BADM101 exam 2

Which of the following statements is true of entrepreneurs who are tolerant of uncertainty?

They view the world in shades of gray.

In the event that a large company has to downsize, the middle-aged workers who are laid off find it difficult to find new jobs. When such workers decide to start their own businesses, they:

are called necessity entrepreneurs.

In the context of balance sheets, resources owned by a firm are known as _____.

assets

When writing a high-impact message, one should:

consider how the audience will feel about the message.

In a sole proprietorship, any debts the company incurs are:

considered to be the owner's personal liabilities.

A _____ is a form of business ownership in which the business is considered a legal entity that is separate and distinct from its owners.

corporation

_____ is a vibrant, compelling presentation style that grabs and holds the attention of the audience.

dynamic delivery

The primary reason people choose to become entrepreneurs is to:

earn more money

In the context of an acquisition, when the acquiring firm buys the target firm despite the opposition of the target's board and top management, the result is called a _____.

hostile takeover

A(n) _____ is a voluntary agreement under which two or more people act as co-owners of a business for profit.

partnership

If you encounter a hostile questioner while giving a presentation, you should avoid:

reestablishing eye contact once you have answered the question.

Which of the following statements is true of business emails?

response to business emails should be as prompt as possible

Which of the following is a difference between a C corporation and an S corporation?

A C corporation is double taxed, whereas an S corporation is taxed as a partnership.

In the context of creating and delivering successful verbal presentations, which of the following is a suggestion for effective hooks at the opening of a presentation?

A relevant simile

_____ is a deep-seated sense that forces other than the individual are responsible for what happens in his or her life

An external locus of control

In the context of entrepreneurs, which of the following statements is a difference between an internal locus of control and an external locus of control?

An internal locus of control involves personal responsibility, whereas an external locus of control does not.

Which of the following is a similarity between a sole proprietorship and a partnership?

Both their earnings are untouched by the Internal Revenue Service.

Tobin starts a catering company of his own and earns a substantial profit in the first year itself. His total earnings are more than what he used to earn as a salaried person. Which of the following advantages of entrepreneurship is highlighted in the given scenario?

Greater financial success

In the context of business communication, identify a true statement about American culture.

It demonstrates negative age bias toward old people

The owners of limited liability companies (LLCs) are called members because:

LLCs are neither corporations nor partnerships.

In the context of balance sheets, which of the following is a difference between liabilities and owners' equity?

Liabilities indicate the claims outsiders have against the firm's assets, whereas owners' equity refers to the claims the owners have against their firm's assets.

_____ is the profit or loss a firm earns in the time period covered by the financial statement that reports the revenues and expenses.

Net income

Which of the following categories of people is most likely to step into entrepreneurship?

People who have trouble being subordinates because of their personalities

In which of the following ways do public accountants differ from management accountants?

Public accountants conduct external audits, whereas management accountants analyze the financial statements of their own organization.

Which of the following is an advantage of a C corporation?

Shareholders have limited liability in the firm.

_____ is a type of divestiture in which a firm converts a particular unit or division into a separate company and issues stock in the newly created corporation to outside investors.

a carve-out

Marion begins her presentation on waste management by sharing the story of a rival firm that gained significant economic benefits from waste segregation. In the given scenario, Marion uses a(n) _____ to open her presentation.

anecdote

As globalization gains speed, intercultural communication will:

become increasingly pivotal to long-term business success.

The various ways in which a message can be sent, ranging from one-on-one in-person meetings to Internet message boards, are called _____.

communication channels

_____ indicate the cash a firm spends, or other assets it uses up, to carry out the business activities necessary to generate its revenue.

expenses

As a listener, you are most likely to interpret the maximum meaning from a speaker's:

facial expressions

Similar to a corporation, all owners of a limited liability company (LLC):

have restricted debts

Betty's job entails detecting problems such as embezzlement, waste, mismanagement, and employee theft at her organization. In this case, Betty is a(n) _____.

internal auditor

Unlike a sole proprietorship, a corporation:

is considered to be a legal entity that is separate and distinct from its own

Which of the following statements is true of people with an external locus of control?

they feel buffeted by the actions of others