Businesss Foundations Seminar Mid Term PCR S7&8 Quiz Review

_____ are individual investors or groups of experienced investors who provide funding for start-up businesses. A. Angel investors B. Entrepreneurial capitalists C. Opportunity entrepreneurs D. Equity entrepreneurs E. Venture entrepreneurs

A. Angel investors

_____ are entrepreneurs who start a series of companies. A. Multipreneurs B. Intrapreneurs C. Multi-venturists D. Multi-faceted venturists D. Growth capitalists

A. Multipreneurs

One of the advantages of owning a small business is: A. flexibility B. no taxes C. interest-free loans D. guaranteed profit E. all of the above

A. flexibility

Many classic entrepreneurs are _____ who start small and plan to keep their business small. A. micropreneurs B. intrapreneurs C. multipreneurs D. interpreneurs E. growth entrepreneurs

A. micropreneurs

Of all forms of business ownership, corporations account for the largest share of both: A. sales and profits B. bankruptcies and employees C. number of firms and employees income and employees number of firms and sales

A. sales and profits

Who provides the start-up financing for the majority of new small businesses? A. the business owner and his or her family and friends B. the Small Business Administration (SBA) C. the local bank D. venture capitalists E. finance companies

A. the business owner and his or her family and friends

Which of the following is an example of a disadvantage associated with a partnership? A. unlimited liability B. possibility of more available credit C. diversity of management D. flexibility E. ease of formation

A. unlimited liability

_____ financing is a form of business financing consisting of borrowed funds that must be repaid with interest over a stated time period. A. Credit B. Debt C. Equity D. Monetary E. Venture

B. Debt

Businesses close down for many reasons. Which of the following is NOT a typical reason for a business failure? A. The owner had inadequate business knowledge. B. Expenses were lower than the owner expected. C. The owner lacked management expertise. D. The owner engaged in inadequate planning. E. Interest rates were high.

B. Expenses were lower than the owner expected.

The combination of two companies that join to form one company is called a: A. joint venture B. merger C. conglomerate D. cartel E. voluntary union

B. merger

Which of the following elements does NOT typically appear in a well-prepared business plan? A. qualifications of the owners B. names of all employees C. description of the product or service D. financial plan E. an analysis of the market

B. names of all employees

_____ is at the core of most business failures. A. Low interest rate B. Poor cash flow C. Inadequate planning D. Too much inventory E. A too tall hierarchical structure

C. Inadequate planning

A _____ is a formal written statement that describes in detail the idea for a new business and how it will be carried out. A. mission statement B. vision C. business plan D. statement of purpose E. venture plan

C. business plan

A corporation: A. does not have a life separate from its owners B. cannot sue or be sued C. does not have a size limitation D. ends when the owner of the corporation charter dies E. is one of the easy types of businesses to form

C. does not have a size limitation

The fact that a corporation has limited liability means: A. corporations can earn a limited amount B. some of the owners are limited in earnings C. owners' liabilities are limited to the amount invested D. the life of the corporation is limited E. the corporation's ability to expand is limited

C. owners' liabilities are limited to the amount invested

_____ are corporate takeovers financed by large amounts of borrowed money. A. Liquidity corporations B. Debt acquisitions C. Financed mergers D. Leveraged buyouts E. Amortized mergers

D. Leveraged buyouts

A term that means that business damages and/or debts can also be attached to the personal assets of the owners is ______ liability. A. limited B. informal C. funding D. unlimited E. asset

D. unlimited

Which type of business organization experiences the least governmental regulation? A. Joint venture B. Private corporation C. Limited partnership D. Public corporation E. Sole proprietorship

E. Sole proprietorship

Who owns a corporation? A. its employees B. its board of directors C. its president D. its board of directors and major stockholders E. everyone who owns a share of stock in the corporation

E. everyone who owns a share of stock in the corporation

A corporation: A. is a taxable entity B. is subject to the laws of the state in which it was formed C. can own property D. can sue and be sued E. is accurately described by all of the above

E. is accurately described by all of the above