Chapter 33 Review

Front

Two-thirds of all businesses fail within the first two or three years of operation.

Back

True

Front

Jason goes to high school and needs to earn extra money on the weekends, so he started an auto-detail service. He is an entrepreneur.

Back

True

Front

A foreign corporation is a business organization that has incorporated in a country other than the one in which it does business.

Back

False

Front

A person who purchases a franchise does not control how the business will be advertised and managed.

Back

True

Front

Strong organizational skills and a spirit of adventure are two of the personal characteristics of entrepreneurs like Henry Ford.

Back

True

Front

Which of the following is NOT one of the forms of business organization?
sole proprietorship,
corporation,
limited liability,
franchise

Back

franchise

Front

What form of business ownership is subject to the least taxation and government regulation? Options: sole proprietorship, family-owned business, limited partnership, Subchapter S corporation

Back

sole proprietorship

Front

What method of entering business carries a high purchase price and high initial fees? Options: corporation, partnership, Subchapter S corporation, franchise

Back

franchise

Front

What form of business organization can own assets and borrow money without directly involving the people who own it and, therefore, is closely regulated by the government?

Back

corporation

Front

What form of business has the greatest disadvantage if one of its owners dies? Options: corporation, partnership, Subchapter S corporation, franchise

Back

partnership