Business Management Exam queries
and answers graded A+
In order for a business to be classified as small, its management is _____ and the area of operation is
primarily _____ - ANS✅✅independent; local
A major reason for the increased interest in small businesses is there is a growing trend toward
_____ - ANS✅✅self-employment
One of the contributions of small businesses is that they are sources of _____ or _____ that larger
businesses may be unable to provide - ANS✅✅new ideas; services
A new small business owner's primary motive is usually independence, that is, freedom from _____
or control by superiors - ANS✅✅interference
The first stage of the typical growth pattern that small businesses tend to follow is that _____
manage the business and do all the work. - ANS✅✅Owners
Small business owners prefer a _____ over other forms of business because it provides
relative freedom of action and control. - ANS✅✅proprietorship
A partnership is a form of business that is owned by _____ who share ownership of a single
business - ANS✅✅two people
A disadvantage of a _____ is that each partner is responsible for the acts of every other partner. -
ANS✅✅Partnership
The purpose of the _____ is to govern partnerships in the absence of other
expressed agreements - ANS✅✅Uniform Partnership Act (UPA)
A _____ provides the protection of limited liability for shareholders, but its earnings are taxed
at both the corporate and shareholder levels. - ANS✅✅C Corporation
, The purpose of _____ is that they are the instruments by which a corporation is
formed. - ANS✅✅articles of incorporation
The work carried out by the board members in a corporation is that they represent the _____
in managing the company. - ANS✅✅Stockholders
_____ is the form of business combines the advantages of a corporation with the
benefits of a partnership - ANS✅✅Limited-liability company
In a _____, the majority of the partners are related to each other as spouses,
parents, grandparents, siblings, cousins, nieces, or nephews. - ANS✅✅family limited partnership
_____ refer to family-owned businesses run by husband-and-wife teams - ANS✅✅Copreneurs
_____ is a body of laws passed by federal, state, and local governments - ANS✅✅Statutory law
The _____ is a set of uniform model statutes to govern business and commercial
transactions. - ANS✅✅Uniform Commercial Code
Under the _____, people or businesses can petition the courts to be relieved of the obligation
to pay debts they cannot repay - ANS✅✅bankruptcy law
The function of the Small Business Administration is to provide direct and guaranteed _____ to small
businesses. - ANS✅✅loans
_____ is a business's obligation to set policies, make decisions, and follow actions that
are desirable in terms of a society's values and objectives - ANS✅✅Social responsibility
_____ is the process of finding a small—but profitable—demand for something and
producing a custom-made product for that market. - ANS✅✅Niche marketing
and answers graded A+
In order for a business to be classified as small, its management is _____ and the area of operation is
primarily _____ - ANS✅✅independent; local
A major reason for the increased interest in small businesses is there is a growing trend toward
_____ - ANS✅✅self-employment
One of the contributions of small businesses is that they are sources of _____ or _____ that larger
businesses may be unable to provide - ANS✅✅new ideas; services
A new small business owner's primary motive is usually independence, that is, freedom from _____
or control by superiors - ANS✅✅interference
The first stage of the typical growth pattern that small businesses tend to follow is that _____
manage the business and do all the work. - ANS✅✅Owners
Small business owners prefer a _____ over other forms of business because it provides
relative freedom of action and control. - ANS✅✅proprietorship
A partnership is a form of business that is owned by _____ who share ownership of a single
business - ANS✅✅two people
A disadvantage of a _____ is that each partner is responsible for the acts of every other partner. -
ANS✅✅Partnership
The purpose of the _____ is to govern partnerships in the absence of other
expressed agreements - ANS✅✅Uniform Partnership Act (UPA)
A _____ provides the protection of limited liability for shareholders, but its earnings are taxed
at both the corporate and shareholder levels. - ANS✅✅C Corporation
, The purpose of _____ is that they are the instruments by which a corporation is
formed. - ANS✅✅articles of incorporation
The work carried out by the board members in a corporation is that they represent the _____
in managing the company. - ANS✅✅Stockholders
_____ is the form of business combines the advantages of a corporation with the
benefits of a partnership - ANS✅✅Limited-liability company
In a _____, the majority of the partners are related to each other as spouses,
parents, grandparents, siblings, cousins, nieces, or nephews. - ANS✅✅family limited partnership
_____ refer to family-owned businesses run by husband-and-wife teams - ANS✅✅Copreneurs
_____ is a body of laws passed by federal, state, and local governments - ANS✅✅Statutory law
The _____ is a set of uniform model statutes to govern business and commercial
transactions. - ANS✅✅Uniform Commercial Code
Under the _____, people or businesses can petition the courts to be relieved of the obligation
to pay debts they cannot repay - ANS✅✅bankruptcy law
The function of the Small Business Administration is to provide direct and guaranteed _____ to small
businesses. - ANS✅✅loans
_____ is a business's obligation to set policies, make decisions, and follow actions that
are desirable in terms of a society's values and objectives - ANS✅✅Social responsibility
_____ is the process of finding a small—but profitable—demand for something and
producing a custom-made product for that market. - ANS✅✅Niche marketing
