BUSA

Marco is a franchisee with Daggies, a chain of sandwich shops. His business was doing well until several Daggies franchisees got in trouble and were forced to close their shops. Soon afterward, Marco's business deteriorated and he too was forced to close. This is an example of:

B. The halo or coattail effect

One of the major disadvantages of a sole proprietorship is the:

B. Unlimited liability the owner has for the debts of the firm

3 types of corporate mergers:

B. Vertical, horizontal and conglomerate

The majority of CEOs blame unethical employee conduct on:

B. a failure of leadership to establish ethical standards

To qualify as an S corporation, a company must:

B. have shareholders who are individuals or estates and qualify as permanent residents of the U.S.

The difference between a merger and an acquisition is:

C, A merger is the joining of resources of 2 companies, whereas an acquisition is a buyout of one firm by the other. The new company concerns itself with nerving of resources.

When 2 companies in completely unrelated industries agree to become one firm the result is called a :

C, Conglomerate

Double taxation

C, Corporation pay taxes on their profits. If they distribute after-tax rate profits to the stockholders, the stockholders also pay taxes on the distribution

A very critical LAST step is the process of establishing an ethics code is____

C, Enforcement

When Enron used intentional accounting irregularities to make the company look more profitable than it actually was, it:

C, Engaged in illegal behavior

Considering the potential impact on others prior to making a decision is consistent with ________ behavior.

C, Ethical

In a partnership,____ partner actively manages the company and has unlimited liability for claims agains the firm

C, General

Which of the following questions can help us avoid a decision that would injure our self-esteem?

C, How will it make me feel about my self?

Opening and operating a franchise in a different country:

C, May require the owner to adapt to social and cultural differences

A significant disadvantage of owing a sole proprietorship is the:

C, Overwhelming time committed often required of the owner

Companies are using ____ to communicate their corporate social responsibility actions to their consumers.

C, Social media

A____ is a form of business that is owned, and usually managed, by one person.

C, Sole proprietorship

One reason that companies participate in merges and acquisitions is:

C, To expand within their own field or enter new markets

Which of the following statements describes ethical behavior in the U.S?

C, We can find common moral values that many Americans up hold, including respect for humanlike, self control, honesty and courage

When Angela graduated with a degree in computer science and started her software company, she posted a sign that read, "This company will always operate within the legal limits of the law." Posted where all employees could clearly see it each day, this demonstrated:

C, her expectation that all employees follow the laws that apply to the business

Which of the following statements is the most accurate? Foreign corporation:

C, is headquartered in another nation

Starting a new business as a sole proprietorship:

C, is usually simpler and less expensive than starting other forms of ownership.

When managers disregard ethical concerns, the likely result is:

D. A general mistrust between workers and management

A ______ occurs when one company buys the pottery and obligations of another company

D. Acquisition

A major advantage of S corporations is that they:

D. Avoid the problem of double taxation associated with conventional corporations

Trevor and Tyler own all the stock in the Double T Corporation. The stock of this corporation is not sold to the general public. Trevor and Tyler own a:

D. Closed corporation

Corporate social responsibility describes the firms:

D. Concern for the welfare of society

A ______ is an organization that is owned and controlled by the people who use it ---- producers, consumers and workers with similar needs pool their resources for mutual gain

D. Cooperative

In recent years, progressive firms have embarked upon _____, where they will commit company resources and expertise toward helping out in the emergency type situations.

D. Corporate social initiatives

Which of the following is normally considered a DISADVANTAGE of the corporate form of business?

D. Double taxation of earnings

When discussing moral and ethical issues, its helpful to remember that ethical behavior begins with _____

D. Each of us

______ refers to standard of moral behavior

D. Ethics

One difference between partnerships and sole proprietorships is that partnerships:

D. Have a greater change of long-term survival due to the accountability of each partner to the other

Going green means:

D. Increasing one's initiatives toward a concern for the environment.

An attempt by employees, management, or a group of investors to purchase an organization primarily through borrowing

D. Leveraged buyout

Which of the following is an ADVANTAGE of the corporate form of business when compared to sole proprietorships and partnerships?

D. Limited liability of owners

Called a _____ acts much like a corporation and is traded on stock exchanges, but its taxed liked a partnership with profits passing through to the owners and taxed as the owners personal income

D. Master limited partnership

Ethical behavior at work is leaned by:

D. Observing the actions of others

Compared to the C corporation, the limited liability company is an attractive form of business ownership because ________.

D. One formed, the limited liability company does not require to firm to hold annual meetings and has the options to avoid double taxation

An owner of a corporation is known as a(n):

D. Stockholder

If a group of stockholders or management obtain all the stock of a previously publicly traded firm for themselves, this is referred to as:

D. Taking the firm private

To many business people, one of the major attractions of a sole proprietorship is:

D. The chance to be their own boss

Franchisors mraysend reverse royalties to franchises who:

B. Feel their sales have been hurt by the franchisors internet sales

A ________ is a company that has a proven business model and is willing to sell the rights to use the business model to others so that they can sell the same products or service within a given territory

B. Franchisee

A person who BUYS the right to use a business name and sell a product within a given territory is called a:

B. Franchisee

Insider trading involves:

B. Investors using private company info to further their own fortunes

Which of the following questions will help individuals and organizations when deciding if they decisions are ethical?

B. Is It balanced?

Many Americans define ethical behavior according to the situation in which they find themselves. This suggest that there may be a situations where ____ to cheat, steal or lie

B. It might be okay

Laws represent the standards of ________ behavior.

B. Legal

Given the ethical lapses that are prevalent today in our businesses, which of the following can be done to restore trust in the free-market system and leaders in general?

B. New laws making accounting records transparent may help restore trust

Although sole proprietors do not pay any special taxes, as the owner of the business you are also an employee of the business, which requires you to:

B. Pay self-employment taxes

With respect to taxes, the sole proprietorship:

B. Pays taxes on the profits of the business, at the owner's personal tax rate.

When entering into a new partnership, a good strategy is to:

B. Put partnership agreement in writing

The board of directors for a corporation is elected by its:

B. Stockholders

The organizational structure of a corporation permits:

B. Stockholders to elect the Board of Directors

The limited liability provided to limited partners means that they are not responsible for the debts of the business beyond:

B. The amount they have invested in the company

Obeying the law is ________ ethical behavior.

B. The first step towards

Business relationships often present ethical dilemmas that are:

B. Best resolved by creating a win-loose situation

A ______ is a state-chartered legal entity with authority to act and to have liability separate from its owners

B. Conventional corporation

The ___ is the most common form of business ownership

B. Corporation

The first step when facing an ethical dilemma is to ask:

A. " is it legal ?"

Which of the following statements about the operation of corporation is correct?

A. A corporation receives its charter from a state government

Compared to a sole proprietorship, which of the following is considered an advantage of a general partnership?

A. Ability to pool financial resources

One reason limited liability companies have become so popular is that they:

A. Can be taxed either as a corporation or as a partnership, so owners can choose the tax treatment that is most advantages for their situation

We describe charitable donations by corporations to nonprofit organizations as _________.

A. Corporate philanthropy

The form of business ownership that usually requires the most detailed record-keeping is the:

A. Corporation

___________ compromise about 20% of all business but account for about 81% of U.S business receipts

A. Corporations

Which of the following is an advantage of a partnership?

A. Ease of starting and ending the business

After developing a code of ethics, it should be communicated to:

A. Everyone with whom the business had dealings

Jaime and Maria invested

A. Lose there personal assets as the result of their companies financial problems

The income generated by S corporations:

A. Passes through to its owners, and each is taxed individually for this income.

Earnings of C corporations can be:

A. Taxed twice if they are DISTRIBUTED as dividends to stockholders

Any debts or damages incurred by a firm organized as a sole proprietorship are:

A. The responsibility of the owner

A phone call to a government official by an employee of the Enron Corporation disclosed the deception and dishonesty of the fires accounting records. This employee payed the role of a:

A. Whistleblower

Which of the following terms describes someone who reports illegal or unethical behavior ?

A. Whistleblower

Ethical behavior covers a ____ range of conduct than legal behavior

A. Wider

A good reason why partners should spell out the details pf their partnership arrangements in writing is:

B. A written agreement will help reduce misunderstandings and disappointments among the partners