Question

1. Which of the following is a direct factor that effects the selection of form adopted for a business?

a.The extent to which a business owner wishes to attain control of the business

b.The expected profits or losses arising from the business

c.The perceived risk associated with the business

d.The relationship that the owner would have with partners or investors

e.The subgroups of the total population that will behave the same way in the marketplace

2.The 'P' in the banker's CAMPARI approach for reviewing a perspective loan applicant stands for:

a.price.

b.product.

c.purpose.

d.place.

e.promotion.

3.Which of the following SBA loan programs are designed to assist members of the US military who wish to create or expand a small business?

a.Express and pilot programs

b.Special-purpose loans programs

c.Community express programs

d.Patriot express loan programs

e.Export express programs

4.Trade credit involves:

a.no explicit obligation or expectation, on the part of the investors, to be repaid their investment.

b.purchasing supplies or equipment through financing made available by vendors.

c.pledging some assets-such as a home, real estate, machinery, and plant-as collateral.

d.guaranteeing a portion of the loan to partners that include private lenders, microlending institutions, and community development organizations.

e.business plan competitions hosted by colleges and universities or small business associations.

5.Which of the following is true of Small Business Administration (SBA)?

a.It involves no explicit obligation or expectation, on the part of the investors, to be repaid their investment.

b.FIt represents a legal obligation to repay the original debt plus interest.alse

c.It involves pledging some assets-such as a home, real estate, machinery, and plant-as collateral.

d.It specifies the amount of money to be repaid within a specific time frame for a specific interest rate.

e.It guarantees a portion of the loan to its partners that include private lenders, microlending institutions, and community development organizations.

6.An accounting system where costs are assigned due to the cause-and-effect relationship between costs and the activity that drives the cost is known as:

a.activity-based costing system.

b.net present value (NPV) system.

c.breakeven analysis system.

d.CAMPARI activity system.

e.cloud computing system.

7.A general partnership is:

a.which there is only one owner.

b.a legal entity that must be chartered by the state in which it is headquartered, giving it the authority to enter into legal agreements with individuals and other corporations.

c.a special format designed to eliminate the problem of double taxation that one might find with a C-corporation format.

d.a business that may have several general partners and several more limited partners who do not have unlimited liability.

e.a business composed of two or more owners who contribute the initial capital of the business and share in the profits and any losses.

8.Which of the following is an indirect factor that effects the selection of form adopted for a business?

a.Tax issues

b.Expected profits or losses

c.Vulnerability and threat from lawsuits

d.Relationship that the owner would have with partners or investors

e.Ability to extract profits from the business for the owner's use

Answer 1

1. Which of the following is a direct factor that effects the selection of form adopted for a business?

a.The extent to which a business owner wishes to attain control of the business

2.The 'P' in the banker's CAMPARI approach for reviewing a perspective loan applicant stands for:

c.purpose.

3.Which of the following SBA loan programs are designed to assist members of the US military who wish to create or expand a small business?

d.Patriot express loan programs

4.Trade credit involves:

b.purchasing supplies or equipment through financing made available by vendors.

5.Which of the following is true of Small Business Administration (SBA)?

a.It involves no explicit obligation or expectation, on the part of the investors, to be repaid their investment.

6.An accounting system where costs are assigned due to the cause-and-effect relationship between costs and the activity that drives the cost is known as:

a.activity-based costing system.

7.A general partnership is:

e.a business composed of two or more owners who contribute the initial capital of the business and share in the profits and any losses.

8.Which of the following is an indirect factor that effects the selection of form adopted for a business?

c.Vulnerability and threat from lawsuits