Question 1

Partnerships are organized as either:

Accepted Answer

A)  specific or general partnerships 
B)  narrow or broad partnerships 
C)  inward or outward partnerships 
D)  general or limited partnerships 
E)  partial or full partnerships 
A)  specific or general partnerships 
B)  narrow or broad partnerships 
C)  inward or outward partnerships 
D)  general or limited partnerships 
E)  partial or full partnerships

Question 2

According to the 2007 National Business Ethics Survey, a total of ________ of the employees surveyed said they had observed conduct that violated company ethical standards, policy, or law during the past year.

Accepted Answer

A)  12 percent 
B)  25 percent 
C)  37 percent 
D)  55 percent 
E)  70 percent 
A)  12 percent 
B)  25 percent 
C)  37 percent 
D)  55 percent 
E)  70 percent

Question 3

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 4

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 5

A ________ details the responsibilities and the ownership shares of the partners involved with an organization.

Accepted Answer

A)  partnership agreement 
B)  industry contract 
C)  business pledge 
D)  business agreement 
E)  partnership pledge 
A)  partnership agreement 
B)  industry contract 
C)  business pledge 
D)  business agreement 
E)  partnership pledge

Question 6

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

Question 7

The major difference between a general and a limited partnership is that a limited partnership includes two classes of owners: general partners and limited partners.

Accepted Answer

A) True 
 B)False

Question 8

Its recommended that a startup wait one to three years before hiring an attorney to represent their firm.

Accepted Answer

A) True 
 B)False

Question 9

A subchapter S corporation combines the advantages of a partnership and a C corporation.

Accepted Answer

A) True 
 B)False

Question 10

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 11

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

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

Question 12

In a small number of communities across the United States, a business needs a license to operate.

Accepted Answer

A) True 
 B)False

Question 13

Choosing a legal entity for a firm is a one-time event. Once a form of legal entity has been chosen, it cannot be changed.

Accepted Answer

A) True 
 B)False

Question 14

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 15

An disadvantage of a general partnership is that the liquidity of each partner's investment is low.

Accepted Answer

A) True 
 B)False

Question 16

A situation that involves doing something that is beneficial to oneself or the organization, but may be unethical is called an:

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 17

A ________ combines the advantages of a partnership and a C corporation.

Accepted Answer

A)  subchapter S corporation 
B)  limited partnership 
C)  general partnership 
D)  sole proprietorship 
E)  subchapter K corporation 
A)  subchapter S corporation 
B)  limited partnership 
C)  general partnership 
D)  sole proprietorship 
E)  subchapter K corporation

Question 18

"Don't be evil" is the corporate motto for:

Accepted Answer

A)  Amazon.com 
B)  Starbucks 
C)  eBay 
D)  Apple Inc. 
E)  Google 
A)  Amazon.com 
B)  Starbucks 
C)  eBay 
D)  Apple Inc. 
E)  Google

Question 19

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

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 20

Which of the following is true regarding common stock and preferred stock?

Accepted Answer

A)  Preferred stock is rarely issued. 
B)  Common stock is rarely issued. 
C)  Common stock is issued more broadly than preferred stock. 
D)  Preferred stock is issues more broadly than common stock. 
E)  Common stock and preferred stock are issued in the same amount. 
A)  Preferred stock is rarely issued. 
B)  Common stock is rarely issued. 
C)  Common stock is issued more broadly than preferred stock. 
D)  Preferred stock is issues more broadly than common stock. 
E)  Common stock and preferred stock are issued in the same amount.

Partnerships are organized as either:

According to the 2007 National Business Ethics Survey, a total of ________ of the employees surveyed said they had observed conduct that violated company ethical standards, policy, or law during the past year.

The simplest form of business entity is the:

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

A ________ details the responsibilities and the ownership shares of the partners involved with an organization.

________ 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.

The major difference between a general and a limited partnership is that a limited partnership includes two classes of owners: general partners and limited partners.

Its recommended that a startup wait one to three years before hiring an attorney to represent their firm.

A subchapter S corporation combines the advantages of a partnership and a C corporation.

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

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

In a small number of communities across the United States, a business needs a license to operate.

Choosing a legal entity for a firm is a one-time event. Once a form of legal entity has been chosen, it cannot be changed.

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

An disadvantage of a general partnership is that the liquidity of each partner's investment is low.

A situation that involves doing something that is beneficial to oneself or the organization, but may be unethical is called an:

A ________ combines the advantages of a partnership and a C corporation.

"Don't be evil" is the corporate motto for:

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

Which of the following is true regarding common stock and preferred stock?

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 Venture's 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

Partnerships are organized as either:

According to the 2007 National Business Ethics Survey, a total of ________ of the employees surveyed said they had observed conduct that violated company ethical standards, policy, or law during the past year.

The simplest form of business entity is the:

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

A ________ details the responsibilities and the ownership shares of the partners involved with an organization.

________ 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.

The major difference between a general and a limited partnership is that a limited partnership includes two classes of owners: general partners and limited partners.

Its recommended that a startup wait one to three years before hiring an attorney to represent their firm.

A subchapter S corporation combines the advantages of a partnership and a C corporation.

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

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

In a small number of communities across the United States, a business needs a license to operate.

Choosing a legal entity for a firm is a one-time event. Once a form of legal entity has been chosen, it cannot be changed.

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

An disadvantage of a general partnership is that the liquidity of each partner's investment is low.

A situation that involves doing something that is beneficial to oneself or the organization, but may be unethical is called an:

A ________ combines the advantages of a partnership and a C corporation.

"Don't be evil" is the corporate motto for:

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

Which of the following is true regarding common stock and preferred stock?

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 Venture's 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