Unit 3 - Chapters 15-18

Which of the following forms of business is the easiest to set up? A. A limited liability company B. A corporation C. An S corporation D. A general partnership

A. A limited liability company

Which of the following statements is true regarding a trademark? A. A trademark can sometimes also function as a service mark. B. A trademark once granted lasts for 25 years. C. A trademark can only be renewed every 5 years. D. A trademark is not an exclusive right to its creator.

A. A trademark can sometimes also function as a service mark.

Which of the following is not generally considered to be very useful for any purpose other than accounting and income taxes? A. Book value B. Salvage value C. Replacement value D. Disposal value

A. Book value

_____ is a choice LLCs can make on their tax returns to be taxed as a corporation or a partnership. A. Check the box taxation B. Double taxation C. Pass through taxation D. Single taxation

A. Check the box taxation

The _____ is a series of acts by Congress that prohibit discrimination on the basis of race, color, religion, sex, or national origin. A. Civil Rights Act of 1991 B. Age Discrimination in Employment Act of 1967 C. Americans with Disabilities Act of 1990 D. Rehabilitation Act of 1973

A. Civil Rights Act of 1991

Ted's business, situated near the Missouri River, was partially destroyed when the river overflowed after a deluge. Which of the following measures would've helped Ted minimize the effect of the flood from interrupting the operations of his business? A. Creating provisions for subcontracting work B. Developing an informal code of ethics for all employees to follow C. Ensuring that all employees have easy access to all assets D. Securing valuable assets from low-level employees

A. Creating provisions for subcontracting work

_____ is the source of the largest amount of employee theft. A. Employee collusion B. Employee intoxication C. Adverse possession D. Employee nonfeasance

A. Employee collusion

_____ refers to the filing made with a state(s) in which the business operates disclosing the trade name or assumed name of the business along with the owners of the business. A. Fictitious name filing B. Evidential name filing C. Incorporation D. Adverse possession

A. Fictitious name filing

_____ is the most common kind of coverage on key persons of a business. A. Life insurance B. Health insurance C. Dental insurance D. Credit insurance

A. Life insurance

Which of the following is a formal dispute resolution method that operates using the court system, typically with a lawyer representing each party? A. Litigation B. Arbitration C. Mediation D. Possession

A. Litigation

Which of the following should be included in an employee contract for a key employee? A. Offer rewards for providing adequate termination notice B. Specify that the employee must work at the organization for a minimum of two years C. Detail the consequences of insubordination within the workplace D. Encourage employees to poach clients from competitors

A. Offer rewards for providing adequate termination notice

Which of the following is true with regard to pricing of legal services? A. Pricing of legal services is based on supply and demand. B. Being diplomatic with the attorney is not at all recommended in negotiations on the issue of pricing. C. The attorney's fee schedule in all four types of pricing of services is non-negotiable. D. Pricing of legal services is mainly constant and fixed.

A. Pricing of legal services is based on supply and demand.

Which of the following is one of the disadvantages of the return on investment (ROI) analysis? A. The profits received are not the same as cash. B. The calculations involved in the method are complex. C. It does not consider annual profits in its calculations. D. It does not rely on accounting information with which investors are comfortable.

A. The profits received are not the same as cash.

Which of these is an advantage of sole proprietorship? A. Unique tax advantages B. Longer life because the business and owner are legally the same C. Owner's liability for the firm's debt limited to his or her investment in it D. Ease of raising large amounts of capital

A. Unique tax advantages

_____ refers to the fixed, determinable period of utility of an asset. A. Useful life B. Salvage value C. Payback period D. Disposal value

A. Useful life

Document setting forth information about a limited liability company that is filed with the state to establish an LLC is referred to as _____. A. articles of organization B. subcontract C. charter D. operating agreement

A. articles of organization

A _____ is a computer-readable tag that is unique to each item of the inventory. A. bar code B. copyright C. patent D. trademark

A. bar code

A lease in which at the end of the lease period the asset becomes the property of the lessee, possibly with an additional payment is called a(n) _____ lease. A. capital B. leveraged C. direct D. operating

A. capital

The direct cost incurred in using an asset for the purpose for which it was intended is termed as _____. A. cost of operating B. cost of owning C. whole of life cost D. cost of disposition

A. cost of operating

Operations management is primarily concerned with: A. directing and controlling. B. planning and organizing. C. staffing and planning. D. controlling and organizing.

A. directing and controlling.

The Age Discrimination in Employment Act makes it illegal to: A. discriminate against people who are older than 40 years of age. B. employ minors at a workplace. C. provide preferential treatment to employees over 50 years of age. D. provide work opportunities to school students.

A. discriminate against people who are older than 40 years of age.

Someone who uses intellectual property without the permission of the owner is referred to as a(n): A. infringer. B. arbitrator. C. defaulter. D. retainer.

A. infringer.

The risk from customers primarily arises from: A. injuries suffered while on business property. B. high prices of the products or services. C. discontent with the customer service provided by the business. D. not being provided credit to purchase products.

A. injuries suffered while on business property.

A(n) _____ refers to the products that are held for sale to customers. A. inventory B. layaway C. plant D. lock box

A. inventory

The most common mandatory insurance coverage includes: A. liability for damages caused by vehicle accidents. B. liability for loss of sales during recession. C. travel cancellation liability. D. damage at workplace caused by disgruntled employees.

A. liability for damages caused by vehicle accidents.

A(n) _____ refers to a contract among LLC members outlining how the LLC will conduct itself. A. operating agreement B. mission statement C. charter D. articles of incorporation

A. operating agreement

A(n) _____ is the amount of inventory that results in the minimum cost, considering the cost of lost sales resulting from running out of stock, the number of units sold per day, and the number of days required to receive inventory. A. optimum stocking level B. periodic inventory C. economic order quantity D. micro inventory

A. optimum stocking level

The amount of time it takes a business to earn back the funds it paid out to obtain a capital asset is referred to as the _____. A. payback period B. synodic period C. chargeback period D. grace period

A. payback period

A _____ is the process of physically counting business assets on a set schedule. A. periodic inventory B. perpetual inventory C. just-in-time inventory D. micro inventory

A. periodic inventory

The dissolution of a corporate form, making it back into a sole proprietorship or general partnership, if the court finds that the owner carelessly mixed up personal and business assets or finances is known as: A. piercing the veil. B. adverse possession. C. nonfeasance. D. easement.

A. piercing the veil.

A person or other entity filing a lawsuit is known as _____. A. plaintiff B. defendant C. sole proprietor D. retainer

A. plaintiff

Payment for injury or damage that occurs during the use of a business's products is referred to as _____. A. product liability B. professional immunity C. product immunity D. personal liability

A. product liability

Insurable value is defined as: A. the amount of an asset for which a company will write an insurance policy. B. the entire value of the property of a business. C. the value of the historical significance of a building. D. the amount of fees that a business has to pay to an insurance company.

A. the amount of an asset for which a company will write an insurance policy.

Pledging receivables will get an owner about one-half of the amount that can be collected, whereas, factoring can immediately get an owner _____ percent of the amount due. A. 90-95 B. 75-80 C. 40-45 D. 20-25

B. 75-80

_____ refers to money that is owed to a business by its customers who purchased a product on credit. A. Pledging receivable B. Accounts receivable C. Factoring receivable D. Accounts payable

B. Accounts receivable

_____ is a dispute resolution process held instead of court cases in which both sides present their case to a legal professional. A. Litigation B. Arbitration C. Mediation D. Piercing the veil

B. Arbitration

______ is a contract requirement that works to prevent property owners from deliberately underinsuring. A. Benchmarking B. Co-insurance C. Adverse possession D. Separation of duty

B. Co-insurance

Which of the following is the cost incurred in financing, insuring, taxing, or tracking an asset? A. Acquisition cost B. Cost of owning C. Cost of operating D. Replacement cost

B. Cost of owning

_____ are contractual provisions of insurance policies that specify what risks the insurance company is assuming. A. Internal controls B. Coverages C. Separation of duties D. Premiums

B. Coverages

The computers at a graphics design company were stolen recently. Which of the following insurance that the company holds will repay the losses incurred? A. Product liability insurance B. Crime insurance C. Surety bonds D. Credit insurance

B. Crime insurance

Anderson and Anderson is a law firm that has been handed a job to take care of patent issues for Gantar Labs. Anderson and Anderson charges a fixed amount for patent-related cases. Which of the following types of fees will Gantar be paying Anderson and Anderson? A. Hourly fees B. Flat fees C. Retainers D. Contingency fees

B. Flat fees

Which of these arguments would be helpful in deflecting vicarious liability? A. Ignorance B. Independent contractor argument C. Financial inability argument D. Actions are within the scope of agency/employment argument

B. Independent contractor argument

_____ refers to a set of rules and procedures that work to limit the opportunity for employee theft or malfeasance. A. Internal audit B. Internal control C. Malfeasance in office D. Insider trading

B. Internal control

Which of the following is true of partnerships? A. It does not get terminated upon the death of one or more partners. B. It does not allow one partner to obtain bonding protection against the acts of the other partner(s). C. It cannot obtain financial resources from more than one person. D. It does not incur unlimited liability on its partners for the firm's debt.

B. It does not allow one partner to obtain bonding protection against the acts of the other partner(s).

Which of the following is true about sole proprietorship? A. It is the most difficult kind of business form to set up. B. It is not considered as a legal entity separate from its owner. C. It does not incur unlimited liability on its owner. D. It is not supported by any unique tax advantages.

B. It is not considered as a legal entity separate from its owner.

Which of the following is true of co-insurance? A. It is an amount of loss that is specifically excluded by the insurance contract. B. It requires that an owner carry insurance equal to a stated minimum percentage of the market value of their property. C. It results in the decrease of the amount of premium that the insurance company collects from businesses. D. It is the amount of an asset for which a company will write an insurance policy.

B. It requires that an owner carry insurance equal to a stated minimum percentage of the market value of their property.

Which of the following is a risk specific to dentists and physicians? A. Business interruption B. Malpractice claims C. Errors and omissions claims D. Product liability claims

B. Malpractice claims

Which of the following is true regarding a small-claims court? A. These courts will only accept cases where the stakes are as large as $50,000 or above. B. Most of these courts are designed so that ordinary citizens can bring their cases in. C. This legal option is only available to entrepreneurs who can afford an attorney. D. These courts are the only recourse for small business owners for litigation.

B. Most of these courts are designed so that ordinary citizens can bring their cases in.

Which one of the following government agencies was created to enforce safety in the workplace? A. EEOC B. OSHA C. SBA D. IRS

B. OSHA

_____ is the cost incurred to substitute one asset with an identical asset. A. Disposal value B. Replacement value C. Fair market value D. Book value

B. Replacement value

Martin, an employee at a boutique store, is required to handle store displays and also ensure that all the sales records tally at the end of each business day. However, he committed fraud by recording fake sales and then keeping the products to himself. Which of the following managerial concepts would have helped the store avoid this deception? A. Adverse possession B. Separation of duties C. Accession D. Rule against perpetuities

B. Separation of duties

Which of the following is a protected class established by the EEOC? A. Age B. Sex C. Marital status D. Political affiliation

B. Sex

Crux Inc. and Synapse Inc. are two competing businesses in the same city. They use the services of the same insurance company and have taken the same policy. Crux has a higher deductible than Synapse for the policy. Which of the following statements would be true in this case? A. Both companies are not paying any premium. B. Synapse pays a higher premium than Crux. C. Both the companies pay the same premium. D. Crux pays a higher premium than Synapse.

B. Synapse pays a higher premium than Crux.

Brendon wants to sue Fitness Ace, a leading provider of fitness equipments, for negligence. He approaches Arthur Bailey Group, a law firm, which has good experience in handling product liability claims for victims of exercise equipment failure. Which of the following would be true if the attorney charges Brendon in the form of flat fees? A. The attorney would charge Brendon on an hourly basis. B. The attorney would charge separately for consultation and paperwork. C. The attorney would take a percentage of Brendon's recovery as his or her fee. D. The attorney would take monthly fee and additional fees if circumstances change.

B. The attorney would charge separately for consultation and paperwork.

Depreciation is based on which of the following assumptions? A. The period of utility of an asset is not fixed or determinable. B. The value of an asset declines in a predictable manner over the period of utility. C. The salvage value of an asset will not exist when the depreciation process is complete. D. The value of an asset is not fixed or determinable.

B. The value of an asset declines in a predictable manner over the period of utility.

A(n) _____ is the name under which a business is operated. A. patent B. assumed name C. trademark D. copyright

B. assumed name

Kevin has taken an apartment on lease for five years with a monthly rental of $3,500. At the end of five years, Kevin will be the legal owner of the apartment after an additional payment of $80,000. This type of lease is an example of a _____ lease. A. leveraged B. capital C. direct D. operating

B. capital

A person or entity being sued is referred to as _____. A. plaintiff B. defendant C. bailee D. petitioner

B. defendant

The _____ methods define utility as being the net cash inflows that the asset will produce. A. residual income valuation B. discounted cash flow valuation C. inventory valuation D. pre-money valuation

B. discounted cash flow valuation

Jacob often manipulates charges on his travel expenses to indicate higher amounts when he travels for the company he works for. Trent, the accounts manager, accepts fake bills and assists Jacob in deceiving the company. They split the profits made this way. This is an example of theft by: A. adverse possession. B. employee collusion. C. employee nonfeasance. D. vendor fraud.

B. employee collusion.

Misappropriation of business property by employees of that business is referred to as: A. employee branding. B. employee theft. C. employee attrition. D. employee engagement.

B. employee theft.

A method of billing for lawyers in which a fixed amount is paid for a certain task is called: A. hourly fees. B. flat fees. C. retainers. D. contingency fees.

B. flat fees.

The two basic categories of information available to small business owners are: A. legal and commercial. B. free and paid. C. written and oral. D. online and in-print.

B. free and paid.

A contract between two or more parties in which one party agrees, for a fee, to assume the risk of another is called _____. A. coverage B. insurance C. separation of duties D. bailment

B. insurance

The most highly desired form of insurance for most employees is _____. A. life insurance B. medical insurance C. credit insurance D. disability insurance

B. medical insurance

The _____ is the total cost of substituting an asset with an essentially identical asset. A. cost of disposition B. replacement cost C. cost of operating D. acquisition cost

B. replacement cost

A(n) _____ is an amount of inventory carried to ensure that a business will not run out of inventory because of fluctuating levels of sales. A. micro inventory B. safety stock C. just-in-time inventory D. perpetual inventory

B. safety stock

Except for _____, business forms are types of separate, legal entities. A. limited partnerships B. sole proprietorships C. limited liabilities companies D. C corporations

B. sole proprietorships

A(n) _____ is a type of contract by which a new party agrees to perform a duty that one of the original parties to a contract was already legally obligated to perform. A. exculpatory agreement B. subcontract C. unilateral contract D. option contract

B. subcontract

Copyrights for new works last for: A. the creator's life. B. the creator's life plus 70 years. C. 120 years after creation. D. 25 years after its first publication.

B. the creator's life plus 70 years.

The most common form of employee collusion is: A. selling trade secrets to competition. B. theft of cash and inventory. C. lying about work hours. D. lying about absences.

B. theft of cash and inventory.

A _____ is a type of intellectual property, not created by the government but is information known to certain people in a company that makes that company more competitive. A. copyright B. trade secret C. patent D. trademark

B. trade secret

A 20-year patent covering a process, machine, article of manufacture, composition of matter, or any new or useful improvement of an existing one is known as _____. A. plant patent B. utility patent C. design patent D. non-provisional patent

B. utility patent

Which of the following helps manage risks to physical assets of a business? A. Employees should be allowed easy access of physical assets to assist them with their work. B. Inspections should be deemed necessary only when an item is reported missing. C. A manager's signature must be required to confirm that an item has been returned to its proper storage. D. Only clerical-level employees need to sign for removing items from storage.

C. A manager's signature must be required to confirm that an item has been returned to its proper storage.

_____ is a process of communicating within or to an organization about how the outputs worked or were received. A. Productivity B. Valuation C. Feedback D. Operations

C. Feedback

_____ are used to pay losses that are not covered by other liability insurance. A. Unemployment insurance B. Worker's compensation insurance C. General liability insurance D. Product liability insurance

C. General liability insurance

Which of the following is one of the ways in which attorneys charge? A. Quarterly fees B. Annual fees C. Hourly fees D. Continuous fees

C. Hourly fees

_____ refers to property coming from some sort of original thought such as trademarks, patents, and copyrights. A. Trade property B. Real property C. Intellectual property D. Tangible property

C. Intellectual property

Which of the following is the largest current asset that most manufacturing, wholesale, and retail firms generally have? A. Copyright B. Equipment C. Inventory D. Patent

C. Inventory

Which of the following statements is true of joint ventures? A. It requires both partners involved to allocate revenues and expenses equally between them. B. It is not considered a separate entity from any of the partners that own it. C. It does not require its partners to lose more than what each partner has invested in it. D. It is never taxed as a partnership.

C. It does not require its partners to lose more than what each partner has invested in it.

Which of the following is true regarding buyout insurance? A. It is usually provided as a stand-alone policy. B. It is only applicable for large businesses. C. It is a type of disability insurance. D. It is the most highly desired form of insurance for most employees.

C. It is a type of disability insurance.

Which of the following is an advantage of providing credit to customers? A. It reduces the need to borrow money. B. It speeds up the receipt of cash. C. It reduces the cost of selling. D. It ensures all customers make on-time payments.

C. It reduces the cost of selling.

Which of the following is a disadvantage of renting capital assets? A. It does not protect a business from unexpected costs of repairs. B. It is not easily available. C. It requires the business to make regular, timely payments. D. It requires a major cash investment.

C. It requires the business to make regular, timely payments.

Which of the following statements is true regarding credit insurance? A. It does not cover losses from credit customers not paying their bills. B. It refers to credit provided by merchants to their customers on purchased products. C. It requires the merchant to provide co-insurance in the amount of 10 to 20 percent of the credit loss. D. It is only available to retailers.

C. It requires the merchant to provide co-insurance in the amount of 10 to 20 percent of the credit loss.

Which of the following goals need to be addressed for extending credit to customers? A. Getting as many customers as possible B. Arranging a loan and making regular payments of interest C. Keeping the number of bad accounts as low as possible D. Increasing the time between a credit sale and cash receipt

C. Keeping the number of bad accounts as low as possible

Which of the following dispute resolution methods is the least expensive and much faster to complete? A. Litigation B. Arbitration C. Mediation D. Piercing the veil

C. Mediation

_____ refers to a type of periodic inventory that conducts a count of the entire inventory being held for sale at a specific point in time. A. Factoring B. Perpetual inventory C. Physical inventory D. Benchmarking

C. Physical inventory

Which among the following steps in a negotiation process is considered to be the most difficult? A. Prepare B. Position C. Propose D. Pounce

C. Propose

_____ refers to the fixed and determinable value of an asset that will exist when the depreciation process is complete. A. Market value B. Book value C. Salvage value D. Disposal value

C. Salvage value

_____ are laws and regulations that specify the requirements of taxation. A. Tax charts B. Tax slabs C. Tax codes D. Tax exempts

C. Tax codes

_____ is a form of insurance that does not accumulate any value over the contract period. A. Buyout insurance B. Life insurance C. Term insurance D. Period insurance

C. Term insurance

Which of the following is true of insuring the property of a business? A. All the value of a property has insurable value. B. The value of land is the most commonly insured property. C. The value of the historical significance of a building often cannot be insured. D. The lower the deductible, the lower the policy premium payments will be.

C. The value of the historical significance of a building often cannot be insured.

Which of the following is true of limited partnerships? A. They are not dependent upon capital contributions of the partners. B. They allow double taxation of earnings generated. C. They require filings with the state in order to be set up and maintained legally. D. They are dependent upon assets and credit of a single proprietor.

C. They require filings with the state in order to be set up and maintained legally.

Fidelity bonds help to: A. protect against losses from crimes committed against the business. B. cover losses incurred due to governmental audits. C. cover losses incurred by the employer due to employee embezzlement. D. cover abnormal losses from credit customers not paying their bills.

C. cover losses incurred by the employer due to employee embezzlement.

A(n) _____ is an amount of loss that is specifically excluded by the insurance contract. A. insurable value B. premium C. deductible D. coverage

C. deductible

In a(n) _____, all partners are equally and fully responsible for the business's obligations. A. C corporation B. limited partnership C. general partnership D. S corporation

C. general partnership

The primary advantage of the payback period is that: A. it calculates the amount required to attain a capital asset. B. it incorporates the time value of money. C. it allows easy comparisons of alternatives. D. it incorporates all cash flows that occur after the payback period.

C. it allows easy comparisons of alternatives.

The primary disadvantage of leasing is that: A. it is difficult to replace leased assets than it is to replace owned assets. B. the process of negotiating and closing a lease is very complicated. C. it usually costs more than it would cost to purchase an asset. D. the responsibility of disposing of obsolete assets lies on the lessee.

C. it usually costs more than it would cost to purchase an asset.

Partnerships through which two or more businesses combine to undertake a specific economic activity are called _____. A. corporations B. sole proprietorships C. joint ventures D. S-corporations

C. joint ventures

The practice of purchasing and accepting delivery of inventory only after it has been sold to the final customer is termed as _____. A. perpetual inventory B. point-of-sale system C. just-in-time inventory D. optimum stocking level

C. just-in-time inventory

A _____ is a unit recognized as having rights and duties apart from the owners of the company. A. retainer B. utility patent C. legal entity D. sole proprietorship

C. legal entity

The _____ is also called the reorder point. A. replacement value B. disposal value C. optimum stocking level D. economic order quantity

C. optimum stocking level

According to the IRS, to be an independent contractor the person must: A. decide how the work must be done in consultation with an employer. B. have all his expenses paid for by an employer. C. perform a service that is not central to the operation of the business. D. not be employed for a distinct term or project.

C. perform a service that is not central to the operation of the business.

States of being that are expressly prohibited from suffering discrimination are called _____. A. vulnerable groups B. endangered sections C. protected classes D. ethnic majorities

C. protected classes

When using a(n) _____, the attorney will be paid a specified amount every month regardless of the workload for that month. A. hourly fee B. flat fee C. retainer D. contingency fee

C. retainer

The capital budgeting equation used to measure the relationship between initial investment and the profits that are expected to be received from making the investment is called _____. A. rate of investment B. return on equity C. return on investment D. net present value

C. return on investment

An ideal situation is where a business receives new inventory just as the last unit of the previous order is sold. However, this rarely occurs because the: A. inventory level is not affected by demand. B. delivery times never fluctuate. C. sales volumes are not constant. D. estimate never exceeds demand.

C. sales volumes are not constant.

A type of internal control that separates the physical control of an asset from the person accounting for that asset is called _____. A. asset liability B. adverse possession C. separation of duties D. separation of liabilities

C. separation of duties

A _____ is an agreement with an insurance or bonding company that will pay a specified amount in the event that the entity bonded fails to comply with specified contractual requirements. A. business interruption insurance B. credit insurance C. surety bond D. fidelity bond

C. surety bond

The Nike "swoosh" is an example of a _____. A. trade secret B. copyright C. trademark D. patent

C. trademark

The sum of all costs of capital assets, including acquisition, ownership, operation, and disposal is called _____. A. acquisition cost B. cost of owning C. whole of life cost D. replacement cost

C. whole of life cost

Consider a product that costs $5 to make, and is sold for $15. What is the productivity ratio? A. 2:1 B. 1:1 C. 1:3 D. 3:1

D. 3:1

Ted, a 46-year-old IT professional, recently attended a job interview at Acton Org. He was not offered the job. Ted tried to find the reasons for his disqualification and the company could not provide a satisfactory explanation. He later learned that he was refused the job due to his age as the job position was offered to a 23-year-old who had just graduated from college. Which of the following laws protect Ted from such discriminations? A. ADA B. OSHA laws C. Sarbanes-Oxley Act D. ADEA

D. ADEA

______ occurs when the owner of real property does not enforce property rights and allows a nonowner to use the property as if it were his or her own. A. Abandonment B. Accession C. Property liability D. Adverse possession

D. Adverse possession

Which of the following is a benefit of leasing? A. It is usually much easier to replace owned assets than it is to replace leased assets. B. The cost of leasing an asset is less than the cost of purchasing it. C. There are no restrictions on the use, maintenance, and disposal of leased assets. D. An asset can be leased at a very low down payment.

D. An asset can be leased at a very low down payment.

_____ are assets that are expected to provide economic benefits for periods of time greater than one year. A. Accounts receivables B. Hard assets C. Contingent assets D. Capital assets

D. Capital assets

_____ refers to the process of deciding among various investment opportunities to create a specific spending plan. A. Factoring receivables B. Cash budgeting C. Inventory valuation D. Capital budgeting

D. Capital budgeting

Joshua suffered a serious knee injury at work after a machine he was using malfunctioned. Joshua plans to sue for compensation from Milch Enterprises, the company that built that machine. Joshua's attorney wants a percentage of the compensation if it is proven that Milch Enterprises' negligence caused the accident. Which of the following types of legal fee would Joshua be paying to his attorney? A. Retainers B. Hourly fees C. Flat fees D. Contingency fees

D. Contingency fees

_____ is an arbitrary, but regular and systematic, method used to take asset value as an expense for the purpose of calculating net income or loss. A. Inventory valuation B. Capital budgeting C. Benchmarking D. Depreciation

D. Depreciation

Which of the following is a statistical technique that determines the size of inventory that a business must hold to minimize total inventory cost? A. Benchmarking B. Factoring C. Pull-push strategy D. Economic order quantity

D. Economic order quantity

_____ refers to the machinery, tools, or materials used in the performance of the work of a business. A. Property B. Plant C. Inventory D. Equipment

D. Equipment

_____ repay employers for losses caused by dishonest or negligent employees. A. Credit insurance B. Business interruption insurance C. Surety bonds D. Fidelity bonds

D. Fidelity bonds

Which of the following is true of offering direct credit to customers? A. It discredits the business's reputation. B. It always decreases business risk. C. It ensures on-time payment from customers. D. It increases sales for the business.

D. It increases sales for the business.

Which among the following is a disadvantage of sole proprietorships? A. Its owner gets no specific tax advantages. B. Its owner has to share control with others. C. Its owner has to share profits. D. Its owner has unlimited liability for the firm's debt.

D. Its owner has unlimited liability for the firm's debt.

_____ is a dispute resolution method in which the decision is nonbinding on the parties involved. A. Arbitration B. Litigation C. Adverse possession D. Mediation

D. Mediation

_____ is a general term for real estate, but it can also be applied as a legal term for anything owned or possessed. A. Equipment B. Plant C. Inventory D. Property

D. Property

_____ refers to laws and governmental rules that limit the freedom of business owners to manage their businesses as they please. A. Employee branding B. Benchmarking C. Arraignment D. Regulation of the workplace

D. Regulation of the workplace

_____ refers to earnings of the business that are taxed once with the owners paying the taxes. A. Pass through taxation B. Double taxation C. Check the box taxation D. Single taxation

D. Single taxation

Which of the following types of business form is the most popular for start-ups? A. Limited partnerships B. S corporations C. Professional corporations D. Sole proprietorship

D. Sole proprietorship

_____ are programs designed to report on a user's keystrokes or data, or give remote control of a PC to others. A. Hubs B. Firewalls C. Viruses D. Spyware

D. Spyware

Brendon wants to sue Fitness Ace, a leading provider of fitness equipments, for negligence. He approaches Arthur Bailey Group, a law firm, which has good experience in handling product liability claims for victims of exercise equipment failure. Which of the following would be true if the attorney charges Brendon using a retainer? A. The attorney would charge Brendon on an hourly basis. B. The attorney would charge separately for consultation and paperwork. C. The attorney would take a percentage of Brendon's recovery as his or her fee. D. The attorney would take monthly fee and additional fees if circumstances change.

D. The attorney would take monthly fee and additional fees if circumstances change.

Which of the following is true of insurance? A. All risks are insurable. B. An insurance company only charges a fee for large businesses with over 100 employees. C. Insurance companies make profits by requiring a relatively large fee compared to the amount of loss that is possible. D. The insurance company makes a profit by collecting premiums from many businesses for the same set of risks.

D. The insurance company makes a profit by collecting premiums from many businesses for the same set of risks.

Which of the following is an advantage of corporations? A. They tend to be personal in nature. B. They incur the lowest incorporation fees and taxes. C. They require the owner's liability to exceed the owner's investment. D. They are better equipped in raising large amounts of money.

D. They are better equipped in raising large amounts of money.

_____ are an important source of information for start-ups. They compile legal information for their members, including laws particularly applicable to certain types of businesses in various jurisdictions and proposals for changing the laws that affect an industry. A. Academic journals B. Magazines C. News channels D. Trade associations

D. Trade associations

Which of the following countries is one of the most litigious societies in the world? A. France B. Japan C. Switzerland D. United States

D. United States

The total cost of obtaining an asset, including such costs as purchase price, transportation, installation, testing, and calibrating in order to ready it for its first productive use is termed as _____. A. replacement cost B. cost of operating C. cost of disposition D. acquisition cost

D. acquisition cost

Agreement between the associates of a firm on matters pertaining to the formation and operation of the partnership is known as _____. A. articles of organization B. contracts of partnership C. articles of association D. articles of partnership

D. articles of partnership

A just-in-time (JIT) inventory system attempts to reduce inventory levels to the absolute minimum by: A. purchasing and accepting inventory before it is sold to a customer. B. delaying the shipment of the completed product to the customer. C. keeping safety stock in case the estimate exceeds the demand. D. assembling the product in the absolute minimum time possible.

D. assembling the product in the absolute minimum time possible.

The most common type of disability coverage is _____ which provides funds to the business to purchase the ownership position of a disabled partner. A. life insurance B. medical insurance C. credit insurance D. buyout insurance

D. buyout insurance

Arbitration differs from mediation in that arbitration: A. works outside the court system. B. is less costly than mediation. C. requires that both parties represent themselves. D. has limited appeal possibilities.

D. has limited appeal possibilities.

The primary disadvantage of the payback period is that: A. it incorporates all cash flows that occur after the payback period. B. it is highly complex. C. it does not allow the comparisons of alternatives. D. it disregards the time value of money.

D. it disregards the time value of money.

Restaurants, clothing retailers, barbers, and beauticians face relatively low risks of loss from nonpayment because: A. most customers prefer making upfront payments for such products and services. B. few people have credit cards which limits their ability to buy products. C. they only offer credit to loyal customers who they are sure will repay the amount. D. most of them provide credit only by accepting credit cards, which reduces the risk of nonpayment.

D. most of them provide credit only by accepting credit cards, which reduces the risk of nonpayment.

The process of transforming materials, labor, and energy into goods or services is termed as _____. A. feedback B. outflow C. benchmarking D. operations

D. operations

In _____, the earnings of the business are distributed to the business owners and those owners pay individual tax on the earnings. A. check the box taxation B. double taxation C. single taxation D. pass through taxation

D. pass through taxation

A grant by the U.S. government to an inventor for an idea that is new, useful, and nonobvious, giving the inventor the exclusive right to make, use, or sell his or her idea is called a: A. trade secret. B. copyright. C. trademark. D. patent.

D. patent.

A system of recording the receipt and sale of each item as it occurs is called a _____. A. micro inventory B. periodic inventory C. just-in-time inventory D. perpetual inventory

D. perpetual inventory

Giving a third party legal rights to debts owed by the business in order to provide assurance that borrowed money will be repaid is called _____. A. operating leases B. factoring receivables C. capital leases D. pledging receivables

D. pledging receivables

Responsibility for the actions of another is referred to as: A. direct liability. B. limited liability. C. exculpatory clause. D. vicarious liability.

D. vicarious liability.

A(n) _____ is part of a contract in which a party intentionally gives up legal rights or claims. A. retainer B. easement C. arraignment D. waiver

D. waiver

A(n) _____ should be filled out and returned to you before the scheduled performance review so that you can learn the employees' goals, interests, and self-evaluation when you are crafting your comments. A. appraisal form B. application form C. enrollment form D. online form

a

According to Jill Kickul's research, which of these factors is most important to employees? A. Autonomy and growth B. Benefits C. Rewards and opportunities D. Job security

a

Identify the management philosophy of selecting and promoting people based on family ties. A. Nepotism B. Capitalism C. Meritocracy D. Democracy

a

Independent contractors who provide specialized business services or support from a distance, through different methods of communication are known as A. virtual employees. B. temporary employees. C. job share employees. D. leased employees.

a

The rule of thumb is that perks like these should take no more than _____of the annual personnel budget. A. 3 percent B. 5 percent C. 7 percent D. 10 percent

a

A small business owner who knows exactly what he or she wants can use filters to search vast numbers of résumés with pinpoint accuracy using this. A. Employee referrals B. Internet recruiting C. Networking D. Outsourcing

b

After determining an organization's compensation philosophy, the next step in developing a compensation plan is A. to develop a job description. B. to find comparison factors for salary. C. to establish a total reward system. D. to structure the compensation plan.

b

Compensation, training time, employee tax, and accounting costs are some of the additional expenses involved in adding A. part-time employees. B. full-time employees. C. contract employees. D. temporary employees

b

The Age Discrimination in Employment Act prohibits employment discrimination against individuals who are _____ years old and older. A. 30 B. 40 C. 50 D. 60

b

The Immigration Reform and Control Act of 1986 A. requires payment of same wages to males and females. B. prohibits hiring of unauthorized aliens. C. includes a prohibition on harassment. D. governs confidentiality of medical information.

b

The match between the needs, expectations, and culture of the small business with the expectations and the skills of the individual employees is called A. employee referral. B. employee fit. C. job description. D. job analysis.

b

When you hire employees, typically, a probationary period lasts A. 180 days. B. 90 days. C. 30 days. D. 1 year.

b

Which among the following federal employment laws prohibits discrimination with respect to any condition of employment based on race, color, sex, religion, or national origin, except where religion, sex, or national origin is a bona fide occupational qualification which is reasonably necessary to the conduct of a particular business? A. Fair Labor Standards Act B. Title VII of the Civil Rights Act of 1964 C. Worker Adjustment and Retraining Notification Act D. Executive Order No. 11246

b

Which of these is the last step in crafting a job description? A. Job overviews B. Special requirements C. Credentials and experiences D. Duties and responsibilities

b

_____ is an underused, low-cost method which rewards your employees for recommending potential candidates that would be a great fit. A. Networking B. Employee referral C. Internet recruiting D. Outsourcing

b

_____ refers to the trial period in which an employee has temporary status before a formal offer to work full time is presented. A. Test period B. Probationary period C. Employee referral period D. Psychological contract period

b

_____ training is delivered to employees while they perform their regular jobs. A. Online B. On-the-job C. Paid D. Off-the-job

b

) _____ allows you to search a resume database or post a job description on the web. A. Networking B. Employee referral C. Internet recruiting D. Outsourcing

c

In designing on-the-job instruction that gives an employee a method to complete a certain task in a job, it is important to A. use a bulleted list when the order in which tasks are to be performed is important. B. put notes, warnings, and prerequisite conditions after the list item to which they refer. C. present any necessary background information after the instructions. D. use a level of detail that is appropriate to the employees' skill level.

d

The Family and Medical Leave Act requires employers to give employees up to _____weeks leave, paid or unpaid, without loss of position, seniority, or benefits, for a qualifying condition or event. A. 4 B. 6 C. 8 D. 12

d

Which of the following is a disadvantage of providing credit to customers? A. It delays the receipt of cash. B. It decreases the sales revenue. C. It lowers the chances of repeat business. D. It increases the cost of selling.

A. It delays the receipt of cash.

Which of the following is true of a limited liability company (LLC)? A. It is not always subject to double taxation. B. It is relatively difficult to set up and tough to maintain once started. C. It does not have the option of single taxation. D. It cannot have more than one owner.

A. It is not always subject to double taxation.

Selling the rights to collect accounts receivable to an entity outside the business is called _____. A. factoring B. pledging C. reconciling D. outsourcing

A. factoring

Exclusive rights given to the creator of a literary or artistic work to make use of that work is called a: A. trade secret. B. copyright. C. trademark. D. patent.

B. copyright.

A(n) _____ refers to a part of a contract in which a party to the contract states that he or she will not be responsible for certain actions. A. noncompete clause B. exculpatory clause C. hold harmless clause D. power of sale clause

B. exculpatory clause

A long-term rental in which ownership of the asset never passes to the person paying for the lease is called a(n) _____ lease. A. leveraged B. operating C. finance D. capital

B. operating

Which of the following explains the difference between limited partnership and general partnership? A. In limited partnerships, all partners are equally liable to the firm's debt unlike general partnerships. B. In limited partnerships, partners incur single taxation on earnings unlike general partnerships. C. In general partnerships, whenever the mix of partners is changed, that partnership is dissolved unlike limited partnerships. D. In general partnerships, no government permission is required for the setup and maintenance of business unlike limited partnerships.

D. In general partnerships, no government permission is required for the setup and maintenance of business unlike limited partnerships.

Which of the following helps limit risk from violation of tax regulations? A. The owner should make payments to creditors by borrowing from tax money. B. The owner should understate revenues and overstate deductible expenses. C. The owner should take cash from the businesses before it is recorded as revenue. D. The owner should hire an accountant and a lawyer who are expert in tax issues.

D. The owner should hire an accountant and a lawyer who are expert in tax issues.

Liability insurance protects a business against: A. disgruntled former employees filing suites. B. current employees setting up businesses which turn into competition for the organization. C. losses incurred due to the death of a key employee. D. claims from harm caused by inadvertent consequences of actions of the business or its employees.

D. claims from harm caused by inadvertent consequences of actions of the business or its employees.

The most common form of _____ is the pilfering of items of small value, such as office supplies and small hand tools, or actions such as making copies for their children to use at school or otherwise using company resources to make personal items. A. violation of governmental regulations B. contract violation C. property risk D. employee theft

D. employee theft

The Americans with Disabilities Act A. requires that make employers make reasonable accommodation for limitations of qualified applicant or employee unless to do so creates undue hardship. B. prohibits discrimination with respect to any condition of employment based on race, color, sex, religion, or national origin. C. prohibits employment discrimination based on national origin or citizenship status. D. prohibits employers from using polygraph results as basis for employment action.

a

There are two broad types of training: A. on-the-job and off-the-job methods. B. free and paid methods. C. online and offline methods. D. in-house and outsourced methods

a

To really understand what he wants the person hired to do, Uncle Bob needs to develop a _____ which defines and discusses all the essential knowledge, skills, and abilities that are needed to fill the position. A. job description B. job analysis C. job prospect D. job training

a

Which among the following federal employment laws requires employers to implement an affirmative action plan for hiring and promoting females and minorities? A. Executive Order No. 11246 B. Title VII of the Civil Rights Act of 1964 C. Worker Adjustment and Retraining Notification Act D. Immigration Reform and Control Act of 1986

a

_____ refers to the concept that key employees should be able to see and understand a firm's financials, that they should have a part in moving the numbers in the right direction, and that they should have a direct stake in the strategy and success of the firm. A. Open-book policy B. Autonomy C. Work facilitation D. Psychological contract

a

To treat family and nonfamily as similarly as possible, it is important to A. have separate personnel policies for family and nonfamily members. B. create career ladders for nonfamily members. C. provide favorable treatment to nonfamily members. D. guarantee the possibility of employee ownership.

b

Which of the following psychological contract item comes under benefits? A. Job security B. Tuition reimbursement C. Adequate equipment to perform job D. Increasing responsibilities

b

Adding employees A. decreases the amount of work that can be done. B. reduces the legal requirements faced by an employer. C. increases the demands on the owner. D. increases the business's profitability

c

Consider these alternative methods to hire an employee at no cost if your budget does not allow for a paid employee EXCEPT A. volunteers. B. barter. C. virtual employees. D. internships.

c

Identify the term that refers to the privileges, services or even tangible items given to employees as part of the overall compensation and benefits package. A. Bonuses B. Long-term incentives C. Perks D. Health insurance

c

In evaluating potential employees, a small business owner A. should hire a moderately qualified person in case filling the position is an urgent requirement. B. should ensure that only a single interviewer meets with a candidate in order to avoid conflicting evaluations. C. should design interview questions such that "yes" or "no" answers are not applicable. D. should accept the candidate's word that he or she possesses a certain skill or knowledge base.

c

In order to manage and foster productivity among virtual employees, small business owners A. should regularly communicate with them via e-mail. B. should attempt to micromanage them. C. should consistently review status reports with them. D. should hire students as interns.

c

Job training is a psychological contract item described under which factor category by Jill Kickul? A. Job security and work responsibilities B. Work facilitation C. Rewards and opportunities D. Autonomy and growth

c

Which among the following are the three key components of entrepreneurial leadership? A. Inspiration, vision, and innovation. B. Innovation, opportunities, and operations. C. Innovation, operation, and inspiration. D. Operations, vision, and opportunities.

c

Which among the following federal employment laws requires employers to give 60 days advance notice prior to a plant shutdown or layoff of 50 or more employees? A. Executive Order No. 11246 B. Title VII of the Civil Rights Act of 1964 C. Worker Adjustment and Retraining Notification Act D. Immigration Reform and Control Act of 1986

c

Which of the following is a management philosophy of selecting and promoting people based solely on their being the most capable person for the job? A. Nepotism B. Capitalism C. Meritocracy D. Democracy

c

Which of these is the first step in crafting a job description? A. Job overview B. Duties and responsibilities C. Job title D. Credentials and experience

c

Meaningful work is a psychological contract item described under which factor by Jill Kickul? A. Job security and work responsibilities B. Work facilitation C. Rewards and opportunities D. Autonomy and growth

d

The level of education required to perform a particular job would be mentioned under which section of the job description? A. Special requirements B. Define the duties and responsibilities C. Knowledge, skills, and abilities D. Credentials and experience

d

The_____ requires employers to complete I-9 forms for each employee. A. Fair Labor Standards Act B. Title VII of the Civil Rights Act of 1964 C. Worker Adjustment and Retraining Notification Act D. Immigration Reform and Control Act of 1986

d

There are two parts to a formal performance appraisal: A. the self-appraisal and the review by the supervisor. B. the internal review and the external review. C. the review of past accomplishments and the setting of future objectives. D. the performance review and the pay review.

d

These encourage companies to post openings to their job bank to recruit at both the undergraduate and the graduate levels. A. Professional groups B. Company Web sites C. Internet recruiting D. Career service offices

d

Uncle Bob can hire an individual with a probationary period. This probationary period typically lasts A. 30 days. B. one year. C. six weeks. D. 90 days.

d

Which of the following is a psychological contract item that comes under the factor of job security and work responsibilities? A. Challenging and interesting work B. Freedom to be creative C. Career guidance and mentoring D. Well-defined job responsibilities

d

Which of these is the first step Uncle Bob needs to start with, in crafting a job description? A. Duties and responsibilities B. Job training C. Job overview D. Job title

d

Which of the following types of legal fee does the attorney take a percentage of recovery as his or her fee? A. Statutory fee B. Contingency fee C. Flat fee D. Hourly fee

B. Contingency fee

_____ are programs or pieces of equipment which serve as a barrier between a PC and the Internet. A. Ethernets B. Firewalls C. Hubs D. Spywares

B. Firewalls

Which federal law describes the steps publicly traded businesses must take to protect and provide their key financial information? A. Service Contract Act B. Sarbanes-Oxley Act C. Walsh-Healey Public Contracts Act D. Davis-Bacon Act

B. Sarbanes-Oxley Act

Which of the following acts provide training for workers who are injured on the job? A. The Age Discrimination in Employment Act of 1967 B. The Americans with Disabilities Act of 1990 C. The Civil Rights Act of 1991 D. The Rehabilitation Act of 1973

D. The Rehabilitation Act of 1973

Making no distinction between sick, vacation, and personal days and allowing employees a set number of days off each year to be used at their discretion A. prevents employees from abusing sick days. B. causes employees to lie more often when they need to take the day off. C. increases absenteeism in the workplace. D. reduces workplace satisfaction.

a

One of the first steps in developing a compensation plan is A. to determine your organization's salary philosophy. B. to develop a job description. C. to create job analysis. D. to pay an above-market salary to create loyalty.

a

These should be handled formally with guidelines such as following-up on leads within 24 hours even by small businesses. A. Employee referrals B. Internet recruiting C. Networking D. Outsourcing

a

When recruiting, once a job description is prepared, the next step is to A. develop questions for interviewing. B. create a job analysis. C. prepare a training module for employees. D. create a Web site.

a

Which among the following federal employment laws requires the payment of same wages to males and females for work requiring equal skill, effort, and responsibility in similar working conditions? A. Fair Labor Standards Act B. Immigration Reform and Control Act of 1986 C. Worker Adjustment and Retraining Notification Act D. Executive Order No. 11246

a

A relatively low-cost, although time-intensive method of recruiting that can include colleagues, business professionals, vendors, alumni, and advisory board members is referred to as A. internal job postings. B. internet recruiting. C. networking. D. outsourcing.

c

This is the amount needed for a person to meet the basic necessities of life from a single job. A. Fair wage B. Employee benefits C. Living wage D. Benefit plans

c

Which of these is an off-the-job training method? A. Orientations B. Apprenticeships C. Case studies D. Coaching

c

) All of the following are examples of long term incentives to employees that help retain valuable team members EXCEPT A. profit-sharing plans. B. stock options. C. stock grants. D. employee bonuses.

d

Which of these refer to employees' beliefs about the promises between the employee and the firm? A. Open-book policy B. Autonomy C. Work facilitation D. Psychological contract

d

Fees paid by a client to an attorney for legal services that is dependent upon the outcome of a case are referred to as: A. flat fees. B. hourly fees. C. contingency fees. D. retainers.

C. contingency fees.

Which of the following forms of business requires no government permission to set up? A. Limited partnerships B. C Corporation C. Professional corporation D. Sole proprietorship

D. Sole proprietorship

If a business offers its assets as collateral, lenders are most interested in the _____ value. A. book B. fair market C. replacement D. disposal

D. disposal

Which among the following is a psychological contract term related to work facilitation? A. Career guidance and training. B. Continual professional training. C. A reasonable workload. D. Adequate equipment to perform the job.

d

_____ provides funds to pay the ordinary operating expenses of a business should it be forced to close temporarily because of an insured event. A. Crime insurance B. Theft insurance C. Business interruption insurance D. Product liability insurance

C. Business interruption insurance

The term associated with objectively evaluating how well someone is doing their job is called A. line of appeal. B. job metrics. C. transparent procedures. D. job basics.

b

Which among the following is an on-the-job training method? A. Lectures B. Case studies C. Coaching D. Role playing

c

401(k) plans are relatively _____ to administer and are _____ expensive than traditional pension plans. A. difficult; more B. easy; less C. complex; less D. easy; more

d

____ insurance is normally included in insurance on physical assets. A. Theft B. Credit C. Intellectual property D. Safety

A. Theft

Which of the following is true about trade name? A. There can be only one business using the same name within a state. B. Assumed name is completely different from trade name. C. Most states allow several firms to use the same trade name, as long as the firms are in different lines of business. D. Most states allow several firms to use the same trade name even if they are in the same town and have received a service mark.

C. Most states allow several firms to use the same trade name, as long as the firms are in different lines of business.

_____ are persons working to achieve a certain goal without being subjected to substantial controls by another. A. Independent contractors B. Partners C. Defendants D. Retainers

A. Independent contractors

Which of the following is true of using internal audits to manage risk? A. Every small business owners conduct internal audits on their own. B. Internal audits have a fixed structure decided by the government and all employers are required to comply. C. The owner should provide sufficient authority to the auditor to ensure that he or she can accomplish the goals of the audit. D. The owner should accept that the auditor has final authority when it comes to approving the audit plan.

C. The owner should provide sufficient authority to the auditor to ensure that he or she can accomplish the goals of the audit.

Which of the following is one of the advantages of the return on investment (ROI) analysis? A. The profits received are the same as cash. B. The calculations involved in this method are very difficult. C. It incorporates the time value of money. D. It relies on accounting information with which investors are comfortable.

D. It relies on accounting information with which investors are comfortable.

Which of these is a suggested guideline for training? A. It should be provided only at the initial stage of employment. B. Employees should practice what they have learned on their own time. C. Have employees sign long-term contracts so they do not leave after receiving training. D. Think of it as an investment.

d

Which of these refers to contracting with others outside your firm to do work that would otherwise be done within your firm? A. Networking B. Employee referrals C. Internet recruiting D. Outsourcing

d

The level of probability that the future economic state of the business will be worse than expected is referred to as _____. A. business risk B. economic certainty C. business continuity D. business amortization

A. business risk

Martha got billed by her lawyer for 40 minutes of consultation. Which of the following ways did the lawyer charge Martha? A. Hourly fee B. Flat fee C. Contingency fee D. Retainer

A. Hourly fee

____ is the determination of the amount of assets held by the firm for sale or production. A. Inventory valuation B. Capital budgeting C. Factoring D. Depreciation

A. Inventory valuation

Which of these is a disadvantage of a corporation? A. It incurs relatively high incorporation fees and high taxes. B. It requires its owners to have unlimited liability to the firm's debt. C. It is considered a separate, legal entity from its owner. D. It is automatically terminated upon the death of its owner.

A. It incurs relatively high incorporation fees and high taxes.

Which of the following refers to a part of a contract in which a person agrees not to open a certain type of business or seek employment doing certain things in a particular area for a period of time? A. Noncompete clause B. Exculpatory clause C. Hold harmless clause D. Interstate clause

A. Noncompete clause

The price at which goods and services are bought and sold between willing sellers and buyers in an arm's-length transaction is called a _____. A. fair market value B. disposal value C. replacement value D. book value

A. fair market value

Which of the following practices should be adopted to ensure that a computer is kept secure? A. Writing down all your passwords where it's easily accessible B. Using the same password for long durations C. Setting a PC to lock itself up after a few minutes of inactivity D. Opening downloads from unexpected sources

C. Setting a PC to lock itself up after a few minutes of inactivity

Brendon wants to sue Fitness Ace, a leading provider of fitness equipments, for negligence. He approaches Arthur Bailey Group, a law firm, which has good experience in handling product liability claims for victims of exercise equipment failure. Which of the following would be true if the attorney charges Brendon in the form of contingency fees? A. The attorney would charge Brendon on an hourly basis. B. The attorney would charge separately for consultation and paperwork. C. The attorney would take a percentage of Brendon's recovery as his or her fee. D. The attorney would take monthly fee and additional fees if circumstances change.

C. The attorney would take a percentage of Brendon's recovery as his or her fee.

Which of these defines and discusses all the essential knowledge, skills, and abilities that are needed to fill a position? A. Job analysis B. Job prospects C. On-the-job training D. Job description

d

_____ means having a way for the person who has failed to meet a metric, or made a mistake, or is facing firing to have their side of the story heard. A. Job basics B. Transparent procedures C. Lines of communication D. Line of appeal

d

Which among the following is a method that has traditionally been used by businesses to hire employees? A. Employee referral B. Internet recruitment C. Help wanted ads D. Career service offices

c

In the lease agreement signed by Arthur Fraser, a _____ clause exempts him from paying any restitution in case he causes accidental damage on the property. Which of the following types of contractual clauses protects Arthur Fraser from paying for such damages? A. hold harmless B. exculpatory C. noncompete D. power of sale

A. hold harmless

Which of the following is an example of a special type of liability insurance that covers losses from harm caused during the performance of a profession? A. Unemployment insurance B. Errors and omissions insurance C. Disability insurance D. Worker's compensation insurance

B. Errors and omissions insurance

Walter Bradham, the owner of Bradham Corporation muddled his personal finances with his business accounts. Following a suit into the financial irregularities at Bradham Corporation, a court subjected the Corporation to the decision of piercing the veil. Which of the following course is the court most likely to take in this case? A. It will convert Bradham Corporation into a separate legal entity. B. It will dissolve the corporation into a sole partnership under Bradham. C. It will change Bradham's liability in the business to one that of a limited partner. D. It will hold that Bradham has no personal liability for Bradham Corporation's debt.

B. It will dissolve the corporation into a sole partnership under Bradham.

Which of the following forms of business faces double taxation? A. S Corporation B. Professional corporation C. Corporation D. Limited liability companies

C. Corporation

Axion Inc. is a small business started by Robert. As the business grew, he decided to implement new company policies that would ensure that his employees are not encouraged to set up competition against Axion. Which of the following techniques should he adopt to achieve this? A. Lay off employees who seem most likely to go into competition with Axion B. Groom other candidates to replace the employees currently working at Axion C. Cross train the employees to neutralize job specialization D. Negotiate contracts with key employees that limit their freedom to go into competition

D. Negotiate contracts with key employees that limit their freedom to go into competition

Which of the following statements is true regarding the OSHA Act? A. It covers employees in mining, transportation, and state and local governments. B. OSHA offers consultation services to employers for a fee. C. It requires businesses to report any accidents that result in a fatality or in the hospitalization of three or more employees within 24 hours. D. OSHA-defined "low-hazard" industries are exempt from the record keeping requirements of the regulations.

D. OSHA-defined "low-hazard" industries are exempt from the record keeping requirements of the regulations.

Which among the following statements is true regarding virtual employees in small businesses? A. In the small business, virtual employees are not hired as full-time employees. B. Small business owners who work with virtual employees have to deal with taxes, unemployment insurance, sick leave, vacation pay, and benefits. C. Small business owners are required to provide additional office space for their virtual employees. D. Small business owners are responsible for the development and supervision of their virtual employees.

a

Which of these factors was least important to employees, according to Jill Kickul's research? A. Work facilitation B. Benefits C. Rewards and opportunities D. Autonomy and growth

a

Sharing ideas, working toward a common goal, analyzing one another's work, and communicating cross functionally are related to A. training. B. teamwork. C. recognition. D. work facilitation.

b

These beliefs are based on the perception that promises have been made in exchange for certain employee obligations such as giving of their energy, time, and technical skills. A. Open-book policy B. Work facilitation C. Psychological contract D. Autonomy

c

Which of the following steps in writing a job description specifies the basic qualities that an employee should possess to perform the job? A. Give a job overview B. Define the duties and responsibilities C. Knowledge, skills, and abilities D. Special requirements

c

Which of the following is true of the ADA Technical Assistance Program? A. It provides specific advice to a business concerning how to comply with the pertinent requirements. B. It provides inspection of the workplace to determine compliance. C. It provides affirmation services to all businesses. D. It provides its services only to large businesses that have more than 500 employees.

A. It provides specific advice to a business concerning how to comply with the pertinent requirements.

Which of the following steps would help decrease business risks? A. Making specific plans for and arrangements to deal with foreseeable events B. Assuming employees will follow basic workplace etiquettes without a written code of conduct C. Ensuring employees have easy access to valuable assets D. Having separate codes of conduct for employees at different tiers of the management

A. Making specific plans for and arrangements to deal with foreseeable events

Julia recently set up a factory that manufactures shoes. To ensure that her business complies with the basic OSHA regulations, which of the following steps should she take? A. She must provide medical examinations for all her employees. B. She must set up a system that reports any workplace accident within 72 hours. C. She must request the Technical Assistance Program to conduct an inspection of her factory. D. She must make her employees aware of all the EEOC rules that pertain to her business.

A. She must provide medical examinations for all her employees.

Which of the following represents the problem with legal protection methods for intellectual property? A. There is no governmental agency that will assist small business owners in maintaining their legal rights. B. The cost of legal protection for intellectual property is so high that it is practically useless for a small business owner. C. Legal protection methods for intellectual property are primarily "reserved" for large businesses. D. Legal protection methods can only be offered for tangible property and not intellectual property. E. Holding legal rights to intellectual property provides the owner solely with grounds to pursue lawsuits against infringement.

A. There is no governmental agency that will assist small business owners in maintaining their legal rights.

Which of the following is true of insurance coverages? A. Vehicle liability insurance is mandated by the legislatures of all the states and territories of the United States. B. Workers' compensation insurance is mandatory in all the states and territories of the United States. C. Industries and businesses that have frequent seasonal layoffs pay lower amounts of unemployment premiums than do those that have stable employment. D. A fixed amount of unemployment insurance is collected from all industries.

A. Vehicle liability insurance is mandated by the legislatures of all the states and territories of the United States.

Which of the following should be undertaken in order to reduce a business's exposure to the risk of violating tax regulations? A. Understate revenues and overstate deductible expenses B. Reconcile the cash register tape to the cash register contents every day C. Take cash from the businesses before it is recorded as revenue D. Borrow from tax money in order to make payments to creditors

B. Reconcile the cash register tape to the cash register contents every day

General partnerships are similar to limited partnerships in that: A. both don't require government permission to be set up. B. both dissolve when their respective partnership mix changes. C. both impose double taxation of income and business to individual partners. D. both must have at least one general partner and one limited partner.

B. both dissolve when their respective partnership mix changes.

A(n) _____ is a valuable process that can greatly help an employer with the issues of keeping risks at acceptable levels. It is strictly a management tool which is not provided to outsiders; it can be structured and conducted in any systematic manner the owner finds acceptable. A. adverse possession B. internal audit C. external audit D. internal control

B. internal audit

Which of the following is a primary advantage of replacement value? A. Lower premiums on the policy B. Higher price of the new asset C. High accuracy of the value D. Lower price of the new asset

C. High accuracy of the value

According to the Wells Report submitted by the Association of Certified Fraud Examiners, what is the number one method for fraud detection? A. Internal audits B. Internal controls C. Tips D. External audits

C. Tips

The first task to be completed before a comprehensive insurance program for a business can be developed is: A. to develop a financial plan. B. to assess internal strengths. C. to identify risks. D. to provide a business succession plan.

C. to identify risks.

The name under which a business is operated is known as its _____. A. trademark B. inclusive name C. trade name D. copyright

C. trade name

Which of these is NOT a suggested fair personnel policy guideline across family and non-family members? A. Hiring the best possible candidate for the position. B. Having clear performance expectations. C. Having clearly differentiated personnel policies for family and non-family members. D. Having clearly defined boundaries for each role.

c

_____ are jobs in businesses offered to students, arranged through universities. A. Assignments B. Careers C. Internships D. Referrals

c

_____ means letting employees make on-the-spot decisions for the companies' best interest. It requires giving employees permission to act, the knowledge to act, and the skill to act. A. Recognition B. Training C. Empowerment D. Teamwork

c