Question 1

According to the legal requirements,large businesses must be organized as corporations.

Accepted Answer

A) True 
 B)False

Question 2

Which of the following statements regarding franchising is FALSE?

Accepted Answer

A)  Franchises are riskier than other forms of business ownership.
B)  Franchisees have the benefit of name recognition.
C)  Franchisors provide a wide range of support to franchisees.
D)  Benefits for the franchisor include opportunities for expansion that might not otherwise be available.

Question 3

With less money to spend on employees,marketing,inventory,and other business costs,successful small companies need to be creative.

Accepted Answer

A) True 
 B)False

Question 4

Bianca owns a company that provides laundry services.She ensures that only her family members are the stockholders of her company.She also allows them to control and manage all of the company's activities.In this scenario,Bianca owns a _____.

Accepted Answer

A)  public corporation
B)  closed corporation
C)  not-for-profit corporation
D)  limited-liability 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

Interestingly,research finds that larger firms prove more successful than smaller firms in offering innovative products to consumers.

Accepted Answer

A) True 
 B)False

Question 7

Due to logistics and conflicting business laws,joint ventures are not ideal for international companies.

Accepted Answer

A) True 
 B)False

Question 8

Who elects the board of directors of a corporation?

Accepted Answer

A)  Corporation's employees
B)  Bondholders and other creditors
C)  Corporate officers
D)  Stockholders

Question 9

Sole proprietorships have all of the following advantages EXCEPT _____.

Accepted Answer

A)  unlimited life
B)  ease of formation
C)  profits subject only to a single tax
D)  ease of liquidation

Question 10

News 24/7,a newspaper group,merged with Alfalah Finance,an investment firm.The two companies merged together to diversify their business and to generate more revenue.This merger will be an example of a _____.

Accepted Answer

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

Exam 5: Forms of Business Ownership and Organization

Interestingly,research finds that larger firms prove more successful than smaller firms in offering innovative products to consumers.

Correct Answer
verified

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

Correct Answer
verified

Sole proprietorships have all of the following advantages EXCEPT _____.

Correct Answer
verified

With less money to spend on employees,marketing,inventory,and other business costs,successful small companies need to be creative.

Correct Answer
verified

Bianca owns a company that provides laundry services.She ensures that only her family members are the stockholders of her company.She also allows them to control and manage all of the company's activities.In this scenario,Bianca owns a _____.

Correct Answer
verified

News 24/7,a newspaper group,merged with Alfalah Finance,an investment firm.The two companies merged together to diversify their business and to generate more revenue.This merger will be an example of a _____.

Correct Answer
verified

Who elects the board of directors of a corporation?

Correct Answer
verified

Due to logistics and conflicting business laws,joint ventures are not ideal for international companies.

Correct Answer
verified

According to the legal requirements,large businesses must be organized as corporations.

Correct Answer
verified

Which of the following statements regarding franchising is FALSE?

Correct Answer
verified

Exam 5: Forms of Business Ownership and Organization

Interestingly,research finds that larger firms prove more successful than smaller firms in offering innovative products to consumers.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Sole proprietorships have all of the following advantages EXCEPT _____.

Correct AnswerverifiedShow Answer

With less money to spend on employees,marketing,inventory,and other business costs,successful small companies need to be creative.

Correct AnswerverifiedShow Answer

Bianca owns a company that provides laundry services.She ensures that only her family members are the stockholders of her company.She also allows them to control and manage all of the company's activities.In this scenario,Bianca owns a _____.

Correct AnswerverifiedShow Answer

News 24/7,a newspaper group,merged with Alfalah Finance,an investment firm.The two companies merged together to diversify their business and to generate more revenue.This merger will be an example of a _____.

Correct AnswerverifiedShow Answer

Who elects the board of directors of a corporation?

Correct AnswerverifiedShow Answer

Due to logistics and conflicting business laws,joint ventures are not ideal for international companies.

Correct AnswerverifiedShow Answer

According to the legal requirements,large businesses must be organized as corporations.

Correct AnswerverifiedShow Answer

Which of the following statements regarding franchising is FALSE?

Correct AnswerverifiedShow Answer

Correct Answer
verified

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verified

Correct Answer
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Correct Answer
verified

Correct Answer
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