Intro to Business (Test 2)

The business plan will include ____________.

an analysis of the competition

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

60-80

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

Conglomerate merger

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

Cooperative

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

Limited liability of owners

A significant disadvantage of owning a sole proprietorship is the:

Overwhelming time commitment often required of the owner

Affiliate marketing is a web-based business strategy that:

Rewards individuals who are willing to link a company's website to their blog or social network

Enterprise zones are:

Specific locations across the U.S. where entrepreneurs can set up shop and receive tax breaks for operating in those areas

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

Stockholders

Which of the following best describes entrepreneurial personality traits?

Tolerant of uncertainty and highly energetic

Entrepreneurship is:

accepting the risk of starting and running a business

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. Due to their remarkable success rate, ______________ continue to grow in popularity.

incubators

Chris is an angel investor. This means that he:

invests his money in a new business with potential for growth, hoping for a good return on his investment if they go public

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 franchiser

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

is independently owned but not dominant in its industry

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

leveraged buyout (LBO)

One reason why many U.S. small businesses are not involved in exporting is:

many of these firms do not know how to get started

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

planning and financing

One way to get into business is to buy an existing company. The value of the business used to determine fair purchase price is based on:

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