ENT 2113- Ron Bolen Final Exam study Set (Spring 2024)
260 questions with correct verified answers.
1. A business can obtain liability insurance, which helps protect the business
against lawsuit judgments.: True
2. Bonding is a type of insurance in which the business is covered in case the
workers
cause any damage in the performance of their work.: True
3. In a Subchapter C Corporation, it is possible to have a double taxation
situation.: True
4. The insurance coverage obtained by a small business is directly proportional to
the cost.
As the coverage increases, the cost also increases.: True
5. If a new business deals with toxic waste such as asbestos, it can expect to be
subject to
significant regulation, regardless of the size of the firm.: True
6. Sea Waves Tours and Avis Travels enter into a formal agreement with each
other. Under this agreement, over the next year, Sea Waves Tours will recommend
Avis Travels to all its customers. Avis Travels will pay a small commission for every
new customer they gain as a result of this recommendation. In this scenario, Sea
Waves Tours and Avis Travels have: Signed a contract with each other
7. Marsciva Technologies is an emerging business. The firm considers the owners
to be employees of the firm and therefore pays them salaries and bonuses. To reduce
corporate tax, the owners of Marsciva Technologies pay themselves nearly all the
profits generated so that very little actual profits are reported by the firm. Based on
these characteristics, Marsciva Technologies is most likely a: Subchapter C
Corportation
8. In the context of legal forms of business, a Subchapter S Corporation: allows
the owners to treat the income of the firm as part of their personal incomes.
9. In the context of legal forms of business, which of the following is an area in
which sole proprietorships differ from general partnerships?: the possibility of
bringing in new equity partners
10. In the context of legal forms of business, identify a true statement about sole
proprietorship firms.: Laws governing business practices do not recognize other equity
investors, which limits the growth potential of such firms.
11. All of the following are benefits of a Subchapter C Corporation EXCEPT:
fringe benefits being treated as income.
12. In the context of legal forms of business, identify a true statement about limited
liability partnership (LLP).: In a limited liability partnership, limited partners can work
at the firm but not be active in its management.
13 In the context of legal forms of business, a general partner in a limited liability
partnership: has unlimited liability for any debts or judgments against the firm.
, ENT 2113- Ron Bolen Final Exam study Set (Spring 2024)
Study online at https://quizlet.com/_emgv24
.
14. When forming a sole proprietorship or a partnership, the business debts are:
the responsibility of the owners.
15. In a lease, a landowner can enter a business premises for all the following
reasons EXCEPT: whenever the landowner wants to.
16. James and Mary own a business. When they pay themselves an advance in
salary or a bonus, it is called a(n) ________.: Draw
17. Workers' compensation insurance rates are regulated by the federal
government and are uniform across the country.: False
18. Any fines levied by the Occupational Safety and Health Administration
(OSHA) are equal for entrepreneurial businesses with fewer than 25 employees as
they are for large businesses.: False
19. The setting of goals for an employee allows an entrepreneur to judge how well
the employee is performing.: True
20. Large firms can absorb bad employees easier than small businesses because
they have organizational slack.: True
21. One action a small business owner might take to establish that the firm is not
discriminatory would be to advertise the job widely in several publications.: True
22. Human resources, as defined in economics, is the ________ and ________ of
human effort directed toward producing goods and services.: quantity; quality
23. Which of the following laws states an employer cannot discriminate in pay to
men and women who do the same job?: The Equal Pay Act
24. Which of the following laws prohibits discrimination in hiring, dismissal, or
promotion on the basis of race, color, gender, religious beliefs, or national origins?:
The Civil Rights Act
25. What percentage of states has an unemployment compensation law?: 100 26.
Which of the following entrepreneurial firms needs to pay special attention to OSHA
guidelines regardless of their size?: manufacturing firms
27. A(n) ________ is an index wage that requires the minimum wage to be at least
what someone who works 40 hours a week needs to stay out of poverty.: living wage
28. What does OSHA stand for?: Occupational Safety and Health Administration 29
Identify an accurate statement about the hybrid compensation system.: An
entrepreneur should provide bonuses in a timely manner that is relevant to the individuals
in the firm and within the realities and constraints of the business.
30. Which of the following statements is true of the Civil Rights Act?: It currently
applies to all firms with more than 25 employees.
31. Which of the following statements is true of the Fair Labor Standards Act
(FLSA)?: It requires that all nonexempt employees who work over 40 hours a week
should be paid at the rate of time and a half.
, ENT 2113- Ron Bolen Final Exam study Set (Spring 2024)
Study online at https://quizlet.com/_emgv24
.
32. Job advertisements written for a new hire should: be kept concise and should
communicate the culture of the firm.
33. Which of the following statements is true of the Americans with Disabilities Act
(ADA)?: It provides that each and every business must provide unfettered access to
all differently-abled people.
34. Founders cannot lend money to their own firm.: False
35. A credit card has a set repayment schedule.: False
36. Debt is a generic term that describes any type of non-equity funding tied to a
business.: True
37. A grant, a form of nonequity funding, is expected to be repaid at a predetermined
interest rate once a beneficiary firm begins to profit from its operations.: False
38. A problem with having a line of credit to purchase inventory is that a business
tends to carry old and outdated inventory on the books.: True 39. A common form
of debt for a small business can be classified as
________.: All of the answers are correct (loans, credit cards, supplier credit) 40. In the
context of financial tools, a business can quickly generate cash in the short run by
selling accounts receivable at a discount to another company.
This is a technique known as ________.: Factoring
41. Which of the following items does a payroll record list?: All of the answers are
correct (gross pay, base pay, taxes)
42. In the context of proper accounting techniques, the system that recognizes
expenses when they are paid for and recognizes revenue as it is generated is
known as ________: Cash-based accounting
43. In the context of financing tools available to new businesses, identify a major
disadvantage to asset leasing.: A new business might spend more money on leasing
equipment over time than if it had bought the equipment outright.
44. Accepting ________ ties a firm to the supplier and usually stops the firm from
shopping around for a lower price.: supplier credit
45. Credit cards have all the following EXCEPT: equity investment.
46 In the context of equity funding, identify a characteristic of venture capital funds.:
They tend to invest in high-growth business that can cash out by being bought out by a
larger company within a set period of time.
47. One of the accounting records maintained by Visors Inc. lists the number of
regular work hours worked by its employees, the overtime hours worked by various
employees, and the firm's overtime pay rate. This record also tracks salary checks
issued to each employee. This record is most likely a(n)
________.: payroll record
260 questions with correct verified answers.
1. A business can obtain liability insurance, which helps protect the business
against lawsuit judgments.: True
2. Bonding is a type of insurance in which the business is covered in case the
workers
cause any damage in the performance of their work.: True
3. In a Subchapter C Corporation, it is possible to have a double taxation
situation.: True
4. The insurance coverage obtained by a small business is directly proportional to
the cost.
As the coverage increases, the cost also increases.: True
5. If a new business deals with toxic waste such as asbestos, it can expect to be
subject to
significant regulation, regardless of the size of the firm.: True
6. Sea Waves Tours and Avis Travels enter into a formal agreement with each
other. Under this agreement, over the next year, Sea Waves Tours will recommend
Avis Travels to all its customers. Avis Travels will pay a small commission for every
new customer they gain as a result of this recommendation. In this scenario, Sea
Waves Tours and Avis Travels have: Signed a contract with each other
7. Marsciva Technologies is an emerging business. The firm considers the owners
to be employees of the firm and therefore pays them salaries and bonuses. To reduce
corporate tax, the owners of Marsciva Technologies pay themselves nearly all the
profits generated so that very little actual profits are reported by the firm. Based on
these characteristics, Marsciva Technologies is most likely a: Subchapter C
Corportation
8. In the context of legal forms of business, a Subchapter S Corporation: allows
the owners to treat the income of the firm as part of their personal incomes.
9. In the context of legal forms of business, which of the following is an area in
which sole proprietorships differ from general partnerships?: the possibility of
bringing in new equity partners
10. In the context of legal forms of business, identify a true statement about sole
proprietorship firms.: Laws governing business practices do not recognize other equity
investors, which limits the growth potential of such firms.
11. All of the following are benefits of a Subchapter C Corporation EXCEPT:
fringe benefits being treated as income.
12. In the context of legal forms of business, identify a true statement about limited
liability partnership (LLP).: In a limited liability partnership, limited partners can work
at the firm but not be active in its management.
13 In the context of legal forms of business, a general partner in a limited liability
partnership: has unlimited liability for any debts or judgments against the firm.
, ENT 2113- Ron Bolen Final Exam study Set (Spring 2024)
Study online at https://quizlet.com/_emgv24
.
14. When forming a sole proprietorship or a partnership, the business debts are:
the responsibility of the owners.
15. In a lease, a landowner can enter a business premises for all the following
reasons EXCEPT: whenever the landowner wants to.
16. James and Mary own a business. When they pay themselves an advance in
salary or a bonus, it is called a(n) ________.: Draw
17. Workers' compensation insurance rates are regulated by the federal
government and are uniform across the country.: False
18. Any fines levied by the Occupational Safety and Health Administration
(OSHA) are equal for entrepreneurial businesses with fewer than 25 employees as
they are for large businesses.: False
19. The setting of goals for an employee allows an entrepreneur to judge how well
the employee is performing.: True
20. Large firms can absorb bad employees easier than small businesses because
they have organizational slack.: True
21. One action a small business owner might take to establish that the firm is not
discriminatory would be to advertise the job widely in several publications.: True
22. Human resources, as defined in economics, is the ________ and ________ of
human effort directed toward producing goods and services.: quantity; quality
23. Which of the following laws states an employer cannot discriminate in pay to
men and women who do the same job?: The Equal Pay Act
24. Which of the following laws prohibits discrimination in hiring, dismissal, or
promotion on the basis of race, color, gender, religious beliefs, or national origins?:
The Civil Rights Act
25. What percentage of states has an unemployment compensation law?: 100 26.
Which of the following entrepreneurial firms needs to pay special attention to OSHA
guidelines regardless of their size?: manufacturing firms
27. A(n) ________ is an index wage that requires the minimum wage to be at least
what someone who works 40 hours a week needs to stay out of poverty.: living wage
28. What does OSHA stand for?: Occupational Safety and Health Administration 29
Identify an accurate statement about the hybrid compensation system.: An
entrepreneur should provide bonuses in a timely manner that is relevant to the individuals
in the firm and within the realities and constraints of the business.
30. Which of the following statements is true of the Civil Rights Act?: It currently
applies to all firms with more than 25 employees.
31. Which of the following statements is true of the Fair Labor Standards Act
(FLSA)?: It requires that all nonexempt employees who work over 40 hours a week
should be paid at the rate of time and a half.
, ENT 2113- Ron Bolen Final Exam study Set (Spring 2024)
Study online at https://quizlet.com/_emgv24
.
32. Job advertisements written for a new hire should: be kept concise and should
communicate the culture of the firm.
33. Which of the following statements is true of the Americans with Disabilities Act
(ADA)?: It provides that each and every business must provide unfettered access to
all differently-abled people.
34. Founders cannot lend money to their own firm.: False
35. A credit card has a set repayment schedule.: False
36. Debt is a generic term that describes any type of non-equity funding tied to a
business.: True
37. A grant, a form of nonequity funding, is expected to be repaid at a predetermined
interest rate once a beneficiary firm begins to profit from its operations.: False
38. A problem with having a line of credit to purchase inventory is that a business
tends to carry old and outdated inventory on the books.: True 39. A common form
of debt for a small business can be classified as
________.: All of the answers are correct (loans, credit cards, supplier credit) 40. In the
context of financial tools, a business can quickly generate cash in the short run by
selling accounts receivable at a discount to another company.
This is a technique known as ________.: Factoring
41. Which of the following items does a payroll record list?: All of the answers are
correct (gross pay, base pay, taxes)
42. In the context of proper accounting techniques, the system that recognizes
expenses when they are paid for and recognizes revenue as it is generated is
known as ________: Cash-based accounting
43. In the context of financing tools available to new businesses, identify a major
disadvantage to asset leasing.: A new business might spend more money on leasing
equipment over time than if it had bought the equipment outright.
44. Accepting ________ ties a firm to the supplier and usually stops the firm from
shopping around for a lower price.: supplier credit
45. Credit cards have all the following EXCEPT: equity investment.
46 In the context of equity funding, identify a characteristic of venture capital funds.:
They tend to invest in high-growth business that can cash out by being bought out by a
larger company within a set period of time.
47. One of the accounting records maintained by Visors Inc. lists the number of
regular work hours worked by its employees, the overtime hours worked by various
employees, and the firm's overtime pay rate. This record also tracks salary checks
issued to each employee. This record is most likely a(n)
________.: payroll record
