ENT 2113- Final Exam study Set (Spring 2025)
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
proportion- al 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
recom- mend Avis Travels to all its customers. Avis Travels will pay a small
commis- sion 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.
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
gov- ernment 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
employ- ees 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
publica- tions.: True
22.Human resources, as defined in economics, is the and
of human effort directed toward producing goods and services.: quantity;
qual- ity
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?: 10
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
current- ly 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.
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
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
proportion- al 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
recom- mend Avis Travels to all its customers. Avis Travels will pay a small
commis- sion 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.
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
gov- ernment 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
employ- ees 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
publica- tions.: True
22.Human resources, as defined in economics, is the and
of human effort directed toward producing goods and services.: quantity;
qual- ity
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?: 10
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
current- ly 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.
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
