- 1. A Manager servers as a good role model
A) GOOD PROJECT MANAGEMENT
B) GOOD MANAGING MANAGEMENT
C) GOOD INFLUENCE MANAGEMENT
- 2. Access to necessary resources
A) PRESSURE
B) SUFFICIENT TIME
C) SUFFICIENT RESOURCES
- 3. Management enthusiasm for new idea
A) RECOGNITION
B) FREEDOM
C) ENCOURAGEMENT
- 4. A mechanism for considering new ideas. These include leadership style, organizational hierarchy, communication processes, decision-making approaches
A) OUTSIDE ORGANIZATION
B) VARIOUS ORGANIZATIONAL CHARACTERESTICS
C) GOOD PROJECT MANAGEMENT
- 5. A general sense that creative work will receive appropriate feedback, recognition, and reward.
A) RECOGNITION
B) FREEDOM
C) PRESSURE
- 6. Time to think creatively about problems
A) SUFFICIENT TIME
B) CHALLENGE
C) RECOGNITION
- 7. A sense of challenge arising from intriguing nature of the problem itself
A) CHALLENGE
B) PRESSURE
C) ENCOURAGEMENT
- 8. A sense of urgency that is internally generated from competition as a personal sense of challenge
A) CHALLENGE
B) ENCOURAGEMENT
C) PRESSURE
- 9. From a general desire to accomplish something important.
A) VARIOUS ORGANIZATIONAL CHARACTERESTICS
B) SUFFICIENT TIME
C) OUTSIDE ORGANIZATION
- 10. Shareholders are not personally responsible for company debts.
A) Separate Legal Entity
B) Limited Liability
C) Continuous Existence
- 11. A corporation can own assets, sue, and be sued.
A) Separate Legal Entity
B) Ability to Raise Capital
C) Limited Liability
- 12. Owned and operated by a group of people for their mutual benefit.
Profits are distributed among members.
A) Cooperative
B) Partnership
C) Corporation
- 13. is a type of business that is owned and operated by its members for their mutual benefit. Unlike corporations that prioritize profit for shareholders, cooperatives focus on serving the needs of their members, who share profits, decision-making, and responsibilities
A) Partnership
B) Cooperative
C) Sole Proprietorship
- 14. Works for members
Reports to Board of Directors
Focuses on member benefits
Often earns modest salary
A) Corporate CEO
B) Cooperative CEO
C) Partnership
- 15. Works for shareholders
Reports to Board & Investors
Focuses on maximizing profits
Typically earns high salary & bonuses
A) Corporate CEO
B) Sole Proprietorship
C) Cooperative CEO
- 16. Each member has a stake in the business and voting rights.
A) Community-Focused
B) Member-Owned & Controlled (Cooperative)
C) Limited Liability
- 17. One member, one vote, regardless of how much they invest
A) Community-Focused
B) Profit Sharing
C) Democratic Decision-Making (Cooperative)
- 18. Profits (called patronage refunds) are distributed based on use of the cooperative, not just capital investment.
A) Profit Sharing (Cooperative)
B) Member-Owned & Controlled
C) NATCCO (National Confederation of Cooperatives
- 19. Members are not personally responsible for business debts
A) Profit Sharing
B) Democratic Decision-Making
C) Limited Liability (Cooperative)
- 20. Often formed to serve a social or economic need, such as fair prices, better working conditions, or access to goods/services
A) Member-Owned & Controlled
B) Community-Focused (Cooperative)
C) First Community Cooperative (FICCO)
- 21. A hybrid of a corporation and a partnership, offering limited liability with flexible management.
A) Less Paperwork & Regulations
B) Limited Liability Company (LLC)
C) First Community Cooperative (FICCO)
- 22. A Limited Liability Company (LLC) is a type of business structure that provides its owners (called MEMBERS) with limited liability protection while allowing FLEXIBILITY in taxation and management. It is a hybrid entity that combines elements of corporations and partnerships, making it a popular choice for small businesses, startups, and even large enterprises
A) Maybe
B) True
C) False
- 23. Owners are not personally responsible for business debts or lawsuits.
A) Pass-Through Taxation
B) Flexible Ownership
C) Limited Liability Protection (LLC)
- 24. Can be taxed as a sole proprietorship, partnership, or corporation, avoiding double taxation
A) Limited Liability Company (LLC)
B) Flexible Ownership
C) Flexible Taxation
- 25. Easier to manage than a corporation.
A) Limited Liability Protection
B) Pass-Through Taxation
C) Less Paperwork & Regulations (LLC)
- 26. Can have one or multiple members (owners).
A) Flexible Taxation
B) Limited Liability Protection
C) Flexible Ownership (LLC)
- 27. Profits and losses go directly to owners' personal tax returns.
A) Less Paperwork & Regulations
B) Flexible Taxation
C) Pass-Through Taxation (LLC)
- 28. Owned by two or more people who share profits, losses, and responsibilities.
Can be a General Partnership (GP) or Limited Partnership (LP) (where some partners have limited liability).
A) Corporation
B) Partnership
C) Cooperative
- 29. A partnership is a business structure where two or more individuals share ownership, profits, and responsibilities. Unlike a sole proprietorship
It allows multiple people to contribute capital, skills, and resources while sharing both risks and rewards
A) True
B) None of these
C) False
- 30. partnerships have fewer legal formalities and decision-making is more flexible
A) Maybe
B) True
C) False
- 31. A separate legal entity from its owners, providing limited liability protection.
Can be a Private Corporation (Inc.) or a Public Corporation (listed on the stock market)
A) Cooperative
B) Corporation
C) Partnership
- 32. is a business structure that is legally separate from its owners (shareholders). It has its own legal identity, meaning it can own assets, incur debt, enter contracts, sue, and be sued independently of its owners.
A) Cooperative
B) Corporation
C) Partnership
- 33. Provide limited liability protection, meaning shareholders are not personally responsible for business debts
A) Cooperative
B) General Partnership
C) Corporation
- 34. Simple to set up but comes with unlimited personal liability.
A) Cooperative
B) Partnership
C) Sole proprietorship
- 35. Requires minimal paperwork and is the simplest business structure to start.
In most cases, you only need to register the business name and obtain necessary permits/licenses
A) Limited Partnership
B) Sole Proprietorship
C) General Partnership
- 36. The owner is personally responsible for all debts, losses, and legal actions against the business.
If the business fails, the owner's personal assets (house, savings, car) can be used to cover debts.
A) Partnership
B) Corporation
C) Sole Proprietorship
- 37. Business income is not taxed separately; instead, it is reported on the owner's personal tax return
A) Partnership
B) Cooperative
C) Sole proprietorship
- 38. Business income is not taxed separately; instead, it is reported on the owner's personal tax return
This avoids double taxation, which corporations face.
A) Partnership
B) Sole proprietorship
C) Corporation
- 39. Limited Growth Potential
Raising capital is harder since sole proprietors rely on personal savings or loans (they cannot issue stock).
A) Sole proprietorship
B) Corporation
C) Partnership
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