Question 1

MATCHING
Complete the following using the terms listed.
-During a(n)_____,two or more firms combine to form one company.

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 2

A corporation operating outside its state of incorporation is known as a domestic corporation.

Accepted Answer

A) True 
 B)False

Question 3

MATCHING
Complete the following using the terms listed.
-Small businesses can buy equipment or operate a business using a _____.

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 4

The average amount rewarded to owners of small businesses through Small Business Administration (SBA)microloans is $13,000.

Accepted Answer

A) True 
 B)False

Question 5

Richard,Sarah,and Trevor form a partnership because it offers the following advantage:

Accepted Answer

A) limiting liability of partners to the value of their interests in the company 
B) unlimited financial liability 
C) greater financial resources 
D) double taxation 
A) limiting liability of partners to the value of their interests in the company 
B) unlimited financial liability 
C) greater financial resources 
D) double taxation

Question 6

Devon and Keith opened a restaurant as a partnership.Two years later,Keith left the restaurant,and Devon discovered that Keith had charged numerous expenses to their account.These expenses resulted in thousands of dollars' worth of debt for the restaurant.What option does Devon have in this situation?

Accepted Answer

A) He doesn't have to worry because,according to law,everyone is responsible for his/her own debts. 
B) Business creditors will pursue Keith alone since his signature authorized payments. 
C) Business creditors will expect Devon to pay at least half the debt since he owns 50 percent of the business. 
D) Business creditors will expect full payment from Devon. 
A) He doesn't have to worry because,according to law,everyone is responsible for his/her own debts. 
B) Business creditors will pursue Keith alone since his signature authorized payments. 
C) Business creditors will expect Devon to pay at least half the debt since he owns 50 percent of the business. 
D) Business creditors will expect full payment from Devon.

Question 7

Many businesses fail during the early years because of ________.

Accepted Answer

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

Question 8

Sole proprietorships have all of the following advantages EXCEPT ________.

Accepted Answer

A) unlimited life 
B) ease of formation 
C) profits subject only to a single tax 
D) ease of liquidation 
A) unlimited life 
B) ease of formation 
C) profits subject only to a single tax 
D) ease of liquidation

Question 9

In 2009,Walmart started doing business in India by forming a __________ with Bharti Enterprises,Inc. ,one of India's leading business groups.

Accepted Answer

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

Question 10

Seven out of ten new businesses survive at least ______ years and about half make it to the _____-year mark.

Accepted Answer

A) 2;5 
B) 3;5 
C) 2;10 
D) 2;3 
A) 2;5 
B) 3;5 
C) 2;10 
D) 2;3

Question 11

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 12

MATCHING
Complete the following using the terms listed.
-A _____,is a legal organization where assets and liabilities are separate from those of its owners.

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 13

Compare mergers and acquisitions.

Accepted Answer

The terms merger and acquisition are oft

Question 14

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

Accepted Answer

A) True 
 B)False

Question 15

Facebook has been proven to be a more effective social networking site than LinkedIn for members searching for employment.

Accepted Answer

A) True 
 B)False

Question 16

Each state mandates a specific procedure for incorporating a business.

Accepted Answer

A) True 
 B)False

Question 17

MATCHING
Complete the following using the terms listed.
-A(n)_____ is a partnership between two or more companies.

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 18

Taxes and government regulations are more significant issues for small businesses than for large businesses.

Accepted Answer

A) True 
 B)False

Question 19

Small businesses that provide services face a higher rate of failure than those that produce goods.

Accepted Answer

A) True 
 B)False

Question 20

A sole proprietor faces unlimited liability.

Accepted Answer

A) True 
 B)False

MATCHING Complete the following using the terms listed. -During a(n)_____,two or more firms combine to form one company.

A corporation operating outside its state of incorporation is known as a domestic corporation.

MATCHING Complete the following using the terms listed. -Small businesses can buy equipment or operate a business using a _____.

The average amount rewarded to owners of small businesses through Small Business Administration (SBA)microloans is $13,000.

Richard,Sarah,and Trevor form a partnership because it offers the following advantage:

Many businesses fail during the early years because of ________.

Sole proprietorships have all of the following advantages EXCEPT ________.

In 2009,Walmart started doing business in India by forming a __________ with Bharti Enterprises,Inc. ,one of India's leading business groups.

Seven out of ten new businesses survive at least __ years and about half make it to the _-year mark.

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.

MATCHING Complete the following using the terms listed. -A _____,is a legal organization where assets and liabilities are separate from those of its owners.

Compare mergers and acquisitions.

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

Facebook has been proven to be a more effective social networking site than LinkedIn for members searching for employment.

Each state mandates a specific procedure for incorporating a business.

MATCHING Complete the following using the terms listed. -A(n)_____ is a partnership between two or more companies.

Taxes and government regulations are more significant issues for small businesses than for large businesses.

Small businesses that provide services face a higher rate of failure than those that produce goods.

A sole proprietor faces unlimited liability.

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

MATCHING Complete the following using the terms listed. -During a(n)_____,two or more firms combine to form one company.

A corporation operating outside its state of incorporation is known as a domestic corporation.

MATCHING Complete the following using the terms listed. -Small businesses can buy equipment or operate a business using a _____.

The average amount rewarded to owners of small businesses through Small Business Administration (SBA)microloans is $13,000.

Richard,Sarah,and Trevor form a partnership because it offers the following advantage:

Many businesses fail during the early years because of ________.

Sole proprietorships have all of the following advantages EXCEPT ________.

In 2009,Walmart started doing business in India by forming a __________ with Bharti Enterprises,Inc. ,one of India's leading business groups.

Seven out of ten new businesses survive at least ______ years and about half make it to the _____-year mark.

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.

MATCHING Complete the following using the terms listed. -A _____,is a legal organization where assets and liabilities are separate from those of its owners.

Compare mergers and acquisitions.

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

Facebook has been proven to be a more effective social networking site than LinkedIn for members searching for employment.

Each state mandates a specific procedure for incorporating a business.

MATCHING Complete the following using the terms listed. -A(n)_____ is a partnership between two or more companies.

Taxes and government regulations are more significant issues for small businesses than for large businesses.

Small businesses that provide services face a higher rate of failure than those that produce goods.

A sole proprietor faces unlimited liability.

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

Seven out of ten new businesses survive at least __ years and about half make it to the _-year mark.