Business 101 Midterm #3
T or F Sole Proprietorship is simple, quick and affordable to start. - ANS-True
Which website would you file with to start a business? - ANS-Business Oregon
What is TRUE about forms of businesses? - ANS-A Limited Liability Company is a
combination of corporations and partnerships
Sole Proprietorship is the most common and easiest way to start a business
Partnerships require at least two owners
T or F Ben & Jerry's focus on the community was their downfall. - ANS-False
Blank is considered a disadvantage of a partnership because it exposes all other
partners to a risk of poor business decisions by a single partner. - ANS-Mutual agency
Why did Ben & Jerry go public? - ANS-To raise capital in order to expand
Mutual agency means that a partner can make decisions on behalf of other partners. -
ANS-True
Blank is a form of partnerships in which some partners may be subjected to limited
liability. - ANS-Limited Partnership
What is NOT true about partnerships? - ANS-The business can last as long as it earns
profits (has an unlimited life)
Which of the following companies previously had someone as part of both top
management and the board of directors? - ANS-Tesla
Corporations are required by law to place the financial interest of their owners above
competing interests and even the public good. - ANS-True
The blank makes hiring decision on the top management. - ANS-The Board of Directors
Blank corporations such as Patagonia aren't non-profit organizations but they focus on
addressing the triple bottom line or 3P - people, planet and profit. - ANS-B, Benefit, and
Social Purpose
, T or F Preferred stock can be bought on public stock exchanges. - ANS-False
50% of all corporations are incorporated in California. - ANS-False
Which of the following is an advantage of an LLC? - ANS-Single taxation
Control over business decisions
Limited liability
Correct!
T or F Horizontal acquisition involves a company buying another company from within
the same industry. - ANS-True
What did Ben & Jerry worry about when Unilever acquired them? - ANS-Differences in
values
According to the Global Entrepreneurship Monitor (GEM), what percent of the U.S
population is actively involved in trying to start a new business? - ANS-10%
According to the survey from the video, what percent of adults in the U.S have
considered starting their own businesses? - ANS-72%
What is something that an entrepreneur seeks to do? - ANS-Direct their drive to
something for their benefit
Have control of their lives and provide the optimal situation for their families.
Have the opportunity to be creative
On average, what percent of a company's sales do new products account for? -
ANS-40%
All of the following are Entrepreneurial Trends except - ANS-All of the above are
Entrepreneurial Trends
Technological Advancements
International opportunities
Entrepreneurs as Heroes
Independent Lifestyles
Entrepreneurs use a tool which enables them to they exploit change as an opportunity
to form a new business or service. That tool is - ANS-Innovation
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