Exam 5: Forms of Business Ownership and Organization

Three members of Abdul's family work at BioTechno, a multi-national drug manufacturer. Each of them owns 5% shares of the company respectively. In fact, most of the employees of BioTechno, like Abdul and his family members, are stockholders of the company. BioTechno can be regarded as a _____.

Describe three primary reasons why a small business might fail.

When the Small Business Administration (SBA) assists a small business in applying for a major loan, it acts as the lender's _____.

Cooperatives rarely exist in the field of agriculture.

Joint ventures rarely occur between not-for-profit organizations and for-profit companies.

Which type of merger is done to increase customer bases?

_____ of small businesses are considered home-based businesses.

The stocks of Silver Novelties, a toy store, are completely owned by the Schmidts. When the family elected to move from a sole proprietorship to a corporation, the greatest concern was _____.

Franchising overseas is too difficult for most companies.

In public ownership a unit or agency of government owns and operates an organization.

A fast food chain offers a contractual business arrangement in various countries around the world. This fast food chain will be an example of a(n) international _____.

Commercial banks are considered to be financial cooperatives.

With less money to spend on employees, marketing, inventory, and other business costs, successful small companies need to be creative.

Corporations have all of the following advantages EXCEPT _____.

A reason small businesses are so successful is also the reason they might fail-their founders are willing to take a risk.

CVS Caremark, a healthcare company, recently purchased another firm's Medicaid prescription business. It is an example of a horizontal merger.

Describe the steps required when incorporating a business. Regarding incorporation, what might make a state "business-friendly"?

Almost 90 percent of U.S. farms are owned by _____.

One of the most important tasks for an entrepreneur is to create a business plan.

A successful franchisor can usually negotiate better pricing for ingredients, supplies, even real estate, because of its financial strength and large volume purchases.