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Study Resources (Business Management)

  221.Compared to a sole proprietorship, which of the following is considered an advantage of a general partnership? A. Ability to pool financial resourcesB. Unlimited liability for all ownersC. Division of profits among ownersD. Ease and flexibility in transferring shares of ownership to others 222.In a limited liability partnership, each partner's risk of losing personal assets is: A. Unlimited.B. Limited.
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  91.It is said that corporations have perpetual life. 92.One advantage of an S Corporation is that the profits are distributed to the owners and taxed as each owner's personal income, thus avoiding the problem of double taxation. 93.By filling out the correct paperwork annually, any corporation can qualify to be classified as.
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  21.Successful entrepreneurs often make use of professional managers to introduce new ideas. 22.Micropreneurs is a term used to describe entrepreneurs who focus on the continued growth of their businesses. 23.The most important difference between entrepreneurs and micropreneurs is the focus placed by micropreneurs on balancing the demands of work and family. 24.The primary.
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  111.Getting a business plan into the hands of the right people is nearly as important as getting the right information in the plan. 112.The entrepreneur's integrity is not relevant to bankers when determining the credit worthiness of a business loan. 113.Software designed to help create business plans has proven to be of.
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  41.One advantage of a partnership is that there is a simple process for partners to terminate their business. 42.Compared to sole proprietorships, an advantage of partnerships is their ability to obtain more financial resources. 43.Setting up a partnership under the terms of a written agreement is a bad idea, because written agreements.
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  281.One reason that companies participate in mergers and acquisitions is: A. To do the same thing as the competition because it makes for a highly leveraged company.B. To convert a sole proprietorship into a partnership.C. To expand within their own field or enter new markets.D. To take the first step toward a join venture. 282.In the.
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  71.Big businesses do not serve all the needs of a market. 72.Economist Bruce Kirchhoff contends that business failures are much lower than traditionally reported. 73.The most common small business failures occur in businesses that are the easiest to start. 74.Only about 10% of all businesses qualify as small businesses using the definition of.
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  211.Cali owns Dog Trotters, a dog-walking business that she started to earn money after school and supplement her allowance. She planned to keep all the profits, and kept things simple, by putting a flier on the bulletin board at the local grocery store announcing that she was available to provide.
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  61.A conventional corporation is a state-chartered legal entity, with authority to act and have liability separate from its owners. 62.In today's economy, only large business enterprises should operate as corporations. 63.The owners of a corporation are known as general corporate partners. 64.A corporation can raise financial capital by selling shares of stock to.
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  161.It is impossible to run a franchise completely from home. 162.Franchising is popular in the United States, but legal barriers have limited its popularity in foreign countries. 163.Global franchising is unlikely to experience major growth due to the high costs of operations in global markets. 164.Franchising in global markets has demonstrated that high.
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  141.Many small business owners report that they needed assistance with accounting when they first started businesses. 142.Commercial loan officers and insurance agents offer expert assistance that can be valuable to small business owners. 143.One way to control the legal costs associated with operating a small business is to purchase a prepaid legal.
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  241.Kristen and her brothers and sisters set up a design firm called Houses by Design LLP. Although key business functions are centralized, each sibling is a licensed architect that designs, builds, and installs residential and commercial buildings for his/her own clients. Unfortunately, a design created and installed for one of.
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  Multiple Choice Questions  Mini-CaseFor as long as she could remember, Jenna Raiter's passion was cars. As a teenager, she spent hours with her dad tinkering with the family car, learning to change the oil and making minor repairs. She got a job at a local garage while still in high school..
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  81.A domestic corporation does business in the state in which it's chartered. 82.A foreign corporation is chartered in a country outside the U.S. 83.Delaware is a popular state to seek incorporation due to its reduced costs and other perks. 84.A closed corporation is one whose stock is held by a few people and.
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  31.Micropreneurs are exempt from the local ordinances that restrict home-based businesses from operating in residential areas. 32.One advantage enjoyed by home-based businesses is the relative ease in attracting new customers. 33.Small businesses have not significantly participated in web-based online sales. 34.The Internet provides a resource for entrepreneurs for information regarding the steps needed.
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  101.There are several ethical considerations when starting a business, but competing against current and former work relationships is always fair game. 102.Carlos hopes to start his own business. He needs to avoid talking to other small business owners about his plans because they might steal his ideas. 103.Felicia decided to work for.
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  251.One disadvantage of _________ is the initial cost of formation. A. corporationsB. general partnershipsC. sole proprietorshipsD. limited partnerships 252.The form of business ownership that usually requires the most detailed record keeping is the: A. Corporation.B. Partnership.C. Sole proprietorship.D. Limited partnership. 253.A major advantage of S corporations is that they: A. Can have more stockholders than a C corporation.B. Can operate in foreign nations as if.
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  321.Which of the following statements best summarizes the experience of American franchisors in foreign countries? A. Very few American franchisors of any size have had success in international markets.B. Large franchisors have had success in other nations, but newer and smaller franchisors have lacked the financial strength and reputation to succeed in global.
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  331.A prospective franchise owner wants to keep his monthly costs at a minimum.   The franchisor he is reviewing is advertising that royalty payments of 8% of sales could be as high as $250,000 per month.  The franchisor is claiming that a franchisee can expect monthly sales to be as high.
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  261.Which of the following is an attractive benefit of a corporation? A. Corporations can enjoy double taxation.B. Unlike limited partnerships, all owners of corporations are passive investors.C. Corporations can protect its owners with unlimited liability.D. Corporations can attract employees by offering stock options. 262.The reason a professional such as a lawyer or doctor would incorporate his/her.
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  71.Stockholders in a corporation normally exert a significant degree of control over the company's daily operations. 72.The stockholders in a corporation elect a board of directors to oversee the company's major policy issues. 73.Stockholders in a corporation exert a significant degree of control over the company's daily operations. 74.Stockholders in a corporation have.
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  191.Jane has always disliked the notion that the customers, managers and workers of a business are separate individuals with competing goals. She has joined with many other people in her community who share this view to become a member, and part owner, of a child care center. Jane and the.
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  231.One way to eliminate some of the risk of your partners making costly mistakes that could jeopardize your personal assets is to set-up a: A. Master Limited Partnership.B. Sole proprietorship.C. Limited amount of time each can actively spend in the business.D. Limited Liability Partnership. 232.Finley is a limited partner in Gettout & Associates. Heywood U. Gettout,.
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  301.Trans Globe Airlines is in talks with Royal Blue Airlines, a financially troubled rival. The firms believe the merger will create a stronger company that can offer travelers more flights to a wider variety of destinations. This proposed merger is an example of a: A. Conglomerate merger.B. Leveraged buyout.C. Horizontal merger.D. Joint venture. 302.Several years ago,.
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  Essay Questions  344.Although most new firms start out as sole proprietorships, few large firms are organized this way. Why is the sole proprietorship such a popular form of ownership for new firms? What features of the sole proprietorship make it unattractive to growing firms? 345.What is the difference between a general partner.
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  81.Most business opportunities offer entrepreneurs high levels of security and profits. 82.The easiest businesses to start also have the least growth potential and the greatest failure rates. 83.While the first job for many people is working for a small business, most of the permanent new jobs are created by larger corporations. 84.If you.
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  61.When Kelsey began the Cookie Kitchen, she located the operation at a small business center to get help with accounting, legal advice, and secretarial help for a very low cost. Electing to join the incubator helped her company to survive because it provided assistance while her company was in its.
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  51.The fairest way to handle profits in any partnership arrangement is to divide things evenly. If there are two owners in the business, each gets 50%. If there are three owners (even if one is a limited partner), each gets 33.333% of any accumulated profits. 52.Ted and Mark are partners in.
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  131.Success in running a business depends on knowing your customers, managing your employees, and keeping efficient records. 132.In the business world, a market consists of those people who have a willingness to buy a particular product. 133.One of the greatest advantages that small businesses have over larger ones is the ability to.
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  101.The limited liability company requires a minimum of 10 members. 102.The organization structure of a corporation allows for stockholders to exert a significant degree of control over the company's daily operations. 103.Public utilities are examples of quasi-public corporations. 104.The purpose of corporate by-laws is to maintain a legal structure and also to stipulate.
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  51.State governments create new startup business organizations called enterprise zones that are later sold to private investors. 52.The Spotlight on Small Business box is testimonial to the fact that entrepreneurs are problem solvers. 53.Juanita wants to operate her own business. Although she admits it would be nice to earn a healthy profit,.
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  121.After a successful five years, Peaceful Pastures, LLC (a retirement ranch for race horses) thinks it may be able to attract donations from animal activist groups and even the federal government if it becomes a non-profit corporation. As its business advisor, you explain that as a non-profit corporation, the owner(s).
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  291.An attempt by employees, management, or a group of investors to purchase an organization primarily through borrowing is called a(n): A. Golden parachute.B. Arbitrage agreement.C. Factor transaction.D. Leveraged buyout. 292.If a group of stockholders or management obtain all the stock of a previously publicly traded firm for themselves, this is referred to as: A. Capitalizing.B. Stock turning.C. Turning the equity.D. Taking.
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  201.A significant disadvantage of owning a sole proprietorship is the: A. Possibility of limited liability.B. Heavy tax liability that must be assumed.C. Overwhelming time commitment often required of the owner.D. Lack of incentives to motivate the owner. 202.When a sole proprietor dies: A. The sole proprietor's heirs have the option of taking over the business.B. The business is sold.
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  271.Maria recently purchased 100 shares of stock in Idle Time Gaming, Inc. Maria is a(n)_____________ of this company. A. ownerB. managerC. creditorD. partner 272.Dane is a stockholder in SmallWorld, Inc., a C-corporation that manufactures amusement park rides. The company recently lost a major court decision and will probably be forced into bankruptcy. In fact, the damages.
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  121.State and local governments often act as venture capitalists. 122.While the Small Business Administration provides management advice to new business owners, it is not empowered to provide financial assistance. 123.Venture capitalists provide funds for small businesses as part of their philanthropy programs. 124.Venture capitalists prefer investing in smaller start up businesses in order.
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True / False Questions  1.Entrepreneurship involves accepting the risk of starting and running a business. 2.Entrepreneurship is another name for management. 3.Entrepreneurs are less important now than in the past to the U.S. economy. 4.People who are 16 to 34 years old are not attracted to starting their own business. 5.While entrepreneurs frequently earn significant.
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  151.The most popular businesses for franchising are restaurants. 152.In a franchise arrangement, ownership remains in the hands of the franchisor. 153.One of the major advantages for the franchisee is instant business name recognition and important management assistance from the franchisor. 154.Franchisees must follow more rules, regulations, and procedures than if they operated independently-owned.
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  141.A major objective of a leveraged buyout is to enable investors to gain control of a company by issuing new shares of ownership, thus minimizing the use of debt. 142.Hole In One Golf Company announced plans to purchase the property and assume the obligations of Champion Golf, Inc., one of its.
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  131.A horizontal merger refers to a merger between two companies that serve entirely different markets. 132.A horizontal merger refers to a merger between two companies in the same industry, and serving the same markets. 133.A leveraged buyout is an attempt by top management to gain control of a company by issuing a.
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  111.The major differences between an S-Corporation and a Limited Liability Company are limits on the number of owners, and, the citizenship status of individuals who are owners. 112.The owners of a limited liability company (LLC) must pay self-employment taxes on any profits they earn, even if they did not obtain a.
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  151.Prospective entrepreneurs turned down by private lenders have little hope of getting financial help from the Small Business Administration, since the SBA's standards are even tougher than those of private lenders. 152.If you plan to meet face-to-face with a banker or venture capitalist, it is not necessary to submit a business.
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  41.The U.S. government offers "investor visas" to attract more entrepreneurs. 42.The position of our government is to restrict foreign entrepreneurs from operating within the U.S. 43.Business incubators provide assistance to established companies attempting to generate foreign sales. 44.A National Business Incubator Association study indicates that over 80 percent of incubator graduates remain in.
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  11.If you have managerial skills and leadership ability, you also posses the personality to be an entrepreneur. 12.Because of the stress of being in business for yourself, it's important that entrepreneurs have people around them to help replenish their enthusiasm. 13.Successful entrepreneurs rely on others for direction and support. 14.Successful entrepreneurs accept the.
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  311.The most popular type of business for franchising is: A. Consumer wholesale firms.B. Restaurants.C. Specialty steel manufacturing.D. Medical services. 312.A ____________ is the share of profits or percentage of sales a franchisee pays to a franchisor. A. royaltyB. dividendC. premiumD. co-pay 313.Which of the following is an advantage of franchises? A. Shared profit.B. Management regulation.C. Management and marketing assistance.D. Coattail effects. 314.One reason franchises have become so popular.
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