Advantage of Partnership is

Combined business skills and knowledge

one of the most attractive features of corporate ownership

Importance of small businesses are

Providing technical innovation, employment and competition

The advantages of a corporation include

limited liability, ease of raising capital, perpetual life

The most common types of business structures are

Sole proprietorship, Partnership, Company

'The job of an entrepreneur is Creative Destruction' (Joseph Schumpeter). What does Creative Destruction mean?

A process by which something new causes the demise of whatever existed B4

Double taxation occurs because

both corporate income and shareholders' dividends are taxed

__________________________ are the key ingredients in the survival of a small business.

Capital, management, and planning

is a disadvantage of corporation

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Week 3: Forms of Business Ownership: 2020.1

30 termsStudBud Administration330 plays

Forms of ownership, small businesses and entrepreneurship management.

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Questions 30

Answers

1
A ______________ is a person who assumes full or shared responsibility for operating a business
Limited Partner
Company
Genuine Partner
General Partner
2
More than half the major technological advances of the 20th century originated with
C. small companies
B. large companies
A. individual inventors
D. Both A and C
3
Under a sole proprietorship, there is no legal difference between the owner and the business.
False
True
4
Advantage of Partnership is
Unlimited liability
Pride of ownership
Lack of continuity
Combined business skills and knowledge
5
Small firms can meet the special needs of smaller groups of customers
True
False
6
Limited liability is
one of the most attractive features of sole trader
one of the most attractive features of professionals
one of the most attractive features of corporate ownership
one of the most attractive features of partnership
7
The advantages of smallness in business are
c. Both a and b
a. Independence
d. limited potential
b. the low cost of going into business
8
Motivation to start a business may include
All of the above
Person may lose his or her job
Person has an idea for a new product
An opportunity presents itself
9
Greatest 20th century entrepreneurs are
Steve Jobs
All of them
Jack Ma
Mark Zuckerberg
10
Most commonly used to underwrite large insurance policies, loans, and investments
None of the above
Mergers and Acquisitions
Joint ventures
Syndicates
11
An example of a partnership is
a legal firm
a mother who bakes cookies
a hardware store owner
a gardener who mows lawns for a fee
12
Importance of small businesses are
Providing capital, management skills and profit
Providing employment, capital and competition
Providing technical innovation, employment and competition
Providing management skills, employment and competition
13
Shareholders exercise a great deal of influence through their right to elect the
Corporate Officers
Stockholders
Employees
Board of Directors
14
The factors that prompt certain people to start new businesses are
the desire to create a new business
the desire to determine one’s own destiny
the willingness to find and accept a challenge
All of them
15
Examples of sole proprietorships are
All of the above
Barbers who own their shops
Freelance business consultants
Auto mechanics who are self-employed
16
The advantages of a corporation include
ease of start-up, ease of raising capital, perpetual life
limited liability, ease of raising capital, perpetual life
ease of start-up, pride of ownership, flexibility
unlimited liability, perpetual life, flexibility
17
The most common types of business structures are
Sole partnership, Partnership, Company
Sole proprietorship, Possessorship, Company
Sole proprietorship, Partnership, Company
Sole professional, Partnership, Company
18
'The job of an entrepreneur is Creative Destruction' (Joseph Schumpeter). What does Creative Destruction mean?
A process by which everything is destroyed
A process by which old products causes the demise of whatever existed B
All statements are correct
A process by which something new causes the demise of whatever existed B4
19
Planning is one vital element in the success of a small business.
True
False
20
The __________________ is an effective form of business ownership for raising capital.
General Partner
Sole Proprietorship
Partnership
Corporation
21
Day to day management of a corporation is the responsibility of the
Shareholders
Promoters
Board of directors
Officers
22
Double taxation occurs because
the corporation pays taxes every six months
a corporation has a higher tax rate than individuals
both officer and employee salaries and dividends are taxed
both corporate income and shareholders' dividends are taxed
23
__________________________ are the key ingredients in the survival of a small business.
Cash, management and profit
Cash, people and planning
Capital, management, and planning
Planning, profit and people
24
Advantages of Sole Proprietorship are
All of the above
Pride of ownership
Flexibility of being your own boss
Ease of start-up and closure
25
20th century innovations originated at small firms are
Insulin
Instant camera
All of the above
Personal Computer
26
Small-business owners don’t have to
all are correct
worry about being fired or laid off
punch in and out
take orders from superiors
27
Small firms hire a larger proportion of younger and older workers, women, and part-time workers
True
Maybe
All options are correct
False
28
________________ industries include retailing, wholesaling, transportation, and communications
Production
Distribution
Financial
Service
29
Double Taxation
is a disadvantage of sole proprietorship
is a disadvantage of partnership
is a disadvantage of corporation
is an advantage of sole proprietorship
30
Ease of raising capital is a characteristic of which type of ownership?
Sole trader
Corporation
Sole proprietorship
Partnership

Week 3: Forms of Business Ownership: 2020.1 Flashcards | StudBud