BUSI 1301 Departmental Assessment Final Exam

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The principles and standards that determine acceptable conduct in business organizations are

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business ethics.

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Which of the following statements is true regarding business ethics and social responsibility?
Options:
All actions deemed unethical by society are also illegal.
The concerns of what is legal and ethical do not change over time.
The terms social responsibility and ethics should be used interchangeably.
Companies can be both profitable and socially responsible.
Businesses whose sole objectives is to earn profit may not consider their social responsibility.

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Companies can be both profitable and socially responsible.

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How do the terms business ethics and social responsibility differ from each other?

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Business ethics concerns the impact of the entire business’s activities on society, whereas social responsibility relates to an individual’s decisions that society evaluates as right or wrong.

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The _____ Act criminalized securities fraud and toughened penalties for corporate fraud.

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Sarbanes-Oxley

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All of the following statements are true of the government regulation of sole proprietorships EXCEPT: many government regulations apply only to businesses that have a certain number of employees; securities laws apply only to corporations that issue stock; sole proprietorships must obey employee and consumer regulations; sole proprietorships have the most freedom from government regulations; sole proprietors must follow all laws, including, federal, state, and local regulations; securities laws; and employee and consumer protection regulation.

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sole proprietors must follow all laws, including, federal, state, and local regulations; securities laws; and employee and consumer protection regulation.

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All of the following are keys to a successful partnership EXCEPT partners must:
- have different skill sets or resource contributions.
- maintain effective communications skills.
- focus on customer satisfaction and product quality.
- keep profit sharing equal regardless of contributions.
- maintain transparency with stakeholders.

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keep profit sharing equal regardless of contributions.

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Which of the following is a disadvantage of partnerships over sole proprietorships?

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In partnerships, all owners have unlimited liability, whereas in sole proprietorships they have limited liabilities.

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Which of the following statements describes an advantage of franchising instead of building an independent business from scratch? The time required to set up an independent business is much lower than obtaining a franchise., A franchise outlet often reaches the break-even point faster than an independent business would., A franchisee would experience more flexibility in decision making than the owner of the independent business., The quality of goods and services needs to be more standardized and uniform in an independent business than in franchises., Access to managerial and financial assistance is more limited in franchises than in independent businesses.

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A franchise outlet often reaches the break-even point faster than an independent business would.

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Why has outsourcing become a controversial practice in the United States?

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Many jobs have moved overseas where those tasks can be accomplished for lower costs.

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Which of the following is one of the implications of trade deficits? Options: the success of businesses, the import of more products, the loss of jobs, the export of more services, a higher standard of living

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the loss of jobs