BUSI 1301 MIDTERM EXAM
QUESTIONS WITH COMPLETE
SOLUTIONS
A group of colleagues opened a paintball arena, they wanted to limit the liability of the
owners so investors didn't encounter any personal losses, they formed a? (ch5) -
Answer- corporation
Scott, with expertise in marketing and sales, and Stacy, with experience in
management, opened an ice cream parlor together. They share the profits and
responsibilities equally (ch5) - Answer- partnership
Taylor began a marketing consultant business on her own because the risk is minimal
and there is no need for additional start-up capital.. this is a? (ch5) - Answer- sole
proprietorship
Dr Berry opened a dental office on his own but he wanted his personal assets protected
in case of malpractice but didn't want the hassle that comes along with traditional
incorporating (ch5) - Answer- LLC (Limited Liability Corporation)
there are three main types of mergers and acquisitions, what are they? (ch5) - Answer-
vertical, horizontal, and conglomerate
what are the three types of business owners? (ch5) - Answer- sole proprietorship,
partnership, and corporations
people who start a business they want to keep small are called? (ch6) - Answer-
micropreneurs
creative people that work for a corporation, bringing new ideas for the brand are called?
(ch6) - Answer- intrapreneurs
private individuals who invest their own money in new companies are called? (ch6) -
Answer- angel investors
Specific geographic areas to which governments try to attract private business
investment by offering lower taxes and other government support are called? (ch6) -
Answer- enterprise zones
centers that offer new businesses low-cost offices with basic business services are
called? (ch6) - Answer- business incubators
QUESTIONS WITH COMPLETE
SOLUTIONS
A group of colleagues opened a paintball arena, they wanted to limit the liability of the
owners so investors didn't encounter any personal losses, they formed a? (ch5) -
Answer- corporation
Scott, with expertise in marketing and sales, and Stacy, with experience in
management, opened an ice cream parlor together. They share the profits and
responsibilities equally (ch5) - Answer- partnership
Taylor began a marketing consultant business on her own because the risk is minimal
and there is no need for additional start-up capital.. this is a? (ch5) - Answer- sole
proprietorship
Dr Berry opened a dental office on his own but he wanted his personal assets protected
in case of malpractice but didn't want the hassle that comes along with traditional
incorporating (ch5) - Answer- LLC (Limited Liability Corporation)
there are three main types of mergers and acquisitions, what are they? (ch5) - Answer-
vertical, horizontal, and conglomerate
what are the three types of business owners? (ch5) - Answer- sole proprietorship,
partnership, and corporations
people who start a business they want to keep small are called? (ch6) - Answer-
micropreneurs
creative people that work for a corporation, bringing new ideas for the brand are called?
(ch6) - Answer- intrapreneurs
private individuals who invest their own money in new companies are called? (ch6) -
Answer- angel investors
Specific geographic areas to which governments try to attract private business
investment by offering lower taxes and other government support are called? (ch6) -
Answer- enterprise zones
centers that offer new businesses low-cost offices with basic business services are
called? (ch6) - Answer- business incubators
