BUSN 100 Final Exam Review with 100%
Correct Answers
The "classic" purpose of a business is to: - correct answer-Build shareholder value
Senior management, in particular CEO/Presidents act as ________ for shareholders. -
correct answer-Agents
Shareholders include:
a) People who specifically purchased/own shares of company stock
b) Investors in a start-up who have equity or own part of the business
c) People with money in Money-market or IRA accounts with stock investments
d) All of the above - correct answer-d) All of the above
An entrepreneur is a person that:
a) Starts a new business
b) Runs a business alone, or with a small number of partners
c) Can run a small or large business
d) All of the above - correct answer-d) All of the above
Which of the following are NOT stakeholders for a business:
a) Employees
b) Partners
c) Competitors
d) All of the above are stakeholders - correct answer-d) All of the above are
stakeholders
An example of a natural force in the business macro-environment is:
a) Global Warming
b) Tornado that wipes out a manufacturing plant
c) Both a & b
d) None of the above - correct answer-c) Both a & b
*A decision by the FDA to approve a new type of pharmaceutical is an example of a:
a) Economic Force
b) Political Force
c) Technological Force
d) None of the above - correct answer-c) Technological Force
The macro-business environment impacts: - correct answer-All companies
, A disadvantage of Sole Proprietorship is: - correct answer-Unlimited Liability
Sole proprietorships represent the: - correct answer-Majority of all U.S. Businesses
General Partnerships have the advantage of: - correct answer-More talent and
resources from partners
General partnership disadvantages include:
a) Potential partner disputes
b) Shared profits
c) Unlimited liability
d) All of the above - correct answer-d) All of the above
*Limited partnership means:
a) Some partners get reduced profits
b) One partner runs the business, while others just invest
c) Is always a Limited Liability Company (LLC)
d) All of the above - correct answer-d) All of the above
A corporation is a:
a) Legal entity that separates investors from the business
b) Business that can sell stock
c) Business governed by a Board of Directors
d) All of the above - correct answer-d) All of the above
The primary advantage of a Corporation is: - correct answer-Limiting liability for
individual shareholders
A Limited Liability Company (LLC) is similar to a corporation because it: - correct
answer-Limits liability for individual shareholders
A Cooperative is a business controlled by: - correct answer-Members/owners of the
cooperative
A Non-profit is formed to: - correct answer-Serve some public purpose
A merger occurs when: - correct answer-Two companies combine to form a new
company
An Acquisition is when: - correct answer-One company purchases and absorbs another
one
What is the typical question you would ask yourself when analyzing an ethical situation
from the duty perspective? - correct answer-What are my commitments to others that
must be honored?
Correct Answers
The "classic" purpose of a business is to: - correct answer-Build shareholder value
Senior management, in particular CEO/Presidents act as ________ for shareholders. -
correct answer-Agents
Shareholders include:
a) People who specifically purchased/own shares of company stock
b) Investors in a start-up who have equity or own part of the business
c) People with money in Money-market or IRA accounts with stock investments
d) All of the above - correct answer-d) All of the above
An entrepreneur is a person that:
a) Starts a new business
b) Runs a business alone, or with a small number of partners
c) Can run a small or large business
d) All of the above - correct answer-d) All of the above
Which of the following are NOT stakeholders for a business:
a) Employees
b) Partners
c) Competitors
d) All of the above are stakeholders - correct answer-d) All of the above are
stakeholders
An example of a natural force in the business macro-environment is:
a) Global Warming
b) Tornado that wipes out a manufacturing plant
c) Both a & b
d) None of the above - correct answer-c) Both a & b
*A decision by the FDA to approve a new type of pharmaceutical is an example of a:
a) Economic Force
b) Political Force
c) Technological Force
d) None of the above - correct answer-c) Technological Force
The macro-business environment impacts: - correct answer-All companies
, A disadvantage of Sole Proprietorship is: - correct answer-Unlimited Liability
Sole proprietorships represent the: - correct answer-Majority of all U.S. Businesses
General Partnerships have the advantage of: - correct answer-More talent and
resources from partners
General partnership disadvantages include:
a) Potential partner disputes
b) Shared profits
c) Unlimited liability
d) All of the above - correct answer-d) All of the above
*Limited partnership means:
a) Some partners get reduced profits
b) One partner runs the business, while others just invest
c) Is always a Limited Liability Company (LLC)
d) All of the above - correct answer-d) All of the above
A corporation is a:
a) Legal entity that separates investors from the business
b) Business that can sell stock
c) Business governed by a Board of Directors
d) All of the above - correct answer-d) All of the above
The primary advantage of a Corporation is: - correct answer-Limiting liability for
individual shareholders
A Limited Liability Company (LLC) is similar to a corporation because it: - correct
answer-Limits liability for individual shareholders
A Cooperative is a business controlled by: - correct answer-Members/owners of the
cooperative
A Non-profit is formed to: - correct answer-Serve some public purpose
A merger occurs when: - correct answer-Two companies combine to form a new
company
An Acquisition is when: - correct answer-One company purchases and absorbs another
one
What is the typical question you would ask yourself when analyzing an ethical situation
from the duty perspective? - correct answer-What are my commitments to others that
must be honored?
