Question 1

According to the 2016 Global Business Ethics Survey, a total of ________ percent of U.S. employees surveyed report observing misconduct.

Accepted Answer

A)  7 
B)  15 
C)  24 
D)  47 
E)  30 
A)  7 
B)  15 
C)  24 
D)  47 
E)  30

Question 2

________ stock is typically issued to conservative investors who have preferential rights over common stockholders in regard to dividends and to the assets of the corporation in the event of liquidation.

Accepted Answer

A)  Restricted 
B)  Partial 
C)  Preferred 
D)  Common 
E)  Limited liability 
A)  Restricted 
B)  Partial 
C)  Preferred 
D)  Common 
E)  Limited liability

Question 3

A code of ________ is a formal statement of an organization's values on certain ethical and social issues.

Accepted Answer

A)  conduct 
B)  behavior 
C)  performance 
D)  principles 
E)  morals 
A)  conduct 
B)  behavior 
C)  performance 
D)  principles 
E)  morals

Question 4

Corporations are organized as either C corporations, T corporations, or subchapter S corporations.

Accepted Answer

A) True 
 B)False

Question 5

Which of the following is typically NOT included in the founders' agreement for a firm?

Accepted Answer

A)  Marketing plan 
B)  Legal form of business ownership 
C)  Buyback clause 
D)  Apportionment of stock 
E)  Identity and proposed titles of the founders 
A)  Marketing plan 
B)  Legal form of business ownership 
C)  Buyback clause 
D)  Apportionment of stock 
E)  Identity and proposed titles of the founders

Question 6

If the owners of a corporation don't file their annual paperwork, neglect to pay their annual fees, or commit fraud, a court could ignore the fact that a corporation has been established and the owners could be held personally liable for the actions of the corporation. This chain of events is referred to as ________.

Accepted Answer

A)  vacating the corporate status 
B)  yielding the corporate privilege 
C)  surrendering the corporate shield 
D)  piercing the corporate veil 
E)  capitulating the corporate doctrine 
A)  vacating the corporate status 
B)  yielding the corporate privilege 
C)  surrendering the corporate shield 
D)  piercing the corporate veil 
E)  capitulating the corporate doctrine

Question 7

Most founders' agreements include a ________ clause, which legally obligates the departing founder to sell to the remaining founders his or her interest in the firm if the remaining founders are interested.

Accepted Answer

A)  redemption 
B)  buyback 
C)  statutory purchase 
D)  voluntary recoup 
E)  shareholder surrender 
A)  redemption 
B)  buyback 
C)  statutory purchase 
D)  voluntary recoup 
E)  shareholder surrender

Question 8

A situation that involves doing something that is beneficial to oneself or the organization, but may be unethical, is called a(n) ________.

Accepted Answer

A)  ethical quandary 
B)  ethical predicament 
C)  ethical dilemma 
D)  principled quandary 
E)  just dilemma 
A)  ethical quandary 
B)  ethical predicament 
C)  ethical dilemma 
D)  principled quandary 
E)  just dilemma

Question 9

Which of the following is the most important thing that an entrepreneur, or team of entrepreneurs, can do to build a strong ethical culture in their organization?

Accepted Answer

A)  Implement an ethics training program 
B)  Write a mission statement 
C)  Lead by example 
D)  Hire an ethics compliance officer 
E)  Write a code of conduct 
A)  Implement an ethics training program 
B)  Write a mission statement 
C)  Lead by example 
D)  Hire an ethics compliance officer 
E)  Write a code of conduct

Question 10

All of the following are advantages of a sole proprietorship except ________.

Accepted Answer

A)  creating one is easy and inexpensive 
B)  unlimited liability 
C)  it is not subject to double taxation 
D)  the owner maintains complete control of the business 
E)  business losses can be deducted against the sole proprietor's other sources of income 
A)  creating one is easy and inexpensive 
B)  unlimited liability 
C)  it is not subject to double taxation 
D)  the owner maintains complete control of the business 
E)  business losses can be deducted against the sole proprietor's other sources of income

Question 11

A separate legal entity organized under the authority of a state is referred to as a ________.

Accepted Answer

A)  limited partnership 
B)  conglomerate 
C)  general partnership 
D)  sole proprietorship 
E)  corporation 
A)  limited partnership 
B)  conglomerate 
C)  general partnership 
D)  sole proprietorship 
E)  corporation

Question 12

________ is the process in which an impartial third party helps those involved in a dispute reach an agreement.

Accepted Answer

A)  Conciliation 
B)  Reconciliation 
C)  Negotiation 
D)  Appeasement 
E)  Mediation 
A)  Conciliation 
B)  Reconciliation 
C)  Negotiation 
D)  Appeasement 
E)  Mediation

Question 13

Most businesses that plan to use a fictitious name, which is any name other than the business owner's name, need a(n) ________ permit.

Accepted Answer

A)  unreal business name 
B)  fabricated business name 
C)  invented business name 
D)  conjured business name 
E)  fictitious business name 
A)  unreal business name 
B)  fabricated business name 
C)  invented business name 
D)  conjured business name 
E)  fictitious business name

Question 14

Which of the following is a disadvantage of a C Corporation?

Accepted Answer

A)  Income is subject to double taxation. 
B)  Limited liability 
C)  Raising capital is easier than a partnership or sole proprietorship. 
D)  Stock is liquid if traded on a major stock exchange. 
E)  No restrictions exist on the number of shareholders. 
A)  Income is subject to double taxation. 
B)  Limited liability 
C)  Raising capital is easier than a partnership or sole proprietorship. 
D)  Stock is liquid if traded on a major stock exchange. 
E)  No restrictions exist on the number of shareholders.

Question 15

Which of the following statements is incorrect regarding sole proprietorships?

Accepted Answer

A)  There is one owner. 
B)  Sole proprietor is in full control. 
C)  Business ends at the owner's death or loss of interest in the business. 
D)  Liquidity of the investment is high. 
E)  Money must be raised by the sole proprietor. 
A)  There is one owner. 
B)  Sole proprietor is in full control. 
C)  Business ends at the owner's death or loss of interest in the business. 
D)  Liquidity of the investment is high. 
E)  Money must be raised by the sole proprietor.

According to the 2016 Global Business Ethics Survey, a total of ________ percent of U.S. employees surveyed report observing misconduct.

________ stock is typically issued to conservative investors who have preferential rights over common stockholders in regard to dividends and to the assets of the corporation in the event of liquidation.

A code of ________ is a formal statement of an organization's values on certain ethical and social issues.

Corporations are organized as either C corporations, T corporations, or subchapter S corporations.

Which of the following is typically NOT included in the founders' agreement for a firm?

Most founders' agreements include a ________ clause, which legally obligates the departing founder to sell to the remaining founders his or her interest in the firm if the remaining founders are interested.

A situation that involves doing something that is beneficial to oneself or the organization, but may be unethical, is called a(n) ________.

Which of the following is the most important thing that an entrepreneur, or team of entrepreneurs, can do to build a strong ethical culture in their organization?

All of the following are advantages of a sole proprietorship except ________.

A separate legal entity organized under the authority of a state is referred to as a ________.

________ is the process in which an impartial third party helps those involved in a dispute reach an agreement.

Most businesses that plan to use a fictitious name, which is any name other than the business owner's name, need a(n) ________ permit.

Which of the following is a disadvantage of a C Corporation?

Which of the following statements is incorrect regarding sole proprietorships?

Introduction to Entrepreneurship

Recognizing Opportunities and Generating Ideas

Feasibility Analysis

Developing an Effective Business Model

Industry and Competitor Analysis

Writing a Business Plan

Assessing a New Ventures Financial Strength and Viability

Building a New-Venture Team

Getting Financing or Funding

Unique Marketing Issues

The Importance of Intellectual Property

Preparing for and Evaluating the Challenges of Growth

Strategies for Firm Growth

Franchising

Filters

Exam 7: Preparing the Proper Ethical and Legal Foundation

According to the 2016 Global Business Ethics Survey, a total of ________ percent of U.S. employees surveyed report observing misconduct.

________ stock is typically issued to conservative investors who have preferential rights over common stockholders in regard to dividends and to the assets of the corporation in the event of liquidation.

A code of ________ is a formal statement of an organization's values on certain ethical and social issues.

Corporations are organized as either C corporations, T corporations, or subchapter S corporations.

Which of the following is typically NOT included in the founders' agreement for a firm?

Most founders' agreements include a ________ clause, which legally obligates the departing founder to sell to the remaining founders his or her interest in the firm if the remaining founders are interested.

A situation that involves doing something that is beneficial to oneself or the organization, but may be unethical, is called a(n) ________.

Which of the following is the most important thing that an entrepreneur, or team of entrepreneurs, can do to build a strong ethical culture in their organization?

All of the following are advantages of a sole proprietorship except ________.

A separate legal entity organized under the authority of a state is referred to as a ________.

________ is the process in which an impartial third party helps those involved in a dispute reach an agreement.

Most businesses that plan to use a fictitious name, which is any name other than the business owner's name, need a(n) ________ permit.

Which of the following is a disadvantage of a C Corporation?

Which of the following statements is incorrect regarding sole proprietorships?

Introduction to Entrepreneurship

Recognizing Opportunities and Generating Ideas

Feasibility Analysis

Developing an Effective Business Model

Industry and Competitor Analysis

Writing a Business Plan

Assessing a New Ventures Financial Strength and Viability

Building a New-Venture Team

Getting Financing or Funding

Unique Marketing Issues

The Importance of Intellectual Property

Preparing for and Evaluating the Challenges of Growth

Strategies for Firm Growth

Franchising

Filters