Question 1

Which of the following legal forms of business is owned and usually operated by a person who is responsible for its debts?

Accepted Answer

A)  Cartel 
B)  Corporation 
C)  General partnership 
D)  Sole proprietorship 
E)  Limited partnership 
A)  Cartel 
B)  Corporation 
C)  General partnership 
D)  Sole proprietorship 
E)  Limited partnership D

Question 2

Explain limited liability in a corporation.

Accepted Answer

Limited liability is the legal principle holding investors liable for a firm's debts only to the limits of their personal investment in it. The biggest advantage of corporations is limited liability. Investor liability is limited to personal investment (through stock ownership) in the corporation. In the event of failure, the courts may seize and sell a corporation's assets but cannot touch the investors' personal possessions.

Question 3

Who invests all of the funds needed for a business but plays no role in its management?

Accepted Answer

A)  Silent partner 
B)  Sole proprietor 
C)  General partner 
D)  Principal 
E)  Director 
A)  Silent partner 
B)  Sole proprietor 
C)  General partner 
D)  Principal 
E)  Director A

Question 4

A limited liability corporation is a hybrid of a publicly held corporation and a partnership.

Accepted Answer

A) True 
 B)False

Question 5

Discuss the advantages and disadvantages of partnerships.

Accepted Answer

Advantages of partnerships include their

Question 6

What is the MOST effective way for an entrepreneur to become a competent manager?

Accepted Answer

A)  Working alone 
B)  Relying on luck 
C)  Getting a college degree 
D)  Being open to opportunities 
E)  Working for a successful company first 
A)  Working alone 
B)  Relying on luck 
C)  Getting a college degree 
D)  Being open to opportunities 
E)  Working for a successful company first

Question 7

Neglect is a major factor that contributes to small business failure.

Accepted Answer

A) True 
 B)False

Question 8

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 
A)  Limited partnership 
B)  Corporate partnership 
C)  General partnership 
D)  Sole partnership 
E)  Cooperative partnership

Question 9

To raise revenue, what can a business issue and sell to those wishing to own some of the organization?

Accepted Answer

A)  Bonds 
B)  Profits 
C)  Stocks 
D)  Dividends 
E)  Loans 
A)  Bonds 
B)  Profits 
C)  Stocks 
D)  Dividends 
E)  Loans

Question 10

What is considered to be a significant disadvantage of owning a franchise?

Accepted Answer

A)  Start-up costs 
B)  Operational guidelines 
C)  Difficulty obtaining loans 
D)  Double taxation 
E)  Competition 
A)  Start-up costs 
B)  Operational guidelines 
C)  Difficulty obtaining loans 
D)  Double taxation 
E)  Competition

Question 11

What is the biggest advantage of incorporating?

Accepted Answer

A)  Limited liability 
B)  Increased profits 
C)  Tax advantage 
D)  Increased talent pool 
E)  Limited tender offers 
A)  Limited liability 
B)  Increased profits 
C)  Tax advantage 
D)  Increased talent pool 
E)  Limited tender offers

Question 12

An organization's president is usually responsible for the overall performance of the firm.

Accepted Answer

A) True 
 B)False

Question 13

Explain a tender offer.

Accepted Answer

A tender offer is an offer to buy shares

Question 14

Why are lenders most willing to loan to corporations?

Accepted Answer

A)  Continuity and legal status are assured. 
B)  Links with owners and founders are established. 
C)  Professional management teams can be changed. 
D)  Commitment to expansion is readily available. 
E)  Brand and marketing strategies can be diversified. 
A)  Continuity and legal status are assured. 
B)  Links with owners and founders are established. 
C)  Professional management teams can be changed. 
D)  Commitment to expansion is readily available. 
E)  Brand and marketing strategies can be diversified.

Question 15

What type of corporations are those comprised of doctors, lawyers, or accountants MOST likely to be?

Accepted Answer

A)  Private 
B)  Public 
C)  Subchapter S 
D)  Professional 
E)  Multinational 
A)  Private 
B)  Public 
C)  Subchapter S 
D)  Professional 
E)  Multinational

Question 16

Who are the owners of a corporation?

Accepted Answer

A)  Board of directors 
B)  Financial officers 
C)  Stockholders 
D)  Top managers 
E)  Entrepreneurs 
A)  Board of directors 
B)  Financial officers 
C)  Stockholders 
D)  Top managers 
E)  Entrepreneurs

Question 17

Explain entrepreneurship and describe key entrepreneurial characteristics.

Accepted Answer

Entrepreneurs are people who assume the

Question 18

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

Accepted Answer

A) True 
 B)False

Question 19

An employee stock ownership plan allows employees to join together and influence corporate managers and how they run the company.

Accepted Answer

A) True 
 B)False

Question 20

Which of the following will force a sole proprietorship to be legally dissolved?

Accepted Answer

A)  Sales exceed $1 million. 
B)  The partners reorganize the firm's structure. 
C)  Earnings are less than $500,000. 
D)  The owner donates profits. 
E)  The owner dies. 
A)  Sales exceed $1 million. 
B)  The partners reorganize the firm's structure. 
C)  Earnings are less than $500,000. 
D)  The owner donates profits. 
E)  The owner dies.

Which of the following legal forms of business is owned and usually operated by a person who is responsible for its debts?

Explain limited liability in a corporation.

Who invests all of the funds needed for a business but plays no role in its management?

A limited liability corporation is a hybrid of a publicly held corporation and a partnership.

Discuss the advantages and disadvantages of partnerships.

What is the MOST effective way for an entrepreneur to become a competent manager?

Neglect is a major factor that contributes to small business failure.

What is the MOST common type of partnership?

To raise revenue, what can a business issue and sell to those wishing to own some of the organization?

What is considered to be a significant disadvantage of owning a franchise?

What is the biggest advantage of incorporating?

An organization's president is usually responsible for the overall performance of the firm.

Explain a tender offer.

Why are lenders most willing to loan to corporations?

What type of corporations are those comprised of doctors, lawyers, or accountants MOST likely to be?

Who are the owners of a corporation?

Explain entrepreneurship and describe key entrepreneurial characteristics.

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

An employee stock ownership plan allows employees to join together and influence corporate managers and how they run the company.

Which of the following will force a sole proprietorship to be legally dissolved?

The U.S. Business Environment

Understanding Business Ethics and Social Responsibility

Understanding the Global Context of Business

Managing the Business

Organizing the Business

Operations Management and Quality

Employee Behavior and Motivation

Leadership and Decision Making

Human Resource Management and Labor Relations

Marketing Processes and Consumer Behavior

Developing and Pricing Products

Distributing and Promoting Products

Information Technology (IT)for Business

The Role of Accountants and Accounting Information

Understanding Money and the Role of Banking

Managing Business Finances

Filters

Exam 3: Entrepreneurship, New Ventures, and Business Ownership

Which of the following legal forms of business is owned and usually operated by a person who is responsible for its debts?

Explain limited liability in a corporation.

Who invests all of the funds needed for a business but plays no role in its management?

A limited liability corporation is a hybrid of a publicly held corporation and a partnership.

Discuss the advantages and disadvantages of partnerships.

What is the MOST effective way for an entrepreneur to become a competent manager?

Neglect is a major factor that contributes to small business failure.

What is the MOST common type of partnership?

To raise revenue, what can a business issue and sell to those wishing to own some of the organization?

What is considered to be a significant disadvantage of owning a franchise?

What is the biggest advantage of incorporating?

An organization's president is usually responsible for the overall performance of the firm.

Explain a tender offer.

Why are lenders most willing to loan to corporations?

What type of corporations are those comprised of doctors, lawyers, or accountants MOST likely to be?

Who are the owners of a corporation?

Explain entrepreneurship and describe key entrepreneurial characteristics.

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

An employee stock ownership plan allows employees to join together and influence corporate managers and how they run the company.

Which of the following will force a sole proprietorship to be legally dissolved?

The U.S. Business Environment

Understanding Business Ethics and Social Responsibility

Understanding the Global Context of Business

Managing the Business

Organizing the Business

Operations Management and Quality

Employee Behavior and Motivation

Leadership and Decision Making

Human Resource Management and Labor Relations

Marketing Processes and Consumer Behavior

Developing and Pricing Products

Distributing and Promoting Products

Information Technology (IT)for Business

The Role of Accountants and Accounting Information

Understanding Money and the Role of Banking

Managing Business Finances

Filters