Question 1

Which of the following industry groups is the fastest growing segment of small business enterprise?

Accepted Answer

A)  manufacturing 
B)  wholesaling 
C)  services 
D)  retailing 
A)  manufacturing 
B)  wholesaling 
C)  services 
D)  retailing C

Question 2

The most common form of business organization is the corporation.

Accepted Answer

A) True 
 B)False  False

Question 3

Small businesses produce 13 times as many patents per employee as large patenting firms.

Accepted Answer

A) True 
 B)False  False

Question 4

Most venture capital companies do not lend money.

Accepted Answer

A) True 
 B)False

Question 5

One growing trend has been that new businesses are started by people who have left big corporations and who want to put their experience to work.

Accepted Answer

A) True 
 B)False

Question 6

Most experts recommend starting a business from scratch rather than buying an existing business.

Accepted Answer

A) True 
 B)False

Question 7

Short Case Scenario 3-1
The Miller brothers (Jack, Bill, and Evan) are about to fulfill a life-long dream. They are buying a thousand-acre farm and plan to grow cotton. Seeking independence, they are not interested in bringing in any outside owners. They have obtained financing from the Farm Credit Bureau that will allow them to finance the purchase of the farm and some equipment. The brothers are realistic and expect to work very long hours. However, they have a few critical decisions left to make.
-Assuming the farm is organized as a private corporation,what are the disadvantages?

Accepted Answer

The disadvantages of a private

Question 8

Which of the following is the most significant disadvantage of franchising?

Accepted Answer

A)  high startup costs 
B)  increased chance of failure 
C)  difficulty in obtaining financing 
D)  lengthy contracts 
A)  high startup costs 
B)  increased chance of failure 
C)  difficulty in obtaining financing 
D)  lengthy contracts

Question 9

The biggest potential drawback to the corporate form of ownership is ________.

Accepted Answer

A)  a tender offer 
B)  startup costs 
C)  double taxation 
D)  limited liability 
A)  a tender offer 
B)  startup costs 
C)  double taxation 
D)  limited liability

Question 10

A multinational corporation is a form of corporation spanning national boundaries.

Accepted Answer

A) True 
 B)False

Question 11

A disadvantage of the corporate form of business ownership is lack of continuity.

Accepted Answer

A) True 
 B)False

Question 12

The governing body of a corporation is its ________.

Accepted Answer

A)  stockholders 
B)  stakeholders 
C)  board of directors 
D)  top managers 
A)  stockholders 
B)  stakeholders 
C)  board of directors 
D)  top managers

Question 13

In a franchise,the franchisee is the seller or parent company.

Accepted Answer

A) True 
 B)False

Question 14

Most businesses in the U.S.are large businesses with more than 500 employees.

Accepted Answer

A) True 
 B)False

Question 15

Which of the following type of store is favored by small-business retailers?

Accepted Answer

A)  superstore 
B)  catalog showroom 
C)  specialty shop 
D)  department store 
A)  superstore 
B)  catalog showroom 
C)  specialty shop 
D)  department store

Question 16

Each year,between 600,000 and 650,000 new businesses are launched in the United States.How many businesses fail each year?

Accepted Answer

A)  50,000 and 100,000 
B)  100,000 and 250,000 
C)  500,000 and 600,000 
D)  700,000 and 999,000 
A)  50,000 and 100,000 
B)  100,000 and 250,000 
C)  500,000 and 600,000 
D)  700,000 and 999,000

Question 17

How do attitudes about entrepreneurship vary internationally?

Accepted Answer

In many cultures,such as the U

Question 18

A group of small investors who invest money in companies with rapid growth potential is called a Small-Business Investment Company.

Accepted Answer

A) True 
 B)False

Question 19

An arrangement that permits the buyer to sell the product of the seller,or parent company,is called a ________.

Accepted Answer

A)  wholesaling business 
B)  franchise 
C)  government entity 
D)  none of the above 
A)  wholesaling business 
B)  franchise 
C)  government entity 
D)  none of the above

Question 20

________ are groups of small investors seeking to make profits on companies with rapid growth potential.

Accepted Answer

A)  Business incubators 
B)  Investment clubs 
C)  Venture capital companies 
D)  Financial partnerships 
A)  Business incubators 
B)  Investment clubs 
C)  Venture capital companies 
D)  Financial partnerships

Which of the following industry groups is the fastest growing segment of small business enterprise?

The most common form of business organization is the corporation.

Small businesses produce 13 times as many patents per employee as large patenting firms.

Most venture capital companies do not lend money.

One growing trend has been that new businesses are started by people who have left big corporations and who want to put their experience to work.

Most experts recommend starting a business from scratch rather than buying an existing business.

Which of the following is the most significant disadvantage of franchising?

The biggest potential drawback to the corporate form of ownership is ________.

A multinational corporation is a form of corporation spanning national boundaries.

A disadvantage of the corporate form of business ownership is lack of continuity.

The governing body of a corporation is its ________.

In a franchise,the franchisee is the seller or parent company.

Most businesses in the U.S.are large businesses with more than 500 employees.

Which of the following type of store is favored by small-business retailers?

Each year,between 600,000 and 650,000 new businesses are launched in the United States.How many businesses fail each year?

How do attitudes about entrepreneurship vary internationally?

A group of small investors who invest money in companies with rapid growth potential is called a Small-Business Investment Company.

An arrangement that permits the buyer to sell the product of the seller,or parent company,is called a ________.

________ are groups of small investors seeking to make profits on companies with rapid growth potential.

The U.S.Business Environment

Business Ethics and Social Responsibility

The Global Context of Business

Business Management

Organizing the Business

Operations Management and Quality

Employee Behavior and Motivation

Leadership and Decision Making

Human Resource Management and Labor Relations

Marketing Processes and Consumer Behavior

Pricing, Distributing, and Promoting Products

The Role of Accountants and Accounting Information

Money and Banking

Managing Finances

Filters

Exam 3: Entrepreneurship, New Ventures, and Business Ownership

Which of the following industry groups is the fastest growing segment of small business enterprise?

The most common form of business organization is the corporation.

Small businesses produce 13 times as many patents per employee as large patenting firms.

Most venture capital companies do not lend money.

One growing trend has been that new businesses are started by people who have left big corporations and who want to put their experience to work.

Most experts recommend starting a business from scratch rather than buying an existing business.

Which of the following is the most significant disadvantage of franchising?

The biggest potential drawback to the corporate form of ownership is ________.

A multinational corporation is a form of corporation spanning national boundaries.

A disadvantage of the corporate form of business ownership is lack of continuity.

The governing body of a corporation is its ________.

In a franchise,the franchisee is the seller or parent company.

Most businesses in the U.S.are large businesses with more than 500 employees.

Which of the following type of store is favored by small-business retailers?

Each year,between 600,000 and 650,000 new businesses are launched in the United States.How many businesses fail each year?

How do attitudes about entrepreneurship vary internationally?

A group of small investors who invest money in companies with rapid growth potential is called a Small-Business Investment Company.

An arrangement that permits the buyer to sell the product of the seller,or parent company,is called a ________.

________ are groups of small investors seeking to make profits on companies with rapid growth potential.

The U.S.Business Environment

Business Ethics and Social Responsibility

The Global Context of Business

Business Management

Organizing the Business

Operations Management and Quality

Employee Behavior and Motivation

Leadership and Decision Making

Human Resource Management and Labor Relations

Marketing Processes and Consumer Behavior

Pricing, Distributing, and Promoting Products

The Role of Accountants and Accounting Information

Money and Banking

Managing Finances

Filters