NEW
Font size
WorksheetsEntI_On the Up and Up/Own It Your Way
Total questions: 20
Worksheet time: 10mins
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
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
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
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
The American Red Cross is an example of a(n) ___________ corporation.
hybrid
nonprofit
"S"
"C"
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.
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
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.
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.
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.
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 one of the four pillars of a business’s social responsibility:
Political responsibility
Economic responsibility
Media responsibility
Universal responsibility
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
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 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.
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 causes internal problems for itself by
improving its public image.
increasing customer loyalty.
decreasing productivity.
decreasing financial risk.
