Business Ethics - Quiz 1

Which of the following is NOT a common characteristic of a business organization?

• It provides goods or services in exchange for profit.

• It operates without the need for customers.

• It requires investment to sustain operations.

Which form of business is best for someone who wants full control but is also willing to take full responsibility for all risks?

• Partnership

• Sole Proprietorship

• Corporation

Ana wants to start a small bakery at home. She has limited capital and wants to avoid legal complexities. Which type of business should she consider?

• Sole Proprietorship

• Corporation

• Cooperative

A group of farmers decides to form a business where they share resources, equipment, and profits equally. What type of business organization best suits them?

• Corporation

• Partnership

• Cooperative

John and Mike want to start a software company. Mike will invest a large amount of money but does not want to be involved in daily operations. What type of partnership should they consider?

• General Partnership

• Limited Partnership

• Sole Proprietorship

Why do corporations tend to have more influence in the economy compared to sole proprietorships?

• They have fewer legal responsibilities.

• They have larger capital, better resources, and more employees.

• They operate without the need for profits.

A local grocery store is struggling financially. Instead of closing, the owner partners with a friend who is willing to invest. What is the most likely advantage of this decision?

• The owner will have less profit but more financial support.

• The business will now have fewer legal obligations.

• The business will no longer be responsible for paying taxes.

Why is business important for socio-economic development?

• It provides employment, supports innovation, and contributes to government revenue.

• It allows companies to operate without restrictions.

• It benefits only the business owners, not society as a whole.

If a country has very few businesses, what will most likely happen to its economy?

• Economic growth will slow down, leading to fewer jobs and less government revenue.

• The country will have more job opportunities.

• People will have more options to buy goods and services.

A new company wants to prioritize social responsibility by using eco-friendly materials and donating a portion of profits to charity. What is this an example of?

• Business negligence

• Corporate social responsibility

• Profit-driven business practices