question

Borrow funds to buy out the firm's stockholders.

answer

In a leveraged buyout, the managers of a firm, its employees, or other investors:

question

Taxed only as Javier's personal income.

answer

Javier is the sole proprietor of a golf shop. Because he is a sole proprietor, any profit Javier's business earns is:

question

Incubators

answer

State and city governments have promoted facilities where new businesses can open up shop and share common services such as secretarial, accounting, and legal services. Due to their remarkable success rate, _______________ continue to grow in popularity.

question

Closed corporation

answer

Trevor and Tyler own all the stock in the Double T Corporation. The stock of this corporation is not sold to the general public. Trevor and Tyler own a:

question

False

answer

T/F: If a sole proprietorship fails, the owner may lose whatever was invested in the business; however, the owner's personal assets are not at risk.

question

True

answer

T/F: Small businesses can often provide more personalized customer service than bigger rivals.

question

True

answer

T/F: A general partner takes an active role in the management of the business.

question

True

answer

T/F: Venture capitalists provide funds for start-up businesses in exchange for part ownership in the new firm.

question

Is usually simpler and less expensive than starting other forms of ownership.

answer

Starting a new business as a sole proprietorship:

question

True

answer

T/F: Anthony is an employee of a textbook publisher. However, his desire is to establish a home-based business providing his services to a variety of publishers. Anthony's primary motivation is to escape the 9 to 5 world of corporate publishing and to enjoy the opportunity of working for himself. Anthony is an example of a micropreneur.

question

Will use the firm's existing resources to develop new products.

answer

Keaton is an intrapreneur for a multinational electronics company. As an intrapreneur Keaton:

question

False

answer

T/F: By filling out the correct paperwork annually, any corporation can qualify to be classified as an S corporation.

question

False

answer

T/F: When writing a business plan, prospective entrepreneurs should remember to omit details regarding their experience and education since investors are only interested in the proposed business.

question

True

answer

T/F: Independence, challenge, and opportunity are among the key reasons given by those who assume the risks of entrepreneurship.

question

Intrapreneurs work within existing corporations while entrepreneurs assume the risks of starting their own business.

answer

Which of the following best describes the difference between an intrapreneur and an entrepreneur?

question

False

answer

T/F: An intrapreneur is the creative person who starts and manages a nonprofit organization.

question

False

answer

T/F: A legal entity with authority to act and have liability separate from its owners is called a partnership.

question

True

answer

T/F: In a general partnership, all partners share in management of the business and in the liability for the firm's debts.

question

False

answer

T/F: Ted and Mark are partners in a dry cleaning business. They would like their brother Todd to join them. Unfortunately, partnership law states that only two partners can participate in a partnership.

question

Bring a variety of talent to the business venture

answer

Successful entrepreneurial teams:

question

True

answer

T/F: The three major forms of business ownership in the U.S. are sole proprietorships, partnerships, and corporations.

question

In relation to other firms in its industry.

answer

A business's size is measured:

question

False

answer

T/F: A major advantage of sole proprietorships is that an owner has limited liability for the debts of his or her business.

question

False

answer

T/F: If a corporation has after-tax profits of $360,000, and elects to distribute this amount in the form of dividends to its stockholders, these distributions are free and clear of taxes because the corporation paid taxes on this amount prior to distribution.

question

False

answer

T/F: Venture capitalists provide funds for small businesses as part of their philanthropy programs.

question

Corporation

answer

The form of business ownership best suited to raising large amounts of money for expansion is the:

question

Does business in one or more states, but is chartered in another state

answer

Which of the following statements is the most accurate? A foreign corporation:

question

False

answer

T/F: Business plans are necessarily a bit vague since these are prepared prior to the beginning of business operations.

question

True

answer

T/F: A good business plan describes the nature of the proposed business, the target market, the competitive advantages, and the qualifications of the owners.

question

False

answer

T/F: Since creating a detailed business plan is almost impossible, entrepreneurs should focus on the other tasks needed to get their firm started.

MGMT 1: Chapter 4 – Flashcards

Unlock all answers in this set

Haven't found what you were looking for?

Search for samples, answers to your questions and flashcards