Business Ethics Summative Test 1

A corporation is not a separate entity distinct from all the owners.

• True

• False

Tax preparation is not difficult in sole proprietorship.

• True

• False

Business is a passive process.

• True

• False

A partnership may generate funds through selling shares of stocks.

• True

• False

The liability of a shareholder is only limited to the amount of his/her investment.

• True

• False

It is a business owned by one person only.

• Corporation

• Sole proprietorship

• Business

• Partnership

It is the amount received minus the amount

spent.

• Profit

• Cost

• Asset

• Liability

It is an independent entity distinct from its

owners.

• Partnership

• Corporation

• Cooperative

• Business

It involves important operations like

advertising, marketing, etc.

• Business

• Marketing

• Ethics

• Advertising

Which of the following is not true in a corporation?

• The life of a corporation has no limit.

• The business does not have any independent legal status.

• The business operates even without any real oversight from

  the owners.

• Corporation files taxes separately from its owners.