Question 1

Business incubators provide low-cost,shared business facilities to small start-up companies in order to encourage business development.

Accepted Answer

A) True 
 B)False

Question 2

In exchange for an ownership share,Benita's small business receives financing from a group of individuals known as _____________,

Accepted Answer

A)  microloan investors 
B)  franchisors 
C)  Small Business Investment Companies 
D)  venture capitalists 
A)  microloan investors 
B)  franchisors 
C)  Small Business Investment Companies 
D)  venture capitalists

Question 3

Many small businesses are home-based businesses

Accepted Answer

A) True 
 B)False

Question 4

The stock of Old Germany Brewery is totally owned by the Prechter family.When the family elected to move from a sole proprietorship to a corporation,the greatest concern was ________.

Accepted Answer

A)  there might be family squabbles 
B)  how to limit liability 
C)  choosing work assignments 
D)  double taxation 
A)  there might be family squabbles 
B)  how to limit liability 
C)  choosing work assignments 
D)  double taxation

Question 5

The Business Development Bank of Canada (BDC)provides all of the following EXCEPT ________.

Accepted Answer

A)  loan guarantees 
B)  training 
C)  technical assistance 
D)  counselling 
A)  loan guarantees 
B)  training 
C)  technical assistance 
D)  counselling

Question 6

Greg buys a McDonald's franchise.Greg is the ________ and ________ for McDonald's.

Accepted Answer

A)  franchisor;works 
B)  franchisor;does not work 
C)  franchisee;works 
D)  franchisee;does not work 
A)  franchisor;works 
B)  franchisor;does not work 
C)  franchisee;works 
D)  franchisee;does not work

Question 7

Shareholders are the de-facto owners of a corporation.

Accepted Answer

A) True 
 B)False

Question 8

McDonalds offers a contractual business arrangement in various countries around the world.McDonalds is an example of a(n)international ____________.

Accepted Answer

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

Question 9

Many businesses fail during the early years because of ________.

Accepted Answer

A)  unmotivated owners 
B)  poor planning 
C)  niche markets 
D)  inadequate financing 
A)  unmotivated owners 
B)  poor planning 
C)  niche markets 
D)  inadequate financing

Question 10

Having a(n)_____ improves the chances of success for a new business by providing an orderly statement of a company's goals.

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 11

All of the following are contributions of small businesses EXCEPT:

Accepted Answer

A)  They provide more job security than large corporations. 
B)  They fuel local economies. 
C)  They provide needed services to the larger corporate community. 
D)  They create a substantial number of new jobs. 
A)  They provide more job security than large corporations. 
B)  They fuel local economies. 
C)  They provide needed services to the larger corporate community. 
D)  They create a substantial number of new jobs.

Question 12

More than half of all small businesses fail within the first year.

Accepted Answer

A) True 
 B)False

Question 13

Class action lawsuits filed against drug manufacturers are filed against the corporations themselves,not the owners of these corporations.

Accepted Answer

A) True 
 B)False

Question 14

Sole proprietorships are easy to form and dissolve.

Accepted Answer

A) True 
 B)False

Question 15

Which of the following statements concerning preferred shares is FALSE? ______.

Accepted Answer

A)  Owners of preferred shares never have voting rights 
B)  Preferred shareholders receive dividends before the holders of common shares 
C)  In dissolution preferred shareholders have first claim of assets,after debt holders 
D)  Any corporation can offer preferred shares 
A)  Owners of preferred shares never have voting rights 
B)  Preferred shareholders receive dividends before the holders of common shares 
C)  In dissolution preferred shareholders have first claim of assets,after debt holders 
D)  Any corporation can offer preferred shares

Question 16

An advantage of starting a home-based business is the lower start-up expenses.

Accepted Answer

A) True 
 B)False

Question 17

Isabella owns 100 shares of IBM ________ stock,which means she has voting rights on company decisions at IBM,but only residual claims on the company's assets.

Accepted Answer

A)  preferred 
B)  principal 
C)  management 
D)  common 
A)  preferred 
B)  principal 
C)  management 
D)  common

Question 18

A conglomerate merger is a merger of unrelated firms.

Accepted Answer

A) True 
 B)False

Question 19

The form of business ownership that is least subject to legal red tape is _____.

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

________ of goods-producing businesses are small firms..

Accepted Answer

A)  Less than 25 percent 
B)  About 25 percent 
C)  About 50 percent 
D)  Over 95 percent 
A)  Less than 25 percent 
B)  About 25 percent 
C)  About 50 percent 
D)  Over 95 percent

Business incubators provide low-cost,shared business facilities to small start-up companies in order to encourage business development.

In exchange for an ownership share,Benita's small business receives financing from a group of individuals known as _____________,

Many small businesses are home-based businesses

The stock of Old Germany Brewery is totally owned by the Prechter family.When the family elected to move from a sole proprietorship to a corporation,the greatest concern was ________.

The Business Development Bank of Canada (BDC)provides all of the following EXCEPT ________.

Greg buys a McDonald's franchise.Greg is the and for McDonald's.

Shareholders are the de-facto owners of a corporation.

McDonalds offers a contractual business arrangement in various countries around the world.McDonalds is an example of a(n)international ____________.

Many businesses fail during the early years because of ________.

Having a(n)_____ improves the chances of success for a new business by providing an orderly statement of a company's goals.

All of the following are contributions of small businesses EXCEPT:

More than half of all small businesses fail within the first year.

Class action lawsuits filed against drug manufacturers are filed against the corporations themselves,not the owners of these corporations.

Sole proprietorships are easy to form and dissolve.

Which of the following statements concerning preferred shares is FALSE? ______.

An advantage of starting a home-based business is the lower start-up expenses.

Isabella owns 100 shares of IBM ________ stock,which means she has voting rights on company decisions at IBM,but only residual claims on the company's assets.

A conglomerate merger is a merger of unrelated firms.

The form of business ownership that is least subject to legal red tape is _____.

________ of goods-producing businesses are small firms..

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

Business incubators provide low-cost,shared business facilities to small start-up companies in order to encourage business development.

In exchange for an ownership share,Benita's small business receives financing from a group of individuals known as _____________,

Many small businesses are home-based businesses

The stock of Old Germany Brewery is totally owned by the Prechter family.When the family elected to move from a sole proprietorship to a corporation,the greatest concern was ________.

The Business Development Bank of Canada (BDC)provides all of the following EXCEPT ________.

Greg buys a McDonald's franchise.Greg is the ________ and ________ for McDonald's.

Shareholders are the de-facto owners of a corporation.

McDonalds offers a contractual business arrangement in various countries around the world.McDonalds is an example of a(n)international ____________.

Many businesses fail during the early years because of ________.

Having a(n)_____ improves the chances of success for a new business by providing an orderly statement of a company's goals.

All of the following are contributions of small businesses EXCEPT:

More than half of all small businesses fail within the first year.

Class action lawsuits filed against drug manufacturers are filed against the corporations themselves,not the owners of these corporations.

Sole proprietorships are easy to form and dissolve.

Which of the following statements concerning preferred shares is FALSE? ______.

An advantage of starting a home-based business is the lower start-up expenses.

Isabella owns 100 shares of IBM ________ stock,which means she has voting rights on company decisions at IBM,but only residual claims on the company's assets.

A conglomerate merger is a merger of unrelated firms.

The form of business ownership that is least subject to legal red tape is _____.

________ of goods-producing businesses are small firms..

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

Greg buys a McDonald's franchise.Greg is the and for McDonald's.