Question 1

MATCHING
Complete the following using the terms listed.
-The form of business ownership that is least subject to legal red tape is _____.

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 2

Many small-business start-ups are more competitive because of technology and online resources.

Accepted Answer

A) True 
 B)False

Question 3

Out of all forms of business, partnerships are the most challenging to establish.

Accepted Answer

A) True 
 B)False

Question 4

Owners of preferred stock receive dividends after owners of common stock.

Accepted Answer

A) True 
 B)False

Question 5

Farid is the owner of a small mushroom farm in Pennsylvania. He would like to join hands with other growers to create an organization that will promote and distribute mushrooms. The form of ownership that would be most suited for Farid and other growers will be a(n) _____.

Accepted Answer

A)  joint venture 
B)  open corporation 
C)  government-owned collective 
D)  cooperative 
A)  joint venture 
B)  open corporation 
C)  government-owned collective 
D)  cooperative

Question 6

MATCHING
Complete the following using the terms listed.
-A(n) _____ business consists of owners who join forces to collectively operate all or part of the functions in their industry.

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

Ricardo buys the franchise of a fast food chain. In this scenario, he is the _____ and _____ for this fast food chain.

Accepted Answer

A)  franchisor; works 
B)  franchisee; does not work 
C)  franchisee; works 
D)  franchisor; does not work 
A)  franchisor; works 
B)  franchisee; does not work 
C)  franchisee; works 
D)  franchisor; does not work

Question 8

Sunita is the owner of an electronic repair shop. She creates the marketing strategy for her shop, pays all the required taxes, and is also the only person who enjoys the profits generated by the shop. Sunita's business ownership in this scenario 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 9

Small businesses are more likely to employ older workers than large businesses, but not the youngest ones.

Accepted Answer

A) True 
 B)False

Question 10

Owners of small businesses can increase their chances of success if they:

Accepted Answer

A)  become an expert in legal, financial, marketing, and other related business areas. 
B)  incorporate their business. 
C)  hire only family members or friends. 
D)  understand their customers. 
A)  become an expert in legal, financial, marketing, and other related business areas. 
B)  incorporate their business. 
C)  hire only family members or friends. 
D)  understand their customers.

Question 11

Joint ventures are not ideal for international companies due to logistics and conflicting business laws.

Accepted Answer

A) True 
 B)False

Question 12

_____ use their own capital supplemented with government loans to invest in small businesses.

Accepted Answer

A)  Franchisors 
B)  Small Business Investment Companies (SBICs) 
C)  Joint ventures 
D)  Freemium business models 
A)  Franchisors 
B)  Small Business Investment Companies (SBICs) 
C)  Joint ventures 
D)  Freemium business models

Question 13

Many businesses fail during the early years because of _____.

Accepted Answer

A)  niche marketers 
B)  inadequate financing 
C)  unmotivated owners 
D)  poor planning 
A)  niche marketers 
B)  inadequate financing 
C)  unmotivated owners 
D)  poor planning

Question 14

MATCHING
Complete the following using the terms listed.
-A(n) _____ is independently owned and operated and is responsible for more than half of the nation's gross domestic product.

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 15

Fifty-two percent of small businesses operate from the owner's residence.

Accepted Answer

A) True 
 B)False

Question 16

Direct Small Business Administration (SBA) loans are available in only a few special situations, such as natural disaster recovery and energy conservation.

Accepted Answer

A) True 
 B)False

Question 17

MATCHING
Complete the following using the terms listed.
-During a(n) _____, two or more firms combine to form one company.

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 18

In exchange for an ownership share, small businesses receive financing from a group of investors known as _____,

Accepted Answer

A)  microloan investors 
B)  franchisors 
C)  Small Business Investment Companies 
D)  venture capitalists 
A)  microloan investors 
B)  franchisors 
C)  Small Business Investment Companies 
D)  venture capitalists

Question 19

Sole proprietorships are concentrated mainly in corporations.

Accepted Answer

A) True 
 B)False

Question 20

The board of directors of a corporation is elected by the _____.

Accepted Answer

A)  corporation's employees 
B)  bondholders and other creditors 
C)  corporate officers 
D)  stockholders 
A)  corporation's employees 
B)  bondholders and other creditors 
C)  corporate officers 
D)  stockholders

MATCHING Complete the following using the terms listed. -The form of business ownership that is least subject to legal red tape is _____.

Many small-business start-ups are more competitive because of technology and online resources.

Out of all forms of business, partnerships are the most challenging to establish.

Owners of preferred stock receive dividends after owners of common stock.

Farid is the owner of a small mushroom farm in Pennsylvania. He would like to join hands with other growers to create an organization that will promote and distribute mushrooms. The form of ownership that would be most suited for Farid and other growers will be a(n) _____.

MATCHING Complete the following using the terms listed. -A(n) _____ business consists of owners who join forces to collectively operate all or part of the functions in their industry.

Ricardo buys the franchise of a fast food chain. In this scenario, he is the _ and _ for this fast food chain.

Sunita is the owner of an electronic repair shop. She creates the marketing strategy for her shop, pays all the required taxes, and is also the only person who enjoys the profits generated by the shop. Sunita's business ownership in this scenario can be regarded as a _____.

Small businesses are more likely to employ older workers than large businesses, but not the youngest ones.

Owners of small businesses can increase their chances of success if they:

Joint ventures are not ideal for international companies due to logistics and conflicting business laws.

_____ use their own capital supplemented with government loans to invest in small businesses.

Many businesses fail during the early years because of _____.

MATCHING Complete the following using the terms listed. -A(n) _____ is independently owned and operated and is responsible for more than half of the nation's gross domestic product.

Fifty-two percent of small businesses operate from the owner's residence.

Direct Small Business Administration (SBA) loans are available in only a few special situations, such as natural disaster recovery and energy conservation.

MATCHING Complete the following using the terms listed. -During a(n) _____, two or more firms combine to form one company.

In exchange for an ownership share, small businesses receive financing from a group of investors known as _____,

Sole proprietorships are concentrated mainly in corporations.

The board of directors of a corporation is elected by the _____.

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

MATCHING Complete the following using the terms listed. -The form of business ownership that is least subject to legal red tape is _____.

Many small-business start-ups are more competitive because of technology and online resources.

Out of all forms of business, partnerships are the most challenging to establish.

Owners of preferred stock receive dividends after owners of common stock.

Farid is the owner of a small mushroom farm in Pennsylvania. He would like to join hands with other growers to create an organization that will promote and distribute mushrooms. The form of ownership that would be most suited for Farid and other growers will be a(n) _____.

MATCHING Complete the following using the terms listed. -A(n) _____ business consists of owners who join forces to collectively operate all or part of the functions in their industry.

Ricardo buys the franchise of a fast food chain. In this scenario, he is the _____ and _____ for this fast food chain.

Sunita is the owner of an electronic repair shop. She creates the marketing strategy for her shop, pays all the required taxes, and is also the only person who enjoys the profits generated by the shop. Sunita's business ownership in this scenario can be regarded as a _____.

Small businesses are more likely to employ older workers than large businesses, but not the youngest ones.

Owners of small businesses can increase their chances of success if they:

Joint ventures are not ideal for international companies due to logistics and conflicting business laws.

_____ use their own capital supplemented with government loans to invest in small businesses.

Many businesses fail during the early years because of _____.

MATCHING Complete the following using the terms listed. -A(n) _____ is independently owned and operated and is responsible for more than half of the nation's gross domestic product.

Fifty-two percent of small businesses operate from the owner's residence.

Direct Small Business Administration (SBA) loans are available in only a few special situations, such as natural disaster recovery and energy conservation.

MATCHING Complete the following using the terms listed. -During a(n) _____, two or more firms combine to form one company.

In exchange for an ownership share, small businesses receive financing from a group of investors known as _____,

Sole proprietorships are concentrated mainly in corporations.

The board of directors of a corporation is elected by the _____.

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

Ricardo buys the franchise of a fast food chain. In this scenario, he is the _ and _ for this fast food chain.