Business Administration Midterm Exam – Flashcards
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The Small Business Administration is the government agency charged with owning small businesses.
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FALSE
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Small businesses produce more patents per employee than large patenting firms.
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TRUE
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Most businesses in the United States are large businesses with more than 500 employees.
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FALSE
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Major innovations are most likely to come from large corporations.
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FALSE
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Manufacturing is overwhelmingly handled by big business.
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TRUE
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People who assume the risk of business ownership with a primary goal of growth and expansion are called entrepreneurs.
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TRUE
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Most successful entrepreneurs have a strong desire to be their own bosses
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TRUE
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A business plan demonstrates how an entrepreneur's business strategy will be implemented.
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TRUE
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Franchisees may be obligated to contribute a percentage of sales to parent corporations.
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TRUE
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Loans are the most important sources of money for new businesses.
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FALSE
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Lending institutions are more likely to help finance the purchase of an existing business rather than the start-up of a business from scratch.
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TRUE
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A group of small investors who invest money in companies in return for partial ownership is known as a small-business development company.
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FALSE
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Small-business investment companies (SBICs) may be sponsored by the federal government.
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TRUE
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The least common type of partnership is the general partnership.
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FALSE
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A limited liability corporation is a hybrid of a publicly held corporation and a partnership.
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TRUE
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Many new businesses are started by people who have left big corporations.
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TRUE
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The failure rate among small businesses has been increasing in recent years.
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FALSE
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Neglect is a major factor that contributes to small business failure.
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TRUE
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Low start-up costs and tax benefits are advantages of sole proprietorships.
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TRUE
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By law, each general partner is liable for all debts incurred in the name of the partnership.
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TRUE
