question 8

MATCHING
Complete the following using the terms listed.
-Having a(n) _____ improves the chances of success for a new business by providing an orderly statement of a company's goals.

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 9

Direct Small Business Administration (SBA) loans are rewarded to owners of small businesses 90 percent of the time.

Accepted Answer

A) True 
 B)False

Question 10

The Small Business Administration (SBA) is the major lending source for small businesses needing additional funds.

Accepted Answer

A) True 
 B)False

Question 11

The set-aside program designates that a percentage of government contracts must be awarded to qualifying small businesses.

Accepted Answer

A) True 
 B)False

Question 12

_____ must verify in writing the accuracy of their corporation's financial statements.

Accepted Answer

A)  Board members 
B)  Stockholders 
C)  Chief operating officers and chief financial officers 
D)  Governmental officials 
A)  Board members 
B)  Stockholders 
C)  Chief operating officers and chief financial officers 
D)  Governmental officials

Question 13

Taxes and government regulations are more significant issues for small businesses than for large businesses.

Accepted Answer

A) True 
 B)False

Question 14

Although _____ are the most common type of business ownership, the greatest revenues come from _____.

Accepted Answer

A)  sole proprietorships; partnerships 
B)  sole proprietorships; corporations 
C)  corporations; partnerships 
D)  partnerships; corporations 
A)  sole proprietorships; partnerships 
B)  sole proprietorships; corporations 
C)  corporations; partnerships 
D)  partnerships; corporations

Question 15

People are likely to form a partnership because it offers:

Accepted Answer

A)  limiting liability of partners to the value of their interests in the company. 
B)  unlimited financial liability. 
C)  greater financial resources. 
D)  double taxation. 
A)  limiting liability of partners to the value of their interests in the company. 
B)  unlimited financial liability. 
C)  greater financial resources. 
D)  double taxation.

Question 16

Larger firms prove more successful than smaller firms in offering innovative products to consumers.

Accepted Answer

A) True 
 B)False

Question 17

The majority of all U.S. firms employ:

Accepted Answer

A)  more than 5,000 employees. 
B)  1,000 to 3,000 employees. 
C)  3,000 to 5,000 employees. 
D)  500 or fewer employees.
) 
A)  more than 5,000 employees. 
B)  1,000 to 3,000 employees. 
C)  3,000 to 5,000 employees. 
D)  500 or fewer employees.
)

Question 18

Delaware is an example of a state that is considered to be "business friendly" based on tax incentives.

Accepted Answer

A) True 
 B)False

Question 19

Describe how small businesses help create new jobs.

Accepted Answer

Small businesses make tremendous contrib

Question 20

Small businesses are not required to pay workers' compensation or Social Security.

Accepted Answer

A) True 
 B)False

An American retail chain started doing business in India by forming a _____ with one of India's leading business groups.

In a partnership, each partner is liable for the business-related debts of the other partner.

The vast majority of firms have fewer than 500 employees.

List the elements contained in a business plan.

All of the following are duties of the board of directors of a corporation EXCEPT _____.

MATCHING Complete the following using the terms listed. -A(n) _____ joins firms in the same industry that wish to diversify, increase their customer base, cut costs, or offer expanded product lines.

Which of the following statements is true regarding employee-owned corporations?

MATCHING Complete the following using the terms listed. -Having a(n) _____ improves the chances of success for a new business by providing an orderly statement of a company's goals.

Direct Small Business Administration (SBA) loans are rewarded to owners of small businesses 90 percent of the time.

The Small Business Administration (SBA) is the major lending source for small businesses needing additional funds.

The set-aside program designates that a percentage of government contracts must be awarded to qualifying small businesses.

_____ must verify in writing the accuracy of their corporation's financial statements.

Taxes and government regulations are more significant issues for small businesses than for large businesses.

Although _ are the most common type of business ownership, the greatest revenues come from _.

People are likely to form a partnership because it offers:

Larger firms prove more successful than smaller firms in offering innovative products to consumers.

The majority of all U.S. firms employ:

Delaware is an example of a state that is considered to be "business friendly" based on tax incentives.

Describe how small businesses help create new jobs.

Small businesses are not required to pay workers' compensation or Social Security.

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

An American retail chain started doing business in India by forming a _____ with one of India's leading business groups.

In a partnership, each partner is liable for the business-related debts of the other partner.

The vast majority of firms have fewer than 500 employees.

List the elements contained in a business plan.

All of the following are duties of the board of directors of a corporation EXCEPT _____.

MATCHING Complete the following using the terms listed. -A(n) _____ joins firms in the same industry that wish to diversify, increase their customer base, cut costs, or offer expanded product lines.

Which of the following statements is true regarding employee-owned corporations?

MATCHING Complete the following using the terms listed. -Having a(n) _____ improves the chances of success for a new business by providing an orderly statement of a company's goals.

Direct Small Business Administration (SBA) loans are rewarded to owners of small businesses 90 percent of the time.

The Small Business Administration (SBA) is the major lending source for small businesses needing additional funds.

The set-aside program designates that a percentage of government contracts must be awarded to qualifying small businesses.

_____ must verify in writing the accuracy of their corporation's financial statements.

Taxes and government regulations are more significant issues for small businesses than for large businesses.

Although _____ are the most common type of business ownership, the greatest revenues come from _____.

People are likely to form a partnership because it offers:

Larger firms prove more successful than smaller firms in offering innovative products to consumers.

The majority of all U.S. firms employ:

Delaware is an example of a state that is considered to be "business friendly" based on tax incentives.

Describe how small businesses help create new jobs.

Small businesses are not required to pay workers' compensation or Social Security.

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

Although _ are the most common type of business ownership, the greatest revenues come from _.