OLS 274 EXAM 2 REVIEW QUESTIONS
AND ANSWERS GRADED A+ 2025/2026
The Small Business Administration (SBA) provides all of the following EXCEPT:
-loan guarantees
-advice from retired executives
-access to venture capitalists
-business incubators - ANS business incubators
Sole proprietorships have all of the following advantages EXCEPT ________.
-unlimited life
-profits subject only to a single tax
-ease of liquidation
-ease of formation - ANS unlimited life
Which of the following is the leading cause of today's small business failures?
-no marketing plan
-management shortcomings
-location
-poor products and/or services - ANS management shortcomings
1 @COPYRIGHT 2026 ALLRIGHTS RESERVED.
,The ________ is most likely an example of public ownership.
-city sewer system
-television company
-movie theater
-trucking company - ANS city sewer system
Owners of small businesses can increase their chances of success if they:
-become an expert in legal, financial, marketing, and other related business areas.
-hire only family members or friends.
-understand their own limitations.
-incorporate their business. - ANS understand their own limitations.
True or false: Entrepreneurs enjoy guaranteed job security because no one can fire them. -
ANS false
True or false: Small businesses produce over 16 times more patents than large businesses each
year. - ANS true
Kayla is opening a home HEALTH CARE business that she knows will do well in her community
based on prior research. Although she must repay borrowed funds, Kayla chooses to maintain
complete control over the business without having to answer to investors or partners.
-sole proprietor financing
-venture financing
-debt financing
-equity financing - ANS debt financing
2 @COPYRIGHT 2026 ALLRIGHTS RESERVED.
, ___________ must verify in writing the accuracy of their corporation's financial statements.
-CEOs and CFOs
-government officials
-stockholders
-board members - ANS CEOs and CFOs
Which of the following persons is LEAST likely to become an ENTREPRENEUR?
-An intelligent person
-A flexible person
-A calm, low-energy person
-An inquisitive person - ANS A calm, low-energy person
True or false: The set-aside program designates that a percentage of government contracts must
be awarded to qualifying small businesses. - ANS True
Isabella owns 100 shares of IBM ________ stock, which means she has voting rights on
company decisions at IBM, but only residual claims on the company's assets.
-common
-preferred
-management
-principal - ANS common
Many businesses fail during the early years because of ________.
-poor planning
-unmotivated owners
3 @COPYRIGHT 2026 ALLRIGHTS RESERVED.
AND ANSWERS GRADED A+ 2025/2026
The Small Business Administration (SBA) provides all of the following EXCEPT:
-loan guarantees
-advice from retired executives
-access to venture capitalists
-business incubators - ANS business incubators
Sole proprietorships have all of the following advantages EXCEPT ________.
-unlimited life
-profits subject only to a single tax
-ease of liquidation
-ease of formation - ANS unlimited life
Which of the following is the leading cause of today's small business failures?
-no marketing plan
-management shortcomings
-location
-poor products and/or services - ANS management shortcomings
1 @COPYRIGHT 2026 ALLRIGHTS RESERVED.
,The ________ is most likely an example of public ownership.
-city sewer system
-television company
-movie theater
-trucking company - ANS city sewer system
Owners of small businesses can increase their chances of success if they:
-become an expert in legal, financial, marketing, and other related business areas.
-hire only family members or friends.
-understand their own limitations.
-incorporate their business. - ANS understand their own limitations.
True or false: Entrepreneurs enjoy guaranteed job security because no one can fire them. -
ANS false
True or false: Small businesses produce over 16 times more patents than large businesses each
year. - ANS true
Kayla is opening a home HEALTH CARE business that she knows will do well in her community
based on prior research. Although she must repay borrowed funds, Kayla chooses to maintain
complete control over the business without having to answer to investors or partners.
-sole proprietor financing
-venture financing
-debt financing
-equity financing - ANS debt financing
2 @COPYRIGHT 2026 ALLRIGHTS RESERVED.
, ___________ must verify in writing the accuracy of their corporation's financial statements.
-CEOs and CFOs
-government officials
-stockholders
-board members - ANS CEOs and CFOs
Which of the following persons is LEAST likely to become an ENTREPRENEUR?
-An intelligent person
-A flexible person
-A calm, low-energy person
-An inquisitive person - ANS A calm, low-energy person
True or false: The set-aside program designates that a percentage of government contracts must
be awarded to qualifying small businesses. - ANS True
Isabella owns 100 shares of IBM ________ stock, which means she has voting rights on
company decisions at IBM, but only residual claims on the company's assets.
-common
-preferred
-management
-principal - ANS common
Many businesses fail during the early years because of ________.
-poor planning
-unmotivated owners
3 @COPYRIGHT 2026 ALLRIGHTS RESERVED.
