Question 1

Assuming the farm is organized as a general partnership, what are the advantages?

Accepted Answer

The advantages of a general partnership ...

Question 2

General partnerships generate a substantial percentage of total sales revenue in the United States.

Accepted Answer

A) True 
 B)False

Question 3

Most businesses in the United States are large businesses with more than 500 employees.

Accepted Answer

A) True 
 B)False

Question 4

Explain sole proprietorships and partnerships. Discuss the advantages and disadvantages of each.

Accepted Answer

The sole proprietor is owned and usually...

Question 5

What is the most significant disadvantage of owning a franchise?

Accepted Answer

A)   start-up costs
B)   operational guidelines
C)   difficulty obtaining loans
D)   double taxation
E)   competition

Question 6

Which of the following is the most significant disadvantage of starting a business from scratch?

Accepted Answer

A)   having few employees
B)   inability to franchise
C)   having competition
D)   coming up with new ideas
E)   the risk of failure

Question 7

Answers to which of the following questions would be LEAST relevant to determining whether Christina has located a good opportunity in starting Redenda Pizza?

Accepted Answer

A)   Are there other pizza restaurants in the immediate vicinity of the planned location?
B)   Is the business of other pizza restaurants in the city growing?
C)   Does the planned location of the restaurant have competitive rent?
D)   Will Redenda Pizza offer unique ingredients in its food offerings?
E)   Would Christina bring unique talents and ideas to a restaurant business?

Question 8

What is the most important advantage of general partnerships?

Accepted Answer

A)   the unlimited liability of the partnership
B)   the ability to grow with the addition of new talent and money
C)   the ease of implementing an effective control system
D)   the increased role of luck
E)   the need for minority partners

Question 9

Which of the following, if True, would weaken the case for Short and Shearer buying an existing business?

Accepted Answer

A)   Short and Shearer could more easily obtain financing for the purchase.
B)   Buying an existing business involves fewer legal hurdles than starting a new one.
C)   Franchises have more potential for success than single-facility businesses.
D)   Short and Shearer have limited funds to start with.
E)   Existing businesses cost less to purchase than new ones.

Question 10

Should the Miller brothers develop a business plan? Why or why not?

Accepted Answer

A business plan would help the brothers ...

Question 11

The Internal Revenue Service taxes partners as individuals.

Accepted Answer

A) True 
 B)False

Question 12

Which form of business ownership would you recommend for the Miller brothers? Why?

Accepted Answer

Answers will vary and should b...

Question 13

What is the most effective way for an entrepreneur to become a competent manager?

Accepted Answer

A)   working alone
B)   relying on luck
C)   getting a college degree
D)   being open to opportunities
E)   working for a successful company first

Question 14

The Small Business Development Center program consolidates information from various disciplines and institutions for use by new and existing businesses.

Accepted Answer

A) True 
 B)False

Question 15

What resources does a sole proprietorship primarily depend on?

Accepted Answer

A)   the corporation
B)   foreign investors
C)   capital markets
D)   those of the owner
E)   a committed clientele

Question 16

Which form of business ownership generates the most sales in the United States?

Accepted Answer

A)   sole proprietorship
B)   general partnership
C)   cooperative
D)   corporation
E)   limited partnership

Question 17

In which business sector are cooperatives still important?

Accepted Answer

A)   manufacturing
B)   automotive
C)   public utilities
D)   agriculture
E)   health care

Question 18

Who invests all of the funds needed for a business but plays no role in its management?

Accepted Answer

A)   silent partner
B)   sole proprietor
C)   general partner
D)   principal
E)   director

Question 19

Describe the business plan and the start-up decisions made by small businesses. Identify sources of financial aid available to small businesses.

Accepted Answer

The starting point for virtually every n...

Question 20

Today, what percent of all businesses in the United States are registered as sole proprietors?

Accepted Answer

A)   94 percent
B)   72 percent
C)   54 percent
D)   28 percent
E)   10 percent

Exam 3: Entrepreneurship, New Ventures, and Business Ownership

Explain sole proprietorships and partnerships. Discuss the advantages and disadvantages of each.

Correct AnswerverifiedThe sole proprietor is owned and usually...View AnswerShow Answer

The Small Business Development Center program consolidates information from various disciplines and institutions for use by new and existing businesses.

Correct AnswerverifiedShow Answer

Describe the business plan and the start-up decisions made by small businesses. Identify sources of financial aid available to small businesses.

Correct AnswerverifiedThe starting point for virtually every n...View AnswerShow Answer

What resources does a sole proprietorship primarily depend on?

Correct AnswerverifiedShow Answer

What is the most significant disadvantage of owning a franchise?

Correct AnswerverifiedShow Answer

Which form of business ownership generates the most sales in the United States?

Correct AnswerverifiedShow Answer

In which business sector are cooperatives still important?

Correct AnswerverifiedShow Answer

Should the Miller brothers develop a business plan? Why or why not?

Correct AnswerverifiedA business plan would help the brothers ...View AnswerShow Answer

Assuming the farm is organized as a general partnership, what are the advantages?

Correct AnswerverifiedThe advantages of a general partnership ...View AnswerShow Answer

Answers to which of the following questions would be LEAST relevant to determining whether Christina has located a good opportunity in starting Redenda Pizza?

Correct AnswerverifiedShow Answer

General partnerships generate a substantial percentage of total sales revenue in the United States.

Correct AnswerverifiedShow Answer

What is the most effective way for an entrepreneur to become a competent manager?

Correct AnswerverifiedShow Answer

Today, what percent of all businesses in the United States are registered as sole proprietors?

Correct AnswerverifiedShow Answer

Who invests all of the funds needed for a business but plays no role in its management?

Correct AnswerverifiedShow Answer

Which form of business ownership would you recommend for the Miller brothers? Why?

Correct AnswerverifiedAnswers will vary and should b...View AnswerShow Answer

Which of the following is the most significant disadvantage of starting a business from scratch?

Correct AnswerverifiedShow Answer

What is the most important advantage of general partnerships?

Correct AnswerverifiedShow Answer

Which of the following, if True, would weaken the case for Short and Shearer buying an existing business?

Correct AnswerverifiedShow Answer

The Internal Revenue Service taxes partners as individuals.

Correct AnswerverifiedShow Answer

Most businesses in the United States are large businesses with more than 500 employees.

Correct AnswerverifiedShow Answer

Correct Answer
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The sole proprietor is owned and usually...
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Correct Answer
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Correct Answer
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The starting point for virtually every n...
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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A business plan would help the brothers ...
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Correct Answer
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The advantages of a general partnership ...
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Answers will vary and should b...
View Answer

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
verified

Correct Answer
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