Reference no: EM13855414
1. Under this arrangement, the SBA works with a corporation founded by local citizens who want to boost the local economy to finance the small business, with the SBA's share not to exceed $500,000 for each small business.
a. guaranteed loans program
b. immediate participation loans program
c. venture capital subsidy program
d. local development companies program
e. long-term progressive loan program
2. The U.S. Department of Commerce considers a business 'small' if it has fewer than how many employees?
a. 10,500 employees
b. 500,000 employees
c. 5,000 employees
d. 50,000 employees
e. 500 employees
3. A locally owned and operated restaurant is typically a(n)
a. monopoly.
b. oligopoly.
c. competitor.
d. small business.
e. corporation.
4. Which of the following is the most significant disadvantage of franchising?
a. high startup costs
b. increased chance of failure
c. difficulty in obtaining financing
d. lengthy contracts
e. lack of managerial skills
5. In a(n) __________ corporation, stock may be traded on the exchanges of several countries.
a. transnational
b. private
c. S-
d. limited liability
e. global
6. Which of the following usually pays dividends only if the corporation makes a profit?
a. bonds
b. options
c. futures
d. preferred stock
e. common stock
7. In a(n) _________, an entrepreneur summarizes business strategy for a new venture and shows how it will be implemented.
a. venture capital plan
b. business plan
c. franchise agreement
d. master limited partnership
e. employee stock ownership plan
8. In theory, the legal life of a corporation is
a. ten years.
b. fifty years.
c. unlimited.
d. dependent on the firm's management.
e. seventeen years.
9. A(n) _________ generally includes a cash budget, an income statement, a balance sheet, and a breakeven chart.
a. sales forecast
b. financial plan
c. objective
d. cash flow statement
e. credit report
10. Armstrong Bikes and a French bike distributor have each invested money in a new business that will sell Armstrong Bikes in France. This new business is an example of a(n)
a. direct investment.
b. branch office.
c. cartel.
d. importer.
e. strategic alliance.
10. __________ are actually indirect tariffs that lower the prices of domestic goods rather than raise the price of foreign goods.
a. Quotas
b. Embargoes
c. Union tariffs
d. Subsidies
e. Local content laws
11. The total volume of world trade today is
a. $1 billion.
b. $1 trillion.
c. $3 trillion.
d. $6 billion.
e. $8 trillion.
12. A(n) __________ buys products in foreign markets and then sells them for resale in its home country.
a. importer
b. exporter
c. international firm
d. direct investor
e. investment banker
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