Test #2

Question 1

Acquisition

Answer 1

One company is purchased by another

Question 2

Articles of Partnership

Answer 2

Legal documents that set the basic agreement between partners

Question 3

Board of Directors

Answer 3

A group of individuals, elected by shareholders, to oversee the general operation of a corporation

Question 4

Common Share

Answer 4

Owners have voting rights in the corporation

Question 5

Cooperative (Co-Op)

Answer 5

An organized composed of individuals or businesses that have banded together to reap the benefits of belonging to a larger organization

Question 6

Crown Corporations

Answer 6

Owned and operated by federal, provincial, or local government

Question 7

Dividends

Answer 7

Profits of a corporation

Question 8

General Partnership

Answer 8

Partnership involves sharing in management and liability

Question 9

Initial Public Offering (IPO)

Answer 9

Selling corporation’s shares on public markets for the first time

Question 10

Joint Venture

Answer 10

A partnership made for a specific project or for a limited time

Question 11

Leveraged Buyout (LBO)

Answer 11

Investors borrow money from banks to acquire a company and use the assets of the company to guarantee repayment of the loan

Question 12

Limited Partnership

Answer 12

Has at least one general partner who assumes unlimited liability, and one limited partner whose liability is limited to their investment

Question 13

Merger

Answer 13

Combination of two companies to form a new company

Question 14

Nonprofit Corporation

Answer 14

Focus on providing a service rather than earning profit

Question 15

Partnership

Answer 15

An association of two or more persons who are co-owners of a business

Question 16

Partnership Agreement

Answer 16

Legal agreement that outlines a business relationship

Question 17

Preferred Shares

Answer 17

Type of share where owners have a claim to profits before other shareholders do

Question 18

Private Corporation

Answer 18

Owned by just one or a few people who are closely involved in management of business

Question 19

Public Corporation

Answer 19

Anyone can buy, sell, or trade the shares

Question 20

Sole Proprietorships

Answer 20

Businesses owned by one person (most common form of business in Canada)

Question 21

Business Plan

Answer 21

Step-by-step plan of how business will achieve its goals

Question 22

Corporation

Answer 22

Legal entity with authority to act and have liability separate from its owners

Question 23

Entreprenership

Answer 23

Creating and managing a business to achieve goals

Question 24

Franchise

Answer 24

License to sell another’s products or to use another’s name in business

Question 25

Franchisee

Answer 25

The purchaser of a franchise

Question 26

Franchiser

Answer 26

The company that sells a franchise

Question 27

Intrapeneurs

Answer 27

Individuals who are responsible for the creation of innovations within an organization

Question 28

Small Business

Answer 28

Any independently owned and operated business that does not employ more than 500 people

Question 29

Undercapitalization

Answer 29

Lack of funds to operate a business

Question 30

Administrative Managers

Answer 30

Manage an entire business and coordinate the activities of specialized managers

Question 31

Conceptual Skills

Answer 31

Ability to see how parts fit together to form a whole

Question 32

Controlling

Answer 32

Evaluating and correcting activities to keep the organization on course

Question 33

Directing

Answer 33

Motivating and leading employees to achieve objectives

Question 34

Downsizing

Answer 34

Elimination of a significant number of employees

Question 35

Financial Managers

Answer 35

Focus on obtaining the funds needed for the success of an organization

Question 36

First-Line Managers

Answer 36

Supervise workers and daily operations

Question 37

Human Relations Skills

Answer 37

Ability to deal with people both inside and outside of the organization

Question 38

Human Resources Managers

Answer 38

Handle the staffing and deal with employees in a formalized manner

Question 39

Information Technology (IT) Managers

Answer 39

Implement, maintain, and control technology applications

Question 40

Leadership

Answer 40

Ability to influence employees to work towards a goal

Question 41

Managers

Answer 41

Individuals who make decisions about the use of resources

Question 42

Marketing Managers

Answer 42

Responsible for planning, pricing, and promoting products

Question 43

Middle Managers

Answer 43

Responsible for the tactical planning

Question 44

Operational Plans

Answer 44

Very short-term plans that determine what needs to be completed in order to achieve tactical plan

Question 45

Organizing

Answer 45

Structuring of resources and activities to accomplish goals

Question 46

Planning

Answer 46

Determining the goals and deciding how to accomplish them

Question 47

Production and Operations Managers

Answer 47

Develop and administer the activities involved in transforming resources into goods

Question 48

Staffing

Answer 48

Hiring of people to work for an organization

Question 49

Strategic Plans

Answer 49

Establish long-term objectives

Question 50

Tactical Plans

Answer 50

Short-range plans designed to complete goals stated in the strategic plan

Question 51

Technical Expertise

Answer 51

Specialized knowledge and training needed to perform jobs

Question 52

Top Managers

Answer 52

President and other top executives (CEO, CFO, COO)

Question 53

Three Types of Partnerships

Answer 53

- general - limited - limited liability (LLP)

Question 54

Three Types of Corporations

Answer 54

- private - public - initial public offering (IPO)