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Worksheets9.24.21 Independent Practice Game
Total questions: 20
Worksheet time: 20mins
Which of the following BEST describes an established market?
One in which many firms compete according to relatively well-defined criteria
One in which a buyer can purchase rights to sell the goods or services of the seller
One in which there is no exploitation
One in which first-mover advantage can be established
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Which of the following is the BEST definition of entrepreneurship?
The process of seeking businesses opportunities under conditions of risk
A business owned, and usually operated, by one person who is responsible for all of its debts
A group of small investors who invest money in companies with rapid growth potential
Any advantage that comes to a firm because it exploits an opportunity before any other firm does
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Which of the following is one of the MOST significant trends for a small business start-ups?
Minority and Women owned businesses
E-commerce
Global opportunities
Crossovers
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In which industry are small businesses most prevalent?
Construction
Retail
Wholesale
Services
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A buyer that directly contacts a corporation’s stockholders and presents an offer to buy shares of the company is using a legal process known as a:
merger
joint venture
tender offer
niche
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Which of the following is the BEST example of a general partnership?
Sam, Will, and Josie open and operate a ski apparel shop together.
Two doctors set up a corporation to protect themselves from unlimited professional liability.
Ruby gives money to her grandson to finance a bicycle shop but will not manage operations.
Rashad buys an apparel design firm.
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What is unlimited liability?
A legal principle that holds owners responsible for paying off all debts of a business
A type of partnership consisting of limited partners and a general partner
A partner who actively manages a firm and who has unlimited liability for its debts
A partner that does not share in a firm’s management and is liable for its debts only to the limits of said partner’s investment
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To obtain information about registering the name of his new mobile burrito truck business, Kevin would MOST likely consult with _______.
the Small Business Development Center
a venture capital company
the Small Business Administration
an S corporation
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What is the role of the Board of Directors in a publicly held corporation?
Running the day-to-day aspects of the business
Communicating with stockholders and setting financial policy
The internal management of various functions within the organization
To ensure the overall performance of executive officers
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Eli, Ron, and Charlie decide to set up their new business as a limited liability corporation (LLC), which is a hybrid of these two types of corporations: a _______ and a partnership.
closely held corporation
sole proprietorship
public corporation
multinational
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Entrepreneurs sometimes try to launch new business ventures in their spare time, devoting very little time to the new business. Which of the following would indicate why such a business would fail?
Managerial incompetence
Weak control systems
Neglect
Insufficient capital
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In order to be considered a small business by the Small Business Administration, what two conditions must be met?
The business must have fewer than 2.500 employees regardless of revenues.
The business must have fewer than 1,500 employees and a relatively low annual revenue.
The business must have more than 3,500 employees with relatively low annual revenues.
The business must have fewer than 4,500 employees with relatively high annual revenues.
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Which of the following BEST describes a transnational corporation?
A closely held corporation in which the stock is held by only a few people
One that is organized much like a publicly held corporation, subject to additional regulation, and subject to partnership taxation
One that is subject to partnership taxation, provides limited business liability, and provides unlimited professional liability
A corporation that operates in more than one country, is subject to the regulations of those countries, and may trade stock on different exchanges
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When one firm buys another firm of approximately the same size to create a new corporation, the transaction is typically called a _______.
tender offer
sole proprietorship
spin off
merger
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Which of the following is licensed by the government to borrow funds from the Small Business Administration (SBA) and loan it to small businesses?
A board of directors
An employee stock ownership plan
A venture capital company
A small business investment company
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What is an S Corporation?
A hybrid of a closely held corporation and a partnership that is organized and operated like a corporation but treated as a partnership for tax purposes
A corporation whose stock is widely held and available for sale to the general public
A corporation whose stock is held by only a few people and it not available for sale to the general public
A hybrid of a publicly held corporation and a partnership in which owners are taxed as partners but enjoy the benefits of limited liability
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The U.S. Small Business Administration regards companies with as many as ___________ employees as small, but only if the business has relatively low annual revenues.
1,500
2,500
3,500
4,500
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Which of the following is a strategic alliance in which the collaboration involves joint ownership of the new venture?
Divestiture
Spin off
Joint venture
Acquisition
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Which of the following is the BEST example of an acquisition?
Lienna grew up on a dairy farm and wants to open her own specialty cheese shop, and she is aware of and accepts the risks and rewards of opening a new business.
Sven’s business, Pineapple Press, designs and prints custom creations, but he is selling the printing arm of the business because it has become too cumbersome to manage.
A large carpet manufacturer that uses natural fibers purchases Bamboo Flooring in its entirety and takes control of all product lines and operations.
Lexie and her husband purchase the right to sell donuts using the recipes and marketing power of a parent corporation.
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Which of the following business models is limited by its ability to serve only the specific needs of their members?
Sole proprietorship
Limited partnership
Partnership
Cooperative
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