Question 1

The simplest form of business entity is the:

Accepted Answer

A)  sole proprietorship 
B)  general partnership 
C)  C Corporation 
D)  limited liability company 
E)  subchapter S corporation 
A)  sole proprietorship 
B)  general partnership 
C)  C Corporation 
D)  limited liability company 
E)  subchapter S corporation

Question 2

The What Went Wrong? feature in Chapter 7 focuses on the failure of Green Plant, a company that sold smoothie drinks. Green Plant failed in part because it was sued by Jamba Juice for:

Accepted Answer

A)  copyright infringement 
B)  trademark infringement 
C)  violating a nondisclosure agreement 
D)  theft of trade secrets 
E)  patent infringement 
A)  copyright infringement 
B)  trademark infringement 
C)  violating a nondisclosure agreement 
D)  theft of trade secrets 
E)  patent infringement

Question 3

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 4

The vast majority of corporations in the United States are public corporations.

Accepted Answer

A) True 
 B)False

Question 5

According to the textbook, the single most important thing the founders of an entrepreneurial venture can do is:

Accepted Answer

A)  start a board of advisors 
B)  establish business partnerships 
C)  make money 
D)  select a limited liability corporation as opposed to an S-corporation 
E)  establish a strong ethical culture for their firms 
A)  start a board of advisors 
B)  establish business partnerships 
C)  make money 
D)  select a limited liability corporation as opposed to an S-corporation 
E)  establish a strong ethical culture for their firms

Question 6

Which of the following statements about limited partnerships is incorrect?

Accepted Answer

A)  A limited partnership is a modified form of a general partnership. 
B)  Limited partnerships are common in real estate and oil and gas exploration. 
C)  A limited partnership is usually formed to raise money or to spread out the risk of a venture without forming a corporation. 
D)  Both the limited partners and the general partners are responsible for the debts and obligations of the partnership. 
E)  A limited partnership contains two classes of owners: general partners and limited partners. 
A)  A limited partnership is a modified form of a general partnership. 
B)  Limited partnerships are common in real estate and oil and gas exploration. 
C)  A limited partnership is usually formed to raise money or to spread out the risk of a venture without forming a corporation. 
D)  Both the limited partners and the general partners are responsible for the debts and obligations of the partnership. 
E)  A limited partnership contains two classes of owners: general partners and limited partners.

Question 7

Which of the following is not one of the four factors identified in the textbook as critical in selecting a form of business ownership?

Accepted Answer

A)  the cost of setting up and maintaining the legal form 
B)  the number and types of investors involved 
C)  accounting considerations 
D)  tax considerations 
E)  the extent to which personal assets can be shielded from the liabilities of the business 
A)  the cost of setting up and maintaining the legal form 
B)  the number and types of investors involved 
C)  accounting considerations 
D)  tax considerations 
E)  the extent to which personal assets can be shielded from the liabilities of the business

Question 8

Which of the following is not an advantage of a general partnership?

Accepted Answer

A)  Business losses can be deducted against the partners' other sources of income. 
B)  The skills and abilities of more than one individual are available to the firm. 
C)  The liquidity of each partner's investment is low. 
D)  Creating one is relatively easy and inexpensive compared to a c corporation or limited liability company. 
E)  It is not subject to double taxation. 
A)  Business losses can be deducted against the partners' other sources of income. 
B)  The skills and abilities of more than one individual are available to the firm. 
C)  The liquidity of each partner's investment is low. 
D)  Creating one is relatively easy and inexpensive compared to a c corporation or limited liability company. 
E)  It is not subject to double taxation.

Question 9

A(n) ________ agreement binds an employee or another party to not disclose a company's trade secret. A ________ agreement prevents an individual from competing against a former employer for a specific period of time.

Accepted Answer

A)  nondisclosure, noncompete 
B)  non breach-of-trust, nonchallenge 
C)  voluntary truth, nonparticipate 
D)  binding confidentiality, noncompete 
E)  ethics, nonparticipate 
A)  nondisclosure, noncompete 
B)  non breach-of-trust, nonchallenge 
C)  voluntary truth, nonparticipate 
D)  binding confidentiality, noncompete 
E)  ethics, nonparticipate

Question 10

Describe what is meant by a "general partnership" and a "limited partnership." Describe the major difference between the two.

Accepted Answer

A general partnership is a form of busin

Question 11

Which of the following is not one of the standards that a business must meet to qualify for status as a subchapter S corporation?

Accepted Answer

A)  The business must be a subsidiary of another corporation. 
B)  All shareholders must agree to have the corporation formed as a subchapter S corporation. 
C)  It can have no more than 100 members (husbands and wives count as one member). 
D)  It can have only one class of stock issued and outstanding. 
E)  The shareholders must be U.S. citizens. 
A)  The business must be a subsidiary of another corporation. 
B)  All shareholders must agree to have the corporation formed as a subchapter S corporation. 
C)  It can have no more than 100 members (husbands and wives count as one member). 
D)  It can have only one class of stock issued and outstanding. 
E)  The shareholders must be U.S. citizens.

Question 12

An ethical dilemma is a situation that involves doing something that is beneficial to oneself or the organization, but may be unethical.

Accepted Answer

A) True 
 B)False

Question 13

Corporations that trade their stock on organized exchanges like the New York Stock Exchange and the NASDAQ are called:

Accepted Answer

A)  national corporations 
B)  civil corporations 
C)  public corporations 
D)  premier corporations 
E)  common corporations 
A)  national corporations 
B)  civil corporations 
C)  public corporations 
D)  premier corporations 
E)  common corporations

Question 14

Few entrepreneurial firms start as subchapter S corporations.

Accepted Answer

A) True 
 B)False

Question 15

According to the textbook, ________ are common in real estate development, oil and gas exploration, and motion picture ventures.

Accepted Answer

A)  sole proprietorships 
B)  limited liability companies 
C)  Subchapter S Corporations 
D)  limited partnerships 
E)  general partnerships 
A)  sole proprietorships 
B)  limited liability companies 
C)  Subchapter S Corporations 
D)  limited partnerships 
E)  general partnerships

Question 16

Describe the purpose of a nondisclosure agreement. Provide an example of when a nondisclosure agreement kicks in.

Accepted Answer

A nondisclosure agreement is a promise m

Question 17

According to Chapter 7, which of the following forms of misconduct or unethical behavior was observed by the highest percentage of the U.S. workforce?

Accepted Answer

A)  company resource abuse 
B)  employee privacy breach 
C)  health or safety violations 
D)  lying to outside stakeholders 
E)  discrimination 
A)  company resource abuse 
B)  employee privacy breach 
C)  health or safety violations 
D)  lying to outside stakeholders 
E)  discrimination

Question 18

All businesses that plan to use a fictitious name, which is any name other than the business owner's name, need a(n):

Accepted Answer

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

Question 19

Stock options are a special form of incentive compensation.

Accepted Answer

A) True 
 B)False

Question 20

Trevor Parsons just took a job with Twitter. As part of his employment contract, Trevor signed an agreement that states that he will not disclose any of Twitter's trade secrets. The agreement that Trevor signed is called a(n):

Accepted Answer

A)  nondisclosure agreement 
B)  non breach-of-trust agreement 
C)  ethics agreement 
D)  binding confidentiality agreement 
E)  legitimacy agreement 
A)  nondisclosure agreement 
B)  non breach-of-trust agreement 
C)  ethics agreement 
D)  binding confidentiality agreement 
E)  legitimacy agreement

The simplest form of business entity is the:

The What Went Wrong? feature in Chapter 7 focuses on the failure of Green Plant, a company that sold smoothie drinks. Green Plant failed in part because it was sued by Jamba Juice for:

The vast majority of corporations in the United States are public corporations.

According to the textbook, the single most important thing the founders of an entrepreneurial venture can do is:

Which of the following statements about limited partnerships is incorrect?

Which of the following is not one of the four factors identified in the textbook as critical in selecting a form of business ownership?

Which of the following is not an advantage of a general partnership?

A(n) agreement binds an employee or another party to not disclose a company's trade secret. A agreement prevents an individual from competing against a former employer for a specific period of time.

Describe what is meant by a "general partnership" and a "limited partnership." Describe the major difference between the two.

Which of the following is not one of the standards that a business must meet to qualify for status as a subchapter S corporation?

An ethical dilemma is a situation that involves doing something that is beneficial to oneself or the organization, but may be unethical.

Corporations that trade their stock on organized exchanges like the New York Stock Exchange and the NASDAQ are called:

Few entrepreneurial firms start as subchapter S corporations.

According to the textbook, ________ are common in real estate development, oil and gas exploration, and motion picture ventures.

Describe the purpose of a nondisclosure agreement. Provide an example of when a nondisclosure agreement kicks in.

According to Chapter 7, which of the following forms of misconduct or unethical behavior was observed by the highest percentage of the U.S. workforce?

All businesses that plan to use a fictitious name, which is any name other than the business owner's name, need a(n):

Stock options are a special form of incentive compensation.

Trevor Parsons just took a job with Twitter. As part of his employment contract, Trevor signed an agreement that states that he will not disclose any of Twitter's trade secrets. The agreement that Trevor signed is called a(n):

Introduction to Entrepreneurship

Recognizing Opportunities and Generating Ideas

Feasibility Analysis

Writing a Business Plan

Industry and Competitor Analysis

Developing an Effective Business Model

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

The simplest form of business entity is the:

The What Went Wrong? feature in Chapter 7 focuses on the failure of Green Plant, a company that sold smoothie drinks. Green Plant failed in part because it was sued by Jamba Juice for:

The vast majority of corporations in the United States are public corporations.

According to the textbook, the single most important thing the founders of an entrepreneurial venture can do is:

Which of the following statements about limited partnerships is incorrect?

Which of the following is not one of the four factors identified in the textbook as critical in selecting a form of business ownership?

Which of the following is not an advantage of a general partnership?

A(n) ________ agreement binds an employee or another party to not disclose a company's trade secret. A ________ agreement prevents an individual from competing against a former employer for a specific period of time.

Describe what is meant by a "general partnership" and a "limited partnership." Describe the major difference between the two.

Which of the following is not one of the standards that a business must meet to qualify for status as a subchapter S corporation?

An ethical dilemma is a situation that involves doing something that is beneficial to oneself or the organization, but may be unethical.

Corporations that trade their stock on organized exchanges like the New York Stock Exchange and the NASDAQ are called:

Few entrepreneurial firms start as subchapter S corporations.

According to the textbook, ________ are common in real estate development, oil and gas exploration, and motion picture ventures.

Describe the purpose of a nondisclosure agreement. Provide an example of when a nondisclosure agreement kicks in.

According to Chapter 7, which of the following forms of misconduct or unethical behavior was observed by the highest percentage of the U.S. workforce?

All businesses that plan to use a fictitious name, which is any name other than the business owner's name, need a(n):

Stock options are a special form of incentive compensation.

Trevor Parsons just took a job with Twitter. As part of his employment contract, Trevor signed an agreement that states that he will not disclose any of Twitter's trade secrets. The agreement that Trevor signed is called a(n):

Introduction to Entrepreneurship

Recognizing Opportunities and Generating Ideas

Feasibility Analysis

Writing a Business Plan

Industry and Competitor Analysis

Developing an Effective Business Model

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

A(n) agreement binds an employee or another party to not disclose a company's trade secret. A agreement prevents an individual from competing against a former employer for a specific period of time.