Question

I need help with the following questions in business economics. I am having trouble with them and it's getting difficult.

67. A written document that provides a statement of a company’s goals, methods for achieving goals, and standards for measurement is called:

a. a business plan  

b. a marketing plan

c. an incorporation document

d. a financial blueprint

68. Which of the following does not grant direct loans to small businesses?

a. Commercial banks

b. Small Business Investment Companies

c. Small Business Administration

d. Private lenders

69. Which of the following is true of a franchisor?

a. It is the small business person who purchases the franchise.

b. It incurs no risk in the transaction.

c. It guarantees profits to the purchaser.

d. It usually stipulates the purchase of certain ingredients or equipment, pricing, and marketing efforts.

70. Which is the most common form of business ownership?

a. Corporation

b. Partnership

c. Public ownership

d. Sole proprietorship

71. How does a partnership differ from a sole proprietorship?

a. A partnership is more difficult to dissolve than a sole proprietorship.

b. The income tax paid is more in a partnership than a sole proprietorship.

c. The funds are highly limited in a partnership.

d. A partnership lacks the long-term continuity that is available in a sole proprietorship.

72. Which of the following is NOT an advantage of a corporation?

a. Limited liability for the owners

b. Double taxation on corporate earnings

c. Continuity

d. Expanded financial capacity

73. Which of the following is a major drawback of family-owned businesses?

a. Complete responsibility of business operations

b. Double taxation on income

c. Stringent government policies

d. Lack of legal structure

74. An organization whose owners join forces to run all or part of the activities in their firm or industry is referred to as a:

a. corporation.       

b. partnership.

c. sole proprietorship.  

d. cooperative.

75. A(n) _____ consists of two or more firms combined to form one company.

a. sole proprietorship    

b. acquisition

c. merger   

d. joint venture

Answer 1

67. a) a business plan. Because, business plan contains complete details about the future actions and it shows the route map for such actions. It states the objectives of the company and the strategies to achieve such objectives. On the other hand, marketing plan refers to the document which talks about the future actions related to marketing, it is a part of business plan. Incorporation document is a certificate which states the legal ownership of the company and the government approval for incorporation. Financial blue print is a map which states how funds are raised and how they are utilized. So looking at the other options also it's clear that the answer is 'business plan '.