Question 1

Loans are the most important sources of money for new businesses.

Accepted Answer

A) True 
 B)False

Question 2

The Small Business Administration is the government agency charged with owning small businesses.

Accepted Answer

A) True 
 B)False

Question 3

By law, each general partner is liable for all debts incurred in the name of the partnership.

Accepted Answer

A) True 
 B)False

Question 4

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) B) and C)
G) All of the above

Question 5

Each year, between 600,000 and 650,000 new businesses are launched in the United States. Approximately how many businesses fail each year?

Accepted Answer

A)   50,000 to 100,000
B)   100,000 to 250,000
C)   250,000 to 500,000
D)   500,000 to 700,000
E)   700,000 to 1 millionF) A) and E)
G) A) and B)

Question 6

According to SBA estimates, what percent of all new businesses can expect to survive for at least four years?

Accepted Answer

A)   14 percent
B)   24 percent
C)   44 percent
D)   64 percent
E)   84 percentF) C) and D)
G) A) and E)

Question 7

Why is it difficult to compare relative job growth for different-sized businesses?

Accepted Answer

A)   Sourcing up-to-date employment figures is difficult.
B)   Many small businesses experience rapid unreported growth.
C)   Spheres of influence overlap between the small and big business sectors.
D)   Staff size of small businesses tends to change faster than staff size of big businesses.
E)   It is hard to determine the cutoff point at which a small business becomes a large business.F) B) and D)
G) D) and E)

Question 8

Who are the owners of a corporation?

Accepted Answer

A)   board of directors
B)   financial officers
C)   stockholders
D)   top managers
E)   entrepreneursF) A) and B)
G) A) and C)

Question 9

Assuming the farm is organized as an S corporation, what are the advantages?

Accepted Answer

The advantages of an S corpora...

Question 10

Which of the following types of venue is favored by small-business retailers?

Accepted Answer

A)   superstore
B)   catalog showroom
C)   specialty shop
D)   department store
E)   studio workroomF) A) and D)
G) A) and C)

Question 11

Many new businesses are started by people who have left big corporations.

Accepted Answer

A) True 
 B)False

Question 12

Assuming the farm is organized as a limited liability corporation, what are the advantages?

Accepted Answer

The advantages of a limited li...

Question 13

Which of the following represents the fastest-growing segment of minority business ownership?

Accepted Answer

A)   African Americans
B)   Asians
C)   Hispanics
D)   Pacific Islanders
E)   EuropeansF) A) and C)
G) B) and D)

Question 14

Why do attitudes about entrepreneurship vary internationally?

Accepted Answer

A)   Decision making in big business can overlook local customs.
B)   Attitudes towards risk-taking in business are culturally determined.
C)   Consumer attitudes are influenced by economic cycles.
D)   Foreign-owned companies can be unresponsive to local markets.
E)   International business is creating a global village.F) A) and B)
G) None of the above

Question 15

Assuming the farm is organized as an S corporation, what are the disadvantages?

Accepted Answer

The disadvantages of an S corp...

Question 16

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

Accepted Answer

A)   They want the company to be able to change its procedures over time.
B)   They want the company to be able to change its board membership if needed.
C)   They want the company to grow as quickly as they can grow it.
D)   They want the company to be able to issue multiple classes of stock.
E)   They want to pay income taxes via the individual tax returns of the shareholders.F) C) and E)
G) C) and D)

Question 17

When can a sole proprietorship legally be dissolved?

Accepted Answer

A)   sales exceed $1 million
B)   the partners reorganize the firm's structure
C)   earnings are less than $500,000
D)   the owner donates profits
E)   the owner diesF) B) and C)
G) B) and D)

Question 18

What is the most important source of money for new business start-ups?

Accepted Answer

A)   banks
B)   the SBA
C)   personal resources
D)   government grants
E)   venture capitalF) A) and B)
G) A) and E)

Question 19

What is an entrepreneur?

Accepted Answer

An entrepreneur is a business person who...

Question 20

The least common type of partnership is the general partnership.

Accepted Answer

A) True 
 B)False

Exam 3: Entrepreneurship, New Ventures, and Business Ownership

The Small Business Administration is the government agency charged with owning small businesses.

Correct AnswerverifiedShow Answer

Which of the following types of venue is favored by small-business retailers?

Correct AnswerverifiedShow Answer

By law, each general partner is liable for all debts incurred in the name of the partnership.

Correct AnswerverifiedShow Answer

Who are the owners of a corporation?

Correct AnswerverifiedShow Answer

Why do attitudes about entrepreneurship vary internationally?

Correct AnswerverifiedShow Answer

Assuming the farm is organized as an S corporation, what are the advantages?

Correct AnswerverifiedThe advantages of an S corpora...View AnswerShow Answer

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

Correct AnswerverifiedShow Answer

Many new businesses are started by people who have left big corporations.

Correct AnswerverifiedShow 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

According to SBA estimates, what percent of all new businesses can expect to survive for at least four years?

Correct AnswerverifiedShow Answer

When can a sole proprietorship legally be dissolved?

Correct AnswerverifiedShow Answer

What is the most important source of money for new business start-ups?

Correct AnswerverifiedShow Answer

Assuming the farm is organized as an S corporation, what are the disadvantages?

Correct AnswerverifiedThe disadvantages of an S corp...View AnswerShow Answer

Why is it difficult to compare relative job growth for different-sized businesses?

Correct AnswerverifiedShow Answer

Each year, between 600,000 and 650,000 new businesses are launched in the United States. Approximately how many businesses fail each year?

Correct AnswerverifiedShow Answer

What is an entrepreneur?

Correct AnswerverifiedAn entrepreneur is a business person who...View AnswerShow Answer

Assuming the farm is organized as a limited liability corporation, what are the advantages?

Correct AnswerverifiedThe advantages of a limited li...View AnswerShow Answer

The least common type of partnership is the general partnership.

Correct AnswerverifiedShow Answer

Which of the following represents the fastest-growing segment of minority business ownership?

Correct AnswerverifiedShow Answer

Loans are the most important sources of money for new businesses.

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
The advantages of an S corpora...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
The disadvantages of an S corp...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
An entrepreneur is a business person who...
View Answer

Correct Answer
verified
The advantages of a limited li...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified