Question

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 of preparing budgets and information about costs and asset allocation to 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 corporation include:

a. double taxation

b. limited liability

c. easier to secure funding

1 points   

QUESTION 4

1. In addition to undertaking risks, entrepreneurs often work long hours and make a lot of sacrifices. They are usually very independent people who are creative and often object to the systems of rewards and promotions used by most corporations. This is because

A. They lack the creativity required for mainstream corporations

B. They often don’t fit in with the corporate culture and prefer 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 after paying all the expenses associated with the operation of the business.

A. Profit

B. Interest.

C. Dividend

1 points   

QUESTION 7

1. Which of the following are internal stakeholders in a business?

A. Industry associations

B. Competitors

C. Managers

1 points   

QUESTION 8

1. People in business careers often need good interpersonal written and oral _____ skills.

A. hyping

B. anthropology

C. communication

1 points   

QUESTION 9

1. ________ is the relationship between the price a customer pays for the good or service and perceived benefits the customer receives.

A. Value

B. Income

C. Profit

1 points   

QUESTION 10

1. The organization and management section in your business plan identifies ________.

a. the name of your lawyer

b. financial projections

c. the legal structure, explaining whether liability is limited 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 the entities 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 a business?

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 business plan, this section is the first opportunity to grab a potential investor’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 small business 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 report to

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 categorized under 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. is a:

a. partnership

b. sole proprietorship

c. orporation

1 points   

QUESTION 20

1. When choosing an organizational type, what important factors 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. An entrepreneur

a. organizes and manages any enterprise, especially a business, 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 of small businesses to the American economy with the establishment of the American Supplier Initiative. This initiative connected larger businesses to small businesses that could provide products and services. This initiative provide a network that enabled smaller businesses to provide

a. The growth and expansion of different sized businesses

b. Created a positive link to foster growth of large businesses

c. Support to larger businesses through products and services

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 small business is one that:

a. only sells products locally

b. has a single owner

c. takes in less than $7.5 million in annual average receipts

1 points   

QUESTION 25

1. Which of the following is a reason why an individual would become an entrepreneur?

a. Dissatisfaction with current job or career

b. The desire to get rich quickly without having to work very hard

c. They lack the skills and ability to get a job with a company

1 points   

QUESTION 26

1. Lifestyle entrepreneurs are willing to undertake risks for which 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 fulfilling life

d. The desire for profits and monetary rewards

1 points   

QUESTION 27

1. The American Supplier Initiative enables smaller businesses to provide which of the following?

a. Created a positive link to foster growth of large businesses

b. Support to larger businesses through products and services

c. The growth and expansion of different sized businesses

1 points   

QUESTION 28

1. A business plan is like a map of how you will run your business 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 starting a business and normally have unique reasons and goals for doing so. Lifestyle entrepreneurs normally undertake these risks for which reasons?

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 fulfilling life

1 points   

QUESTION 30

1. According to the Small Business Administration, a small business 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 a business 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 to other business owners and experts about the pros and cons. Friends say she has been developing her ideas for more than a year. Based on the considerations for an entrepreneur, Heidi’s business may be

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 to spend

a. significantly more time working because so much depends on her.

b. significantly less time working because she is her own boss.

c. about the same amount of time working but she enjoys her work more.

1 points   

QUESTION 36

1. You have decided to become a franchisee for a proven business. What would be a disadvantage for you being a franchisee?

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 available in the U.S.

1 points   

QUESTION 37

1. AT&T’s proposed $39 billion acquisition of T-Mobile USA would have combined two of the four major national providers of mobile telephone services for both individuals and businesses. As a result of this acquisition, AT&T would be the provider of almost 40% of all mobile service, with Verizon and Sprint making up the 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 room at your doctor's office. He tells you he is establishing a barbershop business and has a business partner who shares in all decision making. The business has been fairly easy to set up, he has limited liability for the company and will only be taxed once on company profits. What kind of business has your new acquaintance described 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 ships monthly subscription boxes filled with beauty products to customers. Carol has multiple partners and she wants to avoid both double taxation and personal liability at the same time. In addition, she wants to pay the partners based on their company ownership percentage. Carol can accomplish her goals by forming what 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 with the Company B. This type of business combination is known as a(n):

a. franchise

b. acquisition

c. merger

1 points   

QUESTION 41

1. Your friend tells you he is working on setting up a business. He tells you he has a business partner who shares in all decision making, it has been fairly easy to set up, he will only be taxed once on company profits, and he has limited liability for the company. What kind of business has your friend most likely described?

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 Lube oil change business. What would be a benefit for you being a franchisee?

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 this business.

1 points   

QUESTION 43

1. When Henry started up his corporation, he also had to consider 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 not obligated to consult with other participants in certain business agreements. The fact that a partner can make business decisions without consulting the other partners is considered to be a disadvantage of a ________.

a. Corporation

b. LLC

c. LLP

1 points   

QUESTION 45

1. A ________ seeks to provide a return to shareholders while pursuing 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 the original 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 an LLC different from a C Corporation. Which would be the correct statement for her to make about the difference?

a. Owners of an LLC face much greater liability than owners of a C Corporation.

b. The LLCs and C Corporations are taxed differently.

c. A C Corporation must have many employees. An LLC can have fewer employees.

1 points   

QUESTION 48

1. “3B’s - Bigger, Better Burger” hamburger fast food restaurants merge with a large potato farm “Potters Potatoes.” 3B’s is now looking forward to having a fresh, reliable supply of potatoes for its fries along with a farm offering fair prices and which is now under the direction of the same company leadership. Potters Potatoes is happy to steadily supply its potatoes to 3B and not 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, the online electronic payment service came together. This was a match that seemed to fit well together for both parties. People using Ebay to either sell or buy found PayPal to work splendidly for their 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 a franchise?

a. Kroger grocery stores

b. Geller Group law firm

c. Pizza Hut restaurants

Answer 1

QUESTIONS
1	B. Profitability
	# For many businesses , sales are at the core of profitability of that business.
	# Profitability may increase or decrease based on increase or decrease of it's sales revenue.
	# Without sales revenue, there is no scope of profit in a trading business.
5	A. Investment
	# Financial advisers help people make investment decision.
	# Based on analysis of risk and return for investing in a particular fund or in a company, financial advisers are recommend to invest money .
	# Financial advisers are help people to choose best investment strategy with higher return and lower risk.
6	A. Profit
	# Profit is a net income after paying all the operating expenses of the business.
	# Profit = Sales - Operating expenses
	# Profit earned from the business is added to the Retained Earnings.
7	C. Managers
	# Managers are one of the internal stakeholders in a business.
	# Stakeholder are the group without whose support the organization would cease to exist.
	# Therefore, managers are the internal stakeholders of the organization.
	# Internal stakeholders are the members inside the organization to support its existence.
11	B. Internal Stakeholders
	# Employees are the example of internal stakeholders of an organization.
	# Internal stakeholders are the members inside the organization to support its existence.
	# One of the key stakeholders are the employees in the organization.
13	A. Creditors
	# Creditors are the external stakeholders in the business
	# External stakeholders are groups outside a business or people who don't work inside the business but are affected in some way by the decisions and actions of the business.