Question 1

One of the first and most fundamental decisions an entrepreneur faces is choosing a form of ownership.

Accepted Answer

A) True 
 B)False

Question 2

Most states do not require a Certificate of Incorporation or a charter to be filed.

Accepted Answer

A) True 
 B)False

Question 3

________ occurs when a general partner ceases to be associated with the business;________ is the final act of winding up the business.

Accepted Answer

A) Dissolution;termination 
B) Expulsion;dissolution 
C) Termination;dissolution 
D) Agency;dissolution 
A) Dissolution;termination 
B) Expulsion;dissolution 
C) Termination;dissolution 
D) Agency;dissolution

Question 4

A joint venture is different from a partnership in that the joint venture:

Accepted Answer

A) can be formed only by two individuals. 
B) is formed for a specific purpose. 
C) continues indefinitely. 
D) requires that profits be shared equally. 
A) can be formed only by two individuals. 
B) is formed for a specific purpose. 
C) continues indefinitely. 
D) requires that profits be shared equally.

Question 5

Silent partners are active in a business but generally are known to be members of the partnership.

Accepted Answer

A) True 
 B)False

Question 6

One major advantage of the ________ is that once the owner has paid all of the company's expenses,he/she can keep the remaining profits (less taxes,of course).

Accepted Answer

A) Partnership 
B) Corporation 
C) Sole Proprietorship 
D) Limited Liability Company 
A) Partnership 
B) Corporation 
C) Sole Proprietorship 
D) Limited Liability Company

Question 7

Shares the corporation itself owns are called:

Accepted Answer

A) treasury stock. 
B) common stock. 
C) preferred stock. 
D) bonds. 
A) treasury stock. 
B) common stock. 
C) preferred stock. 
D) bonds.

Question 8

A limited partner is liable only for the amount he has invested in the business.

Accepted Answer

A) True 
 B)False

Question 9

An S-corporation form of ownership overcomes which disadvantage of the regular or "C" corporation form of ownership?

Accepted Answer

A) The double taxation issue 
B) The expense and difficulty of formation 
C) The amount of regulation and red tape involved in its operation 
D) The potential loss of control by the founder 
A) The double taxation issue 
B) The expense and difficulty of formation 
C) The amount of regulation and red tape involved in its operation 
D) The potential loss of control by the founder

Question 10

While there are many forms of ownership,the three major forms are: proprietorship,partnership,and S-corporation.

Accepted Answer

A) True 
 B)False

Question 11

The most common form of business ownership is the:

Accepted Answer

A) sole proprietorship. 
B) partnership. 
C) corporation. 
D) 0S-corporation. 
A) sole proprietorship. 
B) partnership. 
C) corporation. 
D) 0S-corporation.

Question 12

An S-corporation can issue both voting and non-voting common stock to its shareholders.

Accepted Answer

A) True 
 B)False

Question 13

Unlike a limited partnership,which prohibits limited partners from participating in day-to-day management of the business,an LLC does not restrict its members' ability to become involved in managing the company.

Accepted Answer

A) True 
 B)False

Question 14

A limited partnership is a modification of a(n)________ form of ownership.

Accepted Answer

A) sole proprietorship 
B) general partnership 
C) corporation 
D) S-corporation 
A) sole proprietorship 
B) general partnership 
C) corporation 
D) S-corporation

Question 15

Which form of ownership generally has the least ability to accumulate capital?

Accepted Answer

A) Partnership 
B) Sole proprietorship 
C) Corporation 
D) S-corporation 
A) Partnership 
B) Sole proprietorship 
C) Corporation 
D) S-corporation

Question 16

While a sole proprietorship gives the owner maximum flexibility in running the business,it also:

Accepted Answer

A) makes the company a prime target for an acquisition or merger. 
B) creates a sense of isolation. 
C) makes it difficult to hire management talent to help grow the business. 
D) makes it difficult to sell. 
A) makes the company a prime target for an acquisition or merger. 
B) creates a sense of isolation. 
C) makes it difficult to hire management talent to help grow the business. 
D) makes it difficult to sell.

Question 17

Common ownership interest in a business,sharing profits (or losses)of a business,and the right to participate in managing the operations of the business are characteristics of a(n):

Accepted Answer

A) corporation. 
B) sole proprietorship. 
C) partnership. 
D) S-corporation. 
A) corporation. 
B) sole proprietorship. 
C) partnership. 
D) S-corporation.

Question 18

The corporate form of ownership has a significant advantage in that:

Accepted Answer

A) it is easy to transfer ownership. 
B) it has a lower tax rate than either partnerships or sole proprietorships. 
C) there is little cost to its formation. 
D) there is little regulatory oversight by the government. 
A) it is easy to transfer ownership. 
B) it has a lower tax rate than either partnerships or sole proprietorships. 
C) there is little cost to its formation. 
D) there is little regulatory oversight by the government.

Question 19

In a partnership,profits (and losses)are shared according to any ratio stated in the articles of partnership.

Accepted Answer

A) True 
 B)False

Question 20

One of the advantages of a partnership over a proprietorship is the increased sources of capital and credit it offers.

Accepted Answer

A) True 
 B)False

Exam 3: Choosing a Form of Ownership

One of the first and most fundamental decisions an entrepreneur faces is choosing a form of ownership.

Most states do not require a Certificate of Incorporation or a charter to be filed.

________ occurs when a general partner ceases to be associated with the business;________ is the final act of winding up the business.

A joint venture is different from a partnership in that the joint venture:

Silent partners are active in a business but generally are known to be members of the partnership.

One major advantage of the ________ is that once the owner has paid all of the company's expenses,he/she can keep the remaining profits (less taxes,of course).

Shares the corporation itself owns are called:

A limited partner is liable only for the amount he has invested in the business.

An S-corporation form of ownership overcomes which disadvantage of the regular or "C" corporation form of ownership?

While there are many forms of ownership,the three major forms are: proprietorship,partnership,and S-corporation.

The most common form of business ownership is the:

An S-corporation can issue both voting and non-voting common stock to its shareholders.

Unlike a limited partnership,which prohibits limited partners from participating in day-to-day management of the business,an LLC does not restrict its members' ability to become involved in managing the company.

A limited partnership is a modification of a(n)________ form of ownership.

Which form of ownership generally has the least ability to accumulate capital?

While a sole proprietorship gives the owner maximum flexibility in running the business,it also:

Common ownership interest in a business,sharing profits (or losses)of a business,and the right to participate in managing the operations of the business are characteristics of a(n):

The corporate form of ownership has a significant advantage in that:

In a partnership,profits (and losses)are shared according to any ratio stated in the articles of partnership.

One of the advantages of a partnership over a proprietorship is the increased sources of capital and credit it offers.

Entrepreneurs: the Driving Force Behind Small Business

Strategic Management and the Entrepreneur

Franchising and the Entrepreneur

Buying an Existing Business

Conducting a Feasibility Analysis and Crafting a Winning Business Plan

Creating a Solid Financial Plan

Managing Cash Flow

Building a Guerrilla Marketing Plan

Creative Use of Advertising and Promotion

Pricing and Credit Strategies

Global Marketing Strategies

E-Commerce and Entrepreneurship

Sources of Equity Financing

Sources of Debt Financing

Location,layout,and Physical Facilities

Supply Chain Management

Managing Inventory

Staffing and Leading a Growing Company

Management Succession and Risk Management Strategies in the Family Business

Ethics and Social Responsibility: Doing the Right Thing

The Legal Environment: Business Law and Government Regulation

Filters

occurs when a general partner ceases to be associated with the business; is the final act of winding up the business.