Chapter 4
Chapter 4, Part 2
Chapter 4, Part 3
Chapter 5
Chapter 5, Part 2
100
The most common form of business organization is:
What is sole proprietorship?
100
What does unlimited liability mean?
What is business damage and/or debts are solely responsible by the business owner?
100
Double taxation in a corporation means:
What is earnings of the corporation and dividends of the shareholders both are taxed?
100
The person who takes the risk of starting and managing a business to make a profit is called a(n):
What is an entrepreneur?
100
A well-written business plan should contain four main topics. These are outlined in the book. What are these four topics?
What are a table of contents, a marketing plan, a vision and mission statement, and a management plan?
200
What type of business organizations generates the most total sales?
What are corporations?
200
Stewed Tomatoes was an “all-girl-pop trio.” Its three members realized that many musicians feel stifled when making music in a sterile studio environment while the clock ticked away expensive hours, so the three girl band members created Materville Studios, a multimedia production house and recording studio in downtown Chicago. They share work responsibilities and profits equally. Materville Studios is a(n):
What is a partnership?
200
The two types of cooperatives are:
What are buyer and seller?
200
Becky Milligan saw a unique business opportunity in offering automobile financing to at-risk people. Becky decided to open her own company. She used her own money, wrote the business plan, and found the location for the business. Becky is an example of:
What is an entrepreneur?
200
The most common use of business plans is to:
What is persuade lenders and investors to finance the venture?
300
Linda owns a New York base computer company. She started the company with her own money. Linda makes all the decisions about the company, and it is profitable. Lately, however, Linda has been thinking of dissolving the company because she wants to start a family. Linda’s type of business is called what?
What is sole proprietorship?
300
The first step to incorporating a company is to:
What is select the company’s name?
300
Hard Rock Café International and Sol Sun Hotels and Resorts have allied to develop a multimillion-dollar hotel. This relationship is a ____because their alliance will end as soon as the hotel is completed.
What is joint venture? (In a joint venture, 2 or more companies form an alliance to pursue a specific project for a specified time period.)
300
Once Arnold Patel had decided he wanted to quit working as Web designer for a large advertising agency and go into some kind of business for himself, he did a self-assessment, which indicated that he had an entrepreneurial spirit. His next step will be to:
What is find the idea for his business?
300
The two forms of business financing are ____(borrowed funds) and _____ (ownership funds):
What is debt; equity?
400
What happens to a sole proprietorship when the owner dies?
What is dissolve at death?
400
Who owns a corporation?
What is everyone who owns a share of stock in the corporation?
400
A disadvantage of franchising to the franchisee is:
What is restricted operating freedom?
400
Becky was looking to start a small business so she could be her own boss. When she read that people spend up to 15 minutes every day staring at a bathroom stall door, she decided she would find advertisers who wanted to pay to have their advertising messages on bathroom stall doors. What are the four critical topics she should include in her business plan? (HINT: these are outlined in the book)
What are a management plan, the elements of the company that make it unique, an analysis of the market in which the company will operate, and a financial plan?
400
_____financing is a form of financing consisting of funds raised through the sale of stock in a business.
What is equity?
500
Karl Riddle plans to invest $5,000 in a partnership with his brother to produce and sell handcrafted violins, banjos, and other string instruments. Riddle does not plan to work in the business and wants no more liability than his investment. He should be a:
What is a limited partnership?
500
Aaron Medford has invested $600 in the corporate stock of a manufacturer of offshore oil drilling equipment. If the company goes bankrupt, the most Medford could lose would be:
What is $600?
500
Restricted operating freedom in franchising means that the franchisee must conform to franchisor-imposed restrictions in four areas. What are these four areas?
What are franchise product standards, facilities design, operating rules, and a specific, defined territory?
500
Kathy Elliot has decided that she will start an Internet company to sell reliable used cars to customers nationwide. She has decided to use the sole proprietorship business format. Elliot’s next step is to write a formal ____ before she applies for a business loan.
What is a business plan?
500
______financing is a form of business financing consisting of borrowed funds that must be repaid with interest over a stated time period.
What is debt?
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