MGMT 421: Chapter 4

15. An advantage of imposing government regulations on an industry or business is that _____. A. it makes the proceedings of a business clear and easy to understand B. it generates opportunities for other small businesses C. it requires very little paperwork D. it encourage small firms to hire more workers

B. it generates opportunities for other small businesses

25. _____ is also known as the "green" movement. A. Consumerism B. Deforestation C. Conservation D. Acculturation

C. Conservation

20. _____ is the organized efforts of independent, government, and business groups to protect end users from undesirable effects of poorly designed and produced products. A. Polarization B. Conservation C. Consumerism D. Protectionism

C. Consumerism

10. Which of the following statements is true of Chapter 11 of the Bankruptcy Reform Act of 1978? A. A firm that files for bankruptcy protection cannot operate while its debts are being repaid. B. Society should compensate those who have suffered an injury as a result of wrongful action(s) by others. C. If a business is so far gone that it cannot keep operating, it must be liquidated. D. A bankrupt business can be reorganized only when the bankruptcy petition is filed voluntarily.

C. If a business is so far gone that it cannot keep operating, it must be liquidated.

5. _____ law is administered between two or more citizens. A. Public B. Criminal C. Private D. Civil

C. Private

17. The Small Business _____ Act requires each federal agency to set up compliance centers to help small businesses deal with pending legislation. A. Emergency Supplemental Appropriations B. Community Learning Centers C. Regulatory Enforcement Fairness D. Worker Adjustment and Retraining

C. Regulatory Enforcement Fairness

14. Which organization provides counseling, training, and technical assistance in all aspects of small business management? A. Small Business Correction Center B. Small Business Facilitation Center C. Small Business Development Center D. Small Business Training Center

C. Small Business Development Center

11. The function of the Small Business Administration is to: A. protect consumers from undesirable effects of poorly produced products of small businesses. B. enforce pollution control standards for small businesses. C. provide direct and guaranteed loans to small businesses. D. provide demographic information to small businesses.

C. provide direct and guaranteed loans to small businesses.

22. Environmental protection involves: A. dealing ethically with employees, customers, and competitors. B. participating in community and charitable activities to help the underprivileged. C. trying to maintain a healthy balance between people and their surroundings. D. dealing with sexual harassment in the office.

C. trying to maintain a healthy balance between people and their surroundings.

2. Which clause gives the U.S. Congress the right to "regulate commerce with foreign nations, and among the several states"? A. Free exercise clause B. Interstate commerce clause C. Copyright clause D. Contracts clause

B. Interstate commerce clause

3. Which of the following statements is true of police power? A. It allows the state to regulate commerce with foreign nations and among the several states. B. It is the right to use the force of the state to promote the general welfare of citizens. C. It is an unwritten law derived from judicial decisions based on acceptable customs. D. It entitles each and every citizen to a day in court.

B. It is the right to use the force of the state to promote the general welfare of citizens.

26. Which form of conservation involves the reprocessing of used items for future use? A. Dematerialization B. Recycling C. Afforestation D. Reducing

B. Recycling

29. Which of the following may be a good test for ethical behavior? A. Morris water maze test B. Rotary International's "Four-Way Test" C. Conditioned-place preference test D. Two-bottle choice test

B. Rotary International's "Four-Way Test"

12. _____ is a group of volunteer members who specialize in helping people develop their business ideas. A. Small Business Development Center B. Service Corps of Retired Executives C. Production Credit Association D. Officers' Welfare Association

B. Service Corps of Retired Executives

19. _____ is a business's obligation to set policies, make decisions, and follow actions that are desirable in terms of a society's values and objectives. A. Collectivism B. Social responsibility C. Business ethics D. Consumerism

B. Social responsibility

32. Lawyers can charge for their services by _____. A. asking a client to mortgage his/her immovable property B. asking for a flat fee for a specific assignment C. asking for the entire amount a client receives through a trial D. asking a client to pay as much they think is fit

B. asking for a flat fee for a specific assignment

4. Which of the following statements is true of criminal law? A. It deals with penalizing those who commit illegal acts. B. It deals with the rights and powers of the government. C. It implies that everyone is entitled to a day in court. D. It is an unwritten law derived from judicial decisions.

A. It deals with penalizing those who commit illegal acts.

30. Which of the following statements is true of the Federal Sentencing Guidelines for Organizations? A. It outlines programs for effective ethics. B. It tells one what to do if the codes of ethics are silent. C. It specializes in helping people develop their business ideas. D. It provides the "Four Way Test" of the things we think, say, or do.

A. It outlines programs for effective ethics.

18. To locate a lawyer in helping with government regulations, a small business owner will refer to the _____. A. Martindale-Hubbell Law Directory B. General Accounting Office C. National Small Business Association D. Case Law Information Services

A. Martindale-Hubbell Law Directory

13. Which government organization grants awards for the "Small Business Persons of the Year"? A. Small Business Administration B. Production Credit Association C. U.S. Department of Commerce D. U.S. Department of Education.

A. Small Business Administration

16. Which of the following is a disadvantage of government regulations being imposed on small business firms? A. They require a small business firm to handle an excessive amount of paperwork. B. They mandate that small businesses must report to the U.S. Department of Commerce. C. They make it compulsory for a small business firms to hire a lawyer. D. They limit opportunities for other small businesses.

A. They require a small business firm to handle an excessive amount of paperwork.

27. AMF Systems uses certain standards to judge the rightness or wrongness of its business's and its personnel's relations to others. These standards are called _____. A. business ethics B. personal ethics C. normative ethics D. consumer ethics

A. business ethics

31. To cope with government regulations, owners of small business firms _____. A. can become involved in the legal-political system to elect officials of their choice B. should debar themselves from forming alliances with other companies or organizations C. should keep themselves away from procuring knowledge regarding the various governmental laws D. can establish their own set of laws without having to follow the actual laws and regulations

A. can become involved in the legal-political system to elect officials of their choice

24. There is now a greater effort in small firms to hire qualified persons without regard to race, sex, religion, color, creed, age, or disabilities. This illustrates enlightened _____. A. employee relations B. consumerism C. personal ethics D. individualism

A. employee relations

6. The Uniform Commercial Code is a set of uniform model statutes to: A. govern business and commercial transactions. B. address a wrongful injury. C. negotiate new business contracts. D. reorganize a bankrupt business.

A. govern business and commercial transactions.

7. _____ is defined as a wrongful act by one party that results in injury to a second party's person, property or reputation for which the first party is liable. A. Malice B. A deed C. Hostility D. A tort

D. A tort

21. _____ is the movement to protect the valid interests of consumers and is a major force in small business today. A. Protectionism B. Social responsibility C. Business ethics D. Consumerism

D. Consumerism

23. _____ is defined as trying to prevent the contamination or destruction of the natural environment. A. Conservation B. Consumerism C. Community relations D. Pollution control

D. Pollution control

1. _____ is a body of laws passed by federal, state, and local governments. A. Common law B. Police law C. Judicial law D. Statutory law

D. Statutory law

9. Identify a true statement about bankruptcy? A. When one or more creditors file the bankruptcy petition against the debtor, it's called ordinary bankruptcy. B. Chapter 11 of the Bankruptcy Reform Act of 1978 contains a provision for reorganizing the bankrupt business only when the petition filed is voluntary. C. Involuntary bankruptcy occurs when a debtor files an application with a court claiming that debts exceed assets and asks to be declared bankrupt. D. Under bankruptcy law, people or businesses can petition the courts to be relieved of the obligation to pay debts they cannot repay.

D. Under bankruptcy law, people or businesses can petition the courts to be relieved of the obligation to pay debts they cannot repay.

8. Bankruptcy is defined as _____. A. a wrongful act by one party that results in injury to a second party's person, property, or reputation B. a legal process by which the lender takes away the borrower's right to a property C. a body of laws passed by federal, state, and local governments D. a formal legal condition of inability to repay debts

D. a formal legal condition of inability to repay debts

28. A person's own belief system that tells him or her what to do if or when the laws and/or any pertinent codes of values are silent is termed _____. A. reputation B. association C. business ethic D. personal ethic

D. personal ethic