1. Which of the following is a direct factor that effects theselection of form adopted for a business?

a.The extent to which a business owner wishes to attain controlof the business

b.The expected profits or losses arising from the business

c.The perceived risk associated with the business

d.The relationship that the owner would have with partners orinvestors

e.The subgroups of the total population that will behave thesame way in the marketplace

2.The 'P' in the banker's CAMPARI approach for reviewing aperspective loan applicant stands for:

a.price.

b.product.

c.purpose.

d.place.

e.promotion.

3.Which of the following SBA loan programs are designed toassist members of the US military who wish to create or expand asmall business?

a.Express and pilot programs

b.Special-purpose loans programs

c.Community express programs

d.Patriot express loan programs

e.Export express programs

4.Trade credit involves:

a.no explicit obligation or expectation, on the part of theinvestors, to be repaid their investment.

b.purchasing supplies or equipment through financing madeavailable by vendors.

c.pledging some assets-such as a home, real estate, machinery,and plant-as collateral.

d.guaranteeing a portion of the loan to partners that includeprivate lenders, microlending institutions, and communitydevelopment organizations.

e.business plan competitions hosted by colleges and universitiesor small business associations.

5.Which of the following is true of Small BusinessAdministration (SBA)?

a.It involves no explicit obligation or expectation, on the partof the investors, to be repaid their investment.

b.FIt represents a legal obligation to repay the original debtplus interest.alse

c.It involves pledging some assets-such as a home, real estate,machinery, and plant-as collateral.

d.It specifies the amount of money to be repaid within aspecific time frame for a specific interest rate.

e.It guarantees a portion of the loan to its partners thatinclude private lenders, microlending institutions, and communitydevelopment organizations.

6.An accounting system where costs are assigned due to thecause-and-effect relationship between costs and the activity thatdrives the cost is known as:

a.activity-based costing system.

b.net present value (NPV) system.

c.breakeven analysis system.

d.CAMPARI activity system.

e.cloud computing system.

7.A general partnership is:

a.which there is only one owner.

b.a legal entity that must be chartered by the state in which itis headquartered, giving it the authority to enter into legalagreements with individuals and other corporations.

c.a special format designed to eliminate the problem of doubletaxation that one might find with a C-corporation format.

d.a business that may have several general partners and severalmore limited partners who do not have unlimited liability.

e.a business composed of two or more owners who contribute theinitial capital of the business and share in the profits and anylosses.

8.Which of the following is an indirect factor that effects theselection of form adopted for a business?

a.Tax issues

b.Expected profits or losses

c.Vulnerability and threat from lawsuits

d.Relationship that the owner would have with partners orinvestors

e.Ability to extract profits from the business for the owner'suse