BA101 Exam III - Recharge (Chapters 19, 20, 21, 4, 5, 6)

Rank the forms of business ownership based on ease of starting, easiest to hardest - partnership, sole proprietorship, corporation

2, 1, 3

Rank the order in which members of a corporation are chosen in order to separate ownership from management. Managers hire employees, Board of Directors hire officers of the corporation, Owners/stockholders elect board of directors, Officers hire managers of the corporation.

4, 2, 1, 3

What initials are used by Moody's to show the highest quality of rated bonds?

Aaa

A(n) ___ is where one company purchases the property and obligations of another.

acquisition

A partnership ___ can spell out the requirements of terminating a partnership.

agreement

Which set of ethics codes emphasizes preventing unlawful behavior by increasing control and penalizing wrongdoers?

Compliance-based ethics codes

If one party fails to follow the terms of a contract these possible remedies could happen -

Discharge of obligations, payment of damages and the party who violated the contract may be required to live up to the agreement if money damages would not be adequate.

Why do people become entrepreneurs? (3)

Opportunity, profit and independence

Social audits should measure such activities as ___.

respect for human rights

The most popular businesses for franchising are ___.

restaurants

Which institutions are members of the U.S. banking system? (3)

savings and loans, commercial banks and nonbanks that offer financial services

Many companies believe they have a role in promoting ___ ___ that goes way beyond simply "giving back."

social justice

A low cost, efficient way for companies to connect with specific groups and inform them of corporate social responsibility is ___.

social media

A ___ is the most common form of business ownership.

sole proprietorship

Taxpayers can be encouraged or discouraged to undertake certain behaviors by ___.

taxes

Entrepreneurial attributes include: (3)

tolerant of uncertainty, highly energetic and action-oriented

According to some, the most recent financial crisis in the United States occurred as a result of the ___ business practices of greedy lenders and borrowers alike.

unethical

Good ways to learn how to run your own business? (3)

work for a successful entrepreneur, talk to other business owners or run a small business during your off hours

The cost of a patent depends on its ___.

complexity

Ethics codes that emphasize control and punishment of wrong-doers are ___-___ ethics codes.

compliance-based

A reason for the growth and success of home-based business is that:

computer technology has leveled the playing field

Investors can exchange ___ bonds for shares of common stock in the issuing company.

convertible

If an investor wants to turn bonds into shares of common stock they should purchase ___.

convertible bonds

When farmers join together to get better prices for their food products, they form a farm ___.

cooperative

A ___ protects a creator's rights to materials such as books, articles, photos, paintings and cartoons.

copyright

What initials are used by Moody's to show the lowest quality of rated bonds?

C

Examples of green jobs that cannot be outsourced offshore? (2)

Installing solar panels to existing buildings and weatherizing existing buildings.

___ are creative people who work as entrepreneurs within corporations.

Intrapreneurs

___ protect people from fraud, theft and violence, while ___ are used to decide how we treat others responsibly according to society's views of right and wrong.

Laws, ethics

How quickly you can get back your invested funds if you want or need them is referred to as ___.

Liquidity

The ___ includes coins and paper bills, demand deposits, share drafts and traveler's checks.

M-1

The money supply term that refers to money that can be accessed quickly and easily is ___.

M-1

The money supply term that includes accounts that can be accessed quickly and easily and most savings accounts, mutual funds and Certificates of Deposits is ___.

M-2

The term for the money supply that includes cash, checking accounts, Certificates of Deposit, money markets and bid deposits such as institutional money market funds is: ___.

M-3

What is the type of business person who desire to remain small and balance lifestyle with work?

Microprenuer

What are the two different classes of bonds a corporation can issue?

Secured and unsecured

___ businesses generate 60% to 80% of the new jobs each year and about 80% of United States workers find their first jobs in this type of business.

Small

What is a consideration?

Something of value

Many businesses believe that they should have an influential and important role in:

building communities

If the Fed wants to increase the amount of money in circulation, it will ___ government bonds.

buy

A ___ bond permits the bond issuer to pay off the principal before maturity date.

callable

Effective ethics officers: (2)

can be trusted to maintain confidentiality and relate well to employees at all levels

What's considered an example of the M-2 (money supply)? a. certificates of deposit b. money market accounts c. bond investments d. saving accounts

certificates of deposit, money market accounts and saving accounts

The difference in the performance of companies to the ___ and caring the outstanding companies demonstrated for their employees.

commitment

Research has shown that companies engaged in corporate social responsibility (CSR): (3)

enjoy greater employee loyalty, draw more customers and retain better employees

A ___ tends to demand a large share of the profits from the franchise which is considered a disadvantage for the franchisee.

franchisor

Open-market operations consist of the buying and selling of ___.

government bonds

Companies with contented employees ___ and earned more than their counterparts.

grew

Ending a partnership can be difficult because of problems deciding: (3)

how to distribute assets, when a partner can retire and the worth of a retiring partner's share

The major source of revenue for the federal government include: (2)

income tax on individuals and businesses

The SEC Regulations on Fair Disclosure are designed to prevent ___ ___.

insider trading

A willful act that results in injury is called a(n): ___.

intentional tort

An S corporation has the liability protections of a corporations but is taxed:

like a partnership or sole proprietorship

Economic growth and the creation of jobs depend on the ready availability of ___.

money

What people generally accept as payment for goods and services is called ___.

money

The difference between banks and similar nonbank entities is that: ___.

nonbanks cannot accept deposits

The M-3 (money supply) includes ___.

only M-2 and institutional money market funds

Compliance-based ethics codes focus on: (2)

penalizing wrong-doers and increasing control