Exam 2 Review
Retained earnings
a source of long-term funds for a firm
Variable costs
costs that change as output changes
A similarity between a sole proprietorship and a partnership?
both their earnings are untouched by the Internal Revenue Service.
what is an advantage of a C corporation?
shareholders have limited liability in the firm
Lester owns a small law firm and has a 10 hour workday. Despite keeping long hours, he is open to working on weekends and holidays if required. He also responds to late-night calls from clients. Which of the entrepreneurial characteristics is highlighted in the given scenario?
energy
The board of directors of a corporation
established the corporation's mission
Olivia runs a spa for women. She employs only two helpers and one receptionist. This enables her to focus most of her resources on procuring products requires to provide comfort and high-quality services to customers. The opportunity of _____ is highlighted in the given scenario.
having lower overhead costs
The equity in a firm's capital structure...
imposes no required payments
What info is found in the U.S. Small Business Administration (SBA)
industry-specific statistics
Net income
is the profit or loss a firm earns in the time period covered by the financial statement that reports the revenues and expenses.
In the context of creating and delivering successful verbal presentations, which is true of dynamic delivery?
it begins and ends with preparation
Socially responsible firm
it has an obligation to respect the needs of all stakeholders
Since sole proprietorships are extensions of their owners, they...
lack permanence
Alpha Inc. saw an increase in profits in the previous year following which the management decided to reinvest its earnings. These retained earnings will be used to...
meet the company's long-term financial needs
The management of sugar manufacturing company sets aside the sum of $50,000 in its budget for the purchase of new machinery that would double the production. the management is in the process of planning the ____ of the company
operating budget
uncomfortable chairs in a conference can create____ to communication
physical barrier
Carve-Out
remove from a larger whole
According the the U.S. Small Business Administration, to officially count as "small," _____
the average revenue of a business should range from $0.75 million to $28.5 million
What is the difference between a C corporation and an S corporation?
the members of a C corporation have limited liability, whereas the members of an S corporation have unlimited liability.
In the context of small business opportunities, which is true of market niches?
they tend to be quite attractive to small firms