Introduction to Business Unit 2

Conglomerate

A merger involving a software producer and a clothing manufacturer is an example of a:

Overwhelming time commitment

A significant disadvantage of owning a sole proprietorship.

Rewards individuals or other businesses for each visitor or customer the affiliate sends to its website

Affiliate marketing is a web-based business strategy that:

Leveraged

An attempt by employees, management, or a group of investors to purchase an organization primarily through borrowing is called a:

Cooperative

An organization that is owned and controlled by the people who use it - producers, consumers and workers with similar needs pool their resources for mutual gain.

Franchisor

Daggie's Sandwiches, Inc., sells the rights to use its name and sell its sandwiches in a given market area to aspiring businesspeople who are willing to pay agreed-upon fees and meet certain contractual terms. Daggie's is a:

False

Double taxation means a business pays twice the amount of taxes.

True

Horizontal merger is between two grocery stores.

Angel investor

Invests in a new business in hopes that they can have ownership if it becomes public

False

Limited Liability partnerships are concerned with the length of time a partnership is valid.

People do not know how

One reason why many US small businesses are not involved in exporting is:

Stockholders

The board of directions for a corporation is elected by its:

65%

Small businesses create about ________ percent of the new jobs in the United States.

True

Sole-Proprietorship is taxed at a personal income rate.

Incubators

State and city governments have promoted facilities where new businesses can open up shop and share common services such as secretarial, accounting, and legal services.

False

Stockholders have unlimited liability.

Independently owned and cannot be dominant in its industry

The Small Business Administration defines a small business as a firm that:

True

The best time to start a business is when an individual has little expenses, confidence, and little financial risk.

Competition

The business plan will include:

The value of what the business owns, earns, and makes it unique

The fair purchase price of a business is calculated based on:

Entrepreneurship

The risk of starting a business.

Planning and financing

Two key management functions that need particular attention when starting a business

Tolerant of uncertainty and highly energetic

Which of the following best describes entrepreneurial personality traits?

Limited Liability

Which of the following is an advantage of the corporate form of business when compared to sole proprietorships and partnerships?