Question 1

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 2

The idea that it's important to get "everything in writing" in regard to business agreements causes unnecessary work and can lead to an erosion of trust between business partners.

Accepted Answer

A) True 
 B)False

Question 3

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.

Question 4

A ________ partnership is a modified form of a general partnership.

Accepted Answer

A)  restricted 
B)  limited 
C)  partial 
D)  constrained 
E)  fractional 
A)  restricted 
B)  limited 
C)  partial 
D)  constrained 
E)  fractional

Question 5

________ 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 6

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 7

In which form of business ownership are the owners called "members"?

Accepted Answer

A)  general partnership 
B)  limited partnership 
C)  limited liability company 
D)  subchapter C corporation 
E)  C corporation 
A)  general partnership 
B)  limited partnership 
C)  limited liability company 
D)  subchapter C corporation 
E)  C corporation

Question 8

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 9

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 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

Jessica Marsh just took a job with Instagram. As part of her employment contract, Jessica signed an agreement that states that he will not disclose any of Instagram's trade secrets. The agreement that Jessica signed is called a(n) ________ agreement.

Accepted Answer

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

Question 12

Few entrepreneurial firms start as subchapter S corporations.

Accepted Answer

A) True 
 B)False

Question 13

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 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

Very few businesses require licenses and permits to operate.

Accepted Answer

A) True 
 B)False

Question 16

The Savvy Entrepreneurial Firm feature in Chapter 7 focuses on the topic of vesting company stock. According to the feature, a typical startup's vesting schedule lasts ________ and includes a 12-month cliff.

Accepted Answer

A)  12 months 
B)  12 months to 24 months 
C)  24 months to 36 months 
D)  36 months to 48 months 
E)  48 months to 60 months 
A)  12 months 
B)  12 months to 24 months 
C)  24 months to 36 months 
D)  36 months to 48 months 
E)  48 months to 60 months

Question 17

List and briefly describe three specific steps that an entrepreneurial organization can take to build a strong ethical culture.

Accepted Answer

(1)Lead by example.The most important th

Question 18

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 19

It is important for an entrepreneur to select an attorney as late as possible when developing a business venture.

Accepted Answer

A) True 
 B)False

Question 20

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

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

The idea that it's important to get "everything in writing" in regard to business agreements causes unnecessary work and can lead to an erosion of trust between business partners.

Which of the following statements is incorrect regarding sole proprietorships?

A ________ partnership is a modified form of a general partnership.

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

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

In which form of business ownership are the owners called "members"?

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

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

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

Jessica Marsh just took a job with Instagram. As part of her employment contract, Jessica signed an agreement that states that he will not disclose any of Instagram's trade secrets. The agreement that Jessica signed is called a(n) ________ agreement.

Few entrepreneurial firms start as subchapter S corporations.

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

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

Very few businesses require licenses and permits to operate.

The Savvy Entrepreneurial Firm feature in Chapter 7 focuses on the topic of vesting company stock. According to the feature, a typical startup's vesting schedule lasts ________ and includes a 12-month cliff.

List and briefly describe three specific steps that an entrepreneurial organization can take to build a strong ethical culture.

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

It is important for an entrepreneur to select an attorney as late as possible when developing a business venture.

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

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

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

The idea that it's important to get "everything in writing" in regard to business agreements causes unnecessary work and can lead to an erosion of trust between business partners.

Which of the following statements is incorrect regarding sole proprietorships?

A ________ partnership is a modified form of a general partnership.

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

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

In which form of business ownership are the owners called "members"?

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

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

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

Jessica Marsh just took a job with Instagram. As part of her employment contract, Jessica signed an agreement that states that he will not disclose any of Instagram's trade secrets. The agreement that Jessica signed is called a(n) ________ agreement.

Few entrepreneurial firms start as subchapter S corporations.

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

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

Very few businesses require licenses and permits to operate.

The Savvy Entrepreneurial Firm feature in Chapter 7 focuses on the topic of vesting company stock. According to the feature, a typical startup's vesting schedule lasts ________ and includes a 12-month cliff.

List and briefly describe three specific steps that an entrepreneurial organization can take to build a strong ethical culture.

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

It is important for an entrepreneur to select an attorney as late as possible when developing a business venture.

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

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