Page 5 23. All of the following are reasons why small businesses fail EXCEPT A. Unanticipated personal sacrifices B. A comprehensive business plan C. Poor fiscal management D. Excessive debt accumulation E. Inadequate planning 24. In addition to an initial investment, franchisees are generally required to pay a monthly fee based on sales or profits to the franchisor. This fee is referred to as the A. Licensing B. Transaction C. Royalty D. Service E. Franchising 25. In order to finance the development of their new video game, Jack and his wife solicited funds in the form of promise of free access to the game when it was launched. What "donations" from the Internet community with only a type of financing is this? A. Angel investing B. Venture capitalists C. Crowdfunding D. The SBIC program E. Bootstrap financing 26. What type of organization is owned by those who utilize its services rather than by outside investors? A. A limited liability company B. A limited partnership C. A cooperative D. An S corporation E. A not-for-profit organization 27. An S corporation must comply with all of the following EXCEPT A. The corporation can have no more than 100 shareholders. B. The company may issue only one class of common stock C. All shareholders of an S corporation must be U.S. Citizens or residents. D. Profits and losses must be distributed proportionately to shareholders E. Transfer of stock in an S corporation requires the approval of other shareholders. 8. Which of the following positions in a corporation is responsible for overseeing all operations and meeting regularly with the board of directors? A. Chief Technology Officer (CTO) B. General Counsel C. Chief Financial Officer (CFO) D. Chief Executive Officer (CEO) Chief Operations Officer (COO)