Intro to Business - Ch. 4 & 5

Question 1

This type of corporation is one whose stock anyone may buy, sell or trade.

Accepted Answer

Public Corp.

Question 2

This is a precise statement of rationale for the business on how it will achieve its goals.

Accepted Answer

Business Plan

Question 3

These individuals are elected by stockholders to oversee the general operation of a corporation

Accepted Answer

Board of Directors

Question 4

A legal entity created by the state whose assets and liabilities are separate from its owners.

Accepted Answer

Corporation

Question 5

This is a share of a business.

Accepted Answer

Stock

Question 6

This occurs when two companies combine to form a new company.

Accepted Answer

Merger

Question 7

A license to sell another's products or use another's name is called a what?

Accepted Answer

Franchise

Question 8

These people agree to provide funds for a new business in exchange for equity or stock.

Accepted Answer

Venture Capitalists

Question 9

This type of partnership involves a complete sharing in the management of the business.

Accepted Answer

General Partnership

Question 10

This is a government organization that offers managerial and financial assistance to businesses

Accepted Answer

Small Business Administration

Question 11

All of the following are "other" type of business ownership except.

Accepted Answer

Merger

Question 12

This is when a group of investors borrows money from banks to acquire a company.

Accepted Answer

Leveraged Buyout

Question 13

Owners of this stock have a claim to profits before any other stockholders do.

Accepted Answer

Preferred Stock

Question 14

This is what the state issues after they review the info in the articles of incorporation.

Accepted Answer

Corporate Charter

Question 15

This sector includes businesses that do not actually produce goods.

Accepted Answer

Service

Question 16

IPO stand for what?

Accepted Answer

Initial Public Offering

Question 17

4 business sectors are especially attractive to entrepreneurs, which of the following is NOT 1.

Accepted Answer

Farming

Question 18

This is a what a business goes through to become a public company.

Accepted Answer

IPO

Question 19

This is what it's called when a business borrows money from a bank.

Accepted Answer

Debt Financing

Question 20

Which of the following is NOT an advantage of small-business ownership?

Accepted Answer

High Failure Rate

Question 21

This term refers to someone who develops innovations within a larger corporation.

Accepted Answer

Intrapreneurs

Question 22

This refers to the lack of funds needed to operate a business normally.

Accepted Answer

Undercapitalization

Question 23

A cash payment that stockholders receive from a business' remaining profit is called what?

Accepted Answer

Dividend

Question 24

All of the following are advantages of sole proprietorships except...

Accepted Answer

Limited Sources of Funds

Question 25

This type of corporation has only 1 owner and unlimited liability.

Accepted Answer

Sole Proprietorship

Question 26

This type of corporation focuses on a service rather than turning revenue.

Accepted Answer

Nonprofit Corp.

Intro to Business - Ch. 4 & 5

Questions 26

Intro to Business - Ch. 4 & 5

Questions 26