Question 1

Large firms like Apple, Facebook, General Electric, and Microsoft, that trade on organized stock exchanges, are ________.

Accepted Answer

A)  limited partnerships 
B)  limited liability companies 
C)  subchapter S corporations 
D)  C corporations 
E)  general partnerships 
A)  limited partnerships 
B)  limited liability companies 
C)  subchapter S corporations 
D)  C corporations 
E)  general partnerships D

Question 2

________ are a special form of incentive compensation. These plans provide employees the option or right to buy a certain number of shares of their company's stock at a stated price over a certain period of time.

Accepted Answer

A)  Corporate options 
B)  Collective plans 
C)  Share plans 
D)  Stock options 
E)  Dividends 
A)  Corporate options 
B)  Collective plans 
C)  Share plans 
D)  Stock options 
E)  Dividends D

Question 3

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 C

Question 4

According to the 2013 National Business Ethics Survey, which of the following forms of misconduct or unethical behavior was observed by the highest percentage of the U.S. workforce?

Accepted Answer

A)  Discriminating against employees 
B)  Violating company policies related to Internet use 
C)  Abusive behavior that creates a hostile work environment 
D)  Lying to employees 
E)  Stealing or theft 
A)  Discriminating against employees 
B)  Violating company policies related to Internet use 
C)  Abusive behavior that creates a hostile work environment 
D)  Lying to employees 
E)  Stealing or theft

Question 5

Partnerships are organized as either ________ or ________ partnerships.

Accepted Answer

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

Question 6

A(n) ________ 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 7

The single most important thing the founders of an entrepreneurial venture can do to avoid ethical misconduct is to establish a strong ethical culture for their firms.

Accepted Answer

A) True 
 B)False

Question 8

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 9

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

Accepted Answer

A) True 
 B)False

Question 10

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 11

A corporation is formed by filing ________ with the Secretary of State's office in the state of incorporation.

Accepted Answer

A)  a certificate of intent to incorporate 
B)  articles of business 
C)  corporate credentials 
D)  a corporation permit 
E)  articles of incorporation 
A)  a certificate of intent to incorporate 
B)  articles of business 
C)  corporate credentials 
D)  a corporation permit 
E)  articles of incorporation

Question 12

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 13

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 14

A disadvantage of C corporations is that they are subject to ________, which means that a corporation is taxed on its net income and when the same income is distributed to shareholders in the form of dividends it is taxed again on shareholders' personal income tax returns.

Accepted Answer

A)  double taxation 
B)  dual toll 
C)  double duty 
D)  double assessment 
E)  dual harm 
A)  double taxation 
B)  dual toll 
C)  double duty 
D)  double assessment 
E)  dual harm

Question 15

Tempered Mind, the company profiled in the opening feature in Chapter 7, has created an iPhone app that teaches users' a foreign language as they progress through the stages of a game. To get Tempered Mind off to a strong ethical start, the company was careful to avoid a temptation that mobile app developers have. That temptation, mentioned in the profile, is to ________.

Accepted Answer

A)  pay people to write positive reviews 
B)  misrepresent the quality of the app 
C)  copy material and action sequences that appear in other apps without obtaining permission from the owners 
D)  withhold payment from freelancers who worked on the project 
E)  ask employees to work unreasonable hours to get the project done 
A)  pay people to write positive reviews 
B)  misrepresent the quality of the app 
C)  copy material and action sequences that appear in other apps without obtaining permission from the owners 
D)  withhold payment from freelancers who worked on the project 
E)  ask employees to work unreasonable hours to get the project done

Question 16

Which of the following is an advantage of a C Corporation?

Accepted Answer

A)  Setting up and maintaining one is more difficult than for a sole proprietorship or a partnership. 
B)  Stock is liquid if traded on a major stock exchange. 
C)  Business losses cannot be deducted against the shareholders' other sources of income. 
D)  Income is subject to double taxation. 
E)  Small shareholders typically have little voice in the management of the firm. 
A)  Setting up and maintaining one is more difficult than for a sole proprietorship or a partnership. 
B)  Stock is liquid if traded on a major stock exchange. 
C)  Business losses cannot be deducted against the shareholders' other sources of income. 
D)  Income is subject to double taxation. 
E)  Small shareholders typically have little voice in the management of the firm.

Question 17

What is a founders' agreement? Describe the purpose of a buyback clause and why it's important?

Accepted Answer

A founders' (or shareholders')agreement

Question 18

According to the 2013 National Business Ethics Survey, a total of ________ percent of the employees surveyed said they had observed misconduct or unethical behavior in the past year.

Accepted Answer

A)  7 
B)  15 
C)  24 
D)  33 
E)  41 
A)  7 
B)  15 
C)  24 
D)  33 
E)  41

Question 19

Which of the following statements regarding business licenses and permits is incorrect?

Accepted Answer

A)  Most business licenses and permits can wait until after a business is launched to be obtained. 
B)  A business license can typically be obtained at the city clerk's office in the community where the business will be located. 
C)  If a business will be run out of a home, a home occupation business license is often required. 
D)  Some business licenses are hard to get. 
E)  The business licenses and permits that are needed vary by city, county, and state. 
A)  Most business licenses and permits can wait until after a business is launched to be obtained. 
B)  A business license can typically be obtained at the city clerk's office in the community where the business will be located. 
C)  If a business will be run out of a home, a home occupation business license is often required. 
D)  Some business licenses are hard to get. 
E)  The business licenses and permits that are needed vary by city, county, and state.

Question 20

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

Large firms like Apple, Facebook, General Electric, and Microsoft, that trade on organized stock exchanges, are ________.

________ are a special form of incentive compensation. These plans provide employees the option or right to buy a certain number of shares of their company's stock at a stated price over a certain period of time.

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?

According to the 2013 National Business Ethics Survey, which of the following forms of misconduct or unethical behavior was observed by the highest percentage of the U.S. workforce?

Partnerships are organized as either or partnerships.

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

The single most important thing the founders of an entrepreneurial venture can do to avoid ethical misconduct is to establish a strong ethical culture for their firms.

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

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

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

A corporation is formed by filing ________ with the Secretary of State's office in the state of incorporation.

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.

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

A disadvantage of C corporations is that they are subject to ________, which means that a corporation is taxed on its net income and when the same income is distributed to shareholders in the form of dividends it is taxed again on shareholders' personal income tax returns.

Which of the following is an advantage of a C Corporation?

What is a founders' agreement? Describe the purpose of a buyback clause and why it's important?

According to the 2013 National Business Ethics Survey, a total of ________ percent of the employees surveyed said they had observed misconduct or unethical behavior in the past year.

Which of the following statements regarding business licenses and permits is incorrect?

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

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 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

Large firms like Apple, Facebook, General Electric, and Microsoft, that trade on organized stock exchanges, are ________.

________ are a special form of incentive compensation. These plans provide employees the option or right to buy a certain number of shares of their company's stock at a stated price over a certain period of time.

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?

According to the 2013 National Business Ethics Survey, which of the following forms of misconduct or unethical behavior was observed by the highest percentage of the U.S. workforce?

Partnerships are organized as either ________ or ________ partnerships.

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

The single most important thing the founders of an entrepreneurial venture can do to avoid ethical misconduct is to establish a strong ethical culture for their firms.

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

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

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

A corporation is formed by filing ________ with the Secretary of State's office in the state of incorporation.

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.

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

A disadvantage of C corporations is that they are subject to ________, which means that a corporation is taxed on its net income and when the same income is distributed to shareholders in the form of dividends it is taxed again on shareholders' personal income tax returns.

Which of the following is an advantage of a C Corporation?

What is a founders' agreement? Describe the purpose of a buyback clause and why it's important?

According to the 2013 National Business Ethics Survey, a total of ________ percent of the employees surveyed said they had observed misconduct or unethical behavior in the past year.

Which of the following statements regarding business licenses and permits is incorrect?

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

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 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

Partnerships are organized as either or partnerships.