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WorksheetsEntI_Unit 1 Laps Test
Total questions: 50
Worksheet time: 25mins
You decide not to take a certain action because you know it’s the wrong thing to do. You have made this decision based on your
peers.
ethics.
regulations.
laws.
A business’s ethics determine whether or not an action is acceptable for that business, especially if the action
affects the environment.
is illegal.
contributes to the business’s profitability.
has a negative impact on others.
Understanding business ethics can be difficult since
there are no industry-specific ethical codes.
it is a relatively new field of study.
many people aren’t sure how to behave ethically.
it involves a lot of technical terms.
Which of the following is a true statement about business ethics and the law:
The two are not the same thing, but they do overlap.
Everything that is illegal is also unethical.
Everything that is unethical is also illegal.
The two have nothing to do with each other.
One difference between business ethics and the law is that business ethics
are often unwritten.
must be published.
are enforced by government.
are easy to determine.
Which of the following is a true statement about breaking the law:
It is acceptable in most industries.
It is necessary for business success.
It will make a company more popular.
It may have different consequences than breaching ethics.
Which of the following is one of the four pillars of a business’s social responsibility:
Political responsibility
Economic responsibility
Media responsibility
Universal responsibility
A large tech company donates a portion of its proceeds to charity. This is an example of __________ responsibility.
legal
ethical
philanthropic
economic
Which of the following is an example of a business’s ethical obligation to its stakeholders:
Sharing trade secrets within its industry
Doubling investors’ money within two years
Providing safe working environments for employees
Allowing the competition to succeed
Why should a business practice good ethics?
An unethical business will go bankrupt.
The government will fine an unethical business.
An ethical business makes more money than all its competitors.
An ethical business contributes toward its own success.
Which of the following is a true statement about ethical business practices:
They do not guarantee positive outcomes.
They are more difficult to undertake than unethical practices.
They are all under government regulation.
They ensure that a business will succeed.
A business suddenly moves its operations to a new town, leaving its current employees jobless. Its reason for taking this action, which some consider unethical, might be that the action
benefits the community.
is not illegal.
is committed by unethical employees.
doesn’t hurt anyone.
A financial advisor receives a bonus for selling a certain mutual fund. Her reason for taking this action, which some consider unethical, might be that the action
benefits the community.
is acceptable within the industry.
is acceptable in foreign cultures.
is committed by unethical employees.
Some people believe that a business’s only true ethical obligation is to
contribute to charity.
provide jobs.
protect the environment.
make money.
A company goes bankrupt because of its unethical accounting practices. The reason for this
unethical behavior is that the action is
not illegal.
acceptable in a foreign culture.
committed by unethical employees.
acceptable within the industry.
Which of the following is a potential consequence of poor business ethics:
Decreased internal problems
Negative public image
Increased customer loyalty
Reduced risk of lawsuits
A business with poor ethics is likely to
avoid fines.
beat the competition.
decrease its financial risk.
lose customers.
A business with poor ethics causes internal problems for itself by
improving its public image.
increasing customer loyalty.
decreasing productivity.
decreasing financial risk.
Which of the following is an example of increased financial risk for a company with poor business ethics:
Decreased company value
Increased productivity
Increased sales
Decreased labor costs
Unethical business practices may lower a company’s stock prices because
investors prefer companies they perceive to be ethical.
the government fines unethical companies.
employees resign from unethical companies.
unethical companies usually go bankrupt.
What do business owners consider when they select a business ownership structure?
Personal circumstances, type of business, and product mix
Product versatility, financial needs, and advertising strategies
Personal circumstances, financial needs, and type of business
Product versatility, advertising strategies, and personal circumstances
“To form my business, I used all of my savings and borrowed from the bank, and I’m personally liable for all of the debts.” This is an example of which of the following forms of business ownership:
Partnership
Sole proprietorship
Corporation
Cooperative
John, Robert, and Charles were college friends who wanted to start a business. John has creative ability, Robert’s expertise is selling, and Charles’ expertise is management. However, each has limited capital. The ideal business ownership for these young men is a
merger.
partnership.
franchise.
corporation.
If all of the individuals who own a business share unlimited liability for the business’s losses, these individuals are part of a(n)
private corporation.
general partnership.
"S" corporation.
"C" corporation
Lois and Lora plan to open a florist shop. Lois is unable to devote full time to the daily operations of the shop but wishes to provide financial support. Which form of business partnership
is most likely to appeal to Lois?
Private
Nonprofit
General
Limited
The Scott Company decided to sell stock to raise capital. Under what form of business organization does the company operate?
Corporation
Cooperative
Partnership
Sole proprietorship
What type of corporation may be owned by just a few people and does not offer its shares for sale to the general public?
Limited
Franchise
"C"
Private
A type of state-chartered corporation that was developed to help small businesses by taxing them as individuals in a partnership is a(n) __________ corporation.
"S"
"C"
private
limited
What type of corporation sells millions of shares and must furnish complete information about its earnings, assets, and debts?
"C"
Private
"S"
Limited
The American Red Cross is an example of a(n) ___________ corporation.
hybrid
nonprofit
"S"
"C"
One of the characteristics of the form of business ownership known as an LLC is that
this kind of business can last indefinitely.
it is required to have at least three owners (members).
the IRS collects taxes based on the LLC’s gross income.
the owners’ personal property cannot be taken to pay the business’s debts.
One reason a physicians’ practice might form a partnership as an LLP is to
ensure that the business experiences unlimited liability.
take advantage of higher dividend returns on shares of its stock.
protect innocent partners from the malpractice of another partner.
permit the general public to purchase licensing rights in the practice.
Wendy’s sells the right to operate its restaurants to individuals who meet the company’s criteria. The arrangement between Wendy’s and these individuals is an example of
a partnership agreement.
multi-level marketing.
licensing.
franchising.
Jake wanted to run his own business but was unsure that he had adequate business skills to be successful. Which type of business would give Jake the help he needs?
Private corporation
Sole proprietorship
Business-format franchise
Product trade-name franchise
Which of the following is a characteristic of a product trade-name franchise:
It is not open to the public.
The franchise can choose the name of the business.
The franchisee has unlimited liability.
It is owned by shareholders.
Jane is the owner of a pizza shop associated with a national chain of pizza restaurants. She established her business in a regional supermarket. The pizza shop is referred to as a
host franchise.
strategic alliance.
master license.
piggyback franchise.
Olivia runs a home-based business that distributes high quality, handmade baskets. She sells the products and earns commissions on the baskets sold by four other basket representatives. This is an example of
product licensing.
product trade-name franchising.
multi-level marketing.
strategic partnering.
Illegally run organizations that emphasize the collection of high fees from potential product distributors are often referred to as
pyramid schemes.
pressure-cooker tactics.
marketing rackets.
deceptive advertising gimmicks.
ABC Specialty Wear is the only company that has written permission to use a national football team’s logo on its sportswear. This is an example of a
product trade-name contract.
sole propietorship.
licensing agreement.
limited joint-venture contract.
Which of the following statements is true regarding joint ventures:
Joint-venture arrangements are usually short-term relationships.
Joint ventures are used only when it is necessary to raise a lot of capital.
Large corporations are the only business structures that can benefit from joint ventures.
An independent attorney must always be consulted before signing a joint-venture agreement.
1. Employees should seek positions that
capitalize on their strengths
capitalize on their weaknesses
minimize their strengths.
minimize their experience.
Why is it important to assess personal strengths and weaknesses before interviewing for a job?
If you know your strengths and weaknesses, you will get the job.
Interviewers often ask you to discuss your strengths and weaknesses.
You must improve all weaknesses before you are hired.
Employers require you to have at least 10 strengths.
When assessing strengths and weaknesses, what is wrong with simply saying, “I am a
good leader”?
It’s not specific.
It’s not realistic
It’s not honest.
It’s a false generalization
Which of the following questions might you ask when assessing your strengths
and weaknesses:
Who can help me change?
How can I better manage my time?
Why don’t I work well in groups?
What can I improve?
A survey designed to help you assess your strengths and weaknesses is known as a
group learning exam.
group talent test.
personal skills inventory
personal behavior survey
Which of the following is a way that entrepreneurship helps our society:
Creates new jobs
Eliminate financial concerns
Reduces taxes
Decreases economic growth
Michelle’s primary reason for starting her own business is her desire to make her own schedule. Michelle is looking forward to the __________ she hopes to have as a business owner.
advanced technology
personal commitment
tax breaks and deductions
flexibility and independence
What is a disadvantage of entrepreneurship?
Personal satisfaction
Uncertain income
Lower taxes
Fewer resources
How do entrepreneurs develop their skills?
By reducing their flexibility
By seeking little or no advice from other
By training and continuous practice
By becoming an autocratic leader
Environmental protection and the shift towards healthier lifestyles are examples of
a. problems. c. solutions.
b. trends. d. obstacles.
problems.
trends.
solutions.
obstacles.
