Exam 5: Forms of Business Ownership and Organization

Because of technology and online resources,many small-business start-ups are more competitive.

The management of Bank-of-Us Investments wants to create more job opportunities in their city.They believe that the best way to create more jobs is to help people start their own business.They invest a portion of the company's profit,along with money received through government loans,to support people trying to start their own business.Bank-of-Us Investments is an example of:

Almost 90% of U.S.farms are owned by _____.

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

Which of the following is a function of the board of directors of a corporation?

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

The most common form of business ownership is sole proprietorship.

The Small Business Administration has programs targeted to minority-owned small businesses.

Four out of five businesses without paid employees are home-based.

In a partnership,each partner is liable for the business-related debts of the other partner.

The major lending source for small businesses needing additional funds is the Small Business Administration (SBA).

Rashmi and Karina opened a restaurant in partnership.Two years later,Karina left the restaurant,and Rashmi discovered that Karina 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.

A business plan should include résumés of the company's principal owners.

Approximately 50 percent of all small businesses are minority-owned.

Which of the following is a reason for Krispy Kreme's near failure?

Nearly 7 out of every 10 new businesses survive at least two years and about 50% make it to the five-year mark.

Three members of Santiago's family work at BioTechno,a multi-national drug manufacturer.Each of them owns 5% shares of the company respectively.In fact,most of the employees of BioTechno,like Santiago and his family members,are stockholders of the company.BioTechno can be regarded as a _____.

An example of a conglomerate merger is when a computer manufacturer purchases a laptop brand.

Yashmi wants to start an event management firm with two of her friends.She decides to create a business plan that will help her in securing financing for her firm.Which of the following should she include in the business plan?

Taxes and government regulations are more significant issues for small businesses than for large businesses.