Question 1

Of the following industries, which is most likely to be owned by a small business owner?

Accepted Answer

A)  Nursing home 
B)  Paper mill 
C)  Home building company 
D)  Electric utilities company 
A)  Nursing home 
B)  Paper mill 
C)  Home building company 
D)  Electric utilities company

Question 2

The Small Business Administration (SBA) provides all of the following EXCEPT _____.

Accepted Answer

A)  loan guarantees 
B)  information and advice through toll-free telephone numbers 
C)  loans for natural disaster recovery 
D)  business incubators 
A)  loan guarantees 
B)  information and advice through toll-free telephone numbers 
C)  loans for natural disaster recovery 
D)  business incubators

Question 3

Any firm with fewer than 1,000 employees is considered a small business.

Accepted Answer

A) True 
 B)False

Question 4

Sole proprietorship is the most common form of business ownership.

Accepted Answer

A) True 
 B)False

Question 5

The smallest firms-those with fewer than 20 employees-spend 45 percent more per employee than larger firms just to comply with federal regulations.

Accepted Answer

A) True 
 B)False

Question 6

The board of directors usually includes some individuals who are not employed by the corporation. These people are referred to as _____.

Accepted Answer

A)  priority directors 
B)  outside directors 
C)  stockholders 
D)  members of top management 
A)  priority directors 
B)  outside directors 
C)  stockholders 
D)  members of top management

Question 7

Initial investment amounts and ongoing franchise fees tend to be a relatively small cost of owning and operating a franchise.

Accepted Answer

A) True 
 B)False

Question 8

Securing adequate financing is a major problem for most small businesses.

Accepted Answer

A) True 
 B)False

Question 9

Small businesses generate over 50 percent of new jobs.

Accepted Answer

A) True 
 B)False

Question 10

Nikita established a corporation in Nebraska, but she recently moved to Colorado where she now conducts her business. What type of corporation does Nikita own?

Accepted Answer

A)  Alien corporation 
B)  Domestic corporation 
C)  Foreign corporation 
D)  National corporation 
A)  Alien corporation 
B)  Domestic corporation 
C)  Foreign corporation 
D)  National corporation

Question 11

Define the categories of corporations.

Accepted Answer

Corporations fall into three categories:

Question 12

MATCHING
Complete the following using the terms listed.
-A(n) _____ occurs when one firm purchases the property and assumes the obligations of another firm.

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 13

An acquisition occurs when _____.

Accepted Answer

A)  one company purchases the property and assumes the obligations of another company 
B)  one corporation owns 8 percent of the stock of another corporation 
C)  owners of small companies band together to operate their businesses collectively 
D)  two or more firms combine to form a single company 
A)  one company purchases the property and assumes the obligations of another company 
B)  one corporation owns 8 percent of the stock of another corporation 
C)  owners of small companies band together to operate their businesses collectively 
D)  two or more firms combine to form a single company

Question 14

Describe the types of loans the Small Business Administration (SBA) offers to small businesses.

Accepted Answer

Contrary to popular belief, the SBA seld

Question 15

Preferred shareholders typically have voting rights.

Accepted Answer

A) True 
 B)False

Question 16

More than half of all small businesses fail within the first year.

Accepted Answer

A) True 
 B)False

Question 17

Describe how to identify a small business from a large one.

Accepted Answer

The Small Business Administration (SBA),

Question 18

A sole proprietor is easy to dissolve.

Accepted Answer

A) True 
 B)False

Question 19

Business plans identify the firm's mission and goals.

Accepted Answer

A) True 
 B)False

Question 20

When a government unit owns and operates an organization, the arrangement is known as _____.

Accepted Answer

A)  private ownership 
B)  a cooperative 
C)  public ownership 
D)  employee ownership 
A)  private ownership 
B)  a cooperative 
C)  public ownership 
D)  employee ownership

Of the following industries, which is most likely to be owned by a small business owner?

The Small Business Administration (SBA) provides all of the following EXCEPT _____.

Any firm with fewer than 1,000 employees is considered a small business.

Sole proprietorship is the most common form of business ownership.

The smallest firms-those with fewer than 20 employees-spend 45 percent more per employee than larger firms just to comply with federal regulations.

The board of directors usually includes some individuals who are not employed by the corporation. These people are referred to as _____.

Initial investment amounts and ongoing franchise fees tend to be a relatively small cost of owning and operating a franchise.

Securing adequate financing is a major problem for most small businesses.

Small businesses generate over 50 percent of new jobs.

Nikita established a corporation in Nebraska, but she recently moved to Colorado where she now conducts her business. What type of corporation does Nikita own?

Define the categories of corporations.

MATCHING Complete the following using the terms listed. -A(n) _____ occurs when one firm purchases the property and assumes the obligations of another firm.

An acquisition occurs when _____.

Describe the types of loans the Small Business Administration (SBA) offers to small businesses.

Preferred shareholders typically have voting rights.

More than half of all small businesses fail within the first year.

Describe how to identify a small business from a large one.

A sole proprietor is easy to dissolve.

Business plans identify the firm's mission and goals.

When a government unit owns and operates an organization, the arrangement is known as _____.

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

Of the following industries, which is most likely to be owned by a small business owner?

The Small Business Administration (SBA) provides all of the following EXCEPT _____.

Any firm with fewer than 1,000 employees is considered a small business.

Sole proprietorship is the most common form of business ownership.

The smallest firms-those with fewer than 20 employees-spend 45 percent more per employee than larger firms just to comply with federal regulations.

The board of directors usually includes some individuals who are not employed by the corporation. These people are referred to as _____.

Initial investment amounts and ongoing franchise fees tend to be a relatively small cost of owning and operating a franchise.

Securing adequate financing is a major problem for most small businesses.

Small businesses generate over 50 percent of new jobs.

Nikita established a corporation in Nebraska, but she recently moved to Colorado where she now conducts her business. What type of corporation does Nikita own?

Define the categories of corporations.

MATCHING Complete the following using the terms listed. -A(n) _____ occurs when one firm purchases the property and assumes the obligations of another firm.

An acquisition occurs when _____.

Describe the types of loans the Small Business Administration (SBA) offers to small businesses.

Preferred shareholders typically have voting rights.

More than half of all small businesses fail within the first year.

Describe how to identify a small business from a large one.

A sole proprietor is easy to dissolve.

Business plans identify the firm's mission and goals.

When a government unit owns and operates an organization, the arrangement is known as _____.

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