Module 2 Exam

The phrase poor management covers a number of faults those faults include

Poor employee relations and poor planning

Select the characteristics of an intrapreneur

A creative person who works within a corporation someone who uses companies resources to launch new products he or she generates profits by live urging a firms human financial and physical resources

An _____ is where one company purchases the property and obligations of another

Acquisition

What are some of the factors that could be associated with small business success

Adequate financial planning managerial competence

David opened his own bicycle shop 30 years ago and although he enjoyed his work he needed more free time. When Josie requested to work as an apprentice David was very willing. Before long Josie was able to run the store without any help. This is an example of how

Apprentice and ships can benefit both of the business owner and the apprentice

Venture capitalists

Are individuals or companies to invest in new businesses in exchange for partial ownership of those businesses

Among the hurdles small businesses must overcome and starting to operate globally are

Bureaucratic paperwork difficulty finding financing understanding cultural differences

A comprehensive business plan will include cover letter_____ company background management team financial plan capital required marketing plan location analysis manufacturing plan and an appendix

executive summary

in a limited partnership the liability of the limited partners is unlimited and personal assets are at risk

false

Ed has decided to purchase and follow a business format by becoming a franchise the ________ he will sign gives him the right to use the business name and sell the products of the firm

franchise agreement

The SBA determines whether a business is considered small only after analyzing how a particular business measures of compared to other businesses in its

industry

A ________ can be initiated by employees managers or investors who borrow necessary funds to purchase all shares of a firms stock

leveraged buyout

In a general partnership all partners share the responsibility for operating the business and assume___ for the business his debts

liability

LLCs have______ lifespan and are required to identify dissolution dates in the articles of organization

limited

taryn and eliysh have decided to form a partnership. taryn will not have management responsibility, but will invest money in the business. taryn will be considered a ____ partner

limited

the limited partners risk of losing their personal assets in an llp is

limited to the outcomes of their own acts and omissions

The part of a business plan that includes an organization chart , job descriptions of listing positions and detailed resumes of the current and proposed executives is called the_____ section

management team

Primary concerns when starting a business are ______ and _____

planning and financing

They are 27.8 million ______ in the United States accounting for more than 50% of the GDP

small businesses

A business person concerned about high ____ cost should not invest in a franchise which is associated with this disadvantage

start up

A market consists of consumers with unsatisfied wants and needs to have both resources and the willingness to

Buy

The joining of firms in completely unrelated industries is an _____ merger

Conglomerate

A legal entity with authority to act and have liability apart from its owners is a

Corporation

Among the reasons that disagreements can ruin a partnership are

Disagreeing over workload opposing management styles arguments over dividing profits

Select the characteristics of an entrepreneurial team that will be developing in marketing a new product

Each from different areas of business members have complementary skills in our creative a group of experienced people

____ are specific geographic areas to which governments attract private business investment by offering lower taxes and other government support

Enterprise zones

Being self directed self nurturing action oriented and tolerant of uncertainty are all considered characteristics of an

Entrepreneur

If producers consumers or workers with similar needs pool their resources for mutual game they have created a franchise

False

The initial goal of a ______ cooperative wants to join together to get better prices for their food products

Farm

If you want to be both independent and rich you need to pursue a business with high

Growth

A merger of two firms in the same industry that allows the company to diversified or expand their products is an

Horizontal merger

Ending a partnership can be difficult because of problems deciding

How to distribute assets when a partner can retire the worth of a retiring partners share

According to a recent study offering low-cost offices with basic services to new businesses in the early stages of development results in an 87% success rate of ______ graduates

Incubator

The attributes of a corporation include that

It is a legal entity it is state chartered corporate liability is separate from owners

LLCs do you have to submit articles of organization and operating agreement but do not have to:

Keep minutes hold annual meetings file written resolutions

An S corporation has the liability protection of a corporation but is taxed

Like a partnership or so proprietorship

Which of these are advantages of a limited liability companies

Limited liability choice of taxation flexible ownership rules

When the continued operation of the business is dependent on the life of the business owner it is referred to as

Limited lifespan

The result of two firms (usually corporations) combining to form one company is called a

Merger

Entrepreneurs who are not interested in starting a mammoth corporation but are interested in a balance between lifestyle and work are called

Micropreneurs

The various responsibilities of each partner especially any issues involving_____ should be agreed to in discussions and put in writing before agreeing to a partnership

Money

Rank the order in which members of a corporation are chosen in order to separate ownership for management started the top of the managerial hierarchy

Owners/stockholders elect Board of Directors Board of Directors hire officers of the corporation officers hiring managers of the corporation managers hire employees

Select those items considered fringe benefits that people working for a company are likely to receive but a sole proprietor hast to develop on his own

Paid health insurance paid sick or vacation leave time a pension plan

Termination of a partnership is difficult without an ____agreement

Partnership

a legal form of business with two or more owners is a

Partnership

Which of the following are good ways to learn how to run your own business

Run a small business during your off hours talk to other business owners work for a successful entrepreneur

A business that is independently owned and operated is not dominant and it's field of operation and meet certain standards of size in terms of employees or annual receipts is a

Small business

Wayne is starting a small business but needs help with management training financial advice and loans. He should contact the

Small business administration

There are many advantages small businesses have one engaging in international trade. Which of the following are examples of such advantages

Small companies can give customers personal service and undivided attention overseas buyers often enjoy dealing with individuals rather than large corporate bureaucracy's

Ease of formation is in advantage of an

Sole proprietor ship

A business that is owned and managed by one person is a

Sole proprietorship

Ring the forms of business ownership based on ease of starting put the easiest form at the top

Sole proprietorship Partnership Corporation

Franchises are attractive to minority populations because

Some offer financial support to aspiring business owners they provide personal ownership of a business

Select all that ate true of entrepreneurs

Strengthen the economy help the country prosper create thousands of job

It is possible to get started in business by working in a successful one to learn about it and then

Suggesting the owner take a partial retirement so you can gradually take over offering to buy out the owner overtime buying out the current owner all at once

And advantage of partnerships is a longer____ rate than sole proprietor ships because they become more disciplined and the business is life is based on all the partners

Survival

Which of the following are some reasons for the growth of homebase businesses

Tax laws that allow home office deductions computer technology corporate downsizing

The biggest disadvantage of a home-based franchise is

The feeling of isolation

A business plan is a detailed written statement that describes

The resources and qualifications of its owners the target market

Which of the following regarding high growth businesses are true

They are extremely difficult to keep going and they are difficult to start

Soul proprietors think of their business as a way of life because

They often work more hours than non-supervisory employees long hours affects their family life

Personal savings, venture capitalists, and government agencies such as the small business administration or possible sources of capital or information when starting a small business

True

Some common causes of small business failure include

Under pricing or over pricing goods or services no experience in the business or industry starting with too little capital

Danielle wanted to start his own small business after spending his own money on marketing research Danielle asked his friend Chase to be his accountant they spent a few months writing a business plan which they presented to a bank Daniel:

Understand the steps needed to start a small business

Select the disadvantages of a sole proprietor ship

Unlimited liability limited financial resources

A murder that joins two companies involved in different but related levels of an industry is a _______ merger

Vertical

Select ways an LLP deals with liability for partners

When a partner is sued individually for malpractice it does not affect other partners partners are not held liable for each other's actions liability is limited to losing only personal assets directly related to personal acts

A franchise owner will experience the coattail effect when

a fellow franchisee does something that has an impact on growth and profitability

Becoming an______ is one of the best ways to learn about how to run a business

apprentice

It is extremely important to develop a_______ before going to a bank for a loan because it shows that you are aware of who the target market is where the competition is how much money you need and exactly how you intend to turn a profit

business plan

A major disadvantage of the corporate form deals with the tax situation called the taxation

double