chap 5 & 6 business

Which of the following statements about the operation of a corporation is correct?

A corporation receives its charter from a state government.

Which of the following statements about partnerships is the most accurate?

A major drawback of a partnership is that it is difficult to terminate.

major advantage of S corporations is that they:

Avoid the problem of double taxation associated with conventional corporations.

Which of the following best describes the difference between an intrapreneur and an entrepreneur?

Intrapreneurs work within existing corporations while entrepreneurs assume the risks of starting their own business.

Which of the following would not be helpful in explaining why individuals accept the risks of business ownership?

The desire to work fewer hours.

In an entrepreneurial team, who is responsible for the conception, development, and marketing of products?

These issues are the responsibility of all the members of the entrepreneurial team.

Which of the following statements is the most accurate? Sole proprietorships:

are easy to start and end.

The earnings of C (conventional) corporations are taxed:

as income to the corporation, then again as income to the stockholders on earnings that are distributed as dividends.

Apple Computer's "smart team" is an example of a firm that succeeded by:

building a group of experienced managers and emphasizing teamwork and cooperation.

A review of small business successes and failures indicates that the:

businesses with the potential of high profit levels tend to be difficult to start and hard to keep going.

A(n) ___________________ is a state-chartered legal entity with authority to act and to have liability separate from its owners.

conventional corporation

Effective entrepreneurial teams require a blend of:

creative, marketing, and production skills.

The goal of an intrapreneurs is to:

develop new products and generate new profits for the corporation.

Which of the following is normally considered a major disadvantage of the corporate form of business?

double taxation of earnings.

A group of experienced people from different areas of a business joined together to develop, produce, and market a new product is known as a(n)

entrepreneurial team.

An entrepreneurial team consists of:

experienced managers from different areas of business.

Enterprise zones are areas which:

feature low taxes and government support in an effort to encourage entrepreneurship.

When comparing partnerships to sole proprietorships, an advantage of partnerships is that they:

give the firm a stronger financial foundation.

Compared to partnerships and sole proprietorships, a major advantage of the C (conventional) corporation as a form of business ownership is that it:

has the ability to raise more money.

All of the following are elements of the Small Business Administration's definition of a small business except that these firms:

have fewer than 100 stockholders.

A creative person working within a corporation to launch new products and generate new profits is known as a(n):

intrapreneur.

An entrepreneur:

is a person who takes the risk to set up a new business in the hope of making a profit.

The S corporation is likely to be less popular in the future because:

limited liability companies, which do not have the restrictive eligibility requirements of S corporations and offer greater flexibility in the choice of tax treatment, are now legal in all 50 states.

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

limited liability of owners

The result of two firms combining to form one company is called a:

merger.

Individuals motivated to start a home-based business allowing them to balance the demands of business and family are called:

micropreneurs.

The management of charities, government agencies, and schools is ________ the management of a business.

much the same as

Mergers and acquisitions:

often involve companies trying to expand within their own field or enter new markets.

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

owners.

When entering into a new partnership, the partners should:

put the partnership agreement in writing.

The majority of corporations in the U.S. are:

small businesses

About 80% of all Americans find their first jobs in:

small businesses.

When comparing small businesses to their larger competitors, it is clear that:

small firms often can offer more personalized customer services than big firms.

The ___________ is the most common form of business ownership.

sole proprietorship.

Historically entrepreneurs in the U.S. have:

started many small firms that later became major corporations employing thousands of workers.

An owner of a corporation is known as a(n):

stockholder.

To many businesspeople, one of the major attractions of a sole proprietorship is:

the chance to be their own boss.

After their startup businesses grow into established organizations, many entrepreneurs:

turn their companies over to professional managers.

One of the major disadvantages of a sole proprietorship is the:

unlimited liability the owner has for the debts of the firm.

Entrepreneurs don't always focus on what customers need. They also look for:

what customers don't know they need.