ENT 2113- Ron Bolen Final Exam study
Set
In the context of legal forms of business, identify a true statement about limited liability
partnership (LLP). - CORRECT ANSWER-In a limited liability partnership, limited
partners can work at the firm but not be active in its management.
In the context of legal forms of business, a general partner in a limited liability
partnership - CORRECT ANSWER-has unlimited liability for any debts or judgments
against the firm.
When forming a sole proprietorship or a partnership, the business debts are -
CORRECT ANSWER-the responsibility of the owners.
In a lease, a landowner can enter a business premises for all the following reasons
EXCEPT - CORRECT ANSWER-whenever the landowner wants to.
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. - CORRECT ANSWER-True
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 - CORRECT ANSWER-Signed a contract with each other
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 - CORRECT ANSWER-
Subchapter C Corportation
In the context of legal forms of business, a Subchapter S Corporation - CORRECT
ANSWER-allows the owners to treat the income of the firm as part of their personal
incomes.
A business can obtain liability insurance, which helps protect the business against
lawsuit
judgments. - CORRECT ANSWER-True
,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. - CORRECT ANSWER-True
In a Subchapter C Corporation, it is possible to have a double taxation situation. -
CORRECT ANSWER-True
The insurance coverage obtained by a small business is directly proportional to the
cost.
As the coverage increases, the cost also increases. - CORRECT ANSWER-True
In the context of legal forms of business, which of the following is an area in which sole
proprietorships differ from general partnerships? - CORRECT ANSWER-the possibility
of bringing in new equity partners
In the context of legal forms of business, identify a true statement about sole
proprietorship firms. - CORRECT ANSWER-Laws governing business practices do not
recognize other equity investors, which limits the growth potential of such firms.
All of the following are benefits of a Subchapter C Corporation EXCEPT - CORRECT
ANSWER-fringe benefits being treated as income.
James and Mary own a business. When they pay themselves an advance in salary or a
bonus, it is called a(n) ________. - CORRECT ANSWER-Draw
Workers' compensation insurance rates are regulated by the federal government and
are uniform across the country. - CORRECT ANSWER-False
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. - CORRECT ANSWER-False
The setting of goals for an employee allows an entrepreneur to judge how well the
employee is performing. - CORRECT ANSWER-True
Large firms can absorb bad employees easier than small businesses because they
have organizational slack. - CORRECT ANSWER-True
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. - CORRECT
ANSWER-True
Human resources, as defined in economics, is the ________ and ________ of human
effort directed toward producing goods and services. - CORRECT ANSWER-quantity;
quality
, Which of the following laws states an employer cannot discriminate in pay to men and
women who do the same job? - CORRECT ANSWER-The Equal Pay Act
Which of the following laws prohibits discrimination in hiring, dismissal, or promotion on
the basis of race, color, gender, religious beliefs, or national origins? - CORRECT
ANSWER-The Civil Rights Act
What percentage of states has an unemployment compensation law? - CORRECT
ANSWER-100
Which of the following entrepreneurial firms needs to pay special attention to OSHA
guidelines regardless of their size? - CORRECT ANSWER-manufacturing firms
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. - CORRECT
ANSWER-living wage
What does OSHA stand for? - CORRECT ANSWER-Occupational Safety and Health
Administration
Identify an accurate statement about the hybrid compensation system. - CORRECT
ANSWER-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.
Which of the following statements is true of the Civil Rights Act? - CORRECT
ANSWER-It currently applies to all firms with more than 25 employees.
Which of the following statements is true of the Fair Labor Standards Act (FLSA)? -
CORRECT ANSWER-It requires that all nonexempt employees who work over 40 hours
a week should be paid at the rate of time and a half.
Job advertisements written for a new hire should - CORRECT ANSWER-be kept
concise and should communicate the culture of the firm.
Which of the following statements is true of the Americans with Disabilities Act (ADA)? -
CORRECT ANSWER-It provides that each and every business must provide unfettered
access to all differently-abled people.
Founders cannot lend money to their own firm. - CORRECT ANSWER-False
A credit card has a set repayment schedule. - CORRECT ANSWER-False
Debt is a generic term that describes any type of non-equity funding tied to a business. -
CORRECT ANSWER-True
Set
In the context of legal forms of business, identify a true statement about limited liability
partnership (LLP). - CORRECT ANSWER-In a limited liability partnership, limited
partners can work at the firm but not be active in its management.
In the context of legal forms of business, a general partner in a limited liability
partnership - CORRECT ANSWER-has unlimited liability for any debts or judgments
against the firm.
When forming a sole proprietorship or a partnership, the business debts are -
CORRECT ANSWER-the responsibility of the owners.
In a lease, a landowner can enter a business premises for all the following reasons
EXCEPT - CORRECT ANSWER-whenever the landowner wants to.
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. - CORRECT ANSWER-True
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 - CORRECT ANSWER-Signed a contract with each other
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 - CORRECT ANSWER-
Subchapter C Corportation
In the context of legal forms of business, a Subchapter S Corporation - CORRECT
ANSWER-allows the owners to treat the income of the firm as part of their personal
incomes.
A business can obtain liability insurance, which helps protect the business against
lawsuit
judgments. - CORRECT ANSWER-True
,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. - CORRECT ANSWER-True
In a Subchapter C Corporation, it is possible to have a double taxation situation. -
CORRECT ANSWER-True
The insurance coverage obtained by a small business is directly proportional to the
cost.
As the coverage increases, the cost also increases. - CORRECT ANSWER-True
In the context of legal forms of business, which of the following is an area in which sole
proprietorships differ from general partnerships? - CORRECT ANSWER-the possibility
of bringing in new equity partners
In the context of legal forms of business, identify a true statement about sole
proprietorship firms. - CORRECT ANSWER-Laws governing business practices do not
recognize other equity investors, which limits the growth potential of such firms.
All of the following are benefits of a Subchapter C Corporation EXCEPT - CORRECT
ANSWER-fringe benefits being treated as income.
James and Mary own a business. When they pay themselves an advance in salary or a
bonus, it is called a(n) ________. - CORRECT ANSWER-Draw
Workers' compensation insurance rates are regulated by the federal government and
are uniform across the country. - CORRECT ANSWER-False
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. - CORRECT ANSWER-False
The setting of goals for an employee allows an entrepreneur to judge how well the
employee is performing. - CORRECT ANSWER-True
Large firms can absorb bad employees easier than small businesses because they
have organizational slack. - CORRECT ANSWER-True
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. - CORRECT
ANSWER-True
Human resources, as defined in economics, is the ________ and ________ of human
effort directed toward producing goods and services. - CORRECT ANSWER-quantity;
quality
, Which of the following laws states an employer cannot discriminate in pay to men and
women who do the same job? - CORRECT ANSWER-The Equal Pay Act
Which of the following laws prohibits discrimination in hiring, dismissal, or promotion on
the basis of race, color, gender, religious beliefs, or national origins? - CORRECT
ANSWER-The Civil Rights Act
What percentage of states has an unemployment compensation law? - CORRECT
ANSWER-100
Which of the following entrepreneurial firms needs to pay special attention to OSHA
guidelines regardless of their size? - CORRECT ANSWER-manufacturing firms
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. - CORRECT
ANSWER-living wage
What does OSHA stand for? - CORRECT ANSWER-Occupational Safety and Health
Administration
Identify an accurate statement about the hybrid compensation system. - CORRECT
ANSWER-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.
Which of the following statements is true of the Civil Rights Act? - CORRECT
ANSWER-It currently applies to all firms with more than 25 employees.
Which of the following statements is true of the Fair Labor Standards Act (FLSA)? -
CORRECT ANSWER-It requires that all nonexempt employees who work over 40 hours
a week should be paid at the rate of time and a half.
Job advertisements written for a new hire should - CORRECT ANSWER-be kept
concise and should communicate the culture of the firm.
Which of the following statements is true of the Americans with Disabilities Act (ADA)? -
CORRECT ANSWER-It provides that each and every business must provide unfettered
access to all differently-abled people.
Founders cannot lend money to their own firm. - CORRECT ANSWER-False
A credit card has a set repayment schedule. - CORRECT ANSWER-False
Debt is a generic term that describes any type of non-equity funding tied to a business. -
CORRECT ANSWER-True
