Question 1

Which of the following is necessary for starting a sole tradership?

Accepted Answer

A)  A contract 
B)  An agreement 
C)  An application to the secretary of state 
D)  Articles of sole trading 
E)  No specific legal documents 
A)  A contract 
B)  An agreement 
C)  An application to the secretary of state 
D)  Articles of sole trading 
E)  No specific legal documents

Question 2

Habitat for Humanity and Girl Scouts are both examples of

Accepted Answer

A)  cooperatives. 
B)  quasi-government corporations. 
C)  limited-liability corporations 
D)  cooperatives 
E)  not-for-profit corporations. 
A)  cooperatives. 
B)  quasi-government corporations. 
C)  limited-liability corporations 
D)  cooperatives 
E)  not-for-profit corporations.

Question 3

Wade serves on Foot Locker's board of directors.How did Wade get this position?

Accepted Answer

A)  He volunteered for the assignment. 
B)  He was appointed by the chief executive officer. 
C)  He was assigned by the Federal Trade Commission. 
D)  Through default as the largest stockholder, Wade got the position. 
E)  He was elected by the company's stockholders. 
A)  He volunteered for the assignment. 
B)  He was appointed by the chief executive officer. 
C)  He was assigned by the Federal Trade Commission. 
D)  Through default as the largest stockholder, Wade got the position. 
E)  He was elected by the company's stockholders.

Question 4

Mars, Inc., maker of M&Ms and other candy, is 100 percent owned by the Mars family and is therefore referred to as a(n)

Accepted Answer

A)  open corporation. 
B)  public corporation. 
C)  syndicate. 
D)  cooperative. 
E)  closed corporation. 
A)  open corporation. 
B)  public corporation. 
C)  syndicate. 
D)  cooperative. 
E)  closed corporation.

Question 5

Which of the following is an advantage of a sole trader?

Accepted Answer

A)  The owner has unlimited liability. 
B)  The business ceases to exist when the owner dies. 
C)  There is a limit to the amount one person can borrow. 
D)  Profits are taxed as individual income. 
E)  The owner enjoys lack of continuity. 
A)  The owner has unlimited liability. 
B)  The business ceases to exist when the owner dies. 
C)  There is a limit to the amount one person can borrow. 
D)  Profits are taxed as individual income. 
E)  The owner enjoys lack of continuity.

Question 6

What is the primary disadvantage of both a sole trader and a partnership that a corporation overcomes?

Accepted Answer

A)  No access to capital 
B)  Taxing complications 
C)  Unlimited liability 
D)  Ease of start-up 
E)  Lack of secrecy 
A)  No access to capital 
B)  Taxing complications 
C)  Unlimited liability 
D)  Ease of start-up 
E)  Lack of secrecy

Question 7

A limited-liability company extends the concept of personal-asset protection to small-business owners.

Accepted Answer

A) True 
 B)False

Question 8

Which of the following statements is false?

Accepted Answer

A)  The main ingredient for growth is capital. 
B)  One way for a corporation to grow is to sell present products in new geographic locations. 
C)  When carefully planned and controlled, growth from within can have very little adverse effect on a firm. 
D)  There is no connection between growth and executive power, prestige, and reputation. 
E)  One way for a business to grow is to sell new but related products to its existing customer base. 
A)  The main ingredient for growth is capital. 
B)  One way for a corporation to grow is to sell present products in new geographic locations. 
C)  When carefully planned and controlled, growth from within can have very little adverse effect on a firm. 
D)  There is no connection between growth and executive power, prestige, and reputation. 
E)  One way for a business to grow is to sell new but related products to its existing customer base.

Question 9

A common tactic of corporate raiders is to start a proxy fight.

Accepted Answer

A) True 
 B)False

Question 10

The most effective form of business organisation for raising capital is the

Accepted Answer

A)  joint venture. 
B)  syndicate. 
C)  sole trader. 
D)  partnership. 
E)  corporation. 
A)  joint venture. 
B)  syndicate. 
C)  sole trader. 
D)  partnership. 
E)  corporation.

Question 11

Financial experts agree that takeovers enhance corporate profitability and productivity.

Accepted Answer

A) True 
 B)False

Question 12

A banker or lender is more likely to make sizable loans to a sole proprietor than to a partnership.

Accepted Answer

A) True 
 B)False

Question 13

The purchase of one corporation by another is called a merger.

Accepted Answer

A) True 
 B)False

Question 14

Which of the following is an advantage of the corporate form of organisation?

Accepted Answer

A)  Ownership of stock is easy to transfer. 
B)  Forming a corporation is a complex and costly process. 
C)  The corporation and its stockholders pay taxes on profits. 
D)  A corporation must submit detailed information to government agencies. 
E)  It is difficult to keep operations confidential because of required reports. 
A)  Ownership of stock is easy to transfer. 
B)  Forming a corporation is a complex and costly process. 
C)  The corporation and its stockholders pay taxes on profits. 
D)  A corporation must submit detailed information to government agencies. 
E)  It is difficult to keep operations confidential because of required reports.

Question 15

Samantha's Dilemma
Samantha graduated from college and needed to decide where she wanted to work.She had several options.Her aunt Julie owned and operated a small business that she started about twenty years ago.Julie, an individual owner of her business, informed Samantha that she could work for her.On one hand, Samantha thought it would be a great opportunity to be able to work for her aunt, learn the business, and then run the business when her aunt retired.On the other hand, she also felt that she wanted something a little more challenging; a job where she could really use her education.Her other option would be to work for a company that a friend and her husband had started and jointly owned.It was a rapidly growing company with plenty of opportunity for advancement.However, Samantha had some reservations about this choice because she was not sure she wanted to work for friends.Her last option was to work for a large retail company, headquartered in Maryland, which had stores across the UK.
After much consideration, Samantha decided she didn't want an opportunity and a job because someone knew her.She wanted to prove how motivated and hard-working she was.Once she weighed all the advantages and disadvantages of her different options, she decided to work for the large retail company so that she could gain the most experience for herself.
-Refer to Samantha's Dilemma.What would not be an advantage of Samantha's aunt's business?

Accepted Answer

A)  Pride of ownership 
B)  Retention of profits 
C)  No special taxes 
D)  Ability to be your own boss 
E)  Unlimited liability 
A)  Pride of ownership 
B)  Retention of profits 
C)  No special taxes 
D)  Ability to be your own boss 
E)  Unlimited liability

Question 16

To close a sole tradership, the owner must

Accepted Answer

A)  notify the secretary of state. 
B)  pay creditors. 
C)  publish an out-of-business statement in the newspaper. 
D)  have all licences and permits revoked. 
E)  do none of the above. 
A)  notify the secretary of state. 
B)  pay creditors. 
C)  publish an out-of-business statement in the newspaper. 
D)  have all licences and permits revoked. 
E)  do none of the above.

Question 17

The top governing body of a corporation is known as the

Accepted Answer

A)  incorporators. 
B)  stockholders. 
C)  management. 
D)  officers. 
E)  board of directors. 
A)  incorporators. 
B)  stockholders. 
C)  management. 
D)  officers. 
E)  board of directors.

Question 18

In a limited partnership, a limited partner's name must be included in the partnership's name.

Accepted Answer

A) True 
 B)False

Question 19

Ordinary shareholders have the right to elect a corporation's board of directors and vote on corporate matters.

Accepted Answer

A) True 
 B)False

Question 20

In the UK, approximately 72 percent of all businesses are

Accepted Answer

A)  corporations. 
B)  partnerships. 
C)  sole traders. 
D)  joint ventures. 
E)  franchises. 
A)  corporations. 
B)  partnerships. 
C)  sole traders. 
D)  joint ventures. 
E)  franchises.

Which of the following is necessary for starting a sole tradership?

Habitat for Humanity and Girl Scouts are both examples of

Wade serves on Foot Locker's board of directors.How did Wade get this position?

Mars, Inc., maker of M&Ms and other candy, is 100 percent owned by the Mars family and is therefore referred to as a(n)

Which of the following is an advantage of a sole trader?

What is the primary disadvantage of both a sole trader and a partnership that a corporation overcomes?

A limited-liability company extends the concept of personal-asset protection to small-business owners.

Which of the following statements is false?

A common tactic of corporate raiders is to start a proxy fight.

The most effective form of business organisation for raising capital is the

Financial experts agree that takeovers enhance corporate profitability and productivity.

A banker or lender is more likely to make sizable loans to a sole proprietor than to a partnership.

The purchase of one corporation by another is called a merger.

Which of the following is an advantage of the corporate form of organisation?

To close a sole tradership, the owner must

The top governing body of a corporation is known as the

In a limited partnership, a limited partner's name must be included in the partnership's name.

Ordinary shareholders have the right to elect a corporation's board of directors and vote on corporate matters.

In the UK, approximately 72 percent of all businesses are

Introduction to Business

Responsible Business

Global Business

Small Business, Entrepreneurship, and Franchises

Leadership and Managing a Business

Flexibility Within the Organisation

Products and Services

Recruitment and Retaining the Best Employees

Employee Motivation and Team Building

The Marketing Concept

Aproduct Development and Pricing Strategies

Marketing Channels

Marketing Communications

Social Media and E-Business

Introduction to Management Accounting

Money and the Banking System

Financial Management

Personal Finances and Investments

Filters

Exam 4: Types of Business Ownership

Which of the following is necessary for starting a sole tradership?

Habitat for Humanity and Girl Scouts are both examples of

Wade serves on Foot Locker's board of directors.How did Wade get this position?

Mars, Inc., maker of M&Ms and other candy, is 100 percent owned by the Mars family and is therefore referred to as a(n)

Which of the following is an advantage of a sole trader?

What is the primary disadvantage of both a sole trader and a partnership that a corporation overcomes?

A limited-liability company extends the concept of personal-asset protection to small-business owners.

Which of the following statements is false?

A common tactic of corporate raiders is to start a proxy fight.

The most effective form of business organisation for raising capital is the

Financial experts agree that takeovers enhance corporate profitability and productivity.

A banker or lender is more likely to make sizable loans to a sole proprietor than to a partnership.

The purchase of one corporation by another is called a merger.

Which of the following is an advantage of the corporate form of organisation?

To close a sole tradership, the owner must

The top governing body of a corporation is known as the

In a limited partnership, a limited partner's name must be included in the partnership's name.

Ordinary shareholders have the right to elect a corporation's board of directors and vote on corporate matters.

In the UK, approximately 72 percent of all businesses are

Introduction to Business

Responsible Business

Global Business

Small Business, Entrepreneurship, and Franchises

Leadership and Managing a Business

Flexibility Within the Organisation

Products and Services

Recruitment and Retaining the Best Employees

Employee Motivation and Team Building

The Marketing Concept

Aproduct Development and Pricing Strategies

Marketing Channels

Marketing Communications

Social Media and E-Business

Introduction to Management Accounting

Money and the Banking System

Financial Management

Personal Finances and Investments

Filters