The ___________ is the most common form of business ownership.
answer
sole proprietorship.
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To many businesspeople, one of the major attractions of a sole proprietorship is:
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the chance to be their own boss.
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One of the major disadvantages of a sole proprietorship is the:
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unlimited liability the owner has for the debts of the firm.
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Which of the following statements is the most accurate? Sole proprietorships:
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are easy to start and end.
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When entering into a new partnership, the partners should:
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put the partnership agreement in writing.
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Which of the following statements about partnerships is the most accurate?
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A major drawback of a partnership is that it is difficult to terminate.
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When comparing partnerships to sole proprietorships, an advantage of partnerships is that they:
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give the firm a stronger financial foundation.
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A(n) ___________________ is a state-chartered legal entity with authority to act and to have liability separate from its owners.
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conventional corporation
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An owner of a corporation is known as a(n):
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stockholder.
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Which of the following statements about the operation of a corporation is correct?
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A corporation receives its charter from a state government.
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The majority of corporations in the U.S. are:
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small businesses
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Which of the following is an advantage of the corporate form of business when compared to sole proprietorships and partnerships?
answer
limited liability of owners
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Compared to partnerships and sole proprietorships, a major advantage of the C (conventional) corporation as a form of business ownership is that it:
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has the ability to raise more money.
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Which of the following is normally considered a major disadvantage of the corporate form of business?
answer
double taxation of earnings.
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The board of directors for a corporation is elected by its:
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owners.
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major advantage of S corporations is that they:
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Avoid the problem of double taxation associated with conventional corporations.
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The earnings of C (conventional) corporations are taxed:
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as income to the corporation, then again as income to the stockholders on earnings that are distributed as dividends.
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The S corporation is likely to be less popular in the future because:
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limited liability companies, which do not have the restrictive eligibility requirements of S corporations and offer greater flexibility in the choice of tax treatment, are now legal in all 50 states.
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Mergers and acquisitions:
answer
often involve companies trying to expand within their own field or enter new markets.
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The result of two firms combining to form one company is called a:
answer
merger.
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An entrepreneur:
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is a person who takes the risk to set up a new business in the hope of making a profit.
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Which of the following would not be helpful in explaining why individuals accept the risks of business ownership?
answer
The desire to work fewer hours.
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A group of experienced people from different areas of a business joined together to develop, produce, and market a new product is known as a(n)
answer
entrepreneurial team.
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Entrepreneurs don't always focus on what customers need. They also look for:
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what customers don't know they need.
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An entrepreneurial team consists of:
answer
experienced managers from different areas of business.
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Individuals motivated to start a home-based business allowing them to balance the demands of business and family are called:
answer
micropreneurs.
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After their startup businesses grow into established organizations, many entrepreneurs:
answer
turn their companies over to professional managers.
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A creative person working within a corporation to launch new products and generate new profits is known as a(n):
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intrapreneur.
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The goal of an intrapreneurs is to:
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develop new products and generate new profits for the corporation.
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Enterprise zones are areas which:
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feature low taxes and government support in an effort to encourage entrepreneurship.
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Historically entrepreneurs in the U.S. have:
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started many small firms that later became major corporations employing thousands of workers.
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Effective entrepreneurial teams require a blend of:
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creative, marketing, and production skills.
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In an entrepreneurial team, who is responsible for the conception, development, and marketing of products?
answer
These issues are the responsibility of all the members of the entrepreneurial team.
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Which of the following best describes the difference between an intrapreneur and an entrepreneur?
answer
Intrapreneurs work within existing corporations while entrepreneurs assume the risks of starting their own business.
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Apple Computer's "smart team" is an example of a firm that succeeded by:
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building a group of experienced managers and emphasizing teamwork and cooperation.
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The management of charities, government agencies, and schools is ________ the management of a business.
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much the same as
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All of the following are elements of the Small Business Administration's definition of a small business except that these firms:
answer
have fewer than 100 stockholders.
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About 80% of all Americans find their first jobs in:
answer
small businesses.
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When comparing small businesses to their larger competitors, it is clear that:
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small firms often can offer more personalized customer services than big firms.
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A review of small business successes and failures indicates that the:
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businesses with the potential of high profit levels tend to be difficult to start and hard to keep going.
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