Question 1

An acquisition occurs when _____.

Accepted Answer

A) one company purchases the property and assumes the obligations of another company 
B) one corporation owns 8% of the stock of another corporation 
C) owners of small companies band together to operate their businesses collectively 
D) two or more firms combine to form a single company 
A) one company purchases the property and assumes the obligations of another company 
B) one corporation owns 8% of the stock of another corporation 
C) owners of small companies band together to operate their businesses collectively 
D) two or more firms combine to form a single company

Question 2

How can owners of small businesses can increase their chances of success?

Accepted Answer

A) If they become an expert in legal,financial,marketing,and other related business areas. 
B) If they incorporate their business. 
C) If they hire only family members or friends. 
D) If they understand their customers. 
A) If they become an expert in legal,financial,marketing,and other related business areas. 
B) If they incorporate their business. 
C) If they hire only family members or friends. 
D) If they understand their customers.

Question 3

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

Accepted Answer

A) True 
 B)False

Question 4

A successful franchisor can usually negotiate better pricing for ingredients,supplies,even real estate,because of its financial strength and large volume purchases.

Accepted Answer

A) True 
 B)False

Question 5

A(n)___________ is a written document that provides an orderly statement of a company's goals,the methods by which it intends to achieve these goals,and the standards by which it will measure its achievements.

Accepted Answer

A) mission statement 
B) executive summary 
C) business incubator 
D) business plan 
A) mission statement 
B) executive summary 
C) business incubator 
D) business plan

Question 6

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

Accepted Answer

A) True 
 B)False

Question 7

Mateo is the owner of a small mushroom farm in Pennsylvania.He would like to join hands with other growers to create an organization that will promote and distribute mushrooms.The form of ownership that would be most suited for Mateo and other growers will be a(n)_____.

Accepted Answer

A) joint venture 
B) open corporation 
C) government-owned collective 
D) cooperative 
A) joint venture 
B) open corporation 
C) government-owned collective 
D) cooperative

Question 8

In public ownership a unit or agency of government owns and operates an organization.

Accepted Answer

A) True 
 B)False

Question 9

A mission statement is a written document that provides an orderly statement of a company's goals,the methods by which it intends to achieve these goals,and the standards by which it will measure its achievements.

Accepted Answer

A) True 
 B)False

Question 10

American Foods International,a fast food chain,offers a contractual business arrangement in various countries around the world.This fast food chain will be an example of a(n)international _____.

Accepted Answer

A) franchise 
B) acquisition 
C) merger 
D) not-for-profit corporation 
A) franchise 
B) acquisition 
C) merger 
D) not-for-profit corporation

Question 11

Strict franchise agreements help to maintain the integrity of the brand.

Accepted Answer

A) True 
 B)False

Question 12

Franchising offers all of the following advantages EXCEPT _____.

Accepted Answer

A) a recognizable company name 
B) prior performance record 
C) training 
D) guaranteed level of profitability 
A) a recognizable company name 
B) prior performance record 
C) training 
D) guaranteed level of profitability

Question 13

Most managers of home-based businesses struggle to establish business hours that correspond with customer availability.

Accepted Answer

A) True 
 B)False

Question 14

The franchisor is a small business owner who sells the goods or services of the supplier

Accepted Answer

A) True 
 B)False

Question 15

Top Gear Comp,a tech firm decides to invest some of its excess cash by acquiring a coffeehouse chain.This would be a _____.

Accepted Answer

A) conglomerate company 
B) vertical merger 
C) horizontal merger 
D) joint venture 
A) conglomerate company 
B) vertical merger 
C) horizontal merger 
D) joint venture

Question 16

Government agencies offer benefits designed to help small businesses compete with larger firms.

Accepted Answer

A) True 
 B)False

Question 17

A sole proprietor is easy to dissolve.

Accepted Answer

A) True 
 B)False

Question 18

A company that has embraced employee ownership is Proctor & Gamble.

Accepted Answer

A) True 
 B)False

Question 19

Alejandro is a stockholder in a software consulting firm.He gets a share of the earnings of the firm,on which he has to pay taxes.Moreover,the firm pays taxes on its earnings.As an individual,Alejandro is not legally liable to pay off the debts that might be incurred by the firm.In this scenario,the software consulting firm can be regarded as a _____.

Accepted Answer

A) sole proprietorship 
B) partnership 
C) corporation 
D) franchise 
A) sole proprietorship 
B) partnership 
C) corporation 
D) franchise

Question 20

An example of public ownership is:

Accepted Answer

A) A movie theater 
B) The city sewer system 
C) A trucking company 
D) A television company 
A) A movie theater 
B) The city sewer system 
C) A trucking company 
D) A television company

An acquisition occurs when _____.

How can owners of small businesses can increase their chances of success?

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

A successful franchisor can usually negotiate better pricing for ingredients,supplies,even real estate,because of its financial strength and large volume purchases.

A(n)___________ is a written document that provides an orderly statement of a company's goals,the methods by which it intends to achieve these goals,and the standards by which it will measure its achievements.

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

Mateo is the owner of a small mushroom farm in Pennsylvania.He would like to join hands with other growers to create an organization that will promote and distribute mushrooms.The form of ownership that would be most suited for Mateo and other growers will be a(n)_____.

In public ownership a unit or agency of government owns and operates an organization.

A mission statement is a written document that provides an orderly statement of a company's goals,the methods by which it intends to achieve these goals,and the standards by which it will measure its achievements.

American Foods International,a fast food chain,offers a contractual business arrangement in various countries around the world.This fast food chain will be an example of a(n)international _____.

Strict franchise agreements help to maintain the integrity of the brand.

Franchising offers all of the following advantages EXCEPT _____.

Most managers of home-based businesses struggle to establish business hours that correspond with customer availability.

The franchisor is a small business owner who sells the goods or services of the supplier

Top Gear Comp,a tech firm decides to invest some of its excess cash by acquiring a coffeehouse chain.This would be a _____.

Government agencies offer benefits designed to help small businesses compete with larger firms.

A sole proprietor is easy to dissolve.

A company that has embraced employee ownership is Proctor & Gamble.

An example of public ownership is:

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

An acquisition occurs when _____.

How can owners of small businesses can increase their chances of success?

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

A successful franchisor can usually negotiate better pricing for ingredients,supplies,even real estate,because of its financial strength and large volume purchases.

A(n)___________ is a written document that provides an orderly statement of a company's goals,the methods by which it intends to achieve these goals,and the standards by which it will measure its achievements.

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

Mateo is the owner of a small mushroom farm in Pennsylvania.He would like to join hands with other growers to create an organization that will promote and distribute mushrooms.The form of ownership that would be most suited for Mateo and other growers will be a(n)_____.

In public ownership a unit or agency of government owns and operates an organization.

A mission statement is a written document that provides an orderly statement of a company's goals,the methods by which it intends to achieve these goals,and the standards by which it will measure its achievements.

American Foods International,a fast food chain,offers a contractual business arrangement in various countries around the world.This fast food chain will be an example of a(n)international _____.

Strict franchise agreements help to maintain the integrity of the brand.

Franchising offers all of the following advantages EXCEPT _____.

Most managers of home-based businesses struggle to establish business hours that correspond with customer availability.

The franchisor is a small business owner who sells the goods or services of the supplier

Top Gear Comp,a tech firm decides to invest some of its excess cash by acquiring a coffeehouse chain.This would be a _____.

Government agencies offer benefits designed to help small businesses compete with larger firms.

A sole proprietor is easy to dissolve.

A company that has embraced employee ownership is Proctor & Gamble.

An example of public ownership is:

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