Small Business Management Final Exam
UPDATED Study Guide ACTUAL
QUESTIONS AND CORRECT ANSWERS
Independent; local - CORRECT ANSWER In order for a business to be classified as small, its
management is _____ and the area of operation is primarily _____
Self-employment - CORRECT ANSWER A major reason for the increased interest in small
businesses is there is a growing trend toward _____
New ideas; services - CORRECT ANSWER One of the contributions of small businesses is
that they are sources of _____ or _____ that larger businesses may be unable to provide
Interference - CORRECT ANSWER A new small business owner's primary motive is usually
independence, that is, freedom from _____ or control by superiors
Owners - CORRECT ANSWER The first stage of the typical growth pattern that small
businesses tend to follow is that _____
Manage the business and do all the work.
Proprietorship - CORRECT ANSWER Small business owners prefer a _____ over other forms
of business because it provides
Relative freedom of action and control.
Two people - CORRECT ANSWER A partnership is a form of business that is owned by
_____ who share ownership of a single
Business
Partnership - CORRECT ANSWER A disadvantage of a _____ is that each partner is
responsible for the acts of every other partner.
, Uniform Partnership Act (UPA) - CORRECT ANSWER The purpose of the _____ is to govern
partnerships in the absence of other
Expressed agreements
C Corporation - CORRECT ANSWER A _____ provides the protection of limited liability for
shareholders, but its earnings are taxed
At both the corporate and shareholder levels.
Articles of incorporation - CORRECT ANSWER The purpose of _____ is that they are the
instruments by which a corporation is
Formed.
Stockholders - CORRECT ANSWER The work carried out by the board members in a
corporation is that they represent the _____
In managing the company.
Limited-liability company - CORRECT ANSWER _____ is the form of business combines the
advantages of a corporation with the
Benefits of a partnership
Family limited partnership - CORRECT ANSWER In a _____, the majority of the partners are
related to each other as spouses,
Parents, grandparents, siblings, cousins, nieces, or nephews.
Copreneurs - CORRECT ANSWER _____ refer to family-owned businesses run by husband-
and-wife teams
Statutory law - CORRECT ANSWER _____ is a body of laws passed by federal, state, and
local governments
Uniform Commercial Code - CORRECT ANSWER The _____ is a set of uniform model
statutes to govern business and commercial
Transactions.
UPDATED Study Guide ACTUAL
QUESTIONS AND CORRECT ANSWERS
Independent; local - CORRECT ANSWER In order for a business to be classified as small, its
management is _____ and the area of operation is primarily _____
Self-employment - CORRECT ANSWER A major reason for the increased interest in small
businesses is there is a growing trend toward _____
New ideas; services - CORRECT ANSWER One of the contributions of small businesses is
that they are sources of _____ or _____ that larger businesses may be unable to provide
Interference - CORRECT ANSWER A new small business owner's primary motive is usually
independence, that is, freedom from _____ or control by superiors
Owners - CORRECT ANSWER The first stage of the typical growth pattern that small
businesses tend to follow is that _____
Manage the business and do all the work.
Proprietorship - CORRECT ANSWER Small business owners prefer a _____ over other forms
of business because it provides
Relative freedom of action and control.
Two people - CORRECT ANSWER A partnership is a form of business that is owned by
_____ who share ownership of a single
Business
Partnership - CORRECT ANSWER A disadvantage of a _____ is that each partner is
responsible for the acts of every other partner.
, Uniform Partnership Act (UPA) - CORRECT ANSWER The purpose of the _____ is to govern
partnerships in the absence of other
Expressed agreements
C Corporation - CORRECT ANSWER A _____ provides the protection of limited liability for
shareholders, but its earnings are taxed
At both the corporate and shareholder levels.
Articles of incorporation - CORRECT ANSWER The purpose of _____ is that they are the
instruments by which a corporation is
Formed.
Stockholders - CORRECT ANSWER The work carried out by the board members in a
corporation is that they represent the _____
In managing the company.
Limited-liability company - CORRECT ANSWER _____ is the form of business combines the
advantages of a corporation with the
Benefits of a partnership
Family limited partnership - CORRECT ANSWER In a _____, the majority of the partners are
related to each other as spouses,
Parents, grandparents, siblings, cousins, nieces, or nephews.
Copreneurs - CORRECT ANSWER _____ refer to family-owned businesses run by husband-
and-wife teams
Statutory law - CORRECT ANSWER _____ is a body of laws passed by federal, state, and
local governments
Uniform Commercial Code - CORRECT ANSWER The _____ is a set of uniform model
statutes to govern business and commercial
Transactions.
