Question 1

Explain how small businesses create new industries.

Accepted Answer

New industries are sometimes created whe

Question 2

The two principal parties in a franchising agreement are the ______.

Accepted Answer

A)  manager and worker 
B)  franchiser and partners 
C)  franchiser and franchisee 
D)  venture capitalist and SBA 
A)  manager and worker 
B)  franchiser and partners 
C)  franchiser and franchisee 
D)  venture capitalist and SBA

Question 3

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

Accepted Answer

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

Question 4

Why are small businesses especially important to women?

Accepted Answer

The number of women-owned firm

Question 5

Innovation is possible in small business because they ______.

Accepted Answer

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

Question 6

Alternatives to private ownership include ______.

Accepted Answer

A)  public ownership and collective ownership 
B)  employee ownership and foreign corporations 
C)  foreign corporations and public ownership 
D)  employee ownership and collective ownership 
A)  public ownership and collective ownership 
B)  employee ownership and foreign corporations 
C)  foreign corporations and public ownership 
D)  employee ownership and collective ownership

Question 7

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

Accepted Answer

A) True 
 B)False

Question 8

Small businesses are known for developing several innovations. In the 21st century ______ (is) are an innovation which has/have been developed by a small business.

Accepted Answer

A)  personal computers 
B)  soft contact lenses 
C)  social networking 
D)  the airplane 
A)  personal computers 
B)  soft contact lenses 
C)  social networking 
D)  the airplane

Question 9

A corporation's assets and liabilities are separate from those of its owners.

Accepted Answer

A) True 
 B)False

Question 10

Excessive government paperwork causes some small businesses to close down.

Accepted Answer

A) True 
 B)False

Question 11

Compared to large businesses, which of the following statements regarding small businesses is INCORRECT?

Accepted Answer

A)  Small businesses are less likely to hire young employees. 
B)  Small businesses are less likely to develop new products. 
C)  Small businesses are more likely to be franchises. 
D)  Small businesses are more likely to be eligible for government loans or for government purchasing programs. 
A)  Small businesses are less likely to hire young employees. 
B)  Small businesses are less likely to develop new products. 
C)  Small businesses are more likely to be franchises. 
D)  Small businesses are more likely to be eligible for government loans or for government purchasing programs.

Question 12

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

Accepted Answer

A) True 
 B)False

Question 13

Certain functions, such as municipal water supply, are considered to be so important to public welfare they are not entrusted to private ownership.

Accepted Answer

A) True 
 B)False

Question 14

Complete the following using the terms listed below.
-A(n) ______ occurs when one firm purchases the property and assumes the obligations of another firm.

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)closed 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)closed corporation
M)preferred stock
N)franchising

Question 15

Which of the following statements concerning preferred shares is FALSE?

Accepted Answer

A)  Owners of preferred shares never have voting rights. 
B)  Preferred shareholders receive dividends before the holders of common shares. 
C)  In dissolution preferred shareholders have first claim of assets, after debt holders. 
D)  Any corporation can offer preferred shares. 
A)  Owners of preferred shares never have voting rights. 
B)  Preferred shareholders receive dividends before the holders of common shares. 
C)  In dissolution preferred shareholders have first claim of assets, after debt holders. 
D)  Any corporation can offer preferred shares.

Question 16

In an attempt to assist small business to grow, there are government programs which provide incentives to companies that purchase goods and services from smaller suppliers.

Accepted Answer

A) True 
 B)False

Question 17

Owners of common stock are the last to receive any dividends.

Accepted Answer

A) True 
 B)False

Question 18

People often choose to operate home-based firms for all but which one of the following reasons?

Accepted Answer

A)  choose to work when it suits them 
B)  lower overhead costs 
C)  better work-life balance 
D)  zero startup costs 
A)  choose to work when it suits them 
B)  lower overhead costs 
C)  better work-life balance 
D)  zero startup costs

Question 19

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 and protect the interests of small businesses. 
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 and protect the interests of small businesses. 
C)  incorporation is easier for them. 
D)  banks are more likely to grant them loans.

Question 20

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

Explain how small businesses create new industries.

The two principal parties in a franchising agreement are the ______.

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

Why are small businesses especially important to women?

Innovation is possible in small business because they ______.

Alternatives to private ownership include ______.

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

Small businesses are known for developing several innovations. In the 21st century ______ (is) are an innovation which has/have been developed by a small business.

A corporation's assets and liabilities are separate from those of its owners.

Excessive government paperwork causes some small businesses to close down.

Compared to large businesses, which of the following statements regarding small businesses is INCORRECT?

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

Certain functions, such as municipal water supply, are considered to be so important to public welfare they are not entrusted to private ownership.

Complete the following using the terms listed below. -A(n) ______ occurs when one firm purchases the property and assumes the obligations of another firm.

Which of the following statements concerning preferred shares is FALSE?

In an attempt to assist small business to grow, there are government programs which provide incentives to companies that purchase goods and services from smaller suppliers.

Owners of common stock are the last to receive any dividends.

People often choose to operate home-based firms for all but which one of the following reasons?

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

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

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 Labour 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

Explain how small businesses create new industries.

The two principal parties in a franchising agreement are the ______.

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

Why are small businesses especially important to women?

Innovation is possible in small business because they ______.

Alternatives to private ownership include ______.

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

Small businesses are known for developing several innovations. In the 21st century ______ (is) are an innovation which has/have been developed by a small business.

A corporation's assets and liabilities are separate from those of its owners.

Excessive government paperwork causes some small businesses to close down.

Compared to large businesses, which of the following statements regarding small businesses is INCORRECT?

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

Certain functions, such as municipal water supply, are considered to be so important to public welfare they are not entrusted to private ownership.

Complete the following using the terms listed below. -A(n) ______ occurs when one firm purchases the property and assumes the obligations of another firm.

Which of the following statements concerning preferred shares is FALSE?

In an attempt to assist small business to grow, there are government programs which provide incentives to companies that purchase goods and services from smaller suppliers.

Owners of common stock are the last to receive any dividends.

People often choose to operate home-based firms for all but which one of the following reasons?

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

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

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 Labour 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