Lesson 5-6 QUIZ CHECKS

Which of the following accurately describes a partnership?

A single business in which two or more people share ownership

A questionable gift could be described as _____.

a gift of relatively large value

Corporate social responsibility strategies encourage _____.

a positive impact on the environment and stakeholders

Which of the following best describes a limited liability company (LLC)?

A business structure that is attractive to small business owners because it provides the limited liability features of a corporation and the tax efficiencies and operational flexibility of a partnership

Kickback is a form of bribery distinguished on the basis of which of the following?

A negotiated agreement among both the giver and receiver

Which statement best explains why a sole proprietorship has the lowest setup costs of any business type?

A sole proprietor does not have to hire a corporate attorney to draft legal documents.

You are thinking about starting your own business. What are the most important factors you should consider when thinking about your form of business ownership?

Cost of start-up, taxation, and risk tolerance

Which statement best explains why it is important to understand and consider tax implications when starting a business?

Different forms of business ownership result in businesses and owners being taxed differently.

Which of the following is NOT a purpose of ethics codes?

Ensure legal compliance

_____ are a set of standards that govern the conduct of a person, especially a member of a profession. A good example is the medical profession's oath to "do no harm."

Ethics

What is one way to completely reframe the pharmaceutical industry's current corporate social responsibility issue of the spread of diseases like AIDS?

Focus on moderate and affordable measures to prevent the spread of disease.

What does quid pro quo mean in the context of gift giving in business?

Giving something with the expectation of receiving something in return

What is the main difference between an S corporation and a C corporation?

In an S corporation, the business itself is not taxed; in a C corporation, it is.

Which statement best describes the advantage of a franchise?

It provides a proven product, business model, and brand to the franchisee.

LESSON 6 CHECKS

LESSON 6 CHECKS

If the owner of a sole proprietorship were to die, what would become of his or her business?

The business would cease to exist.

Acquisitions usually refer to _____.

a larger company purchasing a smaller one

How has social media led to a number of new ethical challenges for businesses?

his type of network blurs the boundaries between personal and workplace spaces.

What are some important factors to consider when choosing an organizational type?

Risk tolerance and control versus responsibility

What components make up the compliance strategy companies use to respond to Federal Sentencing Guidelines?

Rules, monitoring, disciplining misconduct

You are forming a new company that delivers food to students across college campuses. You have a number of partners, but your primary goals are to avoid personal liability and double taxation. You want to pay each of the partners based on the percentage of the company he or she owns. You could accomplish this by forming a(n) _____.

S corporation

Which statement best describes a limited liability partnership (LLP)?

The partners can manage the company directly.

How can companies seeking to practice corporate social responsibility understand the significance of social and ecological aspects?

Using the instrument of materiality analysis

What is vicarious corporate social responsibility?

When one agent accepts responsibility for actions executed by another

A franchiser can offer a franchisee _____.

a template for the business

A(n) _____ occurs when one company purchases and absorbs another company.

acquisition

As society evolves, what constitutes legal behavior _____.

changes

A _____ occurs when a person or organization has two diametrically opposed interests they are authorized to uphold.

conflict of interest

A _____ is a legal entity completely separate from the entities that own it.

corporation

Companies in the _____ field are more likely to sell franchises than companies in other fields.

customer service

In a sole proprietorship, the owner of the business _____.

enjoys complete control over all aspects of the business

Cost of start-up, control versus responsibility, profits, taxation, entrepreneurial ability, risk tolerance, financing, and continuity or transferability are all _____.

factors to consider when choosing an organizational type

Corporations today have a considerable amount of power. One way to responsibly use that power is to engage in initiatives to evaluate the degree to which they _____, known as corporate social responsibility.

harm the environment or damage the social fabric

Charter Communications is seeking to purchase and bring together Time Warner Cable and Bright House Networks, creating a company that will serve a collective 18.8 million Internet broadband subscribers and 17 million TV subscribers. Charter has cited a desire to have greater bargaining power in negotiating with channel owners like Disney. This is an example of a _____.

horizontal merger

A thirty-five-year-old entrepreneur with dependents is considering starting a business. She is concerned about protecting her personal assets and ensuring that if her company fails, she would not lose her home or personal savings. This is an example of an individual with _____.

low risk tolerance

When two companies combine to form a new company, it is called a(n) _____.

merger

In a partnership, _____.

profit, liability, and management duties are divided equally among partners

A corporate code of ethics _____.

provides guidelines on ethical issues and express an organization's core values

The typical fee structure for a franchise, including initial franchise fees and royalties, is more advantageous to _____.

the franchisor

One disadvantage of a franchise is _____.

the high cost of start-up

Klucky Farms merges with supermarket giant Super Fresh Foods. Klucky Farms is excited to be able to supply Super Fresh Foods with a steady supply of quality chicken, and Super Fresh Foods is glad to have a reliable farm with fair prices under the same corporate leadership. This is an example of a _____.

vertical merger

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