Buisness 5 & 6 quiz – Flashcards

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question
By Filling out the correct Paperwork annually, any corporation can qualify to be classified as an S corporation. True or False
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False
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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
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True
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If a group of stockholders or management obtain all the stock of a previously publicly traded firm for themselves, this is referred to as:
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...
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A multination corporation is a firm that operated in serval countries True or Fals
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True
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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
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True
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A limited partnership refers to a partnership set up for a temporary purpose, such as a real estate development project. True or False
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False
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Franchising is popular in the United States, but legal barriers have limited its popularity in foreign countries. True or False
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False
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Limited partnerships are just like general partnerships, except that they are partners for a limited time period.True or False
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False
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Double taxation is a phenomenon that occurs with corporations that pay dividends. Which of the following scenarios is an accurate example of double taxation?
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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.
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An advantage of forming a sole proprietorship is that it allows the owner to have more time for leisure activities. True or False
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False
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Most entrepreneurs prefer working for someone else. True or False
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False
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A new business that sets up a(n) _____________ from the start is saving itself time and grief later.
answer
Good accounting system
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From a competitive standpoint, small businesses cannot expect to successfully compete with large corporations in international markets. True or False
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False
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Many micropreneurs operate home-based businesses in the service industry. True or False
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True
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Enterprise zones offer lower tax rates and government assistance to attract private business investment. True or False
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True
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A small business management course at a community college may offer entrepreneurs an opportunity to:
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meet with experienced entrepreneurs and learn from their advice.
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Individuals desiring to learn about small business operations are advised to learn from other entrepreneurs. True or False
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True
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After personal savings, the next largest source of capital for entrepreneurs is from:
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Friends and family
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Creative people working as entrepreneurs within a large organization are called intrapreneurs. True or False
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True
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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
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False
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Recent evidence suggests that the small business failure rate is significantly much higher than previously reported. True or False
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False
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If you have managerial skills and leadership ability, you also posses the personality to be an entrepreneur.
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False
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Entrepreneurs are less important now than in the past to the U.S. economy.
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False
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Most business opportunities offer entrepreneurs high levels of security and profits.
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False
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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:
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the value of an existing business is determined by what the business owns, what it earns, and what makes it unique.
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In order to better serve their customers, small business owners should avoid delegating authority to their employees.
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Fase
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Entrepreneurship involves accepting the risk of starting and running a business.
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True
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Jacques has eliminated the risk of entrepreneurship by preparing a detailed business plan.
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False
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Because of the growth of minority-owned businesses in the U.S., franchisors are becoming more focused on recruiting minority franchisees.
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True
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Connie is a general partner in a retail cookie store. Her personal assets are legally protected from the debts of the business.
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False
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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.
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False
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In a general partnership, all partners share in management of the business and in the liability for the firm's debts.
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True
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A merger involving a software producer and a clothing manufacturer is an example of a:
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Conglomerate merger
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A comparison of the three major forms of business ownership shows that sole proprietorships are usually the most difficult type of business to establish.
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False
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Compared to sole proprietorships, an advantage of partnerships is their ability to obtain more financial resources.
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True
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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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