Question 1

Which of the following occurs when an organization sells part of a business or operation to another corporation?

Accepted Answer

A)  Merger 
B)  Acquisition 
C)  Divestiture 
D)  Buy out 
E)  Spin off 
A)  Merger 
B)  Acquisition 
C)  Divestiture 
D)  Buy out 
E)  Spin off C

Question 2

Discuss the advantages and disadvantages of partnerships.

Accepted Answer

Advantages of partnerships include their ability to grow with the addition of new talent and money,ease of organization,and independent legal status.Disadvantages are unlimited liability,potential lack of continuity,difficulty of transferring ownership,and little or no guidance for resolving internal conflicts.

Question 3

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

Accepted Answer

A)  Manufacturing 
B)  Wholesaling 
C)  Retailing 
D)  Transportation 
E)  Services 
A)  Manufacturing 
B)  Wholesaling 
C)  Retailing 
D)  Transportation 
E)  Services E

Question 4

Lending institutions are more likely to help finance the purchase of an existing business rather than the start-up of a business from scratch.

Accepted Answer

A) True 
 B)False

Question 5

Franchisees may be obligated to contribute a percentage of sales to parent corporations.

Accepted Answer

A) True 
 B)False

Question 6

Most successful entrepreneurs have a strong desire to be their own bosses.

Accepted Answer

A) True 
 B)False

Question 7

In order to exert influence on corporate managers,groups can pool resources to buy huge blocks of stock.These groups are known as

Accepted Answer

A)  spin offs. 
B)  ESOPS. 
C)  joint ventures. 
D)  institutional investors. 
E)  strategic alliances. 
A)  spin offs. 
B)  ESOPS. 
C)  joint ventures. 
D)  institutional investors. 
E)  strategic alliances.

Question 8

What are the advantages and disadvantages for a franchisee?

Accepted Answer

The advantages of franchising include ac

Question 9

Neglect is a major factor that contributes to small business failure.

Accepted Answer

A) True 
 B)False

Question 10

A new business should have enough capital to operate at least how many months without earning a profit?

Accepted Answer

A)  1 
B)  2 
C)  4 
D)  6 
E)  9 
A)  1 
B)  2 
C)  4 
D)  6 
E)  9

Question 11

Which of the following can assist a small business and helps to determine standards based on industry?

Accepted Answer

A)  The U.S. Department of Commerce 
B)  The Small Business Administration 
C)  A franchise 
D)  Venture capitalist 
E)  The Small Business Development Center 
A)  The U.S. Department of Commerce 
B)  The Small Business Administration 
C)  A franchise 
D)  Venture capitalist 
E)  The Small Business Development Center

Question 12

When income is taxed at the corporate level and on shareholder returns as dividends,what is this situation known as?

Accepted Answer

A)  Dual costs 
B)  Double taxation 
C)  Regulatory costs 
D)  Double ownership 
E)  Financial balancing 
A)  Dual costs 
B)  Double taxation 
C)  Regulatory costs 
D)  Double ownership 
E)  Financial balancing

Question 13

What type of corporation issues stock that is held by only a few people and not available to the public?

Accepted Answer

A)  Limited liability 
B)  Subchapter S 
C)  Public 
D)  Closely held 
E)  Professional 
A)  Limited liability 
B)  Subchapter S 
C)  Public 
D)  Closely held 
E)  Professional

Question 14

A corporation must be managed on the principles of corporate governance.Explain what this is.

Accepted Answer

Corporate governance is the role of shar

Question 15

Why would an organization divest some of its existing business operations?

Accepted Answer

A)  To focus more on its core business 
B)  To create new partnerships 
C)  Because the divested business is more valuable as a separate company 
D)  To buy another firm outright 
E)  To create a new company from several smaller ones 
A)  To focus more on its core business 
B)  To create new partnerships 
C)  Because the divested business is more valuable as a separate company 
D)  To buy another firm outright 
E)  To create a new company from several smaller ones

Question 16

Which distinctive competency must an entrepreneur identify when attempting to enter a market segment that is not currently being exploited?

Accepted Answer

A)  The ability to identify new markets 
B)  The ability to identify niche markets 
C)  The ability to differentiate themselves from others in the market 
D)  The ability to gauge prices to get the highest return without driving away customers 
E)  The ability to move quickly to take advantage of new opportunities 
A)  The ability to identify new markets 
B)  The ability to identify niche markets 
C)  The ability to differentiate themselves from others in the market 
D)  The ability to gauge prices to get the highest return without driving away customers 
E)  The ability to move quickly to take advantage of new opportunities

Question 17

What is created when a corporation creates a new operation with another firm?

Accepted Answer

A)  Divestiture 
B)  Spin-off 
C)  Joint venture 
D)  Merger 
E)  Acquisition 
A)  Divestiture 
B)  Spin-off 
C)  Joint venture 
D)  Merger 
E)  Acquisition

Question 18

What is a major drawback of sole proprietorships?

Accepted Answer

A)  Short-term focus of shareholders 
B)  Work flexibility 
C)  Low start-up costs 
D)  Unlimited liability 
E)  Structured hours 
A)  Short-term focus of shareholders 
B)  Work flexibility 
C)  Low start-up costs 
D)  Unlimited liability 
E)  Structured hours

Question 19

People who assume the risk of business ownership with a primary goal of growth and expansion are called entrepreneurs.

Accepted Answer

A) True 
 B)False

Question 20

Explain the role of a corporation's board of directors.

Accepted Answer

The board of directors is responsible fo

Which of the following occurs when an organization sells part of a business or operation to another corporation?

Discuss the advantages and disadvantages of partnerships.

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

Lending institutions are more likely to help finance the purchase of an existing business rather than the start-up of a business from scratch.

Franchisees may be obligated to contribute a percentage of sales to parent corporations.

Most successful entrepreneurs have a strong desire to be their own bosses.

In order to exert influence on corporate managers,groups can pool resources to buy huge blocks of stock.These groups are known as

What are the advantages and disadvantages for a franchisee?

Neglect is a major factor that contributes to small business failure.

A new business should have enough capital to operate at least how many months without earning a profit?

Which of the following can assist a small business and helps to determine standards based on industry?

When income is taxed at the corporate level and on shareholder returns as dividends,what is this situation known as?

What type of corporation issues stock that is held by only a few people and not available to the public?

A corporation must be managed on the principles of corporate governance.Explain what this is.

Why would an organization divest some of its existing business operations?

Which distinctive competency must an entrepreneur identify when attempting to enter a market segment that is not currently being exploited?

What is created when a corporation creates a new operation with another firm?

What is a major drawback of sole proprietorships?

People who assume the risk of business ownership with a primary goal of growth and expansion are called entrepreneurs.

Explain the role of a corporation's board of directors.

The US Business Environment

Understanding Business Ethics and Social Responsibility

Understanding the Global Context of Business

Managing the Business

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

Developing and Pricing Products

Distributing and Promoting Products

Information Technology Itfor Business

The Role of Accountants and Accounting Information

Understanding Money and the Role of Banking

Managing Business Finances

Filters

Exam 3: Entrepreneurship, New Ventures, and Business Ownership

Which of the following occurs when an organization sells part of a business or operation to another corporation?

Discuss the advantages and disadvantages of partnerships.

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

Lending institutions are more likely to help finance the purchase of an existing business rather than the start-up of a business from scratch.

Franchisees may be obligated to contribute a percentage of sales to parent corporations.

Most successful entrepreneurs have a strong desire to be their own bosses.

In order to exert influence on corporate managers,groups can pool resources to buy huge blocks of stock.These groups are known as

What are the advantages and disadvantages for a franchisee?

Neglect is a major factor that contributes to small business failure.

A new business should have enough capital to operate at least how many months without earning a profit?

Which of the following can assist a small business and helps to determine standards based on industry?

When income is taxed at the corporate level and on shareholder returns as dividends,what is this situation known as?

What type of corporation issues stock that is held by only a few people and not available to the public?

A corporation must be managed on the principles of corporate governance.Explain what this is.

Why would an organization divest some of its existing business operations?

Which distinctive competency must an entrepreneur identify when attempting to enter a market segment that is not currently being exploited?

What is created when a corporation creates a new operation with another firm?

What is a major drawback of sole proprietorships?

People who assume the risk of business ownership with a primary goal of growth and expansion are called entrepreneurs.

Explain the role of a corporation's board of directors.

The US Business Environment

Understanding Business Ethics and Social Responsibility

Understanding the Global Context of Business

Managing the Business

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

Developing and Pricing Products

Distributing and Promoting Products

Information Technology Itfor Business

The Role of Accountants and Accounting Information

Understanding Money and the Role of Banking

Managing Business Finances

Filters