Question 1

A __________ limited partnership is traded on the stock exchange like a corporation but is taxed like a partnership and thus avoids corporate income tax.

Accepted Answer

The answer of A __________ limited partnership is traded on...

Question 2

An LLC is a form of ownership that involves only one person.

Accepted Answer

A) True 
 B)False

Question 3

SBA microloans are given based on the collateral of the borrower.

Accepted Answer

A) True 
 B)False  False

Question 4

Which of the following companies was started by an entrepreneur?

Accepted Answer

A)   DuPont
B)   Ford Motor Company
C)   Amazon.com
D)   All of the responses are correctE) A) and B)
F) C) and D)

Question 5

Corporate governance refers to the processes,customs,policies,laws and institutions affecting the way in which a corporation is directed,administered or controlled.

Accepted Answer

A) True 
 B)False

Question 6

Norman's interest in computers helped fuel his design of a new hard drive that is far superior to anything on the market.Norman's product and business plan will likely attract several sources of financing if he is willing to give up part ownership of his company.

Accepted Answer

A) True 
 B)False  True

Question 7

Businesses usually fail due to over planning.

Accepted Answer

A) True 
 B)False  False

Question 8

A general partner is an owner who has unlimited liability and is active in the management of the firm.

Accepted Answer

A) True 
 B)False

Question 9

A franchisee is the person who owns the rights to the franchise.

Accepted Answer

A) True 
 B)False

Question 10

Each entrepreneur has very unique characteristics that allow him or her to succeed in business so it is hard to predict who will be a great entrepreneur.

Accepted Answer

A) True 
 B)False

Question 11

Which of the following is an advantage of a sole proprietorship?

Accepted Answer

A)   It is easy to get out of business
B)   You get to be your own boss
C)   You retail all of the profit
D)   All of the responses are correctE) B) and D)
F) B) and C)

Question 12

Which of the following types of business is the easiest to start?

Accepted Answer

A)   Sole proprietorship
B)   Partnership
C)   S corporation
D)   C corporationE) B) and C)
F) None of the above

Question 13

Successful entrepreneurs are self-nurturing.This means they:

Accepted Answer

A)   Look to others for strength and encouragement
B)   Self-finance their business with no assistance from others
C)   Perform all business operations by themselves
D)   Believe in themselves and their ideasE) None of the above
F) A) and C)

Question 14

Which of the following explains why individuals accept the risks of business ownership?

Accepted Answer

A)   The potential for learning how to be self-disciplined
B)   The sense of self-satisfaction and independence
C)   The challenge of seeking power
D)   The desire to work fewer hoursE) None of the above
F) A) and C)

Question 15

An effective business plan analyzes the competition and identifies the resources required to profitably serve a target market.

Accepted Answer

A) True 
 B)False

Question 16

Which of the following is a way to start your own business?

Accepted Answer

A)   Become a franchiser
B)   Buy an existing business
C)   Start a cooperative
D)   All of the responses are correctE) A) and B)
F) None of the above

Question 17

Franchises have lower business failure rates than sole proprietors.

Accepted Answer

A) True 
 B)False

Question 18

Discuss several ways the Small Business Administration assists entrepreneurs.

Accepted Answer

The SBA is a valuable source of informat...

Question 19

Which of the following is a reason that many people decide to take the risk of becoming an entrepreneur?

Accepted Answer

A)   Opportunity.
B)   Independence.
C)   Challenge.
D)   All of the responses are correctE) A) and C)
F) A) and D)

Question 20

A sole proprietor has limited liability.

Accepted Answer

A) True 
 B)False

Exam 3: Competing in the Global Marketplace

A __________ limited partnership is traded on the stock exchange like a corporation but is taxed like a partnership and thus avoids corporate income tax.

Correct AnswerverifiedShow Answer

An LLC is a form of ownership that involves only one person.

Correct AnswerverifiedShow Answer

SBA microloans are given based on the collateral of the borrower.

Correct AnswerverifiedFalse

Which of the following companies was started by an entrepreneur?

Correct AnswerverifiedShow Answer

Corporate governance refers to the processes,customs,policies,laws and institutions affecting the way in which a corporation is directed,administered or controlled.

Correct AnswerverifiedShow Answer

Norman's interest in computers helped fuel his design of a new hard drive that is far superior to anything on the market.Norman's product and business plan will likely attract several sources of financing if he is willing to give up part ownership of his company.

Correct AnswerverifiedTrue

Businesses usually fail due to over planning.

Correct AnswerverifiedFalse

A general partner is an owner who has unlimited liability and is active in the management of the firm.

Correct AnswerverifiedShow Answer

A franchisee is the person who owns the rights to the franchise.

Correct AnswerverifiedShow Answer

Each entrepreneur has very unique characteristics that allow him or her to succeed in business so it is hard to predict who will be a great entrepreneur.

Correct AnswerverifiedShow Answer

Which of the following is an advantage of a sole proprietorship?

Correct AnswerverifiedShow Answer

Which of the following types of business is the easiest to start?

Correct AnswerverifiedShow Answer

Successful entrepreneurs are self-nurturing.This means they:

Correct AnswerverifiedShow Answer

Which of the following explains why individuals accept the risks of business ownership?

Correct AnswerverifiedShow Answer

An effective business plan analyzes the competition and identifies the resources required to profitably serve a target market.

Correct AnswerverifiedShow Answer

Which of the following is a way to start your own business?

Correct AnswerverifiedShow Answer

Franchises have lower business failure rates than sole proprietors.

Correct AnswerverifiedShow Answer

Discuss several ways the Small Business Administration assists entrepreneurs.

Correct AnswerverifiedThe SBA is a valuable source of informat...View AnswerShow Answer

Which of the following is a reason that many people decide to take the risk of becoming an entrepreneur?

Correct AnswerverifiedShow Answer

A sole proprietor has limited liability.

Correct AnswerverifiedShow Answer

Correct Answer
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False

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True

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False

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Correct Answer
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The SBA is a valuable source of informat...
View Answer

Correct Answer
verified

Correct Answer
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