BUSI 101 Connect Assignment 3 Quiz solutions complete answers

BUSI 101 Connect Assignment 3 Quiz solutions complete answers 

 

Advantages of ________ include reduced start-up fees and no territory restrictions.

 

A few years ago, in order to gain market share, Blackboard™, a well-known management system software company used by many colleges and universities, joined forces with WEB CT™, another management system software company. Both companies were in the same industry and originally competed against one another. In business, we would call the joining of these two firms a(n)

 

In his search for a franchised business that would satisfy his passion for the outdoors and earn him a decent living, Andrew noted that the shared profit criterion required of franchisors had significant variance. Some required franchisees to pay 7% of their monthly revenues to the franchisor. Others required 4% of the profits. In business we refer to this obligation as a

 

In a ________, members democratically control the business by electing a board of directors that hires professional management to run the business.

 

Unlimited liability means

 

What are the primary sources of funding for entrepreneurs?

 

Why do incubator facilities continue to remain very popular with start-up businesses?

 

Which of the following is a FALSE statement about small business?

 

A small business advantage is

 

What is SCORE?

 

Which form of business ownership is the most common in the United States?



When Gene started his window-washing business, he wanted to keep things simple. He liked the idea of being his own boss and the possibility of leaving the business one day to his son. He chose the type of business that was easy to start, allowed him to keep company profits, and not have any special taxes. Gene’s financial resources were limited, but so were his concerns; after all, “he was the business.” Gene’s business is most likely a(n) 



Partnerships refer to more than one owner. A limited partnership 



When Beck joined his uncle’s oil exploration company in east Texas, he was given several hundred shares of stock in the firm, and was officially made a partner. The firm’s accountant explained that the company paid taxes the same way as regular partnerships, by passing the profits through to each partner. Beck could purchase more shares of the company on a public stock exchange, as long as someone was willing to sell his/her shares. This firm was likely a special form of ownership called a 



At Sound Off!, a store that buys and sells used CDs, there is only one general partner, Sonia. She spends all her time running the business, and makes all the decisions. Sonia’s mother and brother put up money for her to buy the store, but they work full time at other jobs and have no management say in the running of Sound Off!, but share in some of the profits. This is an example of a 



When going into a partnership, you should always 



A brother and sister team, Franco and Julietta, took over the family’s Italian restaurant business when their father died. Julietta operated one of the three locations, kept the firm’s books, and ordered supplies and equipment for all three locations. Franco operated the other two restaurants. Franco thought he should get 2/3 of the company profits because he was responsible for the profitability on two out of three locations. Julietta saw it differently because she felt her responsibilities spanned the entire business. What’s important for them to remember in their situation is 



The owners of a corporation are called 



 

Which of the following lists characteristics typical of a C corporation?



Joel and Mike would like to start a new business selling a product new to the U.S., the Peraves Monotracer. Joel and Mike have done a considerable amount of research on this product, and think it would be successful in the U.S. However, they are still concerned about the risk of a new venture and both would like to avoid losing any personal assets. They should organize their firm as a 



When Luke, Larry, and Lance lost their jobs during the recent recession, they pooled their resources, borrowed a little more, and bought a couple of houses to renovate. All three were concerned about the risk involved in owning their own business, particularly the risk of losing personal assets. As their advisor, which of the following forms of business ownership would you recommend? 



Twenty years ago, your parents invested in Apple. As the years have gone by, the investment has grown. However, if Apple should go out of business and declare bankruptcy, what would happen to your parent’s investment? 



You inherited 500 shares of IBM stock from your Great Aunt Mabel. As you contemplate selling the shares, your accountant informs you that the company pays a generous dividend, and advises you to start watching the firm’s profits. When you are awarded the first dividend, you learn that it is considered a source of income and you will be taxed on that amount. You find this bothersome because the firm paid the dividend from after-tax profits (these dollars were already taxed). This phenomenon is called 



A firm’s management purchases all the issued and outstanding stock of the firm and takes the company off the stock market. The management of this company has engaged in 



If the employees of San Simeon Company successfully borrowed a large sum of money and purchased the firm from its current owners, we would call this event a 



Flexible Fittings was a small manufacturing company that made shut-off valves for gas pipe used in home and building construction. Flexible purchased the General Gas Pipeline Company, which was Flexible Fittings’ largest customer. This strategic decision bringing the two companies together is called a 



When Betsy Blackwell bought a Mighty Maid franchise, she became a 



One of the key advantages of a franchise is 



When your profitable franchise fails simply because other similar franchisees have failed, this is known as the 



International franchising is 



Entrepreneurs emphasize the importance of believing in your own ideas because in the process of developing those ideas you are likely to hear from skeptics. Characteristically, they also know that success or failure is “on them.” These attributes are described as 



Reed Hastings created Netflix. His inspiration came from the fact that he had to pay a sizeable late fee for returning a DVD beyond the due date at a rental store. It took a few tries to develop the winning business model. Which statement accurately describes his key to success?



Leveling the playing field for home-based businesses, ___________ has (have) made starting a home-based business much more affordable. 



Mandy has perfected the art of glass-blowing. She has made gifts for her friends for years and has always gotten rave reviews. She decided to make a business out of her craft. She plans to run the business out of her home so she can be there to raise her children and still participate in all of their activities. Mandy is not interested in growing a large business; she just wants to make extra income. Mandy is best described as a(n) 



Darrell works for a company that promotes an entrepreneurial culture. Employees are encouraged to discuss new ideas. Development time is provided on the job for those ideas that float to the top. Employees who use their creative talents to generate ideas and create products within large companies are called 



When Parker started his business, he knew he had to keep costs to a minimum and he worried about taxes. He planned to build and distribute safety goggles for construction workers and military personnel. He realized most of his business would not be through walk-in customers but rather large orders from companies. He chose to locate in a government-subsidized area called a(n) ________________, where he would receive tax breaks and other government support.



Why do experts agree that small-business management and large-business management are similar in practice?



A small business 



Miriam Njunge wants to start a small business importing some products from her native Kenya. Before she starts, some good advice to Miriam would be 



While on a trip to South Africa, Elena was impressed with colorful woven outdoor placemats, floor mats, chair cushions, and umbrellas that local artisans were weaving. Upon returning to the U.S., she was confident that U.S. consumers would be as intrigued by these accessories as she was. Elena decided to explore the possibility of starting an import business to bring these products to the U.S. Which of the following statements seems to be good advice for Elena? 



The primary concerns when first starting your business are 



A business plan for a new business does NOT need to include 



Although the business plan has a great amount of detail and requires thoroughness, a well-explained business idea will come to life almost immediately in which part of this document?



Organizations known as ________ are often a source of funding for lower-income communities. These organizations have a significant role in the economic recovery and some start-up businesses have successfully found sources of capital by going through one of these organizations.



According to the textbook, one of the drawbacks of using venture capital is 



For a market to exist, there must be potential buyers 



Small businesses have an advantage over large business in international trade in all these ways EXCEPT 



Small businesses often have advantages in international markets. One advantage is 



There are many reasons why small-business owners don’t go international. Which of the following is NOT one of those reasons?



While cultural differences and bureaucratic paperwork for foreign governments make the prospect of global trade difficult for small businesses, there is one bright spot on the horizon that has brought global trade closer to home. Small businesses can now