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