QUESTION 1
1. For many businesses, sales are at the core of:
A. moving products
B. profitability
C. moving services
1 points
QUESTION 2
1. Which functional area is charged with the responsibility ofpreparing budgets and information about costs and asset allocationto be used by the managers of a business?
A. Marketing
B. Accounting
C. Finance
1 points
QUESTION 3
1. The disadvantages to starting and running a corporationinclude:
a. double taxation
b. limited liability
c. easier to secure funding
1 points
QUESTION 4
1. In addition to undertaking risks, entrepreneurs often worklong hours and make a lot of sacrifices. They are usually veryindependent people who are creative and often object to the systemsof rewards and promotions used by most corporations. This isbecause
A. They lack the creativity required for mainstreamcorporations
B. They often don’t fit in with the corporate culture andprefer not work for someone else
C. As entrepreneurs they need to think that way
1 points
QUESTION 5
1. Financial advisors help people make _____ decisions.
A. investment
B. sales
C. medical
1 points
QUESTION 6
1. ________ is the income that a business owner retains afterpaying all the expenses associated with the operation of thebusiness.
A. Profit
B. Interest.
C. Dividend
1 points
QUESTION 7
1. Which of the following are internal stakeholders in abusiness?
A. Industry associations
B. Competitors
C. Managers
1 points
QUESTION 8
1. People in business careers often need good interpersonalwritten and oral _____ skills.
A. hyping
B. anthropology
C. communication
1 points
QUESTION 9
1. ________ is the relationship between the price a customerpays for the good or service and perceived benefits the customerreceives.
A. Value
B. Income
C. Profit
1 points
QUESTION 10
1. The organization and management section in your businessplan identifies ________.
a. the name of your lawyer
b. financial projections
c. the legal structure, explaining whether liability islimited or not
1 points
QUESTION 11
1. Employees are an example of:
A. outside shareholders
B. internal stakeholders
C. external stakeholders
D. inside traders
1 points
QUESTION 12
1. A ________ is a legal entity completely separate from theentities who own it.
A. sole proprietorship
B. limited liability partnership
C. corporation
1 points
QUESTION 13
1. Which of the following are external stakeholders in abusiness?
A. Creditors
B. Owners
C. Employees
1 points
QUESTION 14
1. Operations is a functional area of business that converts_____ to _____.
A. liquids to solids
B. natural resources to currency
C. inputs to outputs
D. human resources to financial numbers
1 points
QUESTION 15
1. Often considered the most important part of a businessplan, this section is the first opportunity to grab a potentialinvestor’s interest.
a. executive summary
b. service or product line
c. marketing and sales
1 points
QUESTION 16
1. According to the Small Business Administration, a smallbusiness is one that:
a. exerts a large influence in its industry
b. is family-owned
c. has less than 500 employees
1 points
QUESTION 17
1. A business hiring new employees will need to reportto
a. the state government
b. the federal and state and local government
c. the federal government
1 points
QUESTION 18
1. Purchasing agents and claims adjusters are categorizedunder the functional area of business known as:
A. compliance
B. operations
C. human resources
1 points
QUESTION 19
1. The most common form of business ownership in the U.S. isa:
a. partnership
b. sole proprietorship
c. orporation
1 points
QUESTION 20
1. When choosing an organizational type, what importantfactors should you consider?
A. Supplier capabilities and retail outlet.
B. Starting capital and hours you have available to work
C. Control versus responsibility, and risk tolerance
1 points
QUESTION 21
1. Entrepreneurs see solutions where others see problems. Anentrepreneur
a. organizes and manages any enterprise, especially abusiness, usually with considerable initiative and risk.
b. Innovates a new business idea.
c. Takes the risk and rewards in a business.
1 points
QUESTION 22
1. The Obama Administration recognized the contribution ofsmall businesses to the American economy with the establishment ofthe American Supplier Initiative. This initiative connected largerbusinesses to small businesses that could provide products andservices. This initiative provide a network that enabled smallerbusinesses to provide
a. The growth and expansion of different sizedbusinesses
b. Created a positive link to foster growth of largebusinesses
c. Support to larger businesses through products andservices
1 points
QUESTION 23
1. Small businesses contribute to the economy in several ways.What is one of those ways?
a. Job creation
b. Limited innovation or creativity
c. The leaders of production
1 points
QUESTION 24
1. According to the Small Business Administration, a smallbusiness is one that:
a. only sells products locally
b. has a single owner
c. takes in less than $7.5 million in annual averagereceipts
1 points
QUESTION 25
1. Which of the following is a reason why an individual wouldbecome an entrepreneur?
a. Dissatisfaction with current job or career
b. The desire to get rich quickly without having to work veryhard
c. They lack the skills and ability to get a job with acompany
1 points
QUESTION 26
1. Lifestyle entrepreneurs are willing to undertake risks forwhich of the following reasons?
a. Because previous businesses have failed
b. They are looking to solve a problem
c. A personal passion and a desire to lead a fulfillinglife
d. The desire for profits and monetary rewards
1 points
QUESTION 27
1. The American Supplier Initiative enables smaller businessesto provide which of the following?
a. Created a positive link to foster growth of largebusinesses
b. Support to larger businesses through products andservices
c. The growth and expansion of different sizedbusinesses
1 points
QUESTION 28
1. A business plan is like a map of how you will run yourbusiness successfully. It will include:
a. what your friends and family think of your plan.
b. How many vacations you will take and where.
c. what you will sell and to whom
1 points
QUESTION 29
1. Entrepreneurs are usually willing to the risks of startinga business and normally have unique reasons and goals for doing so.Lifestyle entrepreneurs normally undertake these risks for whichreasons?
a. The desire for profits and monetary rewards
b. Because previous businesses have failed
c. They are looking to solve a problem
d. A personal passion and a desire to lead a fulfillinglife
1 points
QUESTION 30
1. According to the Small Business Administration, a smallbusiness is one that:
a. is family-owned
b. exerts a large influence in its industry
c. has less than 500 employees
1 points
QUESTION 31
1. Entrepreneurs must be
a. Positive and smart about taking risks.
b. risk-averse.
c. Tolerant of risk in all aspects of their business.
1 points
QUESTION 32
1. Entrepreneurs commonly share traits of:
a. Proficiency and mastery.
b. sociability and affability.
c. Passion, flexibility, and creativity.
1 points
QUESTION 33
1. An Employer Identification Number (EIN) used to identify abusiness entity is also known as a ________:
a. Federal Tax Identification Number
b. Business Identification Number
c. Local Tax Number
1 points
QUESTION 34
1. Heidi is enthusiastic about her business plans and talks toother business owners and experts about the pros and cons. Friendssay she has been developing her ideas for more than a year. Basedon the considerations for an entrepreneur, Heidi’s business maybe
a. worth an investor’s consideration.
b. poor investment.
c. a long-shot for an investor.
1 points
QUESTION 35
1. Melinda has started a dress shop. She can expect tospend
a. significantly more time working because so much depends onher.
b. significantly less time working because she is her ownboss.
c. about the same amount of time working but she enjoys herwork more.
1 points
QUESTION 36
1. You have decided to become a franchisee for a provenbusiness. What would be a disadvantage for you being afranchisee?
a. The name or brand might not be well known.
b. The high cost to you of the start-up.
c. The limited number of franchise options that are availablein the U.S.
1 points
QUESTION 37
1. AT&T’s proposed $39 billion acquisition of T-Mobile USAwould have combined two of the four major national providers ofmobile telephone services for both individuals and businesses. As aresult of this acquisition, AT&T would be the provider ofalmost 40% of all mobile service, with Verizon and Sprint making upthe remainder of the market. This is an example of:
a. horizontal acquisition.
b. horizontal merger.
c. vertical acquisition.
1 points
QUESTION 38
1. You get in a conversation with a man in the reception roomat your doctor's office. He tells you he is establishing abarbershop business and has a business partner who shares in alldecision making. The business has been fairly easy to set up, hehas limited liability for the company and will only be taxed onceon company profits. What kind of business has your new acquaintancedescribed to you?
a. C Corporation
b. Limited Liability Company
c. Limited Liability Partnership
1 points
QUESTION 39
1. Carol and her friends are creating a new company that shipsmonthly subscription boxes filled with beauty products tocustomers. Carol has multiple partners and she wants to avoid bothdouble taxation and personal liability at the same time. Inaddition, she wants to pay the partners based on their companyownership percentage. Carol can accomplish her goals by formingwhat type of business entity?
a. A partnership.
b. An S corporation.
c. A C corporation.
1 points
QUESTION 40
1. A new company will be formed by combining Company A withthe Company B. This type of business combination is known asa(n):
a. franchise
b. acquisition
c. merger
1 points
QUESTION 41
1. Your friend tells you he is working on setting up abusiness. He tells you he has a business partner who shares in alldecision making, it has been fairly easy to set up, he will only betaxed once on company profits, and he has limited liability for thecompany. What kind of business has your friend most likelydescribed?
a. Limited Liability Company
b. Limited Liability Partnership
c. C Corporation
1 points
QUESTION 42
1. You have decided to become a franchisee for a Jiffy Lubeoil change business. What would be a benefit for you being afranchisee?
a. You have access to a template for the business.
b. You have access to startup funds from the franchiser.
c. You have eliminated of all business risks for thisbusiness.
1 points
QUESTION 43
1. When Henry started up his corporation, he also had toconsider the disadvantages of starting and running a corporation.What are some of the disadvantages?
a. His corporation creates double taxation.
b. His corporation has limited liability.
c. His corporation makes it harder to secure funding.
1 points
QUESTION 44
1. In some situations, individual business partners are notobligated to consult with other participants in certain businessagreements. The fact that a partner can make business decisionswithout consulting the other partners is considered to be adisadvantage of a ________.
a. Corporation
b. LLC
c. LLP
1 points
QUESTION 45
1. A ________ seeks to provide a return to shareholders whilepursuing other goals that benefit community or society.
a. B corporation
b. limited liability company
c. C corporation
1 points
QUESTION 46
1. ________ usually creates one larger company and one of theoriginal two companies ceases to exist.
a. An acquisition
b. A leveraged buyout
c. A merger
1 points
QUESTION 47
1. A business professor is trying to describe what makes anLLC different from a C Corporation. Which would be the correctstatement for her to make about the difference?
a. Owners of an LLC face much greater liability than owners ofa C Corporation.
b. The LLCs and C Corporations are taxed differently.
c. A C Corporation must have many employees. An LLC can havefewer employees.
1 points
QUESTION 48
1. “3B’s - Bigger, Better Burger” hamburger fast foodrestaurants merge with a large potato farm “Potters Potatoes.” 3B’sis now looking forward to having a fresh, reliable supply ofpotatoes for its fries along with a farm offering fair prices andwhich is now under the direction of the same company leadership.Potters Potatoes is happy to steadily supply its potatoes to 3B andnot have its potatoes go unused. This is an example of:
a. vertical merger or acquisition.
b. synergistic partnership.
c. horizontal merger or acquisition.
1 points
QUESTION 49
1. In 2002, Ebay, the online auction site, and PayPal, theonline electronic payment service came together. This was a matchthat seemed to fit well together for both parties. People usingEbay to either sell or buy found PayPal to work splendidly fortheir Ebay transactions. This is a successful example of:
a. a partnership.
b. an acquisition.
c. horizontal merger.
1 points
QUESTION 50
1. Which of the following businesses are examples of afranchise?
a. Kroger grocery stores
b. Geller Group law firm
c. Pizza Hut restaurants
