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Forms of Ownership section 70058 Flashcards | StudBud
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Forms of Ownership section 70058
Forms of Ownership section 70058
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This Quiz! reviews chapters 4 of Introduction to Business for GBUS5.
Flashcards
40 cards
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Questions
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1
M & S's store has grown; they need more capital. They do not want loan; want limited liability.
corporation.
sole proprietorship.
co-op.
syndicate.
2
A ____ purchases products in quantity from manufacturers and then resells them to retailers.
exporter
importer
wholesaler
distribution hub
3
A guaranteed SBA loan may be as large as
$2.0 million.
$5 million.
$1.5 million.
$3.5 million.
4
Corporation whose stock can be purchased by anyone and is traded in stock markets is __
S-corporation.
closed corporation.
open corporation.
not-for-profit corporation.
5
Teenage entrepreneurship is growing especially in the _____ industry.
tech
retail sales
exporting
tutoring
6
M would like to own a train store and operate it by himself. What form of business is this?
S-corporation.
Sole proprietorship.
LLC.
Partnership.
7
All of the following are advantages to the franchisor
except
no involvement in national advertising campaigns.
gains from the franchisee's high motivation.
a freeing up of capital for expansion of goods and services.
assurance of how outlets will be maintained and operated.
8
A hostile takeover is a situation in which
the targeted firm is dismantled to avoid the merger.
government decides corporate raider can buy targeted firm.
stockholders are paid a golden parachute.
management & board disapprove of proposed merger.
9
A ____ is a form that enables stockholders to allow someone else to vote for them.
rights transfer
waiver
voter registration
proxy
10
A distribution of earnings to the stockholders of a corporation is a(n)
distributed payment.
par distribution.
common payment.
dividend.
11
A franchisor supplies all of the following
except
the name of the shop.
advertising materials.
land to place the business on.
any necessary training.
12
A ____ invests money in the business but has no management responsibility.
stockbroker
sole proprietor
general partner
limited partner
13
A limited-liability company is
taxed like a partnership.
similar to a cooperative.
taxed like a corporation.
the result of a horizontal merger.
14
Studies have shown ______ among small-business workers is significantly higher than in larger.
innovation
catastrophic events
termination
illness
15
In the US, it typically takes ____ and about $600 to establish a business as a legal entity.
less than a week
about a month
two weeks
a month and a day
16
What is the name given to the governing body of a corporation?
Preferred shareholders.
Board of directors.
Shareholders.
Officers.
17
Some of the entrepreneurs' personal factors in small-business success include
high I.Q. and youth.
independence and a desire to determine one's own destiny.
independence and access to large sums of capital.
high I.Q. and advanced age.
18
Corporation organized to provide a social, educational, religious, or other nonbusiness service
merger.
not-for-profit corporation.
authority.
S-corporation.
19
At one time, AT&T and T-Mobile wanted to merge. What is the name given to this kind of merger?
Conglomerate merger.
Contingent merger.
Horizontal merger.
Vertical merger.
20
A voluntary association of two or more people acting as co-owners of a business is known as a
syndicate.
conglomerate.
corporation.
partnership.
21
All of the following are advantages that small businesses have
except
greater potential for making a profit.
personal relationships with their customers.
simplified record keeping.
the ability to adapt to change.
22
_____ are accountable for 97.5 % of all exporters and produce 31 % of export value in US.
Small businesses
Alien corporations
Domestic corporations
Multi-national corporations
23
M has a sole proprietorship but too much work alone. He does not want lots of government forms.
partner.
merger.
limited-liability company.
wife.
24
If Pizza Hut and Papa John's Pizza united to become Papa's Hut, what created the new company?
Vertical acquisition.
Proxy war.
Horizontal merger.
Horizontal melding.
25
A contract between a business and a state recognizing the business as artificial person is __
articles of incorporation.
stock certificate.
S-corporation.
articles of partnership.
26
Before seeking financial backing for his new business, Tyler puts together a concise document -
marketing plan.
organizational guide.
business plan.
organizational mission statement.
27
According to the text, which of the following statements is
false about sole proprietorships
?
The sole proprietor is often the sole manager.
Sole proprietorships offer better employee benefits.
Potential employees fear no room to advance in sole.
Sole proprietor often finds it hard to keep good employees.
28
A carefully constructed guide for the person starting a business is a(n)
organizational plan.
business budget.
articles of business.
business plan.
29
According to SBA data, women-owned businesses are ____ & their risk of failure is ___ average.
not financially sound or credit-worthy; higher than
equal to male-owned in credit-worthiness; about equal to
financially sound and credit-worthy; lower than
poorly run; greater than
30
All of the following are franchise establishments
except
Avis.
McDonald's.
Walmart.
Dairy Queen.
31
B works for a company with 5 employees. From his point of view, primary disadvantage is the
risk of failure.
limited potential for him to advance.
complicated management structure.
limited ability to raise capital.
32
A __ is a merger of firms at different but related levels in production & marketing of product.
conglomerate merger
joint venture
horizontal merger
vertical merger
33
Sam tries to get shareholders to vote for her or give her their vote. Opponent opposite. What?
A proxy fight.
A tender offer.
A hostile merger.
A non-profit takeover.
34
Everett wants to start a sports club to benefit inner-city kids. What business form is best?
S-corporation.
Not-for-profit corporation.
Syndicate.
Partnership.
35
An individual's desire to create a new business is referred to as
self-evaluation.
the laissez-faire spirit.
outward focus.
the entrepreneurial spirit.
36
A company generally needs more than ____ employees in order to be considered large.
100
300
500
50
37
All of the following are disadvantages to the franchisee
except
hard work.
a fee for advertising.
starting a business with limited capital.
a loss of control.
38
Maurice and Stanley have a train store and began to think about their personal liability. Form
limited-liability company.
syndicate.
limited partnership
corporation.
39
Which of the following statements
best
represents a truth about small businesses?
The cost of opening is relatively low, and financing easy.
Record keeping will be complicated.
Although risky, there is practically unlimited potential.
There is little help available for opening small business.
40
$ has to be paid up front by staff before its clients have paid. Company may face a/an __
insurance difficulty.
business plan crunch.
inventory-flow problem.
cash-flow problem.
