Question 1

In exchange for an ownership share,small businesses receive financing from a group of investors known as _____,

Accepted Answer

A)  microloan investors
B)  franchisors
C)  Small Business Investment Companies
D)  venture capitalists

Question 2

Discuss the benefits of a limited-liability corporation.

Accepted Answer

Business owners may form limited-liabili...

Question 3

Most owners of small businesses rely on loans from financial institutions for their start-up funds.

Accepted Answer

A) True 
 B)False

Question 4

Describe the complexity of franchise agreements.

Accepted Answer

Franchise agreements can be complex.They...

Question 5

The largest lenders to small businesses are _____.

Accepted Answer

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

Question 6

Paul decides to start a trust-run hospital to help the poor get expensive treatments for free.Which of the following is most likely to be true of the hospital?

Accepted Answer

A)  It has a high profit margin.
B)  It issues stock certificates.
C)  It pays dividends to owners.
D)  It is exempt from corporate taxes.

Question 7

The Small Business Administration (SBA) provides all of the following EXCEPT _____.

Accepted Answer

A)  loan guarantees
B)  information and advice through toll-free telephone numbers
C)  loans for natural disaster recovery
D)  business incubators

Question 8

Most of the small businesses today are run by Caucasian males.

Accepted Answer

A) True 
 B)False

Question 9

Small businesses are more likely to employ older workers than large businesses,but not the youngest ones.

Accepted Answer

A) True 
 B)False

Question 10

Complete the following using the terms listed.
-A(n) _____ is independently owned and operated and is responsible for more than half of the nation's gross domestic product.

Accepted Answer

A)  small business
B)  corporation
C)  merger
D)  acquisition
E)  horizontal mergerF) conglomerate mergerG) CooperativeH) vertical mergerI) business incubatorsJ) business planK) alien corporationL) preferred stockM) Franchising

Question 11

Salma and Debbie opened a restaurant in partnership.Two years later,Debbie left the restaurant,and Salma discovered that Debbie had incurred numerous expenses to their account.These expenses resulted in thousands of dollars' worth of debt for the restaurant.From the following,identify an accurate statement about this situation.

Accepted Answer

A)  Salma doesn't have to worry because,according to law,everyone is responsible for his/her own debts.
B)  Salma doesn't have to worry because business creditors will pursue Debbie alone since her signature authorized payments.
C)  Business creditors will expect Salma to pay at least half the debt since she owns 50% of the business.
D)  Business creditors will expect full payment from Salma.

Question 12

Complete the following using the terms listed.
-A(n) _____ combines firms operating at different levels in the production and marketing process.

Accepted Answer

A)  small business
B)  corporation
C)  merger
D)  acquisition
E)  horizontal mergerF) conglomerate mergerG) CooperativeH) vertical mergerI) business incubatorsJ) business planK) alien corporationL) preferred stockM) Franchising

Question 13

Complete the following using the terms listed.
-A(n) _____ business consists of owners who join forces to collectively operate all or part of the functions in their industry.

Accepted Answer

A)  small business
B)  corporation
C)  merger
D)  acquisition
E)  horizontal mergerF) conglomerate mergerG) CooperativeH) vertical mergerI) business incubatorsJ) business planK) alien corporationL) preferred stockM) Franchising

Question 14

Securing adequate financing is a major problem for most small businesses.

Accepted Answer

A) True 
 B)False

Question 15

A reason small businesses are so successful is also the reason they might fail-their founders are willing to take a risk.

Accepted Answer

A) True 
 B)False

Question 16

Which of the following is a benefit of franchising?

Accepted Answer

A)  The failure of one franchise does not affect the brand.
B)  It offers several opportunities for the expansion of a business.
C)  It does not require any start-up cost.
D)  The founder of the business has absolute control over every franchise.

Question 17

Franchising offers all of the following advantages EXCEPT _____.

Accepted Answer

A)  a recognizable company name
B)  prior performance record
C)  training
D)  guaranteed level of profitability

Question 18

Compare mergers and acquisitions.

Accepted Answer

The terms merger and acquisition are oft...

Question 19

The board of directors usually includes some individuals who are not employed by the corporation.These people are referred to as _____.

Accepted Answer

A)  priority directors
B)  outside directors
C)  stockholders
D)  members of top management

Question 20

Define the categories of corporations.

Accepted Answer

Corporations fall into three categories:...

Exam 5: Forms of Business Ownership and Organization

Small businesses are more likely to employ older workers than large businesses,but not the youngest ones.

Correct Answer
verified

Complete the following using the terms listed. -A(n) _____ combines firms operating at different levels in the production and marketing process.

Correct Answer
verified

Describe the complexity of franchise agreements.

Correct Answer
verified
Franchise agreements can be complex.They...
View Answer

Compare mergers and acquisitions.

Correct Answer
verified
The terms merger and acquisition are oft...
View Answer

Complete the following using the terms listed. -A(n) _____ business consists of owners who join forces to collectively operate all or part of the functions in their industry.

Correct Answer
verified

Paul decides to start a trust-run hospital to help the poor get expensive treatments for free.Which of the following is most likely to be true of the hospital?

Correct Answer
verified

Securing adequate financing is a major problem for most small businesses.

Correct Answer
verified

Correct Answer
verified

In exchange for an ownership share,small businesses receive financing from a group of investors known as _____,

Correct Answer
verified

Which of the following is a benefit of franchising?

Correct Answer
verified

The largest lenders to small businesses are _____.

Correct Answer
verified

Most owners of small businesses rely on loans from financial institutions for their start-up funds.

Correct Answer
verified

The Small Business Administration (SBA) provides all of the following EXCEPT _____.

Correct Answer
verified

Complete the following using the terms listed. -A(n) _____ is independently owned and operated and is responsible for more than half of the nation's gross domestic product.

Correct Answer
verified

Franchising offers all of the following advantages EXCEPT _____.

Correct Answer
verified

A reason small businesses are so successful is also the reason they might fail-their founders are willing to take a risk.

Correct Answer
verified

Define the categories of corporations.

Correct Answer
verified
Corporations fall into three categories:...
View Answer

The board of directors usually includes some individuals who are not employed by the corporation.These people are referred to as _____.

Correct Answer
verified

Most of the small businesses today are run by Caucasian males.

Correct Answer
verified

Discuss the benefits of a limited-liability corporation.

Correct Answer
verified
Business owners may form limited-liabili...
View Answer

Exam 5: Forms of Business Ownership and Organization

Small businesses are more likely to employ older workers than large businesses,but not the youngest ones.

Correct AnswerverifiedShow Answer

Complete the following using the terms listed. -A(n) _____ combines firms operating at different levels in the production and marketing process.

Correct AnswerverifiedShow Answer

Describe the complexity of franchise agreements.

Correct AnswerverifiedFranchise agreements can be complex.They...View AnswerShow Answer

Compare mergers and acquisitions.

Correct AnswerverifiedThe terms merger and acquisition are oft...View AnswerShow Answer

Complete the following using the terms listed. -A(n) _____ business consists of owners who join forces to collectively operate all or part of the functions in their industry.

Correct AnswerverifiedShow Answer

Paul decides to start a trust-run hospital to help the poor get expensive treatments for free.Which of the following is most likely to be true of the hospital?

Correct AnswerverifiedShow Answer

Securing adequate financing is a major problem for most small businesses.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

In exchange for an ownership share,small businesses receive financing from a group of investors known as _____,

Correct AnswerverifiedShow Answer

Which of the following is a benefit of franchising?

Correct AnswerverifiedShow Answer

The largest lenders to small businesses are _____.

Correct AnswerverifiedShow Answer

Most owners of small businesses rely on loans from financial institutions for their start-up funds.

Correct AnswerverifiedShow Answer

The Small Business Administration (SBA) provides all of the following EXCEPT _____.

Correct AnswerverifiedShow Answer

Complete the following using the terms listed. -A(n) _____ is independently owned and operated and is responsible for more than half of the nation's gross domestic product.

Correct AnswerverifiedShow Answer

Franchising offers all of the following advantages EXCEPT _____.

Correct AnswerverifiedShow Answer

A reason small businesses are so successful is also the reason they might fail-their founders are willing to take a risk.

Correct AnswerverifiedShow Answer

Define the categories of corporations.

Correct AnswerverifiedCorporations fall into three categories:...View AnswerShow Answer

The board of directors usually includes some individuals who are not employed by the corporation.These people are referred to as _____.

Correct AnswerverifiedShow Answer

Most of the small businesses today are run by Caucasian males.

Correct AnswerverifiedShow Answer

Discuss the benefits of a limited-liability corporation.

Correct AnswerverifiedBusiness owners may form limited-liabili...View AnswerShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
Franchise agreements can be complex.They...
View Answer

Correct Answer
verified
The terms merger and acquisition are oft...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
Corporations fall into three categories:...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
Business owners may form limited-liabili...
View Answer