Business Final pt 1
The Scott Company decided to sell stock to raise capital. Under what form of business organization does the company operate?
Corporation
What do business owners consider when they select a business ownership structure?
Personal circumstances, financial needs, and type of business
Determining which projects a business should invest in is known as
capital budgeting.
Which of the following is a key component of managing working capital
Cash conversion cycle
The law that requires businesses to hire, train, transfer, and promote employees without regard to race, color, gender, religion, or national origin is the __________ Act.
Civil Rights
John, Robert, and Charles were college friends who wanted to start a business. John has creative ability, Robert's expertise is selling, and Charles' expertise is management. However, each has limited capital. The ideal business ownership for these young men is a
partnership
Jane is the owner of a pizza shop associated with a national chain of pizza restaurants. She established her business in a regional supermarket. The pizza shop is referred to as a
piggyback franchise.
What type of property is a business protecting when it registers its trademark?
Intellectual
How does the finance function relate to company spending?
It plans and controls spending.
Which of the following statements is true regarding joint ventures:
Joint-venture arrangements are usually short-term relationships.
Lois and Lora plan to open a florist shop. Lois is unable to devote full time to the daily operations of the shop but wishes to provide financial support. Which form of business partnership is most likely to appeal to Lois?
Limited
What type of corporation may be owned by just a few people and does not offer its shares for sale to the general public?
Private
What is one reason why the federal government awards patents to businesses that have invented new products or manufacturing processes?
To encourage research
Money the business owes is known as
accounts payable.
Money owed to the business is known as
accounts receivable.
The cash conversion cycle should be
as short as possible.
Selling shares in the company to raise money for a new venture is referred to as __________ funding.
equity
Wendy's sells the right to operate its restaurants to individuals who meet the company's criteria. The arrangement between Wendy's and these individuals is an example of
franchising
If all of the individuals who own a business share unlimited liability for the business's losses, these individuals are part of a(n)
general partnership.
When return on capital is positive, the company is
growing in value.
The finance function ensures that the company's financial goals ar
in line with organizational priorities.
To keep communication flowing with other departments, the finance function depends on
information systems.
The administration of assets refers to decisions about
investments
ABC Specialty Wear is the only company that has written permission to use a national football team's logo on its sportswear. This is an example of a
licensing agreement.
Finance is the business function that involves managing
money
Olivia runs a home-based business that distributes high quality, handmade baskets. She sells the products and earns commissions on the baskets sold by four other basket representatives. This is an example of product trade-name franchising.
multi-level marketing.
A business that fails to protect its employees from unnecessary risk or health hazards on the job may be sued for
negligence
The finance function would definitely be involved in a decision regarding
new business projects and strategies.
The American Red Cross is an example of a(n) ___________ corporation.
nonprofit
One reason a physicians' practice might form a partnership as an LLP is to
protect innocent partners from the malpractice of another partner.
Illegally run organizations that emphasize the collection of high fees from potential product distributors are often referred to as
pyramid schemes
Accounting is distinct from finance because its main focus is on
recordkeeping activities.
The goals of the finance function are to ensure profitability and
reduce risks.
An advantage to a business of filing Chapter 11 bankruptcy is that the process allows the business to
reorganize
One of the characteristics of the form of business ownership known as an LLC is that
the owners' personal property cannot be taken to pay the business's debts.
A company's current balance of assets and liabilities falls under the focus of
working capital management.
What type of corporation sells millions of shares and must furnish complete information about its earnings, assets, and debts?
"C"
A type of state-chartered corporation that was developed to help small businesses by taxing them as individuals in a partnership is a(n) __________ corporation.
"S"
Decisions about financing refer to the
Acquisition of funds
Which of the following is a capital investment decision:
How to finance investments
The finance function is usually responsible for which of the following processes:
Budgeting
Jake wanted to run his own business but was unsure that he had adequate business skills to be successful. Which type of business would give Jake the help he needs?
Business-format franchise
Which of the following is a measure of how well a business generates cash flow:
Return on capital
"To form my business, I used all of my savings and borrowed from the bank, and I'm personally liable for all of the debts." This is an example of which of the following forms of business ownership:
Sole proprietorship
Which of the following is a characteristic of a product trade-name franchise:
The franchisee can choose the name of the business.
