International Business

Chapter 8: Business Ownership and Entrepreneurship

Practice Tests

1.
What type of business ownership is a sole proprietorship?
A)a partnership
B)one person owns the business
C)two or more people own the business
D)a corporation
2.
What do partners in a business partnership share?
A)risks
B)rewards
C)profits
D)all of the above
3.
Name two different types of corporations?
A)closely held and publicly held
B)partnership and sole proprietorship
C)difficult and complex
D)none of the above
4.
One disadvantage of a corporation may include
A)costly start up.
B)limited liability.
C)tax breaks.
D)all of the above.
5.
What is a Subchapter S corporation?
A)a taxpaying entity
B)a subsidiary of another company
C)a corporation taxed like a partnership
D)a company exempt from paying taxes
6.
In the United States, sole proprietorships make up what percentage of all businesses?
A)50%
B)80%
C)65%
D)100%
7.
What percentage of ownership of a corporation does an individual have if he or she owns 55 percent of its common stock?
A)55%
B)100%
C)0%
D)45%
8.
A corporation's board of directors is elected by its
A)officers.
B)shareholders.
C)customers.
D)local senator.
9.
A corporate business that operates in more than one country is a
A)mononational corporation.
B)regional corporation.
C)multinational corporation.
D)limited liability corporation.
10.
The mode of entry in which a company transfers the rights to and grants permission for a foreign firm to produce and sell its product is
A)a turnkey project.
B)a franchise.
C)a joint venture.
D)licensing.
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