FinalMC exam notes-2010(Winter).doc

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Management (MGT)
Chris Bovaird

1. You are considering taking over your family’s small business. You may encounter: a) disputes about control b) difficulties in putting a $$ value on the business when it is passed from parent to child c) conflicting priorities, between family loyalty and profit d) alloftheabove 2. Which one of the following is not a characteristic of an oligopoly? a) great product differentiation b) pricesdiffergreatly c) few sellers d) many buyers 3. The GDP of the Chinese economy is higher than the GDP of the Canadian economy, but the per capita GDP for Canada is higher than the per capita GDP of China. These facts support which one of the following statements? a) the Canadian economy produces more than the Chinese economy b) thestandardoflivingisdecreasinginChina c) inflation is lower in Canada than in China d) Canadian workers are more productive than Chinese workers 4. How do most people start a new business? a) startfromscratch b) buy out the other partner c) inherit the business d) buy an existing business 5. Small businesses: a) exclude business corporations b) are either sole proprietorships or partnerships c) areonlysoleproprietorships d) can be business corporations, sole proprietorships, or partnerships 6. What term is used to identify a detailed outline of the proposed business and market, the owner’s background, and other sources of funds? a) businessplan b) business strategy c) business loan d) a capital launch 7. An entrepreneur is someone who: a) loves risk b) loves the opportunity c) loves money d) acceptsboththerisksandtheopportunities 8. The number of Canadian employed by small business is approx: a) 10% of the total workforce b) 20% “ “ c) 50% “ d) 98%“ 9. A general partnership has advantages which are similar to a sole proprietorship, such as: a) providing for continuity b) limiting owner’s liability c) being dependent upon resources of an individual d) easy to transfer ownership e) beingsimplytoorganize 10. In a general partnership that has a liability: a) each partner is responsible only for the debts he or she incurred b) partners are not liable for debts of other partners if there is no partnership agreement c) eachpartnerisresponsibleforthedebtsevenifthedebtwastheresultoftheactionsofonly onepartner d) each partner pays only his or her share of the liability even if one partner runs out of money before that partner’s share is paid e) a partner is not responsible for the debts if another partner created the liability through some action that violated the partnership agreement 11. Which of the following is not true of partnerships? Partnerships: a) sometimesconsistsofonlyonepartner b) are simply to organize c) have few legal requirements d) can grow by adding talent and money e) are often an extension of a business that began as a sole proprietorship 12. Partnerships, generally, are more advantageous than sole proprietorships because: a) partners are jointly and severally liable b) there are many types of partnerships c) many people can be the president of the company d) thetalentsofthepartnerscanbepooled e) some businesses can only be formed as partnerships 13. A public corporation is: a) onewhosestockisavailableforsaletothegeneralpublic b) chartered by the federal government c) owned by all taxpayers in a country d) owned by the government, hence “public” e) one whose stock is head by only a few people and the shares are not generally available for sale 14. Computers B Us is a new company. Its owners all have no personal liability for any debts of the company. All five of its owners invested the same amount and will share equally in the profits. The structure of Computer B Us is most like a: a) privatecorporation b) public corporation c) sole proprietorship d) limited partnership e) general partnership 15. Which of the following would be included in the gross domestic product of Canada? a) the profits earned by a Canadian-owned automobile plant in Brazil b) the wages paid to Peruvian workers producing coffee for a Canadian economy c) the wages paid to Brazilian workers producing coffee for sale in Canada d) thevalueofproductionbyaBraziliancoffeecompanyoperatinginCanada 16. Which of the following is the best description of the term “proxy”? a) the agreement among partners in a general partnership b) the method used by corporations to raise money c) themethodofvotingusedbymostindividualshareholders d) a proxy is used most frequently by stock holders who which to sell their stock e) the document which specified they dividends that will be paid to preferred shareholders 17. You and your best friend decide to start a business and are careful to write a good partnership agreement specifying: a) the profits are limited b) that if a partner dies, the heirs can take over the business c) the relationship with Revenue Canada d) whoinvestedwhat,andwhodoeswhat e) one thing only: how the partnership can be dissolved 18. World inflation rates for 2008 cover a wide range. They run from -3.58% in San Marino to 11,200,000% in Zimbabwe. This means: a) What cost $1 U.S in Zimbabwe a year ago now costs $11,200,000 U.S. b) cash payments in the local currency in San Marino must be spent immediately to be of any value c) the consume price index in San marino rose last year d) storekeepersinZimbabweprefertotradegoodsratherthanacceptZimbabwecurrency 19. Which of the following statements about partnerships is false? a) it is easier to borrow money than a sole proprietorship b) a partner cannot sell an interest without the other partners’ consent c) generalpartnershipsarelimitedtotenpartners d) the partnership terminates upon the death of a partner e) a partner cannot retire without the other partner’s consent 20) Advantages of the corporation as a form of business organization do not include: a) theguaranteeoffixeddividen
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