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What are the advantages and disadvantages for a franchisee?

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The advantages of franchising include ac...

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Neglect is a major factor that contributes to small business failure.

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Which of the following industry groups is the fastest growing segment of small business enterprise?


A) Manufacturing
B) Wholesaling
C) Retailing
D) Transportation
E) Services

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E

What is created when a corporation creates a new operation with another firm?


A) Divestiture
B) Spin-off
C) Joint venture
D) Merger
E) Acquisition

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Why would an organization divest some of its existing business operations?


A) To focus more on its core business
B) To create new partnerships
C) Because the divested business is more valuable as a separate company
D) To buy another firm outright
E) To create a new company from several smaller ones

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Franchisees may be obligated to contribute a percentage of sales to parent corporations.

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Explain the role of a corporation's board of directors.

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The board of directors is responsible fo...

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Which of the following can assist a small business and helps to determine standards based on industry?


A) The U.S. Department of Commerce
B) The Small Business Administration
C) A franchise
D) Venture capitalist
E) The Small Business Development Center

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Which of the following occurs when an organization sells part of a business or operation to another corporation?


A) Merger
B) Acquisition
C) Divestiture
D) Buy out
E) Spin off

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C

Most successful entrepreneurs have a strong desire to be their own bosses.

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A new business should have enough capital to operate at least how many months without earning a profit?


A) 1
B) 2
C) 4
D) 6
E) 9

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What is a major drawback of sole proprietorships?


A) Short-term focus of shareholders
B) Work flexibility
C) Low start-up costs
D) Unlimited liability
E) Structured hours

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When income is taxed at the corporate level and on shareholder returns as dividends,what is this situation known as?


A) Dual costs
B) Double taxation
C) Regulatory costs
D) Double ownership
E) Financial balancing

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Discuss the advantages and disadvantages of partnerships.

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Advantages of partnerships include their ability to grow with the addition of new talent and money,ease of organization,and independent legal status.Disadvantages are unlimited liability,potential lack of continuity,difficulty of transferring ownership,and little or no guidance for resolving internal conflicts.

What type of corporation issues stock that is held by only a few people and not available to the public?


A) Limited liability
B) Subchapter S
C) Public
D) Closely held
E) Professional

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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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People who assume the risk of business ownership with a primary goal of growth and expansion are called entrepreneurs.

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In order to exert influence on corporate managers,groups can pool resources to buy huge blocks of stock.These groups are known as


A) spin offs.
B) ESOPS.
C) joint ventures.
D) institutional investors.
E) strategic alliances.

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A corporation must be managed on the principles of corporate governance.Explain what this is.

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Corporate governance is the role of shar...

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Which distinctive competency must an entrepreneur identify when attempting to enter a market segment that is not currently being exploited?


A) The ability to identify new markets
B) The ability to identify niche markets
C) The ability to differentiate themselves from others in the market
D) The ability to gauge prices to get the highest return without driving away customers
E) The ability to move quickly to take advantage of new opportunities

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