ENT FINAL EXAM 2

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a program that allows employees to contribute to their retirement on a tax-free basis is ____ 401k 401T 401C 401F

401K

Which of the following questions should a new business owner examine when considering leases? All of the answers are correct. What exactly is the new business owner leasing? Is there an ability to renew the lease? Who is responsible for maintenance and improvements?

All of the answers are correct.

In the context of proper accounting practices, identify a major difference between cash-based and accrual-based accounting systems. Cash-based systems are generally used with periodic inventory counting systems, whereas accrual-based systems are used primarily with perpetual inventory counting systems. Cash-based systems are mostly used by publicly held corporations, whereas accrual-based systems are mostly used by privately held corporations Cash-based systems must be used by large businesses, whereas accrual-based systems must only be used by the smallest businesses. Cash-based systems recognize revenue as it is generated, whereas accrual-based systems record revenue only when it occurs.

Cash-based systems recognize revenue as it is generated, whereas accrual-based systems record revenue only when it occurs.

A copyright can only be claimed on creative works if they are published or made available for public consumption. TRUE OR FALSE

FALSE

In the context of legal forms of business, a general partner in a limited liability partnership ACTS AS AN INDEPENDENT EXTERNAL ADVISOR TO THE FIRM IS NOT RESPONSIBLE FOR LIABILITIES OWNED IF THE FIRM GOES BANKRUPT IS NOT ACTIVE IN THE MANAGEMENT OF THE FIRM HAS UNLIMITED LIABILITY FOR ANY DEBTS OR JUDGMENTS AGAINST THE FIRM

HAS UNLIMITED LIABILITY FOR ANY DEBTS OR JUDGMENTS AGAINST THE FIRM

Which of the following statements is true of the commission compensation system? It creates frustration when a firm either does or does not change a commission program to reflect the growth of the firm. It creates a rigid compensation system where abuse is minimal, and it removes the frustration for employees and the entrepreneur. It creates an overall healthy environment within a firm when the salespeople are very focused on their commission. It creates a uniform system in a firm where every employee is paid the same amount as commission, and it is independent of their performance.

It creates frustration when a firm either does or does not change a commission program to reflect the growth of the firm.

Carla and John enter into a partnership and form a business. Under the partnership agreement, Carla is directly responsible for the management of the firm and its liabilities. John has a minor financial stake in the firm and works there, but he is not held responsible for the taxes and debts owed by the firm. In the context of the legal forms of business, Carla and John have formed a ________, SUBCHAPTER S CORPORATION LIMITED LIABILITY PARTNERSHIP SOLE PROPRETORSHIP GENERAL PARTNERSHIP

LIMITED LIABILITY PARTNERSHIP

In the context of business designs, one of the advantages of a corporation is that when it suffers losses, the founders will BE EXPECTED TO POOL THEIR PERSONAL FINANCES TO RESCUE THE BUSINESS LOSE ONLY THEIR INVESTMENT IN THE BUSINESS RATHER THAN THEIR LIFES SAVINGS SURRENDER CONTROL OF THE COMPANY TO INVESTORS BE ABSOLVED OF RESPONSIBILITY FOR THE DEBTS OF THE COMPANY

LOSE ONLY THEIR INVESTMENT IN THE BUSINESS RATHER THAN THEIR LIFES SAVINGS

Trilane Systems is a small business. Its owner, Myra, is also its only employee. She handles the business's operations herself and is responsible for all of the business's income and losses. In the context of the legal forms of business, Trilane Systems is a SUBCHAPTER S CORPORATION LIMITED LIABILITY PARTNERSHIP SOLE PROPRETORSHIP GENERAL PARTNERSHIP

SOLE PROPRIETORSHIP

When forming a sole proprietorship or a partnership, the business debts are PAID BY PURCHASE ORDER THE RESPONSIBILITY OF THE FIRMS EQUITY INVESTORS THE RESPONSIBILITY OF THE OWNERS PAID THE FIRST DAY OF THE MONTH

THE RESPONSIBILITY OF THE OWNERS

A difference between copyrights and patents is that copyrights apply to creative materials generated while patents cover specific innovations that are generally industrial or process-based. TRUE OR FALSE

TRUE

Which of the following statements is true of a performance review in an entrepreneurial business? The formal conversation with a worker who is doing a good job and appreciating his or her work is a form of compensation. A new firm should wait for a year to give feedback, and newer generations of employees are looking for such feedback If a worker is not performing as expected, then the employer should give only positive feedback to boost the worker's morale. A complex form should be followed for all performance reviews that are given in writing to assure its validity.

The formal conversation with a worker who is doing a good job and appreciating his or her work is a form of compensation.

In the context of equity funding, identify a characteristic of venture capital funds. They seek to make small investments in numerous small-sized businesses and start-ups to improve the possibility of consistent returns. They invest in large and established businesses that have slow and steady growth rates. They tend to invest in high-growth business that can cash out by being bought out by a larger company within a set period of time. They raise capital for small businesses by sourcing small investments from multiple individuals.

They tend to invest in high-growth business that can cash out by being bought out by a larger company within a set period of time.

Carla is a high-net-worth individual who was once an entrepreneur. She now financially invests in small start-ups and businesses. Though Carla funds their initial operations and advises them on the best way to develop their operations, she rarely interferes with their day-to-day operations. In the context of the various forms of equity funding, Carla is most likely a business angel an investment banker a venture capitalist an asset lender

a business angel

which of the following statements is true of a family business? a family business is generally run and for the benefit of a particular family a family business gives no importance to human resource management managing family members is quite easy as the individuals know each other well issues of discrimination within a family business are eliminated if the firm is large

a family business is generally run and for the benefit of a particular family

when a small business owner pays a commission in addition to a basic salary, it is called _____ a benefit an hourly wage a tax a hybrid compensation system

a hybrid compensation system

in the context of legal forms of business, identify a benefit of an subchapter S corporation over a subchapter C corporation an subchapter S corporation pays for fringe benefits of the owners at its own expense unlike a subchapter C corporation an subchapter S corporation has limitations in the number and type of shareholders unlike a subchapter C corporation an subchapter S corporation can have a larger number of investors than a subchapter C corporation an subchapter S corporation has more potential for future expansion than a subchapter C corporation

an subchapter S corporation has limitations in the number and type of shareholders unlike a subchapter C corporation

in context of legal forms of business, identify of an subchapter s corporation over a subchapter c corporation an subchapter s corporation can have a larger number of investors than a subchapter C corporation an subchapter s corporation pays for fringe benefits of the owners at its own expense unlike a subchapter c corporation an subchapter s corporation has limitations in the number and type of shareholders unlike a subchapter c corporation an subchapter s corporation has more potential for future expansion than a subchapter c corporation

an subchapter s corporation has limitations in the number and type of shareholders unlike a subchapter c corporation

Sonor Designs is a small business that makes greeting cards. Because of the small scale of the firm's operations, it cannot afford to purchase the expensive printers it needs to make greeting cards. Instead, it rents the printers from another organization. In the context of business financing, Sonor Designs renting essential business equipment from another company is an example of micro-financing factoring crowdfunding asset leasing

asset leasing

James and Mary own a business. When they pay themselves an advance in salary or a bonus, it is called a(n) ________. payout draw expected outlay cash out

draw

________ funds are received by a business in exchange for a percentage ownership of the company. venture capital equity asset-based tangible

equity

established businesses are willing to make ____ investments in other start-up firms asset nonequity collateral equity

equity

OSHA has attempted to shape its regulations to be more lenient in its regulations on large businesses than on small businesses. true or false

false

Patents are inexpensive and easy to obtain and maintain. true or false

false

Workers' compensation insurance rates are regulated by the federal government and are uniform across the country. true or false

false

a contract must always be in written form, and it must be signed by the parties involved true or false

false

a grant, a form of non equity funding, is expected to be repaid at a predetermined interest rate once a beneficiary firm begins to profit from its operations true or false

false

a trademark cannot be renewed once it has been issued even when the firm or the product is active true or false

false

emerging economies are based upon laws true or false

false

emerging economies are based upon laws true or false

false

human resource management is not important in family business true or false

false

in the case of business failure, debt does not need to be repaid true or false

false

which of the following statements is true of the Americans with disabilities act? it allows entrepreneurial businesses to exclude candidates who need physical adaptations to work at the firm it covers those firms with 50 or more employees it provides that each and every business must provide unfettered access to all differently-abled people it is applicable to large business firms with a turnover of more than 10 million dollars

it provides that each and every business must provide unfettered access to all differently-abled people

A company seeks to have inventory present only shortly before it is used. This method of inventory control is called balanced inventory monitoring inventory accural inventory just-in-time inventory

just-in-time inventory

Borealis Computing is a small start-up firm that needs to purchase essential equipment and supplies to begin operations. Gencent LLC, a larger firm, offers to finance Borealis Computing's purchases. Under their agreement, Borealis Computing will repay Gencent LLC overtime at a specified interest rate. In the context of nonequity funding, Gencent LLC's financing of Borealis Computing's purchases is an example of ________. factoring supplier credit crowdfunding equity investment

supplier credit

______ can be described as a form of non equity funding where one organization finances another organizations purchasing of physical assets and supplies factoring supplier credit asset leasing angel investments

supplier credit

Which of the following laws established a minimum wage for workers? the civil rights act the fair labor standards act the Shermans antitrust act the Americans with disabilities act

the fair labor standards act

A chart of accounts is a listing of each type of activity (such as expense items) and each type of asset within the company. true or false

true

An owner must develop a paper trail regarding an employee's bad performance. true or false

true

Debt is a generic term that describes any type of nonequity funding tied to a business. true or false

true

Extra expenses, not counted on in the planning stage of a new business, can quickly eat up cash intended to grow the business. true or false

true

identify a legal question that an employee can ask during an interview "are you married" "are you heterosexual or homosexual" "are you a republican or democrat" "do you have a social security number"

"do you have a social security number"

what percentage of states has an unemployment compensation law? 25 100 50 75

100

The Americans with Disabilities Act regulates firms with how many employees? less than 10 employees 20 or more employees less than 15 employees 15 or more employees

15 or more employees

The government regulates the employment of children under the age of ________. 20 18 16 21

What is the major difference between a board of directors and a board of advisors? A board of directors has fiduciary responsibility, whereas a board of advisors advises the firm. A board of directors always directs large companies, whereas a board of advisors is usually found in small firms. A board of directors is individuals from outside the firm, whereas a board of advisors is individuals from inside the firm. There is no difference

A board of directors has fiduciary responsibility, whereas a board of advisors advises the firm.

Which of the following statements is true of worker's compensation? It is limited to partial wage replacement and medical bills acquired while treating the injury caused at the workplace. All of the answers are correct. It is given to an employee who qualifies for the compensation, regardless of the fault of the owner. Once an employee accepts workers' compensation, he or she cannot sue the entrepreneur for the injury caused due to unsafe working conditions.

All of the answers are correct.

A business that chooses to form a corporation must have a board of directors. In new small corporations, the board of directors and shareholders must be different individuals. TRUE OR FALSE

FALSE

In a sole proprietorship, all the income and losses are reported on schedule D of the 1040 tax form. TRUE OR FALSE

FALSE

Patents are inexpensive and easy to obtain and maintain. TRUE OR FALSE

FALSE

All of the following are benefits of a Subchapter C Corporation EXCEPT NO LIMIT TO THE NUMBER OF SHAREHOLDERS HEALTH BENEFITS PAID BY THE CORPORATION OWNERS BEING TREATED AS EMPLOYEES OF THE COMPANY FRINGE BENEFITS BEING TREATED AS INCOME

FRINGE BENEFITS BEING TREATED AS INCOME

Which of the following statements is true of the Civil Rights Act? It allows for the promotion of the differently-abled employees irrespective of their performance. It provides that each and every business must provide unfettered access to all disabled people. It ensures that all individuals are judged according to the discretion of an entrepreneur. It currently applies to all firms with more than 25 employees

It currently applies to all firms with more than 25 employees

Several successful businesspeople establish a partnership with each other. They combine their financial resources and use the resultant pool of resources to make equity investments in various high-growth new undertakings. In the context of equity funding, the partnership and the pooled resources of the businesspeople are best described as None of the answers is correct. a venture capital fund. an asset lease arrangement. supplier credit.

a venture capital fund.

Currently under the ________, firms with more than 50 employees are required to offer their employees insurance. Americans with disabilities act affordable care act equal pay act fair labor standards act

affordable care act

An example of a benefit a company can offer is 401k all of the answers are correct sick leave retirement plans