Question 1

Any firm with fewer than 1,000 employees is considered a small business.

Accepted Answer

A) True 
 B)False

Question 2

Corporations have all of the following advantages EXCEPT ________.

Accepted Answer

A) favorable tax treatment 
B) limited liability 
C) expanded financial capacity 
D) unlimited life 
A) favorable tax treatment 
B) limited liability 
C) expanded financial capacity 
D) unlimited life

Question 3

Out of all forms of business,partnerships are the most challenging to establish.

Accepted Answer

A) True 
 B)False

Question 4

Some women start their own businesses so they can spend more time with their families.

Accepted Answer

A) True 
 B)False

Question 5

Many small businesses prove successful when they outsource from large corporations.

Accepted Answer

A) True 
 B)False

Question 6

Lucia is a chief financial officer in a large corporation.Her responsibilities include the full financial authority to make appropriations and authorize expenditures.Lucia is likely to be a member of ________ management.

Accepted Answer

A) Middle 
B) advisory 
C) supervisory 
D) Top 
A) Middle 
B) advisory 
C) supervisory 
D) Top

Question 7

MATCHING
Complete the following using the terms listed.
-Owners of _____ have limited voting rights,but are entitled to the earliest dividends.

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 8

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 9

The ________ is most likely an example of public ownership.

Accepted Answer

A) movie theater 
B) city sewer system 
C) trucking company 
D) television company 
A) movie theater 
B) city sewer system 
C) trucking company 
D) television company

Question 10

Owners of preferred stock receive dividends after owners of common stock.

Accepted Answer

A) True 
 B)False

Question 11

Which type of business is least likely to be bought by large companies?

Accepted Answer

A) businesses that sell personalized services 
B) businesses with high overhead costs 
C) businesses that are located outside of the United States 
D) businesses that were founded by college students 
A) businesses that sell personalized services 
B) businesses with high overhead costs 
C) businesses that are located outside of the United States 
D) businesses that were founded by college students

Question 12

A vertical merger joins firms in the same industry in order to cut costs and promote diversification.

Accepted Answer

A) True 
 B)False

Question 13

Which of the following is NOT a reason that women start their own businesses?

Accepted Answer

A) more flexible hours to accommodate child-care 
B) women are guaranteed larger loans from the SBA 
C) frustration with the bureaucracies in large companies 
D) getting laid off from a corporate job 
A) more flexible hours to accommodate child-care 
B) women are guaranteed larger loans from the SBA 
C) frustration with the bureaucracies in large companies 
D) getting laid off from a corporate job

Question 14

Define the categories of corporations.

Accepted Answer

Corporations fall into three categories:

Question 15

Commercial banks are considered to be financial cooperatives.

Accepted Answer

A) True 
 B)False

Question 16

The maximum number of shareholders is limited to ________ for a firm to qualify as an S corporation.

Accepted Answer

A) 25 
B) 50 
C) 75 
D) 100 
A) 25 
B) 50 
C) 75 
D) 100

Question 17

High start-up expenses often proves to be challenging for owners of small businesses.

Accepted Answer

A) True 
 B)False

Question 18

If you are a highly independent individual used to having your own way,the best business format for you is a ________.

Accepted Answer

A) partnership 
B) corporation 
C) sole proprietorship 
D) limited liability corporation 
A) partnership 
B) corporation 
C) sole proprietorship 
D) limited liability corporation

Question 19

Delaware is an example of a state that is considered to be "business friendly" based on tax incentives.

Accepted Answer

A) True 
 B)False

Question 20

Joint ventures rarely occur between not-for-profit organizations and for-profit companies.

Accepted Answer

A) True 
 B)False

Any firm with fewer than 1,000 employees is considered a small business.

Corporations have all of the following advantages EXCEPT ________.

Out of all forms of business,partnerships are the most challenging to establish.

Some women start their own businesses so they can spend more time with their families.

Many small businesses prove successful when they outsource from large corporations.

Lucia is a chief financial officer in a large corporation.Her responsibilities include the full financial authority to make appropriations and authorize expenditures.Lucia is likely to be a member of ________ management.

MATCHING Complete the following using the terms listed. -Owners of _____ have limited voting rights,but are entitled to the earliest dividends.

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 ________ is most likely an example of public ownership.

Owners of preferred stock receive dividends after owners of common stock.

Which type of business is least likely to be bought by large companies?

A vertical merger joins firms in the same industry in order to cut costs and promote diversification.

Which of the following is NOT a reason that women start their own businesses?

Define the categories of corporations.

Commercial banks are considered to be financial cooperatives.

The maximum number of shareholders is limited to ________ for a firm to qualify as an S corporation.

High start-up expenses often proves to be challenging for owners of small businesses.

If you are a highly independent individual used to having your own way,the best business format for you is a ________.

Delaware is an example of a state that is considered to be "business friendly" based on tax incentives.

Joint ventures rarely occur between not-for-profit organizations and for-profit companies.

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

Any firm with fewer than 1,000 employees is considered a small business.

Corporations have all of the following advantages EXCEPT ________.

Out of all forms of business,partnerships are the most challenging to establish.

Some women start their own businesses so they can spend more time with their families.

Many small businesses prove successful when they outsource from large corporations.

Lucia is a chief financial officer in a large corporation.Her responsibilities include the full financial authority to make appropriations and authorize expenditures.Lucia is likely to be a member of ________ management.

MATCHING Complete the following using the terms listed. -Owners of _____ have limited voting rights,but are entitled to the earliest dividends.

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 ________ is most likely an example of public ownership.

Owners of preferred stock receive dividends after owners of common stock.

Which type of business is least likely to be bought by large companies?

A vertical merger joins firms in the same industry in order to cut costs and promote diversification.

Which of the following is NOT a reason that women start their own businesses?

Define the categories of corporations.

Commercial banks are considered to be financial cooperatives.

The maximum number of shareholders is limited to ________ for a firm to qualify as an S corporation.

High start-up expenses often proves to be challenging for owners of small businesses.

If you are a highly independent individual used to having your own way,the best business format for you is a ________.

Delaware is an example of a state that is considered to be "business friendly" based on tax incentives.

Joint ventures rarely occur between not-for-profit organizations and for-profit companies.

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