Question 1

Which of the following is an advantage of a home-based business?

Accepted Answer

A)  Greater visibility to customers 
B)  Lower costs 
C)  Less flexibility 
D)  Isolation 
A)  Greater visibility to customers 
B)  Lower costs 
C)  Less flexibility 
D)  Isolation B

Question 2

Compare mergers and acquisitions.

Accepted Answer

The terms merger and acquisition are often used interchangeably, but their meanings are different. In a merger, two or more firms combine to form one company. In an acquisition, one firm purchases the other. This means that not only does the buyer acquire the firm's property and assets, it also takes on any debt obligations. Acquisitions also occur when one firm buys a division or subsidiary from another firm.

Question 3

The joining of two car manufacturing companies will be an example of a _____.

Accepted Answer

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

Question 4

Which of the following statements regarding family-owned businesses is true?

Accepted Answer

A)  Only a small percentage of family-owned businesses survive into the second or third generation. 
B)  Family-owned companies must submit a written agreement to the state in which it organizes. 
C)  All family-owned companies must be closed corporations. 
D)  Family-owned companies are an example of a not-for-profit corporation. 
A)  Only a small percentage of family-owned businesses survive into the second or third generation. 
B)  Family-owned companies must submit a written agreement to the state in which it organizes. 
C)  All family-owned companies must be closed corporations. 
D)  Family-owned companies are an example of a not-for-profit corporation.

Question 5

Small Business Investment Company (SBIC) loans are actually government loans funneled through a private organization.

Accepted Answer

A) True 
 B)False

Question 6

The largest lenders to small businesses are _____.

Accepted Answer

A)  commercial banks 
B)  retail chains 
C)  venture capitalists 
D)  investors 
A)  commercial banks 
B)  retail chains 
C)  venture capitalists 
D)  investors

Question 7

A business plan for a small business typically contains all of the following EXCEPT _____.

Accepted Answer

A)  a statement of the company's goals 
B)  an executive summary 
C)  separate financial and marketing sections 
D)  a time frame for selling stock to investors 
A)  a statement of the company's goals 
B)  an executive summary 
C)  separate financial and marketing sections 
D)  a time frame for selling stock to investors

Question 8

Traditionally, small businesses tended to be concentrated in the _____ industry.

Accepted Answer

A)  manufacturing 
B)  retailing 
C)  wholesaling 
D)  importing/exporting 
A)  manufacturing 
B)  retailing 
C)  wholesaling 
D)  importing/exporting

Question 9

Horizontal mergers are popular in the automobile and healthcare industries.

Accepted Answer

A) True 
 B)False

Question 10

A small business owner who sells the goods or services of the supplier is known as the franchisor.

Accepted Answer

A) True 
 B)False

Question 11

MATCHING
Complete the following using the terms listed.
-Small start-up ventures looking for low-cost shared facilities can utilize _____, offered by local community agencies.

Accepted Answer

A) sole proprietorship 
B) small business 
C) corporation 
D) merger 
E) acquisition
F)horizontal merger
G)conglomerate merger
H)cooperative
I)vertical merger
J)business incubators
K)business plan
L)alien corporation
M)preferred stock
N)franchising 
A) sole proprietorship 
B) small business 
C) corporation 
D) merger 
E) acquisition
F)horizontal merger
G)conglomerate merger
H)cooperative
I)vertical merger
J)business incubators
K)business plan
L)alien corporation
M)preferred stock
N)franchising

Question 12

When founding members of Mike & Sons wanted to regain family control of the business, they changed the company ownership from publicly held to _____, in order to control and manage corporate activities.

Accepted Answer

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

Question 13

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 14

Compare and contrast the three forms of business ownership.

Accepted Answer

The three forms of business ownership ar

Question 15

The franchisor provides all of the following services EXCEPT _____.

Accepted Answer

A)  business training 
B)  marketing programs 
C)  name recognition 
D)  on-site management 
A)  business training 
B)  marketing programs 
C)  name recognition 
D)  on-site management

Question 16

Not-for-profit corporations do not issue stock certificates and are exempt from paying income taxes.

Accepted Answer

A) True 
 B)False

Question 17

MATCHING
Complete the following using the terms listed.
-_____ is a contractual agreement that specifies the methods by which a dealer can produce and market a supplier's good or service.

Accepted Answer

A) sole proprietorship 
B) small business 
C) corporation 
D) merger 
E) acquisition
F)horizontal merger
G)conglomerate merger
H)cooperative
I)vertical merger
J)business incubators
K)business plan
L)alien corporation
M)preferred stock
N)franchising 
A) sole proprietorship 
B) small business 
C) corporation 
D) merger 
E) acquisition
F)horizontal merger
G)conglomerate merger
H)cooperative
I)vertical merger
J)business incubators
K)business plan
L)alien corporation
M)preferred stock
N)franchising

Question 18

If you are considering starting your own business, a key priority for you should be to:

Accepted Answer

A)  get a loan from your local bank. 
B)  incorporate your business. 
C)  understand the industry in which a company operates. 
D)  apply for a Small Business Administration loan. 
A)  get a loan from your local bank. 
B)  incorporate your business. 
C)  understand the industry in which a company operates. 
D)  apply for a Small Business Administration loan.

Question 19

The Small Business Administration has programs targeted to minority-owned small businesses.

Accepted Answer

A) True 
 B)False

Question 20

Businesses with fewer than 500 employees generate more than half of the nation's GDP.

Accepted Answer

A) True 
 B)False

Which of the following is an advantage of a home-based business?

Compare mergers and acquisitions.

The joining of two car manufacturing companies will be an example of a _____.

Which of the following statements regarding family-owned businesses is true?

Small Business Investment Company (SBIC) loans are actually government loans funneled through a private organization.

The largest lenders to small businesses are _____.

A business plan for a small business typically contains all of the following EXCEPT _____.

Traditionally, small businesses tended to be concentrated in the _____ industry.

Horizontal mergers are popular in the automobile and healthcare industries.

A small business owner who sells the goods or services of the supplier is known as the franchisor.

MATCHING Complete the following using the terms listed. -Small start-up ventures looking for low-cost shared facilities can utilize _____, offered by local community agencies.

When founding members of Mike & Sons wanted to regain family control of the business, they changed the company ownership from publicly held to _____, in order to control and manage corporate activities.

All of the following are contributions of small businesses EXCEPT:

Compare and contrast the three forms of business ownership.

The franchisor provides all of the following services EXCEPT _____.

Not-for-profit corporations do not issue stock certificates and are exempt from paying income taxes.

MATCHING Complete the following using the terms listed. -_____ is a contractual agreement that specifies the methods by which a dealer can produce and market a supplier's good or service.

If you are considering starting your own business, a key priority for you should be to:

The Small Business Administration has programs targeted to minority-owned small businesses.

Businesses with fewer than 500 employees generate more than half of the nation's GDP.

The Changing Face of Business

Business Ethics and Social Responsibility

Economic Challenges Facing Contemporary Business

Competing in World Markets

Starting Your Own Business: the Entrepreneurship Alternative

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: Forms of Business Ownership and Organization

Which of the following is an advantage of a home-based business?

Compare mergers and acquisitions.

The joining of two car manufacturing companies will be an example of a _____.

Which of the following statements regarding family-owned businesses is true?

Small Business Investment Company (SBIC) loans are actually government loans funneled through a private organization.

The largest lenders to small businesses are _____.

A business plan for a small business typically contains all of the following EXCEPT _____.

Traditionally, small businesses tended to be concentrated in the _____ industry.

Horizontal mergers are popular in the automobile and healthcare industries.

A small business owner who sells the goods or services of the supplier is known as the franchisor.

MATCHING Complete the following using the terms listed. -Small start-up ventures looking for low-cost shared facilities can utilize _____, offered by local community agencies.

When founding members of Mike & Sons wanted to regain family control of the business, they changed the company ownership from publicly held to _____, in order to control and manage corporate activities.

All of the following are contributions of small businesses EXCEPT:

Compare and contrast the three forms of business ownership.

The franchisor provides all of the following services EXCEPT _____.

Not-for-profit corporations do not issue stock certificates and are exempt from paying income taxes.

MATCHING Complete the following using the terms listed. -_____ is a contractual agreement that specifies the methods by which a dealer can produce and market a supplier's good or service.

If you are considering starting your own business, a key priority for you should be to:

The Small Business Administration has programs targeted to minority-owned small businesses.

Businesses with fewer than 500 employees generate more than half of the nation's GDP.

The Changing Face of Business

Business Ethics and Social Responsibility

Economic Challenges Facing Contemporary Business

Competing in World Markets

Starting Your Own Business: the Entrepreneurship Alternative

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