Question 1

Which of the following,if true,would strengthen the case for Short and Shearer buying an existing business?

Accepted Answer

A)   Short and Shearer have a lot of ideas as to the kind of business they would like to own.
B)   An existing business would have an existing customer base that Short and Shearer would inherit.
C)   An existing business for sale might have difficulties that Short and Shearer would inherit.
D)   Short and Shearer greatly value independence.
E)   Existing small businesses are usually carrying debts.F) A) and E)
G) C) and D)

Question 2

Why might an entrepreneur wish to purchase an existing business rather than start one from scratch?

Accepted Answer

An entrepreneur may wish to purchase an ...

Question 3

Explain a tender offer.

Accepted Answer

A tender offer is an offer to buy shares...

Question 4

Who invests all of the funds needed for a business but plays no role in its management?

Accepted Answer

A)   silent partner
B)   sole proprietor
C)   general partner
D)   principal
E)   directorF) A) and B)
G) A) and C)

Question 5

Which of the following,if true about the owners' plan for the new business,would strengthen the case that it should be registered as an S corporation?

Accepted Answer

A)   They want their shareholders to be personally liable for the corporation's debts.
B)   They want to have an unlimited number of shareholders.
C)   They do not want the company to have to pay a corporate income tax.
D)   They do not want to have to meet any start-up requirements.
E)   They don't want to have a board of directors.F) C) and E)
G) None of the above

Question 6

Which of the following,if true,would NOT strengthen the case that Christina has personal characteristics necessary for her new business to succeed?

Accepted Answer

A)   She is willing to take risks.
B)   She is motivated.
C)   She works well with others.
D)   She is a "big picture" thinker.
E)   She follows directions carefully.F) A) and B)
G) B) and E)

Question 7

Entrepreneurs often have more than one goal for starting a business and becoming self-employed.Which of the following reasons is the LEAST common goal of entrepreneurs?

Accepted Answer

A)   to seek independence and be their own boss
B)   to earn a comfortable living for a period of time
C)   to grow and expand a current business
D)   to meet community or social obligations
E)   to provide for their financial needsF) A) and E)
G) A) and C)

Question 8

People who assume the risk of business ownership with a primary goal of growth and expansion are called entrepreneurs.

Accepted Answer

A) True 
 B)False

Question 9

Explain the basic issues involved in managing a corporation.

Accepted Answer

Corporations sell shares,called stock,to...

Question 10

What are specific locations of Ramada,McDonald's,and Subway examples of?

Accepted Answer

A)   government entities
B)   university sponsored businesses
C)   franchises
D)   networking businesses
E)   cooperativesF) B) and D)
G) A) and E)

Question 11

What is the main reason why women start new businesses?

Accepted Answer

A)   need to earn more money
B)   preference for working alone
C)   opportunities for family members
D)   control in organizing their time
E)   desire to employ other womenF) A) and B)
G) All of the above

Question 12

Which of the following,if true,would strengthen the case for Short and Shearer's starting a new business of their own?

Accepted Answer

A)   Starting a new business would put a lot of demands on their time.
B)   Starting a new business involves more risk than purchasing an existing one.
C)   Starting a new business would give them a lot of freedom and independence.
D)   Starting a new business would mean hiring many new employees right away.
E)   Starting a new business involves a lot of stress for the proprietors.F) All of the above
G) A) and E)

Question 13

Low start-up costs and tax benefits are advantages of sole proprietorships.

Accepted Answer

A) True 
 B)False

Question 14

Assuming the farm is organized as a general partnership,what are the disadvantages?

Accepted Answer

The disadvantages of a general partnersh...

Question 15

Lucy has organized her craft shop as a sole proprietorship.Her sister has warned Lucy about the legal principle holding her responsible for paying off all of the debts of the business.What is the name of this principle?

Accepted Answer

A)   unlimited liability
B)   limited liability
C)   privity
D)   unrestricted debt
E)   accountabilityF) A) and B)
G) B) and E)

Question 16

How is the U.S.economy affected by small businesses?

Accepted Answer

Small businesses affect the U.S.economy ...

Question 17

Explain the role of a corporation's board of directors.

Accepted Answer

The board of directors is responsible fo...

Question 18

Explain entrepreneurship and describe key entrepreneurial characteristics.

Accepted Answer

Entrepreneurs are people who assume the ...

Question 19

What is the MOST important advantage of general partnerships?

Accepted Answer

A)   the unlimited liability of the partnership
B)   the ability to grow with the addition of new talent and money
C)   the ease of implementing an effective control system
D)   the increased role of luck
E)   the need for minority partnersF) B) and C)
G) C) and D)

Question 20

Which of the following is the MOST significant recent trend in small-business start-ups?

Accepted Answer

A)   entrepreneurs who cross over from big business
B)   increased opportunities for minorities
C)   increased opportunities for women
D)   emergence of e-commerce
E)   global economic downturnF) B) and E)
G) A) and D)

Exam 3: Entrepreneurship, New Ventures, and Business Ownership

Which of the following is the MOST significant recent trend in small-business start-ups?

Correct AnswerverifiedShow Answer

Why might an entrepreneur wish to purchase an existing business rather than start one from scratch?

Correct AnswerverifiedAn entrepreneur may wish to purchase an ...View AnswerShow Answer

Explain the basic issues involved in managing a corporation.

Correct AnswerverifiedCorporations sell shares,called stock,to...View AnswerShow Answer

Which of the following,if true about the owners' plan for the new business,would strengthen the case that it should be registered as an S corporation?

Correct AnswerverifiedShow Answer

Explain the role of a corporation's board of directors.

Correct AnswerverifiedThe board of directors is responsible fo...View AnswerShow Answer

Which of the following,if true,would NOT strengthen the case that Christina has personal characteristics necessary for her new business to succeed?

Correct AnswerverifiedShow Answer

Explain entrepreneurship and describe key entrepreneurial characteristics.

Correct AnswerverifiedEntrepreneurs are people who assume the ...View AnswerShow Answer

Assuming the farm is organized as a general partnership,what are the disadvantages?

Correct AnswerverifiedThe disadvantages of a general partnersh...View AnswerShow Answer

Lucy has organized her craft shop as a sole proprietorship.Her sister has warned Lucy about the legal principle holding her responsible for paying off all of the debts of the business.What is the name of this principle?

Correct AnswerverifiedShow Answer

Which of the following,if true,would strengthen the case for Short and Shearer's starting a new business of their own?

Correct AnswerverifiedShow Answer

Which of the following,if true,would strengthen the case for Short and Shearer buying an existing business?

Correct AnswerverifiedShow Answer

What is the main reason why women start new businesses?

Correct AnswerverifiedShow Answer

Who invests all of the funds needed for a business but plays no role in its management?

Correct AnswerverifiedShow Answer

What are specific locations of Ramada,McDonald's,and Subway examples of?

Correct AnswerverifiedShow Answer

Low start-up costs and tax benefits are advantages of sole proprietorships.

Correct AnswerverifiedShow Answer

What is the MOST important advantage of general partnerships?

Correct AnswerverifiedShow Answer

People who assume the risk of business ownership with a primary goal of growth and expansion are called entrepreneurs.

Correct AnswerverifiedShow Answer

How is the U.S.economy affected by small businesses?

Correct AnswerverifiedSmall businesses affect the U.S.economy ...View AnswerShow Answer

Explain a tender offer.

Correct AnswerverifiedA tender offer is an offer to buy shares...View AnswerShow Answer

Entrepreneurs often have more than one goal for starting a business and becoming self-employed.Which of the following reasons is the LEAST common goal of entrepreneurs?

Correct AnswerverifiedShow Answer

Correct Answer
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Correct Answer
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An entrepreneur may wish to purchase an ...
View Answer

Correct Answer
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Corporations sell shares,called stock,to...
View Answer

Correct Answer
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Correct Answer
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The board of directors is responsible fo...
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Correct Answer
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Correct Answer
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Entrepreneurs are people who assume the ...
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Correct Answer
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The disadvantages of a general partnersh...
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Correct Answer
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Correct Answer
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Correct Answer
verified

Correct Answer
verified

Correct Answer
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Correct Answer
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Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
Small businesses affect the U.S.economy ...
View Answer

Correct Answer
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A tender offer is an offer to buy shares...
View Answer

Correct Answer
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