Question 1

Discuss the advantages and disadvantages of corporations.

Accepted Answer

The advantages include limited liability...

Question 2

Which of the following occurs when two firms combine to create a new company?

Accepted Answer

A)   Acquisition
B)   Takeover
C)   Venture
D)   Divestiture
E)   Merger

Question 3

A corporation must be managed on the principles of corporate governance. Explain what this is.

Accepted Answer

Corporate governance is the role of shar...

Question 4

What is the main reason why women start new businesses?

Accepted Answer

A)   Need to earn more money
B)   Preference for working alone
C)   Opportunities for family members
D)   Control in organizing their time
E)   Desire to employ other women

Question 5

Which type of business is legally considered a separate entity from its owners and is liable for its own debts?

Accepted Answer

A)   Sole proprietorship
B)   Corporation
C)   Limited partnership
D)   Cooperative
E)   General partnership

Question 6

Which of the following industry groups is the fastest growing segment of small business enterprise?

Accepted Answer

A)   Manufacturing
B)   Wholesaling
C)   Retailing
D)   Transportation
E)   Services

Question 7

What is the major drawback of accepting venture capital?

Accepted Answer

A)   Sharing company control
B)   Having to pay high interest rates
C)   Limiting expansion
D)   Facing a short repayment period
E)   Having to write proposals

Question 8

What type of ownership is created when a firm buys another outright?

Accepted Answer

A)   Merger
B)   Acquisition
C)   Spin-off
D)   Divestiture
E)   Institutional

Question 9

What is the process of seeking business opportunities under conditions of risk?

Accepted Answer

A)   Investment
B)   Entrepreneurship
C)   Leadership
D)   Diversification
E)   Growth

Question 10

The board of directors of a corporation reports to the officers of the corporation.

Accepted Answer

A) True 
 B)False

Question 11

Why might an entrepreneur wish to purchase an existing business rather than start one from scratch?

Accepted Answer

An entrepreneur may wish to purchase an ...

Question 12

Which entity is defined as independent and has little influence on its market?

Accepted Answer

A)   Corporation
B)   Joint venture
C)   Small business
D)   Partnership
E)   Government agency

Question 13

In a small business, who determines prices for wholesalers and customers?

Accepted Answer

A)   Customers
B)   Franchise owners
C)   Market forces
D)   Small business administration
E)   Small business owner

Question 14

When an entrepreneur has the goals of growth and expansion, with the vision of turning the business into a large business, what term is used when referring to the business?

Accepted Answer

A)   Visionary
B)   Small Business
C)   Diversification
D)   Start-up
E)   Expansionist

Question 15

Major innovations are most likely to come from large corporations.

Accepted Answer

A) True 
 B)False

Question 16

Which of the follow BEST defines those who assume the risk of business ownership?

Accepted Answer

A)   Entrepreneurs
B)   Customers
C)   Corporate partners
D)   The Small Business Administration
E)   Banks

Question 17

How can competing firms collaborate on a new business without losing control of their existing firm?

Accepted Answer

A)   Establish a joint venture
B)   Buy large blocks of the competitor's stock
C)   Hire a new chief executive office
D)   Sell off similar operations
E)   Change the corporate governance of both firms

Question 18

When income is taxed at the corporate level and on shareholder returns as dividends, what is this situation known as?

Accepted Answer

A)   Dual costs
B)   Double taxation
C)   Regulatory costs
D)   Double ownership
E)   Financial balancing

Question 19

Most successful entrepreneurs have a strong desire to be their own bosses.

Accepted Answer

A) True 
 B)False

Question 20

Where can a new business owner go to seek help and learn from other institutions and disciplines?

Accepted Answer

A)   The Service Corps of Retired Executives (SCOR
E)  
B)   The Small Business Development Center (SBD
C)  
C)   Small business investment companies (SBICs) 
D)   Venture capitalist
E)   Minority Enterprise Small Business Investment Companies (MESBICs)

Exam 3: Entrepreneurship, New Ventures, and Business Ownership

When income is taxed at the corporate level and on shareholder returns as dividends, what is this situation known as?

Correct AnswerverifiedShow Answer

In a small business, who determines prices for wholesalers and customers?

Correct AnswerverifiedShow Answer

Which of the following industry groups is the fastest growing segment of small business enterprise?

Correct AnswerverifiedShow Answer

What type of ownership is created when a firm buys another outright?

Correct AnswerverifiedShow Answer

How can competing firms collaborate on a new business without losing control of their existing firm?

Correct AnswerverifiedShow Answer

What is the process of seeking business opportunities under conditions of risk?

Correct AnswerverifiedShow Answer

Discuss the advantages and disadvantages of corporations.

Correct AnswerverifiedThe advantages include limited liability...View AnswerShow Answer

Most successful entrepreneurs have a strong desire to be their own bosses.

Correct AnswerverifiedShow Answer

Where can a new business owner go to seek help and learn from other institutions and disciplines?

Correct AnswerverifiedShow Answer

Why might an entrepreneur wish to purchase an existing business rather than start one from scratch?

Correct AnswerverifiedAn entrepreneur may wish to purchase an ...View AnswerShow Answer

Which of the follow BEST defines those who assume the risk of business ownership?

Correct AnswerverifiedShow Answer

What is the main reason why women start new businesses?

Correct AnswerverifiedShow Answer

What is the major drawback of accepting venture capital?

Correct AnswerverifiedShow Answer

The board of directors of a corporation reports to the officers of the corporation.

Correct AnswerverifiedShow Answer

Which entity is defined as independent and has little influence on its market?

Correct AnswerverifiedShow Answer

When an entrepreneur has the goals of growth and expansion, with the vision of turning the business into a large business, what term is used when referring to the business?

Correct AnswerverifiedShow Answer

Major innovations are most likely to come from large corporations.

Correct AnswerverifiedShow Answer

Which type of business is legally considered a separate entity from its owners and is liable for its own debts?

Correct AnswerverifiedShow Answer

A corporation must be managed on the principles of corporate governance. Explain what this is.

Correct AnswerverifiedCorporate governance is the role of shar...View AnswerShow Answer

Which of the following occurs when two firms combine to create a new company?

Correct AnswerverifiedShow Answer

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The advantages include limited liability...
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An entrepreneur may wish to purchase an ...
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Corporate governance is the role of shar...
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