General Study Quiz

Online sales in 2019 were over $365 billion.

The IMMIGRATION ACT OF 1990 was specifically designed to encourage entrepreneurship.

ENTERPRISE ZONES are areas with high taxes and limited government support.

The government can encourage entrepreneurship by offering investment tax breaks to businesses.

State commerce departments only provide information and programs to large businesses.

Incubators are centers that offer high-cost office space and limited business services.

The SELF-EMPLOYMENT ASSISTANCE (SEA) program allows entrepreneurs to collect unemployment while building their business.

The principles of running a small business are fundamentally different from those of large companies.

The easiest businesses to start are often those that have the greatest growth potential.

Entrepreneurs should avoid seeking advice from individuals who have already successfully started their own businesses.

The text suggests that aspiring entrepreneurs should not seek experience by working for established businesses before starting their own.

One way to become a successful small-business manager is to find a successful small business and offer to serve an apprenticeship.

One reason firms incorporate in Delaware is that the state taxes corporations more harshly than other enterprises.

LLCs were first recognized by all 50 states in 1977.

A disadvantage of incorporating is that it can be difficult to terminate a corporation.

One of the benefits of taking over a successful business is that as a new manager, you can avoid any challenges the previous owner may have faced.

The IRS allows an LLC to elect to be treated as a corporation.

The text suggests that the primary factor in determining the value of a small business for purchase is the owner's personal reputation.

One of the advantages of incorporating is that an entrepreneur could be forced out of the company they founded.

LLC owners may sell their business interests without the approval of other members.

Individuals, like doctors and lawyers, can avoid taxes entirely by incorporating.

The Small Business Administration (SBA) identifies "poor management" as a significant contributor to small business failure.

The text suggests that the most common cause of small-business failure is the lack of sufficient funding.

The profits in an S corporation are taxed as the personal income of its shareholders.

An LLC's profitability is typically distributed proportionally to each member's investment.

An S corporation can have an unlimited number of shareholders.

Corporate mergers have the potential to significantly increase competition in a market.

A limited liability company (LLC) is similar to an S corporation, but it has no special eligibility requirements.

A vertical merger involves companies in unrelated industries.

A horizontal merger could take place between a soft drink company and a mineral water company.

A corporation, which is a large business, has no advantages over sole proprietorships or partnerships.

One disadvantage of an LLC is that it has fewer tax incentives than a corporation.

A strong American dollar makes U.S.-produced goods more expensive to foreign buyers.

The Foreign Corrupt Practices Act of 1978 allows U.S. companies to make payments to foreign officials in order to secure business contracts.

Global financial markets use a system of fixed exchange rates.

Countertrading involves multiple countries trading goods for goods or services for services.

There is only one set of laws that govern global markets universally.

A low value of the dollar makes imported goods cheaper for consumers.

Devaluation is the process of raising the value of a nation's currency relative to other currencies.

The U.S. dollar is the only currency used in global financial markets.

A "nontariff barrier" is an example of a specific, formal trade restriction.

The General Agreement on Tariffs and Trade (GATT) was replaced by the World Trade Organization (WTO).

The Uruguay Round of GATT Talks resulted in an increase of tariffs on average by 38% worldwide.

The Doha Round of WTO talks resulted in significant agreements.

The WTO currently has no issues regarding its ability to mediate inter-country trade disputes.

A "common market" is a regional group of countries that have a common external tariff, no internal tariffs, and the coordination of laws to facilitate exchange among member countries.

The European Union (EU) has 28 members, and the United Kingdom has recently withdrawn from the group.

The integration of the European Union has proceeded swiftly and smoothly, with little resistance.