Pop Quiz

When a firm's sales revenues are greater than its expenses, the firm has a

• Supernormal profit

• Normal Profit

• Breakeven Profit

• Subnormal Profit

Local residents have always thought the mom-and-pop store on the corner of Locust and Congress was a partnership between Mr. and Mrs. Jones. But Mr. Jones is the real owner. This probably means that the store is a

• Sole Proprietorship

• Limited Partners

• Partners

• Joint venture

For a business, stakeholders represent

• investors in the business

• all of the different people or groups who are affected by the business.

• lenders that have provided loans

• employees who work for the firm

With regard to limited-liability companies, which of the following statements is false?

• An LLC avoids double taxation

• Many experts believe that an LLC is nothing more than an S-corporation

• An LLC can have no more than 100 stockholders

• An LLC provides limited-liability protection to the personal assets of the owners

For a Pepperidge Farm production facility, managers and employees would be

• Capital

• Labour

• Resources

• Entrepreneur

Prudential and several other large insurance companies have joined together to underwrite an extremely large insurance policy. This sort of association is referred to as a(n)

• Merger and Acquisition

• Joint venture

• Cooperative

• Syndicate

What is the purpose of a SMART Goal?

• To have fun

• To know exactly what you are working toward

• To waste time

• To keep you out of trouble

Which of the following should be defined first and foremost?

• Mission

• Vision

• Objective

• Goals

Recently there have been several mergers involving Big Four accounting firms. One such merger involved the firms of Arthur Young and Ernst & Whinney, who combined to form Ernst & Young. This is an example of a

• horizontal merger

• vertical merger

• conglomerate

• leveraged buyout

To close a sole proprietorship, the owner must

• notify the secretary state

• pay creditors

• publicly announce the close of the business

• have all license and permit revoked