OSHA Exam 1

Question 1

the principle government agency concerned with the financing, operation, and management of a small business

Answer 1

Small business administration

Question 2

one who organizes, manages, and assumes the risk of a business firm

Answer 2

Entrepreneur

Question 3

A. Mining/manufacturing (500 to 1500 employees)B. wholesale trade ( up to 500 employees)C. Retail trade (20 to 100 employees)D. Services ( 25 to 300 employees)

Answer 3

Quantative criteria

Question 4

A. Actively managed by its ownersB. highly personalizedC. Largely local in its area of operation D. Largely dependent on internal sources of capital to finance its growthE. business is not a major force in the particular industry (not dominant)

Answer 4

Qualitative criteria

Question 5

one which makes finished goods from raw materials by hand or machinery

Answer 5

Manufacturing

Question 6

one that purchases finished goods for resale

Answer 6

Merchandising

Question 7

one that provides a service as opposed to a product

Answer 7

Services

Question 8

A. Interdependence of businessB. CompetitionC. Innovation

Answer 8

Economics contributions of small business in the US

Question 9

the dependency of business on one another

Answer 9

Interdependence of business

Question 10

the practice of trying to obtain something that is being sought by others under similar circumstances at the same time

Answer 10

Competition

Question 11

the introduction of something new; a new idea, method or device

Answer 11

Innovation

Question 12

-lack of human resource planning -capital shortages, lack of available money-tax burdens-government regulations-consumerism

Answer 12

Problems & risks of business ownershipExternal problems

Question 13

-capital shortages, lack of available money -securing funds, good interest rates -maintaining cash reserves

Answer 13

External problems

Question 14

developing a comprehensive strategy for meeting future human needs

Answer 14

human resource planning

Question 15

the emphasis placed on providing to consumers (families) products and services that are safe, reliable, and honestly advertised; also a social movement that seeks to strength the rights of consumers relative to sellers-caveat emptor vs.caveat vend intro-let the buyer beware vs let the seller beware

Answer 15

Consumerism

Question 16

-Lack of expertise (mismanagement)-Financial shortages (poor cash flow)-Human resource management

Answer 16

Problems & risks of business ownershipInternal problems

Question 17

1. Why is the business for sale?2. What is profit potential?3. Tangible assets4. Who is competition5. Intangible assets6. human resource forecast

Answer 17

Purchasing an existing firm or start a new one

Question 18

-book value-replacement value-liquidation value-earnings valuation

Answer 18

Determining the price - valuation of tangible assets

Question 19

the cost of a fixed asset less accumulated depreciation

Answer 19

book value

Question 20

the fair market price to purchase similar assets

Answer 20

replacement value -

Question 21

the anticipated value of an assets that would be realized in case of liquidation

Answer 21

liquidation value (market value)-

Question 22

the approach centers on estimating the amount of potential income that may be produced by a business in the next year

Answer 22

earnings valuation -

Question 23

-goodwill -copyrights -patent -trademark

Answer 23

Determining the price - valuation of intangible assets

Question 24

such as name of the firm–intangible inasmuch as it enables a business to earn a profit in excess of the normal rate of profit by other business of the same kind

Answer 24

-goodwill

Question 25

the registered right of the creator to reproduce, publish, and sell the work which is the product of the skill and intelligence of that person

Answer 25

-copyrights

Question 26

the registered right of an inventor to make, use, and sell an invention

Answer 26

-patent

Question 27

a distinct name, sign or symbol that the federal government grants exclusive rights to use for a specified period of time

Answer 27

-trademark

Question 28

-cash, owner financing, third party financing

Answer 28

Terms of the Sale

Question 29

-prior work experience, -personal experience, -hobbies, -accidental discovery, -deliberate search

Answer 29

Sources of new ventures

Question 30

-a group of potential customers possessing purchasing power and I satisfied needs

Answer 30

Market

Question 31

-used to determine where potential customers are located

Answer 31

Market survey

Question 32

-demographics, economic base, population trend, income trend/changes, competition, social & business climate

Answer 32

Market survey

Question 33

-the statistical study of human populations with respect to their size, density, distribution, composition and income

Answer 33

Demographic

Question 34

-wealth produced in or near a community that provides employment and income to the local population

Answer 34

Economic base

Question 35

population trend, income trends of the community, social and business climate, selecting the site

Answer 35

Other important procedures in the selection of the community

Question 36

-census of population, census of business, census of housing, census of manufacturing

Answer 36

Sources of market data

Question 37

Sole proprietorship: Partnership: Corporation: Limited Liability Company (LLC)

Answer 37

Legal Forms of Organization

Question 38

business owned and operated by one person

Answer 38

Sole proprietorship:

Question 39

business owned by two or more persons

Answer 39

Partnership:

Question 40

legal entity authorized by a state to operate a business under the entity's charter or articles of incorporation.

Answer 40

Corporation:

Question 41

-advantages: --simple to start/minimum legal requirements--minimum capital requirements/low cost--freedom to manage/control in owner's hands--profit incentive/confidential information

Answer 41

Sole proprietorship:

Question 42

-disadvantages--unlimited liability/risk--limited management talent--limited size/opportunities --limited life -- unstable in terms of longevity

Answer 42

Sole proprietorship:

Question 43

-advantages:--combined management, talent, and capital--easy to form--efficiency of labor

Answer 43

Partnership:

Question 44

-disadvantages:--lack of continuity (limited life)--decisions binding on both parties--frozen investments

Answer 44

Partnership:

Question 45

An artificial being, invisible, intangible, and existing only in the contemplation of law.-is a legal entity with an existence and life separate from its owners. Because of this separation, the owners are not personally liable for the corporation's debts-corporation are taxable entities

Answer 45

Corporation:

Question 46

-advantages:--continuity of existence--ease of ownership--limited liability--large financial capacity

Answer 46

Corporation:

Question 47

-disadvantages:--legal restrictions on activities--separation of ownership & control--lack of personal interest--double taxation on earning

Answer 47

Corporation:

Question 48

-advantages:--corporate-like limited liability and asset protection--flexibility of partnership--tax status of partnership

Answer 48

Limited Liability Company (LLC)

Question 49

-disadvantages:--if not properly structured can be taxed like a regular "C" corporation --limited life (usually 30 years)--due to newness case law and IRS rules are not well developed

Answer 49

Limited Liability Company (LLC)