question

By Filling out the correct Paperwork annually, any corporation can qualify to be classified as an S corporation. True or False

answer

False

question

A merger is a mutual agreement where a firm joins together with another firm, whereas an acquisition is when one firm purchases the assets and obligations of another firm. True or Fals

answer

True

question

If a group of stockholders or management obtain all the stock of a previously publicly traded firm for themselves, this is referred to as:

answer

...

question

A multination corporation is a firm that operated in serval countries True or Fals

answer

True

question

A franchise agreement is an arrangement where a franchisor sells the rights to a business name and the right to sell a product of service within a given territory to a franchisee. True Or False

answer

True

question

A limited partnership refers to a partnership set up for a temporary purpose, such as a real estate development project. True or False

answer

False

question

Franchising is popular in the United States, but legal barriers have limited its popularity in foreign countries. True or False

answer

False

question

Limited partnerships are just like general partnerships, except that they are partners for a limited time period.True or False

answer

False

question

Double taxation is a phenomenon that occurs with corporations that pay dividends. Which of the following scenarios is an accurate example of double taxation?

answer

If Idle Time Gaming, Inc., distributes 20% of its net profit after taxes to its stockholders; these funds will be taxed again, when each individual stockholder claims his/her portion as earnings.

question

An advantage of forming a sole proprietorship is that it allows the owner to have more time for leisure activities. True or False

answer

False

question

Most entrepreneurs prefer working for someone else. True or False

answer

False

question

A new business that sets up a(n) _____________ from the start is saving itself time and grief later.

answer

Good accounting system

question

From a competitive standpoint, small businesses cannot expect to successfully compete with large corporations in international markets. True or False

answer

False

question

Many micropreneurs operate home-based businesses in the service industry. True or False

answer

True

question

Enterprise zones offer lower tax rates and government assistance to attract private business investment. True or False

answer

True

question

A small business management course at a community college may offer entrepreneurs an opportunity to:

answer

meet with experienced entrepreneurs and learn from their advice.

question

Individuals desiring to learn about small business operations are advised to learn from other entrepreneurs. True or False

answer

True

question

After personal savings, the next largest source of capital for entrepreneurs is from:

answer

Friends and family

question

Creative people working as entrepreneurs within a large organization are called intrapreneurs. True or False

answer

True

question

In order to qualify for a microloan from the SBA, an entrepreneur must have adequate collateral, and a proven track record of success. True or False

answer

False

question

Recent evidence suggests that the small business failure rate is significantly much higher than previously reported. True or False

answer

False

question

If you have managerial skills and leadership ability, you also posses the personality to be an entrepreneur.

answer

False

question

Entrepreneurs are less important now than in the past to the U.S. economy.

answer

False

question

Most business opportunities offer entrepreneurs high levels of security and profits.

answer

False

question

Motivated by his desire to operate his own business, Nick considers purchasing an existing business. As he carefully weighs this option, he is likely to find that:

answer

the value of an existing business is determined by what the business owns, what it earns, and what makes it unique.

question

In order to better serve their customers, small business owners should avoid delegating authority to their employees.

answer

Fase

question

Entrepreneurship involves accepting the risk of starting and running a business.

answer

True

question

Jacques has eliminated the risk of entrepreneurship by preparing a detailed business plan.

answer

False

question

Because of the growth of minority-owned businesses in the U.S., franchisors are becoming more focused on recruiting minority franchisees.

answer

True

question

Connie is a general partner in a retail cookie store. Her personal assets are legally protected from the debts of the business.

answer

False

question

In order to establish a C-Corporation, it is a requirement that investors run the company, whereas in an S-Corporation, this is not the case.

answer

False

question

In a general partnership, all partners share in management of the business and in the liability for the firm's debts.

answer

True

question

A merger involving a software producer and a clothing manufacturer is an example of a:

answer

Conglomerate merger

question

A comparison of the three major forms of business ownership shows that sole proprietorships are usually the most difficult type of business to establish.

answer

False

question

Compared to sole proprietorships, an advantage of partnerships is their ability to obtain more financial resources.

answer

True

question

A ___________ is an organization that is owned and controlled by the people who use it—producers, consumers and workers with similar needs pool their resources for mutual gain.

answer

Cooperative

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