stud
bud
Sign up
Log in
Home
Library
Explore
SAT
More
Principles of Business Chapter 5 Review Flashcards | StudBud
Explore
/
Principles of Business Chapter 5 Review
Principles of Business Chapter 5 Review
30 terms
·
StudBud Administration
·
199 plays
Imported from external platform
Flashcards
30 cards
F
Practice quiz
P
Host live
L
Questions
30
Answers
1
Can a partner enter into a legal contract against the wishes of the other partners?
Yes
No
2
Can the bankruptcy of any partner cause the sudden end to the partnership?
Yes
No
3
If one partner is unable to pay business debts, are the other partners held responsible?
Yes
No
4
Is the corporation the most common form of ownership?
No
Yes
5
An accountant is a small town would most likely open a...
Partnership
Proprietorship
6
Must creditors be informed about the formation of a limited partnership?
No
Yes
7
Can a partnership usually borrow money more easily than a proprietorship?
No
Yes
8
Do decisions in a proprietorship usually take less time than in other forms of business?
Yes
No
9
Is a business that provides personal services suited to be a proprietorship?
No
Yes
10
Does form of ownership depend upon the financial responsibility the owner is willing to take?
No
Yes
11
In recent years, have an increasing number of women opened their own business?
No
Yes
12
Should the entrepreneur write a business plan soon after launching the business?
No
Yes
13
Do typical entrepreneurs give up quickly when they are not immediately successful?
Yes
No
14
Do new businesses often fail for financial reasons?
No
Yes
15
Is it true that a partner can only lose the amount of money that they invest in the business?
No
Yes
16
The terms capital, net worth and equity are...
Interchangeable and defined as assets plus liabilities
Interchangeable and defined as assets plus capital
Not interchangeable but defined as assets minus liabilities
Interchangeable and defined as assets minus liabilities
17
Which statement is true about most successful entrepreneurs?
Most do not enjoy working on their own
Most learned from their mistakes from unsuccessful startups
Most have early successful startups
Most feel it is not necessary to have experience
18
The trade name of a business...
Does not have to be registered
Does not reduce the owners liability to creditors
Cannot be an artificial name
Cannot be listed as the Dixie Service Company
19
Most businesses start with several owners?
No
Yes
20
The form of ownership selected depends upon...
Both A and B
Neither A nor B
Nature and size of business and tax laws
Capital needed and financial responsibility of the owner
21
To start your own business, you need...
Adequate funds
adequate funds and general knowledge
Adequate funds, knowledge and experience
Adequate funds, knowledge, experience and an opportunity
22
Approximately how many businesses are formed as proprietorships?
2 out of 3
1 out of 2
3 out of 4
4 out of 5
23
New businesses mainly fail because
Owners work short hours
Owners would rather work for others
Owners are too young
Owners lack financial resources
24
A person with little knowledge of an industry should most likely start a...
Proprietorship
Partnershp
25
Can as few as two people form a sole proprietorship?
No
Yes
26
Is the legal form of ownership one of the first decisions that a new owner must make?
Yes
No
27
A farmer who wants to sell fruit from a roadside stand would most likely open a...
Proprietorship
Partnership
28
Is it typical for months and years to pass before a new business earns a profit?
No
Yes
29
Is a partnership limited to a max of six partners?
No
Yes
30
Can a sole proprietor be forced to give up personal possessions to pay off debts?
Yes
No
