Exam 5: Forms of Business Ownership and Organization

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.

Define the categories of corporations.

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.

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

Most of the small businesses today are run by Caucasian males.

Franchising offers all of the following advantages EXCEPT _____.

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

Compare mergers and acquisitions.

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

Complete the following using the terms listed. -A(n)_____ combines firms operating at different levels in the production and marketing process.

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

Describe the complexity of franchise agreements.

Paul decides to start a trust-run hospital to help the poor get expensive treatments for free.Which of the following is most likely to be true of the hospital?

Which of the following is a benefit of franchising?

Discuss the benefits of a limited-liability corporation.

Most owners of small businesses rely on loans from financial institutions for their start-up funds.

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.

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

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

The largest lenders to small businesses are _____.