Question 1

Which type of merger results in decreased competition within the same industry?

Accepted Answer

A) vertical merger 
B) conglomerate merger 
C) joint venture 
D) horizontal merger 
A) vertical merger 
B) conglomerate merger 
C) joint venture 
D) horizontal merger D

Question 2

Compare and contrast the three forms of business ownership.

Accepted Answer

The three forms of business ownership are sole proprietorships,partnerships,and corporations.Sole proprietorships make up 90 percent of all small businesses.A sole proprietorship offers the advantage of being able to make changes and decisions quickly.The major disadvantage is that the sole proprietor is totally responsible for all debts.The partnership spreads out the responsibilities and allows the business to grow.However,like the sole proprietorship,each partner is totally financially responsible for his or her actions,as well as those of their partners.The corporation limits liability and offers expanded financial capacity,but deals with double taxation.

Question 3

The Small Business Administration (SBA)is the major lending source for small businesses needing additional funds.

Accepted Answer

A) True 
 B)False  False

Question 4

The ________ industry represents the greatest percentage of minority-owned businesses.

Accepted Answer

A) Finance 
B) Service 
C) Retail 
D) transportation 
A) Finance 
B) Service 
C) Retail 
D) transportation

Question 5

MATCHING
Complete the following using the terms listed.
-A(n)_____ joins firms in the same industry that wish to diversify,increase their customer base,cut costs,or offer expanded product lines.

Accepted Answer

A) sole proprietorship 
B) small business 
C) C corporation 
D) merger 
E) acquisition
F)horizontal merger
G)conglomerate merger
H)microloan
I)vertical merger
J)joint venture
K)board of directors
L)stockholder
M)preferred stock
N)Small Business Administration (SB
A)  
A) sole proprietorship 
B) small business 
C) C corporation 
D) merger 
E) acquisition
F)horizontal merger
G)conglomerate merger
H)microloan
I)vertical merger
J)joint venture
K)board of directors
L)stockholder
M)preferred stock
N)Small Business Administration (SB
A)

Question 6

Describe how to identify a small business from a large one.

Accepted Answer

The Small Business Administration (SBA),

Question 7

Small businesses are not required to pay workers' compensation or Social Security.

Accepted Answer

A) True 
 B)False

Question 8

MATCHING
Complete the following using the terms listed.
-A(n)_____ is independently owned and operated,and is responsible for more than half of the nation's gross domestic product.

Accepted Answer

A) sole proprietorship 
B) small business 
C) C corporation 
D) merger 
E) acquisition
F)horizontal merger
G)conglomerate merger
H)microloan
I)vertical merger
J)joint venture
K)board of directors
L)stockholder
M)preferred stock
N)Small Business Administration (SB
A)  
A) sole proprietorship 
B) small business 
C) C corporation 
D) merger 
E) acquisition
F)horizontal merger
G)conglomerate merger
H)microloan
I)vertical merger
J)joint venture
K)board of directors
L)stockholder
M)preferred stock
N)Small Business Administration (SB
A)

Question 9

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 10

The Small Business Administration (SBA)provides all of the following EXCEPT:

Accepted Answer

A) loan guarantees 
B) advice from executives 
C) access to venture capitalists 
D) business incubators 
A) loan guarantees 
B) advice from executives 
C) access to venture capitalists 
D) business incubators

Question 11

Tata Motors' purchase of Jaguar is an example of a horizontal merger.

Accepted Answer

A) True 
 B)False

Question 12

Innovation is possible in small business because they ________.

Accepted Answer

A) employ highly intelligent,motivated people 
B) have the funds to turn new ideas into large-scale,profitable ventures 
C) work harder 
D) provide fertile ground for new ideas 
A) employ highly intelligent,motivated people 
B) have the funds to turn new ideas into large-scale,profitable ventures 
C) work harder 
D) provide fertile ground for new ideas

Question 13

For small businesses,establishing a Website is generally cheaper than opening up a retail store.

Accepted Answer

A) True 
 B)False

Question 14

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

Accepted Answer

A) True 
 B)False

Question 15

Small-business owners want to determine whether their companies meet the standards for small-business designation because

Accepted Answer

A) they do not have to pay taxes on their profits. 
B) government agencies offer benefits designed to help small businesses compete with larger firms. 
C) incorporation is easier for them. 
D) banks are more likely to grant them loans. 
A) they do not have to pay taxes on their profits. 
B) government agencies offer benefits designed to help small businesses compete with larger firms. 
C) incorporation is easier for them. 
D) banks are more likely to grant them loans.

Question 16

Most states require at least ________ incorporators,or individuals who create the corporation.

Accepted Answer

A) two 
B) five 
C) ten 
D) three 
A) two 
B) five 
C) ten 
D) three

Question 17

A conglomerate merger is a merger of unrelated firms.

Accepted Answer

A) True 
 B)False

Question 18

MATCHING
Complete the following using the terms listed.
-A(n)_____ owns a corporation due to his or her purchase of stock.

Accepted Answer

A) sole proprietorship 
B) small business 
C) C corporation 
D) merger 
E) acquisition
F)horizontal merger
G)conglomerate merger
H)microloan
I)vertical merger
J)joint venture
K)board of directors
L)stockholder
M)preferred stock
N)Small Business Administration (SB
A)  
A) sole proprietorship 
B) small business 
C) C corporation 
D) merger 
E) acquisition
F)horizontal merger
G)conglomerate merger
H)microloan
I)vertical merger
J)joint venture
K)board of directors
L)stockholder
M)preferred stock
N)Small Business Administration (SB
A)

Question 19

Small businesses are more likely to employ older workers than large businesses,but not the youngest ones.

Accepted Answer

A) True 
 B)False

Question 20

When founding members of Mary Kay Inc.wanted to regain family control of the cosmetics business,they changed the company ownership from publicly held to ________,in order to control and manage corporate activities.

Accepted Answer

A) limited 
B) closed 
C) preferred 
D) restricted 
A) limited 
B) closed 
C) preferred 
D) restricted

Which type of merger results in decreased competition within the same industry?

Compare and contrast the three forms of business ownership.

The Small Business Administration (SBA)is the major lending source for small businesses needing additional funds.

The ________ industry represents the greatest percentage of minority-owned businesses.

MATCHING Complete the following using the terms listed. -A(n)_____ joins firms in the same industry that wish to diversify,increase their customer base,cut costs,or offer expanded product lines.

Describe how to identify a small business from a large one.

Small businesses are not required to pay workers' compensation or Social Security.

MATCHING Complete the following using the terms listed. -A(n)_____ is independently owned and operated,and is responsible for more than half of the nation's gross domestic product.

All of the following are contributions of small businesses EXCEPT:

The Small Business Administration (SBA)provides all of the following EXCEPT:

Tata Motors' purchase of Jaguar is an example of a horizontal merger.

Innovation is possible in small business because they ________.

For small businesses,establishing a Website is generally cheaper than opening up a retail store.

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

Small-business owners want to determine whether their companies meet the standards for small-business designation because

Most states require at least ________ incorporators,or individuals who create the corporation.

A conglomerate merger is a merger of unrelated firms.

MATCHING Complete the following using the terms listed. -A(n)_____ owns a corporation due to his or her purchase of stock.

Small businesses are more likely to employ older workers than large businesses,but not the youngest ones.

When founding members of Mary Kay Inc.wanted to regain family control of the cosmetics business,they changed the company ownership from publicly held to ________,in order to control and manage corporate activities.

The Changing Face of Business

Business Ethics and Social Responsibility

Economic Challenges Facing Contemporary Business

Competing in World Markets

Starting Your Own Business

Management, Leadership, and the Internal Organization

Human Resource Management: From Recruitment to Labor 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: Small Business and Forms of Business Ownership

Which type of merger results in decreased competition within the same industry?

Compare and contrast the three forms of business ownership.

The Small Business Administration (SBA)is the major lending source for small businesses needing additional funds.

The ________ industry represents the greatest percentage of minority-owned businesses.

MATCHING Complete the following using the terms listed. -A(n)_____ joins firms in the same industry that wish to diversify,increase their customer base,cut costs,or offer expanded product lines.

Describe how to identify a small business from a large one.

Small businesses are not required to pay workers' compensation or Social Security.

MATCHING Complete the following using the terms listed. -A(n)_____ is independently owned and operated,and is responsible for more than half of the nation's gross domestic product.

All of the following are contributions of small businesses EXCEPT:

The Small Business Administration (SBA)provides all of the following EXCEPT:

Tata Motors' purchase of Jaguar is an example of a horizontal merger.

Innovation is possible in small business because they ________.

For small businesses,establishing a Website is generally cheaper than opening up a retail store.

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

Small-business owners want to determine whether their companies meet the standards for small-business designation because

Most states require at least ________ incorporators,or individuals who create the corporation.

A conglomerate merger is a merger of unrelated firms.

MATCHING Complete the following using the terms listed. -A(n)_____ owns a corporation due to his or her purchase of stock.

Small businesses are more likely to employ older workers than large businesses,but not the youngest ones.

When founding members of Mary Kay Inc.wanted to regain family control of the cosmetics business,they changed the company ownership from publicly held to ________,in order to control and manage corporate activities.

The Changing Face of Business

Business Ethics and Social Responsibility

Economic Challenges Facing Contemporary Business

Competing in World Markets

Starting Your Own Business

Management, Leadership, and the Internal Organization

Human Resource Management: From Recruitment to Labor 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