Question 1

Not-for-profit corporations do not issue stock certificates and are exempt from paying income taxes.

Accepted Answer

A) True 
 B)False

Question 2

Provide an example of how innovation drives small business.

Accepted Answer

Responses will vary

Question 3

A restaurant franchisee purchases which of the following from the franchisor?

Accepted Answer

A)  only food 
B)  both tangible and intangible assets 
C)  only equipment 
D)  only name recognition 
A)  only food 
B)  both tangible and intangible assets 
C)  only equipment 
D)  only name recognition

Question 4

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

Accepted Answer

A)  The number of employee-owned corporations is declining in North America. 
B)  Employee-owned corporations may not publicly trade their stock. 
C)  Employees buy shares of stock in the company that employs them. 
D)  Stock prices in employee corporations typically decrease. 
A)  The number of employee-owned corporations is declining in North America. 
B)  Employee-owned corporations may not publicly trade their stock. 
C)  Employees buy shares of stock in the company that employs them. 
D)  Stock prices in employee corporations typically decrease.

Question 5

The form of business ownership that establishes the firm as a separate legal entity is the _____.

Accepted Answer

A) sole proprietorship 
B) small business 
C) corporation 
D) merger 
E) acquisition
F)horizontal merger
G)conglomerate merger
H)cooperative
I)vertical merger
J)business incubators
K)business plan
L)closed corporation
M)preferred stock
N)franchising 
A) sole proprietorship 
B) small business 
C) corporation 
D) merger 
E) acquisition
F)horizontal merger
G)conglomerate merger
H)cooperative
I)vertical merger
J)business incubators
K)business plan
L)closed corporation
M)preferred stock
N)franchising

Question 6

The ________ is most likely an example of publicly ownership.

Accepted Answer

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

Question 7

The Hewlett Packard purchase of Compaq is an example of a conglomerate merger.

Accepted Answer

A) True 
 B)False

Question 8

In a partnership,each partner is liable for the business-related debts of the other partners.

Accepted Answer

A) True 
 B)False

Question 9

Many of today's most successful high-technology companies began as small businesses.

Accepted Answer

A) True 
 B)False

Question 10

Which of the following is an advantage of a home-based business?

Accepted Answer

A)  less flexibility 
B)  greater visibility to customers 
C)  lower costs 
D)  isolation 
A)  less flexibility 
B)  greater visibility to customers 
C)  lower costs 
D)  isolation

Question 11

If you are a highly independent individual used to having your own way,the best business format for you is to being as a ________.

Accepted Answer

A)  partnership 
B)  corporation 
C)  sole proprietorship 
D)  limited liability corporation 
A)  partnership 
B)  corporation 
C)  sole proprietorship 
D)  limited liability corporation

Question 12

The franchisor provides all of the following services EXCEPT ________.

Accepted Answer

A)  building plan 
B)  accounting systems 
C)  on-site management 
D)  name recognition 
A)  building plan 
B)  accounting systems 
C)  on-site management 
D)  name recognition

Question 13

All of the following are duties of the board of directors of a corporation EXCEPT ________.

Accepted Answer

A)  hiring the corporation's chief executive officer 
B)  authorizing major transactions of the corporation 
C)  guaranteeing the payment of cash dividends every year 
D)  electing its own officers 
A)  hiring the corporation's chief executive officer 
B)  authorizing major transactions of the corporation 
C)  guaranteeing the payment of cash dividends every year 
D)  electing its own officers

Question 14

If you are considering starting your own business,a key priority for you should be to:

Accepted Answer

A)  learn the basics of business. 
B)  incorporate your business. 
C)  get a loan from your local bank 
D)  apply for a Small Business Administration loan. 
A)  learn the basics of business. 
B)  incorporate your business. 
C)  get a loan from your local bank 
D)  apply for a Small Business Administration loan.

Question 15

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

Accepted Answer

A) True 
 B)False

Question 16

In the past 15 years many small businesses have closed because larger firms have bought out the small independent businesses.

Accepted Answer

A) True 
 B)False

Question 17

Distinguish between a vertical merger,a horizontal merger,and a conglomerate merger.Provide an example of each.Which is likely to receive the closest government scrutiny?

Accepted Answer

A vertical merger combines firms operati

Question 18

Although the average farm size has increased in recent years the majority of farmers operate as ________ businesses.

Accepted Answer

A)  small 
B)  large 
C)  government owned 
D)  partnerships 
A)  small 
B)  large 
C)  government owned 
D)  partnerships

Question 19

During a(n)_____,two or more firms combine to form one company.

Accepted Answer

A) sole proprietorship 
B) small business 
C) corporation 
D) merger 
E) acquisition
F)horizontal merger
G)conglomerate merger
H)cooperative
I)vertical merger
J)business incubators
K)business plan
L)closed corporation
M)preferred stock
N)franchising 
A) sole proprietorship 
B) small business 
C) corporation 
D) merger 
E) acquisition
F)horizontal merger
G)conglomerate merger
H)cooperative
I)vertical merger
J)business incubators
K)business plan
L)closed corporation
M)preferred stock
N)franchising

Question 20

Commercial banks are considered to be financial cooperatives.

Accepted Answer

A) True 
 B)False

Not-for-profit corporations do not issue stock certificates and are exempt from paying income taxes.

Provide an example of how innovation drives small business.

A restaurant franchisee purchases which of the following from the franchisor?

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

The form of business ownership that establishes the firm as a separate legal entity is the _____.

The ________ is most likely an example of publicly ownership.

The Hewlett Packard purchase of Compaq is an example of a conglomerate merger.

In a partnership,each partner is liable for the business-related debts of the other partners.

Many of today's most successful high-technology companies began as small businesses.

Which of the following is an advantage of a home-based business?

If you are a highly independent individual used to having your own way,the best business format for you is to being as a ________.

The franchisor provides all of the following services EXCEPT ________.

All of the following are duties of the board of directors of a corporation EXCEPT ________.

If you are considering starting your own business,a key priority for you should be to:

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

In the past 15 years many small businesses have closed because larger firms have bought out the small independent businesses.

Distinguish between a vertical merger,a horizontal merger,and a conglomerate merger.Provide an example of each.Which is likely to receive the closest government scrutiny?

Although the average farm size has increased in recent years the majority of farmers operate as ________ businesses.

During a(n)_____,two or more firms combine to form one company.

Commercial banks are considered to be financial cooperatives.

The Changing Face of Business

Business Ethics and Social Responsibility

Economic Challenges Facing Contemporary Business

Competing in World Markets

Starting Your Own Business: The Entrepreneurship Alternative

Management, Leadership, and the Internal Organization

Human Resource Management: From Recruitment to Labour 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

Filters

Exam 5: Forms of Business Ownership and Organization

Not-for-profit corporations do not issue stock certificates and are exempt from paying income taxes.

Provide an example of how innovation drives small business.

A restaurant franchisee purchases which of the following from the franchisor?

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

The form of business ownership that establishes the firm as a separate legal entity is the _____.

The ________ is most likely an example of publicly ownership.

The Hewlett Packard purchase of Compaq is an example of a conglomerate merger.

In a partnership,each partner is liable for the business-related debts of the other partners.

Many of today's most successful high-technology companies began as small businesses.

Which of the following is an advantage of a home-based business?

If you are a highly independent individual used to having your own way,the best business format for you is to being as a ________.

The franchisor provides all of the following services EXCEPT ________.

All of the following are duties of the board of directors of a corporation EXCEPT ________.

If you are considering starting your own business,a key priority for you should be to:

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

In the past 15 years many small businesses have closed because larger firms have bought out the small independent businesses.

Distinguish between a vertical merger,a horizontal merger,and a conglomerate merger.Provide an example of each.Which is likely to receive the closest government scrutiny?

Although the average farm size has increased in recent years the majority of farmers operate as ________ businesses.

During a(n)_____,two or more firms combine to form one company.

Commercial banks are considered to be financial cooperatives.

The Changing Face of Business

Business Ethics and Social Responsibility

Economic Challenges Facing Contemporary Business

Competing in World Markets

Starting Your Own Business: The Entrepreneurship Alternative

Management, Leadership, and the Internal Organization

Human Resource Management: From Recruitment to Labour 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

Filters