Question 1

Assuming the farm is organized as a limited liability corporation,what are the advantages?

Accepted Answer

The advantages of a limited liability corporation include limited liability,in that owner liability is limited to personal investment in the business,and continuity.

Question 2

An S corporation has stock that is widely held and available for sale to the general public.

Accepted Answer

A) True 
 B)False  False

Question 3

Most businesses in the United States are large businesses with more than 500 employees.

Accepted Answer

A) True 
 B)False  False

Question 4

What is the MOST common type of partnership?

Accepted Answer

A)   limited partnership
B)   corporate partnership
C)   general partnership
D)   sole partnership
E)   cooperative partnership

Question 5

Discuss the advantages and disadvantages of partnerships.

Accepted Answer

The answer of Discuss the advantages and disadvantages of partnerships....

Question 6

Describe corporations.List their advantages and disadvantages.

Accepted Answer

The answer of Describe corporations.List their advantages and disadvantages....

Question 7

The least common type of partnership is the general partnership.

Accepted Answer

A) True 
 B)False

Question 8

Major innovations are most likely to come from large corporations.

Accepted Answer

A) True 
 B)False

Question 9

Describe the business plan and the start-up decisions made by small businesses.Identify sources of financial aid available to small businesses.

Accepted Answer

The answer of Describe the business plan and the start-up...

Question 10

What resources does a sole proprietorship primarily depend on?

Accepted Answer

A)   the corporation
B)   foreign investors
C)   capital markets
D)   those of the owner
E)   a committed clientele

Question 11

Describe three disadvantages of operating a business as a sole proprietorship.

Accepted Answer

The answer of Describe three disadvantages of operating a business...

Question 12

What percent of all businesses in the United States are corporations?

Accepted Answer

A)   12 percent
B)   17 percent
C)   50 percent
D)   75 percent
E)   85 percent

Question 13

Discuss four sources of financing for starting up a small business.

Accepted Answer

The answer of Discuss four sources of financing for starting...

Question 14

Which of the following is the MOST significant disadvantage of franchising?

Accepted Answer

A)   high start-up costs
B)   risk of failure
C)   difficulty in obtaining financing
D)   lengthy contracts
E)   high cost of operation

Question 15

Each year,between 610,000 and 835,000 new businesses are launched in the United States.Approximately how many businesses fail each year?

Accepted Answer

A)   50,000 to 100,000
B)   100,000 to 250,000
C)   250,000 to 450,000
D)   450,000 to 600,000
E)   600,000 to 800,000

Question 16

Which form of business ownership would you recommend for the Miller brothers? Why?

Accepted Answer

The answer of Which form of business ownership would you...

Question 17

Which of the following,if true,would strengthen the case for Nina running the business as a sole proprietorship?

Accepted Answer

A)   Sam is experienced in dry-cleaning.
B)   Sam has a wide base of existing customer contacts.
C)   Sam is not willing to take on legal liability in the company.
D)   Nina is relatively new to the dry-cleaning business.
E)   Nina is not much of a "people person."

Question 18

Most venture capital companies do not lend money.

Accepted Answer

A) True 
 B)False

Question 19

Should the Miller brothers' farm be considered a small business?

Accepted Answer

The answer of Should the Miller brothers' farm be considered...

Question 20

The board of directors of a corporation reports to the officers of the corporation.

Accepted Answer

A) True 
 B)False

Exam 3: Entrepreneurship, New Ventures, and Business Ownership

Assuming the farm is organized as a limited liability corporation,what are the advantages?

An S corporation has stock that is widely held and available for sale to the general public.

Most businesses in the United States are large businesses with more than 500 employees.

What is the MOST common type of partnership?

Discuss the advantages and disadvantages of partnerships.

Describe corporations.List their advantages and disadvantages.

The least common type of partnership is the general partnership.

Major innovations are most likely to come from large corporations.

Describe the business plan and the start-up decisions made by small businesses.Identify sources of financial aid available to small businesses.

What resources does a sole proprietorship primarily depend on?

Describe three disadvantages of operating a business as a sole proprietorship.

What percent of all businesses in the United States are corporations?

Discuss four sources of financing for starting up a small business.

Which of the following is the MOST significant disadvantage of franchising?

Each year,between 610,000 and 835,000 new businesses are launched in the United States.Approximately how many businesses fail each year?

Which form of business ownership would you recommend for the Miller brothers? Why?

Which of the following,if true,would strengthen the case for Nina running the business as a sole proprietorship?

Most venture capital companies do not lend money.

Should the Miller brothers' farm be considered a small business?

The board of directors of a corporation reports to the officers of the corporation.