Question 1

A partnership continues even after one partner dies.

Accepted Answer

A) True 
 B)False

Question 2

Approximately how many new businesses fail within the first four to five years?

Accepted Answer

A)  5 percent 
B)  25 percent 
C)  50 percent 
D)  75 percent 
A)  5 percent 
B)  25 percent 
C)  50 percent 
D)  75 percent

Question 3

A disadvantage of a partnership that fails is that a partner can lose personal assets in addition to the amount of money invested in the business.

Accepted Answer

A) True 
 B)False

Question 4

Match each item with the correct statement below.
-Difference between assets and liabilities.

Accepted Answer

A) Assets 
B) balance sheet 
C) business plan 
D) Capital 
E) charter
F)close corporation
G)creditors
H)entrepreneur
I)income statement
J)intrapreneur
K)liabilities
L)officer
M)open corporation
N)stockholders 
A) Assets 
B) balance sheet 
C) business plan 
D) Capital 
E) charter
F)close corporation
G)creditors
H)entrepreneur
I)income statement
J)intrapreneur
K)liabilities
L)officer
M)open corporation
N)stockholders

Question 5

If one partner is unable to pay his or her portion of the business's debts, the other partners must pay it.

Accepted Answer

A) True 
 B)False

Question 6

Match each item with the correct statement below.
-Parties who have first claim against assets.

Accepted Answer

A) Assets 
B) balance sheet 
C) business plan 
D) Capital 
E) charter
F)close corporation
G)creditors
H)entrepreneur
I)income statement
J)intrapreneur
K)liabilities
L)officer
M)open corporation
N)stockholders 
A) Assets 
B) balance sheet 
C) business plan 
D) Capital 
E) charter
F)close corporation
G)creditors
H)entrepreneur
I)income statement
J)intrapreneur
K)liabilities
L)officer
M)open corporation
N)stockholders

Question 7

A business plan helps entrepreneurs see the risks and responsibilities involved in starting a business.

Accepted Answer

A) True 
 B)False

Question 8

A partnership could be owned by as many as ten or more partners.

Accepted Answer

A) True 
 B)False

Question 9

An official document giving power to run a corporation is a

Accepted Answer

A)  partnership agreement 
B)  charter 
C)  proxy 
D)  business plan 
A)  partnership agreement 
B)  charter 
C)  proxy 
D)  business plan

Question 10

A nonprofit corporation is an organization that

Accepted Answer

A)  pays taxes and exist to make a profit 
B)  pays taxes and does not exist to make a profit 
C)  does not pay taxes and does not exist to make a profit 
D)  pays dividends to shareholders 
A)  pays taxes and exist to make a profit 
B)  pays taxes and does not exist to make a profit 
C)  does not pay taxes and does not exist to make a profit 
D)  pays dividends to shareholders

Question 11

Match each item with the correct statement below.
-Property owned by a business.

Accepted Answer

A) Assets 
B) balance sheet 
C) business plan 
D) Capital 
E) charter
F)close corporation
G)creditors
H)entrepreneur
I)income statement
J)intrapreneur
K)liabilities
L)officer
M)open corporation
N)stockholders 
A) Assets 
B) balance sheet 
C) business plan 
D) Capital 
E) charter
F)close corporation
G)creditors
H)entrepreneur
I)income statement
J)intrapreneur
K)liabilities
L)officer
M)open corporation
N)stockholders

Question 12

The stockholders make up the ruling body of a corporation.

Accepted Answer

A) True 
 B)False

Question 13

Match each item with the correct statement below.
-A statement of financial position.

Accepted Answer

A) Assets 
B) balance sheet 
C) business plan 
D) Capital 
E) charter
F)close corporation
G)creditors
H)entrepreneur
I)income statement
J)intrapreneur
K)liabilities
L)officer
M)open corporation
N)stockholders 
A) Assets 
B) balance sheet 
C) business plan 
D) Capital 
E) charter
F)close corporation
G)creditors
H)entrepreneur
I)income statement
J)intrapreneur
K)liabilities
L)officer
M)open corporation
N)stockholders

Question 14

Match each item with the correct statement below.
-An employee who is given funds and freedom to create a special unit or department within a company in order to develop a new product, process, or service.

Accepted Answer

A) Assets 
B) balance sheet 
C) business plan 
D) Capital 
E) charter
F)close corporation
G)creditors
H)entrepreneur
I)income statement
J)intrapreneur
K)liabilities
L)officer
M)open corporation
N)stockholders 
A) Assets 
B) balance sheet 
C) business plan 
D) Capital 
E) charter
F)close corporation
G)creditors
H)entrepreneur
I)income statement
J)intrapreneur
K)liabilities
L)officer
M)open corporation
N)stockholders

Question 15

Financing the business is one of the responsibilities of the business owner.

Accepted Answer

A) True 
 B)False

Question 16

Match each item with the correct statement below.
-A written document that describes how to achieve the goals of a business.

Accepted Answer

A) Assets 
B) balance sheet 
C) business plan 
D) Capital 
E) charter
F)close corporation
G)creditors
H)entrepreneur
I)income statement
J)intrapreneur
K)liabilities
L)officer
M)open corporation
N)stockholders 
A) Assets 
B) balance sheet 
C) business plan 
D) Capital 
E) charter
F)close corporation
G)creditors
H)entrepreneur
I)income statement
J)intrapreneur
K)liabilities
L)officer
M)open corporation
N)stockholders

Question 17

A nonprofit corporation pays small dividends to shareholders.

Accepted Answer

A) True 
 B)False

Question 18

A stockholder who cannot attend a shareholders' meeting can submit votes by

Accepted Answer

A)  contract 
B)  dividend 
C)  proxy 
D)  waiver 
A)  contract 
B)  dividend 
C)  proxy 
D)  waiver

Question 19

The type of business that can be operated suitably as a proprietorship is one that

Accepted Answer

A)  requires a great amount of capital 
B)  usually does not provide personal services 
C)  usually operates on a large scale 
D)  can be managed by the proprietor or by persons hired by the proprietor 
A)  requires a great amount of capital 
B)  usually does not provide personal services 
C)  usually operates on a large scale 
D)  can be managed by the proprietor or by persons hired by the proprietor

Question 20

New businesses almost always fail for purely financial reasons.

Accepted Answer

A) True 
 B)False

Exam 10: Managing the Form of Business Ownership

A partnership continues even after one partner dies.

Approximately how many new businesses fail within the first four to five years?

A disadvantage of a partnership that fails is that a partner can lose personal assets in addition to the amount of money invested in the business.

Match each item with the correct statement below. -Difference between assets and liabilities.

If one partner is unable to pay his or her portion of the business's debts, the other partners must pay it.

Match each item with the correct statement below. -Parties who have first claim against assets.

A business plan helps entrepreneurs see the risks and responsibilities involved in starting a business.

A partnership could be owned by as many as ten or more partners.

An official document giving power to run a corporation is a

A nonprofit corporation is an organization that

Match each item with the correct statement below. -Property owned by a business.

The stockholders make up the ruling body of a corporation.

Match each item with the correct statement below. -A statement of financial position.

Match each item with the correct statement below. -An employee who is given funds and freedom to create a special unit or department within a company in order to develop a new product, process, or service.

Financing the business is one of the responsibilities of the business owner.

Match each item with the correct statement below. -A written document that describes how to achieve the goals of a business.

A nonprofit corporation pays small dividends to shareholders.

A stockholder who cannot attend a shareholders' meeting can submit votes by

The type of business that can be operated suitably as a proprietorship is one that

New businesses almost always fail for purely financial reasons.

Managers and Managing

Management, Supervision, and Decision Making

The Manager As Leader

Planning and Organizing

Staffing, Leading, and Controlling

Characteristics of Business

Social and Ethical Environment of Business

Economic Environment of Business

International Environment of Business

Legal Aspects of Business

Technology and Information Management

Organizational Communications

Data Analysis and Decision Making

Business Financial Records

Financing a Business

Financial Services

Credit and Insurance

Managing Production and Operations

Nature and Scope of Marketing

Product Development and Distribution

Pricing and Promotion

Managing Human Resources

Rewarding and Developing Employees

Developing an Effective Organization

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