Exam 5: Forms of Business Ownership and Organization

Why do many businesses fail during the early years?

Partnerships,out of all forms of business,are the most challenging to establish.

Which of these uses their own capital supplemented with government loans to invest in small businesses?

Adolpho requires funding for a shopping portal that he launched recently.He wants to secure a government procurement contract to ensure adequate funding.Which of the following organizations can help Adolpho avail the contract?

Joint ventures rarely occur between not-for-profit organizations and for-profit companies.

The set-aside program designates that a percentage of government contracts must be awarded to qualifying small businesses.

Direct Small Business Administration (SBA)loans are rewarded to owners of small businesses 90% of the time.

Preferred shareholders typically have voting rights.

Sumi is the owner of a very small technology start-up.She shares clerical staff,computers,and other business services with other small business owners.Sumi is part of a:

Traditionally,small businesses tended to be concentrated in the _____ industry.

Which of the following statements is true regarding employee-owned corporations?

Adelina is the owner of an electronic repair shop.She creates the marketing strategy for her shop,pays all the required taxes,and is also the only person who enjoys the profits generated by the shop.Adelina's business ownership in this scenario can be regarded as a _____.

Not-for-profit organizations focused on economic development operate most business incubators.

Sushma established a corporation in Nebraska,but she recently moved to Colorado where she now conducts her business.What type of corporation does Sushma own?

Sole proprietorships are concentrated mainly in corporations.

A corporation operating outside its state of incorporation is known as a domestic corporation.

A state that is considered to be "business friendly" based on tax incentives is Delaware.

The maximum number of shareholders is limited to _____ for a firm to qualify as a subchapter S corporation.

Owners of corporations may owe personal income taxes on dividends,which are paid from after-tax corporate profits.This is an example of double taxation.

Franchisors typically experience a greater return on investment than if the firm were run entirely as a company-owned chain.