Question 1

To maintain control over their ownership,many closely held corporations exercise this right,known as:

Accepted Answer

A) right of first refusal. 
B) right of refusal. 
C) control rights. 
D) corporate rights. 
A) right of first refusal. 
B) right of refusal. 
C) control rights. 
D) corporate rights.

Question 2

A corporation can sell its stock to a limited number of private investors in a private placement.

Accepted Answer

A) True 
 B)False

Question 3

Acme Corporation is chartered in Delaware,but its primary area of operation is in South Carolina.In South Carolina,Acme would be considered a(n)________ corporation.

Accepted Answer

A) alien 
B) domestic 
C) foreign 
D) local 
A) alien 
B) domestic 
C) foreign 
D) local

Question 4

If the partners fail to create an agreement,the UPA says that the partners share equally in the partnership's profits,even if their original capital contributions are unequal.

Accepted Answer

A) True 
 B)False

Question 5

If stockholders in a corporation are displeased with the business's progress,they can sell their shares to someone else.

Accepted Answer

A) True 
 B)False

Question 6

The key to choosing the "right" form of ownership is:

Accepted Answer

A) knowing the cost factor in time and money. 
B) understanding how each form affects both business and personal circumstances. 
C) having an experienced attorney and accountant to advise you in the choice. 
D) the fact you cannot change the form of ownership once your company is established. 
A) knowing the cost factor in time and money. 
B) understanding how each form affects both business and personal circumstances. 
C) having an experienced attorney and accountant to advise you in the choice. 
D) the fact you cannot change the form of ownership once your company is established.

Question 7

The ________ is a document that states in writing all of the terms of operating a business among the partners.

Accepted Answer

A) Sole Proprietorship Agreement 
B) Articles of Corporations 
C) Partnership Agreement 
D) Limited Liability Corporation Agreement 
A) Sole Proprietorship Agreement 
B) Articles of Corporations 
C) Partnership Agreement 
D) Limited Liability Corporation Agreement

Question 8

In a sole proprietorship,the owner has limited liability.

Accepted Answer

A) True 
 B)False

Question 9

The ________ is a separate legal entity apart from its owners and may engage in business,make contracts,sue and be sued,and pay taxes.

Accepted Answer

A) sole proprietorship 
B) corporation 
C) partnership 
D) joint venture 
A) sole proprietorship 
B) corporation 
C) partnership 
D) joint venture

Question 10

In her partnership,Ana has unlimited liability for the partnership's debts.She would be the ________ partner.

Accepted Answer

A) limited 
B) dormant 
C) nominal 
D) general 
A) limited 
B) dormant 
C) nominal 
D) general

Question 11

In a partnership,the general partner(s)share their unlimited liability for the business debts with both silent and dormant partners.

Accepted Answer

A) True 
 B)False

Question 12

What are the nine general factors an entrepreneur should consider when choosing the form of small business ownership? List and explain at least six of them.

Accepted Answer

The key to choosing the "right" form of

Question 13

________ partners are not active in a business but generally are known to be members of the partnership.

Accepted Answer

A) Dormant 
B) General 
C) Silent 
D) Limited 
A) Dormant 
B) General 
C) Silent 
D) Limited

Question 14

Partnerships have a number of advantages over other forms of ownership,such as:

Accepted Answer

A) a larger pool of capital and little government regulation. 
B) very easy liquidation of owners' investment. 
C) limited liability for all partners. 
D) they may be easily formed by an individual. 
A) a larger pool of capital and little government regulation. 
B) very easy liquidation of owners' investment. 
C) limited liability for all partners. 
D) they may be easily formed by an individual.

Question 15

The "Das Spelunker" corporation,formed in Germany and conducting business in the United States,is considered to be a(n)________ corporation.

Accepted Answer

A) alien 
B) domestic 
C) foreign 
D) local 
A) alien 
B) domestic 
C) foreign 
D) local

Question 16

Juan is starting a software writing company.He is the owner and has only 3 employees.He wants a simple inexpensive form of ownership that leaves him in control and that he can quickly dissolve if he decides to change to another business.His best choice of form of ownership would be:

Accepted Answer

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

Question 17

The three key elements of any partnership are:

Accepted Answer

A) common ownership in the business,sharing the business' profits or losses,and the right to participate in managing the business. 
B) equal ownership in the business,sharing its profits and losses,and the right to participate in managing the business. 
C) equal ownership in the business,sharing its profits and losses,and the right to limited liability for all partners. 
D) common ownership in the business,sharing its profits and losses,and the right to limited liability for all partners. 
A) common ownership in the business,sharing the business' profits or losses,and the right to participate in managing the business. 
B) equal ownership in the business,sharing its profits and losses,and the right to participate in managing the business. 
C) equal ownership in the business,sharing its profits and losses,and the right to limited liability for all partners. 
D) common ownership in the business,sharing its profits and losses,and the right to limited liability for all partners.

Question 18

Perhaps the most important feature of a partnership agreement is its ability to resolve potential sources of conflict among partners.

Accepted Answer

A) True 
 B)False

Question 19

The ________ is the most complex form of ownership and is a separate legal entity in the eyes of the law.

Accepted Answer

A) sole proprietorship 
B) partnership 
C) corporation 
D) joint venture 
A) sole proprietorship 
B) partnership 
C) corporation 
D) joint venture

Exam 3: Choosing a Form of Ownership

To maintain control over their ownership,many closely held corporations exercise this right,known as:

A corporation can sell its stock to a limited number of private investors in a private placement.

Acme Corporation is chartered in Delaware,but its primary area of operation is in South Carolina.In South Carolina,Acme would be considered a(n)________ corporation.

If the partners fail to create an agreement,the UPA says that the partners share equally in the partnership's profits,even if their original capital contributions are unequal.

If stockholders in a corporation are displeased with the business's progress,they can sell their shares to someone else.

The key to choosing the "right" form of ownership is:

The ________ is a document that states in writing all of the terms of operating a business among the partners.

In a sole proprietorship,the owner has limited liability.

The ________ is a separate legal entity apart from its owners and may engage in business,make contracts,sue and be sued,and pay taxes.

In her partnership,Ana has unlimited liability for the partnership's debts.She would be the ________ partner.

In a partnership,the general partner(s)share their unlimited liability for the business debts with both silent and dormant partners.

What are the nine general factors an entrepreneur should consider when choosing the form of small business ownership? List and explain at least six of them.

________ partners are not active in a business but generally are known to be members of the partnership.

Partnerships have a number of advantages over other forms of ownership,such as:

The "Das Spelunker" corporation,formed in Germany and conducting business in the United States,is considered to be a(n)________ corporation.

Juan is starting a software writing company.He is the owner and has only 3 employees.He wants a simple inexpensive form of ownership that leaves him in control and that he can quickly dissolve if he decides to change to another business.His best choice of form of ownership would be:

The three key elements of any partnership are:

Perhaps the most important feature of a partnership agreement is its ability to resolve potential sources of conflict among partners.

The ________ is the most complex form of ownership and is a separate legal entity in the eyes of the law.

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

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