Question 1

Why do small-business owners want to determine whether their companies meet the standards for small-business designation? Because:

Accepted Answer

A) they do not have to pay taxes on their profits. 
B) government agencies offer benefits designed to help small businesses compete with larger firms. 
C) incorporation is easier for them. 
D) banks are more likely to grant them loans. 
A) they do not have to pay taxes on their profits. 
B) government agencies offer benefits designed to help small businesses compete with larger firms. 
C) incorporation is easier for them. 
D) banks are more likely to grant them loans.

Question 2

Corporations have all of the following advantages EXCEPT _____.

Accepted Answer

A) favorable tax treatment 
B) limited liability 
C) expanded financial capacity 
D) limited legal risk 
A) favorable tax treatment 
B) limited liability 
C) expanded financial capacity 
D) limited legal risk

Question 3

CVS Caremark,a healthcare company,recently purchased another firm's Medicaid prescription business.It is an example of a horizontal merger.

Accepted Answer

A) True 
 B)False

Question 4

In order to cut costs and promote diversification,a vertical merger joins firms in the same industry.

Accepted Answer

A) True 
 B)False

Question 5

Unfortunately,cooperatives rarely exist in the field of agriculture.

Accepted Answer

A) True 
 B)False

Question 6

Which type of merger is done to increase customer bases?

Accepted Answer

A) Vertical merger 
B) Conglomerate company 
C) Joint venture 
D) Horizontal merger 
A) Vertical merger 
B) Conglomerate company 
C) Joint venture 
D) Horizontal merger

Question 7

Which of the following statements regarding family-owned businesses is true?

Accepted Answer

A) Only a small percentage of family-owned businesses survive into the second or third generation. 
B) Family-owned companies must submit a written agreement to the state in which it organizes. 
C) All family-owned companies must be closed corporations. 
D) Family-owned companies are an example of a not-for-profit corporation. 
A) Only a small percentage of family-owned businesses survive into the second or third generation. 
B) Family-owned companies must submit a written agreement to the state in which it organizes. 
C) All family-owned companies must be closed corporations. 
D) Family-owned companies are an example of a not-for-profit corporation.

Question 8

Which of the following is one of the criteria for borrowers to qualify for a Small Business Administration-backed loan?

Accepted Answer

A) The borrower should not be a financial service provider. 
B) The borrower should not be a home-based business. 
C) The borrower should be unable to secure conventional commercial financing. 
D) The borrower should be a not-for-profit organization that focuses on energy conservation. 
A) The borrower should not be a financial service provider. 
B) The borrower should not be a home-based business. 
C) The borrower should be unable to secure conventional commercial financing. 
D) The borrower should be a not-for-profit organization that focuses on energy conservation.

Question 9

Which of the following is TRUE of a business with sole proprietorship?

Accepted Answer

A) It involves several owners. 
B) It is difficult to form and dissolve. 
C) Its owner has maximum management flexibility. 
D) Its owner is exempt from corporate franchise taxes. 
A) It involves several owners. 
B) It is difficult to form and dissolve. 
C) Its owner has maximum management flexibility. 
D) Its owner is exempt from corporate franchise taxes.

Question 10

Dissolving a sole proprietorship is more complicated than breaking up a partnership.

Accepted Answer

A) True 
 B)False

Question 11

The average amount rewarded to owners of small businesses through Small Business Administration (SBA)microloans is $13,000.

Accepted Answer

A) True 
 B)False

Question 12

______ is an advantage of a home-based business.

Accepted Answer

A) Greater visibility to customers 
B) Lower costs 
C) Less flexibility 
D) Isolation 
A) Greater visibility to customers 
B) Lower costs 
C) Less flexibility 
D) Isolation

Question 13

The CEO of a corporation is automatically the chair of the board of directors.

Accepted Answer

A) True 
 B)False

Question 14

Which of the following statements regarding small businesses,compared to large businesses,is correct?

Accepted Answer

A) Small businesses are less likely to hire young employees. 
B) Small businesses are less likely to develop new products. 
C) Small businesses are more likely to be eligible for government loans or for government purchasing programs. 
D) Small businesses are more likely to be franchises. 
A) Small businesses are less likely to hire young employees. 
B) Small businesses are less likely to develop new products. 
C) Small businesses are more likely to be eligible for government loans or for government purchasing programs. 
D) Small businesses are more likely to be franchises.

Question 15

An example of financial cooperatives are commercial banks.

Accepted Answer

A) True 
 B)False

Question 16

Direct SBA loans are available in only a few special situations,such as natural disaster recovery and energy conservation.

Accepted Answer

A) True 
 B)False

Question 17

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

Accepted Answer

A) True 
 B)False

Question 18

Walmart,an American retail chain,started doing business in India by forming a _____ with one of India's leading retail business groups.

Accepted Answer

A) joint venture 
B) subsidiary 
C) horizontal merger 
D) vertical merger 
A) joint venture 
B) subsidiary 
C) horizontal merger 
D) vertical merger

Question 19

The vast majority of firms have fewer than 500 employees.

Accepted Answer

A) True 
 B)False

Question 20

If business owners in a partnership wish to limit liability,they have the option to _____.

Accepted Answer

A) pledge funds 
B) limit expenditure 
C) set up a limited-liability partnership 
D) dissolve the partnership 
A) pledge funds 
B) limit expenditure 
C) set up a limited-liability partnership 
D) dissolve the partnership

Why do small-business owners want to determine whether their companies meet the standards for small-business designation? Because:

Corporations have all of the following advantages EXCEPT _____.

CVS Caremark,a healthcare company,recently purchased another firm's Medicaid prescription business.It is an example of a horizontal merger.

In order to cut costs and promote diversification,a vertical merger joins firms in the same industry.

Unfortunately,cooperatives rarely exist in the field of agriculture.

Which type of merger is done to increase customer bases?

Which of the following statements regarding family-owned businesses is true?

Which of the following is one of the criteria for borrowers to qualify for a Small Business Administration-backed loan?

Which of the following is TRUE of a business with sole proprietorship?

Dissolving a sole proprietorship is more complicated than breaking up a partnership.

The average amount rewarded to owners of small businesses through Small Business Administration (SBA)microloans is $13,000.

______ is an advantage of a home-based business.

The CEO of a corporation is automatically the chair of the board of directors.

Which of the following statements regarding small businesses,compared to large businesses,is correct?

An example of financial cooperatives are commercial banks.

Direct SBA loans are available in only a few special situations,such as natural disaster recovery and energy conservation.

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

Walmart,an American retail chain,started doing business in India by forming a _____ with one of India's leading retail business groups.

The vast majority of firms have fewer than 500 employees.

If business owners in a partnership wish to limit liability,they have the option to _____.

The Changing Face of Business

Business Ethics and Social Responsibility

Economic Challenges Facing Business Today

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

Trends in E-Commerce

Filters

Exam 5: Forms of Business Ownership and Organization

Why do small-business owners want to determine whether their companies meet the standards for small-business designation? Because:

Corporations have all of the following advantages EXCEPT _____.

CVS Caremark,a healthcare company,recently purchased another firm's Medicaid prescription business.It is an example of a horizontal merger.

In order to cut costs and promote diversification,a vertical merger joins firms in the same industry.

Unfortunately,cooperatives rarely exist in the field of agriculture.

Which type of merger is done to increase customer bases?

Which of the following statements regarding family-owned businesses is true?

Which of the following is one of the criteria for borrowers to qualify for a Small Business Administration-backed loan?

Which of the following is TRUE of a business with sole proprietorship?

Dissolving a sole proprietorship is more complicated than breaking up a partnership.

The average amount rewarded to owners of small businesses through Small Business Administration (SBA)microloans is $13,000.

______ is an advantage of a home-based business.

The CEO of a corporation is automatically the chair of the board of directors.

Which of the following statements regarding small businesses,compared to large businesses,is correct?

An example of financial cooperatives are commercial banks.

Direct SBA loans are available in only a few special situations,such as natural disaster recovery and energy conservation.

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

Walmart,an American retail chain,started doing business in India by forming a _____ with one of India's leading retail business groups.

The vast majority of firms have fewer than 500 employees.

If business owners in a partnership wish to limit liability,they have the option to _____.

The Changing Face of Business

Business Ethics and Social Responsibility

Economic Challenges Facing Business Today

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

Trends in E-Commerce

Filters