business intro quiz cards

You have a neighbor, Mr. Peterson, who comes to you for advice. He owns a fish and chips restaurant, "The Codfather, LLC" which he started and has built up for 25 years in the neighborhood. Mr Peterson is ready to retire and wants to transfer ownership of his business to his 40 year old son. What is the best advice to give Mr. Peterson? "This could work! Your son will need to buy out your shares in the company and then the company is his." "No problem. Just find a business transfer agreement online, sign it and the business is his." "Call up your attorney to see if transferring is possible because rules about transferability of LLC's vary by state." "Hey, it's your business. Just hand over your keys to your son!"

"Call up your attorney to see if transferring is possible because rules about transferability of LLC's vary by state."

Carlos is about to start a career counseling business. His goal is to not pay taxes both as a business and as an individual and to maximize his income. He also wants to minimize liability. If someone sued his business, he doesn't want to be personally liable. What form of business ownership would best suit Carlos's needs? A Partnership. A Sole Proprietorship. A Limited Liability Company. A C Corporation.

A Limited Liability Company.

What is the correct definition of a partnership? A corporate owner provides support to a business in the form of training and marketing materials, and a business owner runs a local "branch" and pays dues to the corporate owner. When one business buys another complimentary business and the relationship benefits both companies. A business entity consisting of shared ownership between two or more people. A business entity in which the management is governed by a board of directors.

A business entity consisting of shared ownership between two or more people.

If a business has its liability, management duties, and profits equally divided among its partners, what type of partnership is it? A limited partnership. An equal partnership. A standard partnership A general partnership.

A general partnership.

Ernesto is the only owner of an accounting business. He makes all of the decisions and takes all of the risk for it. What type of business entity is Ernesto's business? A S corporation A sole proprietorship A limited liability partnership A C corporation

A sole proprietorship

In the United States, which type of business ownership is the most frequently used type? A sole proprietorship. A corporation. A LLC. A partnership.

A sole proprietorship.

A sole proprietorship is described best by which of the following descriptions? An unincorporated business owned by two or more individuals who share equal responsibility for the business. An unincorporated business owned and run by one individual in which there is no distinction between the business and the owner. A unique entity and special type of corporation created through an IRS tax election. A hybrid business structure allowed by state statute which provides operational flexibility and provides tax efficiencies.

An unincorporated business owned and run by one individual in which there is no distinction between the business and the owner.

The BOSI framework, as defined by Abraham, groups entrepreneurs into the following 4 categories: Builder, Opportunist, Specialist, and Ingenious. Buoyant, Opportunist, Specialist, and Innovator. Builder, Outcast, Specialist, and Innovator. Builder, Opportunist, Specialist, and Innovator.

Builder, Opportunist, Specialist, and Innovator.

You are looking at setting up a partnership as your business structure. Which of the following could be considered a disadvantage in a partnership? A partnership has limitations of the highly-restrictive, legal partnership requirements. Decision making needs to be shared across the partners. The high taxes that partnerships have to pay. The variety of diverse perspectives and skills brought by each partner.

Decision making needs to be shared across the partners.

Xian is creating a B Corporation that takes profits from his business to assist with increasing the amphibian animal population in his home town's marshlands. Identify what actions Xian will need to take to create his B Corp. Get a tax ID number, check to make sure no other business has already secured his preferred business name, find a compatible partner to invest in the business. Launch an IPO to quickly raise a large sum of capital. Declare a commitment to creating general public benefit, prepare an annual benefit report and adopt a third-party standard. Choose a worthy cause to support, obtain a 501(c)(3) business license, and commit to donating a portion of your revenues to that cause.

Declare a commitment to creating general public benefit, prepare an annual benefit report and adopt a third-party standard.

Specialists are experts in their field, but their major shortcoming as an entrepreneur is:

Demand-genderation

What is the first section to be included in a business plan as recommended by the SBA? Executive Summary. Preface. Acknowledgements. Table of Contents.

Executive Summary.

Distinct roles, responsibilities and activities best defines: The role of a human resources department. The strategic approach to product design. Executive, middle, and first-line managers. The role of a marketing department.

Executive, middle, and first-line managers.

Organizational charts, performance evaluations, quality measurements and metrics, and sales and/or production goals are modern evidence of:

Frederick Taylor's scientific management theories.

Sharon and Louis are starting a business together. In their legal partnership agreement, what should be included? The business location, the amount of money each partner will contribute to the business, and the total number of employees the company will hire. A description the decisions the board of directors will fulfill. Current financial statements, an executive summary, and a survey of the marketing environment for the business. Future business decision processes such as; how the partners will dissolve the partnership, resolve disputes, divide profits, and change ownership.

Future business decision processes such as; how the partners will dissolve the partnership, resolve disputes, divide profits, and change ownership.

You are considering creating your own startup business and are weighing the advantages and disadvantages of doing so. According to the author, what would be your most important consideration before making the decision? Having an Ivy League M.B.A. Having a sound business plan. Having what it takes both personally and professionally to deal with both the freedom and the responsibility of creating a business. Having sound financial backing from several sources.

Having what it takes both personally and professionally to deal with both the freedom and the responsibility of creating a business.

Jose is a twenty-two year old who just finished college. He lives alone in a small apartment that he rents. Jose has saved up nearly all his earnings from various part-time jobs in order to start his photography business. Given his current situation, Jose most likely has: Lots of available capital. Extensive entrepreneurial ability. Low desire for autonomy. High risk tolerance

High risk tolerance

Additional reasons for the failure of some small business ventures is due to: Inability to execute on the business concept, mis-understanding competitor's strategy, inability to manage growth, and insufficient management experience or product/services expertise. Inability to execute on the business concept, lack of or insufficient market demand, inability to manage growth, and insufficient management experience or product/services expertise. Inability to execute on the business concept, lack of or insufficient market demand, inability to manage growth, and lack of marketing savvy. Inability to raise funds, lack of or insufficient market demand, inability to manage growth, and insufficient management experience or product/services expertise.

Inability to execute on the business concept, lack of or insufficient market demand, inability to manage growth, and insufficient management experience or product/services expertise.

There are four partners in the Dallas Pet Taxi company. One of the partners, Devin, decides to dismiss a particularly difficult client from using the company's services. He doesn't consult with the other three partners in order to take this action. The fact that Devin can make this type of business decision without consulting the other partners is considered to be a disadvantage of what type of business entity? C Corporation LLP LLC S Corporation

LLP

You get in a conversation with a man in the reception room at your doctor's office. He tells you he is establishing a barbershop business and has a business partner who shares in all decision making. The business has been fairly easy to set up, he has limited liability for the company and will only be taxed once on company profits. What kind of business has your new acquaintance described to you? Limited Liability Company C Corporation Limited Liability Partnership General Partnership

LLP

An important step in starting a new business is conducting market research. What two areas do the SBA suggest should be the focus of this research? Statistical and probable. Market and consumer. Competitive and historical. Market and competitive.

Market and competitive.

When a McDonald's opens in your local area by franchising to a franchisee, what is the benefit to the McDonald's corporation? McDonald's corporation is benefiting by adding one more location to its chain of stores. McDonald's is guaranteed to yield high revenues from the new location. McDonald's corporation benefits by increasing by having a new equal partnership with its franchisee. McDonald's corporation is avoiding the financial investment and liability of a chain of stores.

McDonald's corporation is avoiding the financial investment and liability of a chain of stores.

Conner believes work is inherently distasteful to most people, and they will attempt to avoid work whenever possible. He would also agree that

Most people are not ambitious, have little desire for responsibility, and prefer to be directed.

A group of friends are creating a new mobile paper shredding company that will go to businesses or organizations to shred their sensitive papers in bulk. You are advising them as to the type of business entity to choose. They have a number of partners, but their primary goals are to avoid personal liability and double taxation. They want to pay each of the partners based on their contribution to the success of the company, which is NOT equal to their percentage ownership. You advise them to accomplish this by forming a(n): general partnership. S corporation. C corporation. limited liability company.

NOT: C corporation.

The following are disadvantages of owning your own small business EXCEPT: No regular paycheck. No retirement plan. No boss to answer to. No holidays.

No boss to answer to.

What are the characteristics of a Limited Liability Partnership (LLP)? Each partner IS liable or responsible for another partner's negligence or misconduct. One partner is responsible or liable for another partner's negligence but not responsible for their misconduct. All partners are completely responsible for all mistakes the business makes. One partner IS NOT liable or responsible for another partner's negligence or misconduct.

One partner IS NOT liable or responsible for another partner's negligence or misconduct.

Venture capitalist Guy Kawasaki offers a business plan structure that is more focused on the topics that matter to V.C. His first three topics include:

Problem, Your Solution, and Business Model.

Your friend, Hannah, is considering setting up a corporate entity type for her business. You know the main characteristic that distinguishes an S Corporation from a C Corporation. What is that difference? C Corporations have to have a board of directors while S Corporations do not. That only an S corporation's shareholders are taxed, but the business itself is not taxed. Owners of a C Corporation are not held personally liable. Owners of an S Corporation are personally liable for the business. The legal requirements to set up a C Corporation are more complicated than setting up an S Corporation.

That only an S corporation's shareholders are taxed, but the business itself is not taxed.

A sunami is moving toward the town of Hilo, Hawaii where a shipping company is headquartered. The company CEO needs to get everyone to leave and get to high ground to be safe. What style of management should the CEO use to be the most effective in this scenario?

The autocratic management style.

Neal and Jeff Harmon own the Harmon Brothers viral video marketing company. This small company consists of 23 highly creative employees. Their employees write, act, film, and produce product videos for businesses. In order to maintain a culture that stimulates new ideas, collaboration and creative problem-solving, what style of management would be effective for Neal and Jeff to use? The autocratic management style. The laissez-faire management style. The transformational management style. The authoritarian style of management.

The laissez-faire management style.

What types of fees or payments are you expected to pay as a franchisee of a business? A percentage of your profits as a subsidy for future franchisees start-up costs. An annual fixed fee to the franchisor to be allowed to remain in business. The royalty fees for the support from the franchiser. A percentage of corporate employee costs to support the franchise.

The royalty fees for the support from the franchiser.

Sanjay has three children and is starting a new company. He is looking down the road to a future time when his children are grown and could take over the business. Given his future wishes, what question is most important for him to consider when establishing his new business? What is the best business entity and structure setup for continuity and transferability? Which type of legal structure pays the lowest tax rate? If I am more of a risk taker, what business entity suits me best? How can I spend the least amount of money to form my business entity?

What is the best business entity and structure setup for continuity and transferability?

You have decided to become a franchisee for a Jiffy Lube oil change business. What would be a benefit for you being a franchisee? You are guaranteed to be successful since you are using a popular brand. You have access to startup funds from the franchiser. You have access to a template for the business. You have eliminated of all business risks for this business.

You have access to a template for the business.

The main characteristic of a B corporation is that it seeks to provide: high dividends to its equity investors. a return to shareholders while pursuing other goals that benefit community or society. regular shareholder meetings and annual stock distributions. a maximum return to shareholders while pursuing its focused financial goals.

a return to shareholders while pursuing other goals that benefit community or society.

Taco Bell over the years has established multiple locations across the U.S. and abroad. Because of the large number of stores, the company might be able to take advantage of economies of scale with advertisers, vendors, and suppliers. This example is of a(n): advantage for the franchisor. advantage for the franchisee. disadvantage for the franchisee. disadvantage for a franchisee.

advantage for the franchisor.

Strategic planning involves: aligning overall plans to the company's mission. establishing details to implement activities. creating scope of work documents for specific projects. translating high level plans into specific actions.

aligning overall plans to the company's mission.

According to the author, creativity, vision and ________ are the elements without which there is no entrepreneurial venture. multiple investors. an MBA. an ability to identify opportunities. business experience.

an ability to identify opportunities.

In 2011, Skype, a company for making internet phone calls, was purchased by Microsoft for $8.56B in cash. This is an example of: a hostile takeover a licensing agreement an acquisition a partnership

an acquisition

Choosing to be an entrepreneur, or any other career for that matter, depends on: an individual's values and priorities. an individual having connections to the boss. an individual being in the right place at the right time. an individual's education and degree attainment.

an individual's values and priorities.

In addition to meeting the relevant numerical size standard, a business must also meet the following criteria in order to be eligible for SBA and government contracting programs EXCEPT: be a public company. be Independently Owned and Operated. be a For-Profit enterprise. be physically owned and operated in the U.S.

be a public company.

Alderfer's "Existence" needs concern our basic material requirements for living. These include what Maslow categorized as

both physiological needs and safety-related needs.

Joe feels he is not fairly compensated for his efforts and contribution to the company. His next step might be to

compaire his pay to his boss's pay package

Top-level managers must scan the broad environment for opportunities and thus must possess:

conceptual skills

Your marketing manager recommends lowering prices, your operations manager recommends changing suppliers, and your financial officer recommends debt restructuring. As the top executive manager you must possess ________ to evaluate this input. conceptual skills technical skills soft skills human skills

conceptual skills

According to the SBA, the first 3 steps to starting a business are: select your investors, conduct market research, and fund your business. conduct market research, write a business plan, and fund your business. conduct market research, write a business plan, and interview prospective employees. conduct market research, create your web site, and fund your business.

conduct market research, write a business plan, and fund your business.

Developing alternative courses of action to be taken if there is a disruption in normal business operations are referred to as:

contingency plan

Clark is learning about various business entity types in order to set up his new business. He wants to know which entities are subject to limited liability. You tell him that the entities subject to limited liability are: sole proprietorships. corporations. partnerships. all business entities.

corporations.

Business registration requirements are based on business structure and location. The following could all be in play when you register your business EXCEPT: entity name. trademark. domain name. country of origin

country of origin

Fayol thought management principles needed to be flexible and adaptable and that they would be expanded through experience and experimentation. When a team of workers specialize on a few tasks to become more proficient. Which management function describes this situation?:

division of work

The following are the fundamental questions to consider when starting a business EXCEPT: Do you know how to run a business? Do you have what it takes? Is the reason you want to start a business consistent with your character and concept? Do you have a viable concept?

do you know how to run a business?

It is ________ that a good organizational structure be used for the expansion of business activities.

essential

Frank and Lillian Gilbreth used ________ to identify areas for work improvement.

films

Coordinating activities, supervising employees, and participating in day-to-day operations are typical activities of:

first line managers

McClelland proposes that those in top management positions generally have a high need

for power and a low need for affiliation

Strengths and weaknesses that are inside the organization are considered:

internal factors

The "size standard" used to determine if a business can be classified as a Small Business: Is based on the legal structure of the business. is based on either number of employees or annual revenue based on the industry. Is based on the number of affiliates and subsidiaries of the business. is based on the number of locations the business occupies.

is based on either number of employees or annual revenue based on the industry.

A social media company has a process where individuals can choose to make changes to their work responsibilities, even dramatic changes, if they create or discover more efficient ways to work. This is an example of a company using:

job enrichment

"Failing forward" refers to: Procrastination. Looking for opportunities tomorrow. Avoiding failure at all costs. Learning from mistakes.

learning from ones mistakes

One powerful motivation for people to become entrepreneurs is that becoming one is not just a job, but a: Adventure. fated event. lifestyle. regular paycheck.

lifestyle

Some states limit the creation of ________ or don't recognize them as legal business structures. You need to check with your state before attempting to create one. C Corporations limited liability partnerships general partnership S corporation

limited liability partnerships

Identifying the key functions of management is Henri Fayol's greatest contribution to:

management practice

In a functional structure, one disadvantage is that the different functional groups:

may not communicate with one another

Goal setting theory is one of the most influential and practical theories. There is strong evidence that setting goals improves:

measured performance

A new company will be formed by combining Company A with the Company B. This type of business combination is known as a(n): franchise acquisition merger partnership

merger

Management cannot being the planning process until the organization has determined what its ________ will be.

mission

Human skills are necessary to:

motivate employees

In Herzberg analysis, gaining status, assuming responsibility, and achieving self-realization are

motivation factors

Maslow's self-esteem level refers to the

normal human desire to be valued and validated by others, through, for example, the recognition of success or status.

The "Dino Dig, Inc." gas company has discovered large oil deposits in North Dakota over the last three years. With money from its company profits, it purchases controlling shares and equipment in a truck transportation company and a railroad transportation company. Both of the companies continue to operate under their original names, but now "Dino Dig, Inc." uses its newly obtained assets to more efficiently and cheaply transport its crude oil around the country. Dino Dig, Inc. is great at: vertical acquisitions vertical integration horizontal integration horizontal merger

not horizontal merger or Vertical Integration or Horizontal Integration

Continuity or transferability, risk tolerance, cost of start up, control vs. responsibility, profits, taxation, entrepreneurial ability, financing and are each: Factors to consider when choosing a business location. Factors to consider when evaluating the health of a business. Factors to consider when choosing an organizational type. Factors to consider when looking into a franchise opportunity.

not: Factors to consider when looking into a franchise opportunity.

Your friend is thinking about starting her own business. What would you advise her to consider when thinking about her form of business ownership? Supply chain, product line and possible employees. Payroll costs, marketing costs, and availability of resources. Cost of goods, location and employee motivation. Risk tolerance, cost of start up and taxation.

not: Risk tolerance, cost of start up and taxation.

Imagine that you own a local fitness gym in your hometown called "U-Fit." You have done well over the last few years and have enough capital to acquire your hometown competition, the "Pump It" gym. Why would it be a good idea for you to undertake a horizontal merger or acquisition? To use your expertise to improve the company and then sell it for a higher price. To tap into a new market formerly unavailable to one of the companies. To increase synergies by merging firms that would be more efficient operating as one. To take advantage of synergies and potential market share gains.

not: To increase synergies by merging firms that would be more efficient operating as one. not:To use your expertise to improve the company and then sell it for a higher price.

Cathy recently purchased stock in AT&T from her stockbroker. AT&T is also considered: an S corporation a B corporation a public corporation a partnership

not: an S corporation

A manager who possesses the skills to account for every task and resource in his department excels at which of the six management functions? Organizing Controlling Planning Leading

not: controlling maybe planning

Human skills are important management skills especially when: fostering teamwork, managing conflict and encouraging improvement. analyzing marketing data for changes to the environment. devising new manufacturing process improvements. developing an organization's strategic initiatives.

not: developing an organization's strategic initiatives.

A computer hardware company is interested in decreasing its sales force turnover as it seems to be higher than the industry average. Management looks at the incentives for the sales force and realizes that it takes, on average, sixty days to close a sale. Currently there is no base salary for the sales force and they are paid only commission on their total sales. Management decides on a blended approach and makes changes to balance salary and commissions carefully to achieve optimum sales volume, profitability, and customer satisfaction. Over the next two quarters, there is no turnover and morale among the sales team is higher. This is an example of the application of:

not: equity theory

Walgreens, one of the largest drugstore companies in the U.S., announced in October of 2015 that it would acquire all of Rite Aid's drugstores and debts for a $17.2 billion all-cash transaction. This is an example of a: horizontal acquisition. licensing agreement. horizontal merger. vertical acquisition.

not: horizontal merger.

Standardizing job tasks to introduce new work methods is an outcome of:

not: human resource management

Technical skills are one of three sets of skills needed by managers and focuses on:

not: intuition

The manager of a clothing store in the mall has hired five new employees for the summer. All of them have just graduated from high school and will only work the three summer months before leaving for college. After the initial week of training, the manager continues to scrutinize and direct them in every detail of their job. Each time they make a mistake they are reprimanded, told their pay may be docked, and reminded that there are always other people who will gladly take their place. This manager is using the approach to management known as:

not: theory y or x

You are considering setting up a business as an S corporation. What are some of the advantages to this type of business form? Owners of a C Corporation are not held personally liable. Owners of an S Corporation are personally liable for the business. Business expense tax credits, tax savings, and that the business has an independent life from its shareholders. S Corporations do not have to have a board of directors. Double taxation, unlimited liability, and it requires more initial paperwork to establish the business.

not:Double taxation, unlimited liability, and it requires more initial paperwork to establish the business.

Democratic leadership style is best described as:

open communication and collaborative decision making.

An example of an autocratic leadership style is when a manager realizes that they need to vacate the building because of a fire or other emergency and: does not share any information with the employees. orders the employees to vacate the building. encourages the employees to be attentive for directions. tells employees they may need to get their things and leave the building.

orders the employees to vacate the building.

Assigning activities identified in the planning process to a person, team or department is the:

organizing function

The control function of management includes taking corrective action. The idea is for managers to intervene before costly or damaging problems occur, rather than waiting and hoping for the best. This allows management to be:

proactive

Setting standards, measuring performance against those standards, analyzing performance and taking corrective action are the four parts of the: strategic plan. process of organizing. process of control. balanced scorecard.

process of control.

The Appendix of a business plan can contain more detailed information and back -up documents but would NOT include:

product or service descriptions

In the Financial Projections section, the SBA recommends this for the projections for the first year: a 10% cushion in all numbers. quarterly or monthly projections. advice from Warren Buffett. review by bank examiners.

quarterly or monthly projections.

This type of business represents 99% of all U.S. business.

small business

All of these are personality traits of entrepreneurs EXCEPT: Quick to act. Takes "no" for a challenge. Not risk averse. Team player.

team player

Understanding the storage of electricity in batteries is an important ________ skill if you are a first-line manager at an electric automobile manufacturer.

technical

The management function that addresses comparing accomplishments to objectives is:

the controlling process

In an influential Hawthorne experiment, women assembled telephone relays in a separate room. The women were allowed to choose

their co-workers

Managers who adopt a ________ style communicate with subordinates about what is expected of them and what happens if they meet these objectives. Their attention tends to focus on identifying problems and disciplining employees for poor performance. laissez-faire transformational autocratic transactional

transactional style

By involving employees during the process of developing SMART operational objectives, it helps them to:

understand and accept them after they're set.

"3B's—Bigger, Better Burger" hamburger fast food restaurants merge with a large potato farm "Potters Potatoes." 3B's is now looking forward to having a fresh, reliable supply of potatoes for its fries along with a farm offering fair prices and which is now under the direction of the same company leadership. Potters Potatoes is happy to steadily supply its potatoes to 3B and not have its potatoes go unused. This is an example of: vertical merger or acquisition. synergistic partnership. horizontal merger or acquisition. diagonal merger or acquisition.

vertical merger or acquisition.

When an employee is comparing his input/outcome ratio to his fellow workers', he will look for other employees

with simaler jobs or skill sets

The Hawthorne studies discovered that:

workers are highly responsive to their managers providing additional attention and taking interest in their work