BUS 101, Chapter 3 ?s – Flashcards

Which of the following factors in NOT typically cited as a reason for small business success? A market demand for products or services provided B managerial competence C appropriate control systems D hard work, drive, and dedication

The most important benefit of sole proprietorships is _____. A failure B freedom C no liability D lack of privacy

Which of the following groups of small investors seeking to make profits on companies with rapid growth potential? A venture capital companies B government securities dealers C banks D equity managers

Which of the following are recent rends in small business startups? A entrepreneurs who cress over from big business B increased opportunities for women C increased opportunities for minorities D all of the above

Which of the following is NOT a common cause of business failure? A insufficient capital B managerial incompetence and inexperience C employee theft or sabotage D neglect

The ______ program consolidates information from various disciplines and institutions for use by new and existing business. A Small Business Development Center B Local Development Company C Progressive Loan D University Network

About what percent of all new businesses will not last six years? A 76% B 66% C 36% D 16%

A limited partner _______. A has absolutely no obligations to the firm at all B is not liable for the firm's debts C is liable for debts only to the limits of their investment D shares in a firm's management

A sole proprietor legally dissolves when _____. A the partners reorganize the firm's structure B the owner dies C earnings are less than $500,000 D sales exceed $1 million

Which of the following specializes in financing businesses that are owned and operated by minorities? A MESBICs B SEC C UNSCOMs D UNESCO

Lending institutions are more likely to help finance the purchase of an existing business rather than the startup of a business from scratch. True/False

Most businesses in the U.S are large businesses with more than 500 employees True/False

The Miller brothers (Jack, Bill, and Evan) are about to fulfill a life-long dream. They are buying a thousand acre farm and plan to grow cotton Seeking independence, they are not interested in bringing in any outside owners. They have obtained financing from the Farm Credit Bureau that will allow them to finance the purchase of the farm and some equipment The brothers are realistic and expect to work very long hours. However, they have a few critical decisions left to make. Assuming the farm is organized as a limited liability corporation, what are the disadvantages?

One growing trend has been that new businesses are started by people who have left big corporations and who want to put their experience to work True/False

A small business is classified as an independent business that is part of a larger business. True/False