OLS 274 EXAM 2 – 4 QUESTIONS AND ANSWERS
Angie wants to be her own boss, but she doesn't have an idea for a profitable business.
What could Angie do to help her identify a successful business idea? - Answer -Make a
list of her interests and abilities and a list of businesses that match these interests and
abilities
In 2009, Walmart started working together with another company in India by forming a
__________ with Bharti Enterprises, Inc., one of India's leading business groups. -
Answer -joint venture
An acquisition occurs when ________. - Answer -one company purchases the property
and assumes the obligations of another company
Michael is a successful financial advisor looking to invest money directly into a new
consulting business in return for equity in the company. Michael is an example of a(n)
________. - Answer -angel investor
James is putting together a business plan for his new bookstore and café. Which of the
following will NOT be part of his business plan? - Answer -a detailed, itemized budget
for the entire fiscal year
___________ use their own capital supplemented with government loans to invest in
small businesses. - Answer -Small Business Investment Companies (SBICs)
After starting a web design company while still in college, Rodrigo sold the company
after graduation. He then opened a computer repair shop; and most recently, he has
started a marketing firm that specializes in social media. Rodrigo is an example of a(n):
- Answer -serial entrepreneur
Assume that Microsoft decides to invest some of its excess cash by acquiring fellow
Seattle-based Starbucks Coffee. This would be a ________. - Answer -conglomerate
merger
Entrepreneurs possess all of the following traits EXCEPT ________. - Answer -low
self-confidence
Which of the following persons is LEAST likely to become an ENTREPRENEUR? -
Answer -a calm, low-energy person
The stock of Old Germany Brewery is totally owned by the Prechter family. When the
family elected to move from a sole proprietorship to a corporation, the greatest concern
was ________. - Answer -double taxation
, Sole proprietorships have all of the following advantages EXCEPT ________. - Answer
-unlimited life
If Smith Steel buys Kennedy Iron Ore to assure itself of a constant flow of ore, this is an
example of a ________. - Answer -vertical merger
Which of the following is the leading cause of today's small business failures? - Answer
-management shortcomings
Dina is a single mother who is required to work evenings and weekends at a local retail
store. She is thinking of starting a consulting business primarily so she can ________. -
Answer -enjoy a higher quality life
Anita established a corporation in Nebraska, but she recently moved to Colorado where
she now conducts her business. What type of corporation does Anita own? - Answer -
foreign competition
Although the average farm size has increased in recent years the majority of farmers
operate as ________ businesses. - Answer -small
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. - Answer -debt financing
Logan is an entrepreneur who takes personal responsibility for the success or failure of
his actions rather than believing in luck or fate. Which characteristic best describes
Logan's entrepreneurial philosophy? - Answer -internal locus of control
All of the following are duties of the board of directors of a corporation EXCEPT
________. - Answer -guaranteeing the payment of cash dividends every year
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. -
Answer -common
Jada is opening her own bakery. Jada is an example of a(n) ________. - Answer -
entrepreneur
All of the following are contributions of small businesses EXCEPT: - Answer -They
provide more job security than large corporations.
Many businesses fail during the early years because of ________ - Answer -
inadequate financing
Angie wants to be her own boss, but she doesn't have an idea for a profitable business.
What could Angie do to help her identify a successful business idea? - Answer -Make a
list of her interests and abilities and a list of businesses that match these interests and
abilities
In 2009, Walmart started working together with another company in India by forming a
__________ with Bharti Enterprises, Inc., one of India's leading business groups. -
Answer -joint venture
An acquisition occurs when ________. - Answer -one company purchases the property
and assumes the obligations of another company
Michael is a successful financial advisor looking to invest money directly into a new
consulting business in return for equity in the company. Michael is an example of a(n)
________. - Answer -angel investor
James is putting together a business plan for his new bookstore and café. Which of the
following will NOT be part of his business plan? - Answer -a detailed, itemized budget
for the entire fiscal year
___________ use their own capital supplemented with government loans to invest in
small businesses. - Answer -Small Business Investment Companies (SBICs)
After starting a web design company while still in college, Rodrigo sold the company
after graduation. He then opened a computer repair shop; and most recently, he has
started a marketing firm that specializes in social media. Rodrigo is an example of a(n):
- Answer -serial entrepreneur
Assume that Microsoft decides to invest some of its excess cash by acquiring fellow
Seattle-based Starbucks Coffee. This would be a ________. - Answer -conglomerate
merger
Entrepreneurs possess all of the following traits EXCEPT ________. - Answer -low
self-confidence
Which of the following persons is LEAST likely to become an ENTREPRENEUR? -
Answer -a calm, low-energy person
The stock of Old Germany Brewery is totally owned by the Prechter family. When the
family elected to move from a sole proprietorship to a corporation, the greatest concern
was ________. - Answer -double taxation
, Sole proprietorships have all of the following advantages EXCEPT ________. - Answer
-unlimited life
If Smith Steel buys Kennedy Iron Ore to assure itself of a constant flow of ore, this is an
example of a ________. - Answer -vertical merger
Which of the following is the leading cause of today's small business failures? - Answer
-management shortcomings
Dina is a single mother who is required to work evenings and weekends at a local retail
store. She is thinking of starting a consulting business primarily so she can ________. -
Answer -enjoy a higher quality life
Anita established a corporation in Nebraska, but she recently moved to Colorado where
she now conducts her business. What type of corporation does Anita own? - Answer -
foreign competition
Although the average farm size has increased in recent years the majority of farmers
operate as ________ businesses. - Answer -small
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. - Answer -debt financing
Logan is an entrepreneur who takes personal responsibility for the success or failure of
his actions rather than believing in luck or fate. Which characteristic best describes
Logan's entrepreneurial philosophy? - Answer -internal locus of control
All of the following are duties of the board of directors of a corporation EXCEPT
________. - Answer -guaranteeing the payment of cash dividends every year
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. -
Answer -common
Jada is opening her own bakery. Jada is an example of a(n) ________. - Answer -
entrepreneur
All of the following are contributions of small businesses EXCEPT: - Answer -They
provide more job security than large corporations.
Many businesses fail during the early years because of ________ - Answer -
inadequate financing
