PBAM Unit 3 Review

A majority of small businesses are involved in which industry?

• Construction

• Transportation

• Services

• Wholesaling

As a new small business​ owner, one of the BEST governmental agencies you could contact for information and guidance would be the​ ________.

• Internal Revenue Service

• Securities and Exchange Commission

• Small Business Administration

• Treasury Department

Which of the following would be considered a small​ business?

• 
  A local dress shop with three employees

• A plant with 15 employees that is part of a global enterprise

• 
  A local general store that is not part of a chain and employs 550 people

• A neighborhood grocery that is part of a national chain

The process of seeking business​ opportunities, typically under conditions of​ risk, is referred to as​ _______.

• divestiture

• corporate governance

• venture speculation

• entrepreneurship

IWeather is a new popular App that provides​ forecasts, snow​ alerts, and radar with unique features. IWeather is an example of a form of competitive advantage that a company achieves by being the first to enter a specific market or​ industry, which is known as​ a(n) _______ advantage.

• pacesetter

• fast follower

• innovator

• first-mover

Under​ McDonald's franchise​ agreement, the​ _______ grants the right to conduct business using the​ McDonald's business​ model; the​ _______ owns and operates the local business.

• 
  ​franchiser; franchisee

• grantee; grantor

• licensee; licensor

• 
  ​franchisee; franchiser

MyPillow's patented interlocking fill adjusts to your individual sleep needs regardless of sleeping position. Although pillows and other bedroom accessories represent an established​ market, entrepreneurs such as the founder of MyPillow can gain a competitive advantage if they can exploit a​ _________.

• franchise agreement

• Niche market

• business plan

• venture capitalist

Tomo is a sole proprietor and owns a restaurant. When the economy​ falters, he is forced to close his restaurant and owes creditors nearly​ $24,000. The creditors can go after not only​ Tomo's business assets but also his personal property such as his​ house, car, and personal bank account. This demonstrates the concept of​ ________.

• Double taxation

• Limited Liability

• Unlimited Liability

Shanti and Sirisha want to open a restaurant. Shanti is willing to contribute​ start-up capital to the business but wants to have no role in the​ day-to-day operation of the restaurant. Which form of business ownership would be most appropriate for​ them?

• Sole proprietorship

• Limited Partnership

• Cooperative

• General Partnership

What is the biggest advantage of a general​ partnership?

• Ability to grow

• All agreements are filed with the government

• 
  A stronger independent legal standing with the Internal Revenue Service

• 
  Guaranteed continue upon death of a partner