Which of the following are groups of small investors seeking to make profits on companies with rapid growth potential?
Select one:
a. equity managers
b. government securities dealers
c. venture capital companies
d. banks
The roles of shareholders, directors, and other managers in corporate decision-making are called _____.
Select one:
a. articles of incorporation
b. bylaws
c. corporate governance
d. partnership agreements
____ are people who assume the risk of business ownership.
Select one:
a. Directors
b. Entrepreneurs
c. Managers
d. Executives
According to authors of your textbook, a new business should have enough capital to operate at least how many months without earning a profit?
Select one:
a. 3
b. 6
c. 5
d. 4
Stock in XYZ company is not available for sale to the general public. XYZ is an example of a _____.
Select one:
a. private corporation
b. master limited partnership
c. public corporation
d. sole proprietorship
The organizational form defined as an artificial being, invisible, intangible, and existing only in contemplation of the law is a _____.
Select one:
a. cooperative
b. corporation
c. master limited partnership
d. sole proprietorship
When a firm sells part of itself in order to raise capital, it is called a _____.
Select one:
a. spin-off
b. divestiture
c. Employee Stock Ownership Plan
d. merger
In a _____, an entrepreneur summarizes business strategy for a new venture and shows how it will be implemented.
Select one:
a. business plan
b. franchise agreement
c. venture capital plan
d. master limited partnership plan
Which of the following legal forms of business is owned and usually operated by one person who is responsible for its debts?
Select one:
a. sole proprietorship
b. spin-off
c. limited partnership
d. corporation
The biggest advantage of regular corporations is _____.
Select one:
a. ease of limiting ownership
b. limited liability
c. lack of continuity
d. private ownership
A major drawback of sole proprietorships is _____.
Select one:
a. inflexibility
b. unlimited liability
c. low startup costs
d. limited liability
The most striking advantage of general partnerships is _____.
Select one:
a. their lack of legal standing
b. their ability to grow with the addition of new talent and money
c. the unlimited liability of the partnership
d. the lack of continuity
A _____ is a business with two or more owners who share in the operation of the firm and are financially responsible for its debts.
Select one:
a. sole proprietorship
b. cooperative
c. general partnership
d. corporation
A _____ is independent and does not dominate its market.
Select one:
a. partnership
b. franchise
c. small business
d. sole proprietorship
An arrangement that permits the buyer to sell the product of the seller, or parent company, is called a _____.
Select one:
a. franchise
b. government entity
c. joint venture
d. not for profit organization
A _____ invests money in a partnership but is liable only to the extent of his/her investment.
Select one:
a. master partner
b. active partner
c. general partner
d. limited partner
Which of the following occurs when two firms combine to create a new company?
Select one:
a. merger
b. strategic alliance
c. divestiture
d. acquisition
The owners of a corporation are the _____.
Select one:
a. officers
b. board of directors
c. top managers
d. stockholders
According to the text, which of the following are reasons for buying an existing business rather than starting a new one from scratch?
Select one:
a. proven ability to draw customers
b. all of the answers are good reasons
c. better odds of success
d. established track record
The U.S. Small Business Administration considers a business small if it has no more than how many employees?
Select one:
a. 1500
b. 500
c. 1000
d. 100
Chapter 4 Quiz - 14/SU BBA-131-98
A nation's _____ is the economic value of all of the products that a company exports minus the economic value of its imports.
Select one:
a. standard of living
b. balance of payments
c. trade deficit
d. balance of trade
The _____ is the common currency for much of the European Union.
Select one:
a. euro
b. franc
c. pound
d. yen
Which of the following exists when a country can produce something more cheaply and/or of higher quality than any other country can?
Select one:
a. comparative advantage
b. national competitive advantage
c. absolute advantage
d. marketing advantage
Under _____, Canada, the United States, and Mexico will gradually eliminate tariffs and all other trade barriers.
Select one:
a. ASEAN
b. the European Union
c. NAFTA
d. USCAMX
Which of the following restricts the number of products of a certain type that can be imported into a country?
Select one:
a. tariff
b. quota
c. subsidy
d. dumping
A country has a _____ in goods it can produce more efficiently than other goods.
Select one:
a. absolute advantage
b. monopolistic advantage
c. comparative advantage
d. national competitive advantage
The ABC Paint Company in the United States has joined forces with the 1-2-3 Plastics Company in Italy to create a non-pealing, plastics-based paint. Both companies intend to share the research costs and any profits. This is an example of _____.
Select one:
a. a strategic alliance
b. a marketing plan
c. a licensing arrangement
d. foreign direct investment
Selling a product abroad for less than the cost of production is called _____.
Select one:
a. dumping
b. quota
c. tariff
d. subsidy
When a country's exports exceed its imports, the nation has a _____.
Select one:
a. trade surplus
b. negative balance of trade
c. trade deficit
d. none of the answers are correct
A government order forbidding exportation and/or importation of a particular product from a particular country is called an _____.
Select one:
a. absolute advantage
b. exchange rate
c. embargo
d. export
What organization was founded in Pacific Asia in 1967 for economic, political, social, and cultural cooperation?
Select one:
a. the European Union
b. The Pacific Asian Union
c. NAFTA
d. ASEAN
Products created abroad and then transported and sold domestically are called _____.
Select one:
a. buy backs
b. subsidies
c. exports
d. imports
Which of the following international organization strategies consists of firms giving individuals or companies in a foreign country exclusive rights to manufacture or market their products in that market?
Select one:
a. strategic alliances
b. independent agents
c. licensing arrangements
d. branch offices
Products created domestically and transported for sale abroad are called _____.
Select one:
a. returns
b. exchange rates
c. imports
d. exports
Which of the following type of firm conducts a significant portion of its business abroad?
Select one:
a. an importer
b. a domestic firm
c. an exporter
d. an international firm
Benefits to globalization include _____.
Select one:
a. obtaining cheaper resources
b. improved business profitability
c. all of the answers are benefits
d. potential for higher standards of living
Which of the following is a tax on imported goods or products?
Select one:
a. quota
b. tariff
c. embargo
d. subsidy
An exchange rate _____.
Select one:
a. has little impact on balance of trade
b. is the rate at which the currency of one nation can be exchanged for that of another
c. tends to fluctuate a great deal on a daily basis
d. tends to be fixed between two countries
Which of the following is a government payment to help a domestic business compete with foreign firms?
Select one:
a. embargo
b. subsidy
c. quota
d. tariff
A _____ is an international competitive advantage derived from a combination of four conditions: factor conditions, demand conditions, related and supporting industries and strategies, structures and rivalries
Select one:
a. comparative advantage
b. absolute advantage
c. global business advantage
d. national competitive advantage