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Questions
Q:
A business firm's profits may suffer if the firm is not a "good corporate citizen."
Q:
The earnings and losses from a sole proprietorship are reported on ________.
A) the federal income tax filing document for sole proprietorships
B) the sole proprietorship business license that is renewed each year
C) the sole proprietor's personal income tax filing
D) the state income tax filing document for sole proprietorships
Q:
It may be unethical for a company with a product that is outlawed in one country to look elsewhere for a market.
Q:
Why does a sole proprietorship not pay taxes at the business level?
A) It does not have a separate legal existence.
B) It is a small business that is exempted from taxation.
C) It is a non-profit organization.
D) It is generally an institution with no business dealings.
Q:
Some economists criticize the Lorenz curve because itA) includes too many things in measuring income, such as food stamps, housing aid, and other government programs.B) does not account for the effect of age on a familyʹs income.C) measures unreported income earned in the underground economy.D) uses after-tax income when pre-tax income is more appropriate.
Q:
If an action is ethical from an outcome-based perspective, then it cannot be ethical from a duty-based perspective.
Q:
Orlando opened a hot dog stand in Brooklyn, doing business as Orlando's Red Hots. Unfortunately, the venture has not generated a profit. Orlando borrowed $5,000 from the bank to open his business, and the short-term loan is now due. Orlando's friend Bob has suggested partnering with him at the beginning of next year. From which of the following sources can the bank currently recover its $5,000?
A) Orlando's secondary lender
B) Orlando's savings account
C) Orlando's family
D) Bob, Orlando's prospective business partner
Q:
According to utilitarianism, it does not matter how many people suffer a negative effect from an act.
Q:
Jonathan Lopez wants to be his own boss and ventures into retailing fruit in the neighborhood after borrowing some money from his mother. While obtaining a license to carry out business in his city, Jonathan mentions the money he borrowed but forgets to specify what type of business undertaking his store will be. Under which of the following major forms of business is Jonathan's store listed by default?
A) a general partnership
B) a sole proprietorship
C) a limited partnership
D) a limited liability corporation
Q:
Under the principle of rights theory, one person's principles are as "right" as another's.
Q:
Which of the following is true of creating a sole proprietorship?
A) No state government approval is required.
B) A sole proprietorship is subject to double-taxation.
C) No licenses are required to do business within a city or state.
D) Special permission must be obtained to receive sole proprietorship status.
Q:
Ethical standards based on religious teachings tend to be absolute.
Q:
Which of the following is true of a business operating under sole proprietorship?
A) It is not considered a separate legal entity.
B) It cannot be sold when the owner decides to do so.
C) It requires governmental approval when being transferred.
D) It has access to unrestricted capital by means of investments.
Q:
The other name for the National Labor Relations Act of 1935 isA) the Wagner Act. B) the Taft-Hartley Act. C) the Clayton Act. D) the Wheeler-Lea Act.
Q:
According to utilitarianism, an action that affects the majority adversely is morally wrong.
Q:
Which of the following is true of a sole proprietorship?
A) A business operated under sole proprietorship cannot be transferred.
B) Large businesses cannot be operated under sole proprietorship.
C) A business operated under sole proprietorship must be owned by one or more people of the same family.
D) Creditors can recover claims against the business from the sole proprietor's personal assets.
Q:
In ethical terms, a cost-benefit analysis is an assessment of the negative and positive effects of alternative actions on individuals.
Q:
________ are the most common form of business organization in the United States.
A) General partnerships
B) Sole proprietorships
C) Limited liability companies
D) Limited partnerships
Q:
An entrepreneuris a person who forms and operates a business.
Q:
The demand for an input will be more inelastic whenA) the demand for the product being produced is elastic.B) the cost of the input is a relatively large percentage of total production costs.C) the time period being considered is relatively long. D) it is difficult to substitute other inputs for this input.
Q:
Ethical reasoning is the process through which an individual rationalizes whatever action he or she chooses to take.
Q:
Which of the following is a major form of conducting business?
A) an institution
B) a charity
C) a corporation
D) a trust
Q:
Stock buybacks are illegal and serve no legitimate purposes.
Q:
Restricting the bonuses that are paid to executives is unethical.
Q:
Which of the following best describes an entrepreneur?
A) a person who forms and operates a business
B) a person who invests in an existing business
C) a person who lends capital to a new business
D) a person who derives a profit from a new or an existing business
Q:
Some companies have set up confidential systems for employees to "raise red flags" about suspected unethical practices.
Q:
Explain the liabilities of general and limited partners in a limited partnership.
Q:
In a court decision in June 2001, the Federal District Count of Appeals in Washington, D.C. found that Microsoft had violated theA) Clayton Act. B) Robinson-Patman Act. C) Sherman Act. D) Celler-Kefauver Act.
Q:
Corporate ethical policies must be clearly communicated to be effective.
Q:
According to the RULPA, which of the following categories is entitled to priority in the order of distribution of assets of a limited partnership during the winding-up phase?
A) partners with respect to unpaid distributions
B) partners with respect to capital contributions
C) creditors of the limited partnership
D) charitable organizations registered with the secretary of state in the state where the limited partnership was formed
Q:
An ethics program can clarify what a company considers to be unacceptable conduct.
Q:
On the dissolution and the commencement of the winding up of a limited partnership, a(n) ________ must be filed by the limited partnership with the secretary of state of the state in which the limited partnership is organized.
A) termination statement
B) renunciation statement
C) certificate of cancellation
D) annulment
Q:
Managers must apply different standards to themselves than they apply to their employees.
Q:
________ establishes rules for the dissolution of a limited partnership.
A) The RULPA
B) The UPA
C) The UCC
D) Federal statutory law
Q:
Which of the following is an accurate statement regarding dissolution of a partnership?
A) A general partnership may be dissolved, while a limited partnership may not.
B) Just like a general partnership, a limited partnership may be dissolved and its affairs wound up.
C) Dissolution of a general partnership is governed by federal law, while dissolution of a limited partnership is governed by state law.
D) Dissolution of a limited partnership is governed by federal law, while dissolution of a general partnership is governed by state law.
Q:
A local utility is an example ofA) perfect competition. B) oligopoly.C) monopoly. D) monopolistic competition.
Q:
Setting realistic workplace goals can reduce the probability that employÂees will act unethically.
Q:
Laura is an investor and a limited partner in a limited partnership. Two years after she becomes a limited partner, Laura believes that the general partners are not doing a very good job of managing the affairs of the limited partnership, and she accordingly participates in its management. While she was managing the business, a bank loans $1 million to the limited partnership, believing that Laura is a general partner. If the limited partnership defaults on the $1 million loan, which of the following will be true?
A) Laura will not be held personally liable, as she is technically a limited partner.
B) Laura will be treated as a general partner and will be held personally liable for the loan.
C) Laura will be held liable for her proportionate share of the $1 million, depending on the total number of general and limited partners in the limited partnership.
D) Laura's liability will be restricted to the value of her capital investment in the limited partnership.
Q:
Ethical codes of conduct can set the ethiÂcal tone of a firm.
Q:
Corporations can be perceived as owing ethical duties to groups other than their shareholders.
Q:
Under partnership law, ________ have the right to manage the affairs of the limited partnership.
A) investors
B) sole proprietors
C) limited partners
D) general partners
Q:
Acting in good faith gives a business firm a better chance of defending its actions in court.
Q:
According to the Revised Uniform Limited Partnership Act (RULPA), what liability does a corporation have if it is a general partner in a limited partnership?
A) unlimited personal liability
B) liability restricted to the extent of its capital contribution
C) liability of termination as partner
D) unlimited organizational capital liability
Q:
Which of the following types of liability does a limited partner of a limited partnership have for the debts and obligations of the limited partnerships?
A) unlimited personal liability
B) liability restricted to the extent of his or her capital contribution
C) liability of termination as partner
D) unlimited organizational capital liability
Q:
A concentration ratio measuresA) the average size of the firms in the industry.B) the sales of the three largest firms in the industry minus the costs of these three largest firms in the industry.C) the share of industry sales accounted for by the largest firms in the industry.D) the excess capacity found in a particular oligopolistic industry.
Q:
Business ethics applies only to the owners, operators, and employees of corporations.
Q:
Which of the following types of liability does a general partner of a limited partnership have for the debts and obligations of the limited partnership?
A) unlimited personal liability
B) limited capital liability
C) liability of termination as partner
D) limited personal liability
Q:
Business ethics is consistent only with short-run profit maximization.
Q:
Explain the events that cause the dissolution of a limited partnership under the RULPA.
Q:
The legality of an action is always clear.
Q:
A(n) ________ is a document that is filed with the secretary of state upon the dissolution of a limited partnership.
Q:
Simply obeying the law fulfills all ethical obligations.
Q:
A(n) ________ is a document that sets forth the rights and duties of general and limited partners.
Q:
The long-run equilibrium of a monopolistically competitive firm is characterized by
A) a tangency of the average total cost curve with the firmʹs demand curve.
B) price equal to marginal cost.
C) production at the minimum point of the firmʹs average total cost curve.
D) production at the minimum point of the firmʹs average variable cost curve.
Q:
Ethics is the branch of philosophy that focuses on what constitutes right and wrong behavior.
Q:
________ occurs when (1) a certificate of limited partnership is not properly filed, (2) there are errors in a certificate that is filed, or (3) some other statutory requirement for the creation of a limited partnership is not met.
Q:
Quixotic Corporation decides to respond to what it sees as a moral obligation to corÂrect for past gender discrimiÂnation by adjusting pay differences among its male and female employees. Does this raise an ethical conflict among those employees? BeÂtween the employer and the emÂployees? Between the corporation and its shareholders? If so, how should it be resolved?
Q:
A(n) ________ is a document that two or more persons must execute and sign that makes a limited partnership legal and binding.
Q:
Matchless Clothing Company buys clothing assembled by Nantra, Ltd., a forÂeign firm that employs young children for long hours and low pay. Nantra's naÂtion does not enforce its child labor laws. Human International Politics (HIP), a political activist organization, discovers Matchless's connection to Nantra and plans to reveal this information. Before HIP does so, however, Matchless publicly releases the informaÂtion itself and announces that it is severing its relationship with Nantra. Matchless publicizes its action in its advertising, and the company's sales and profits increase, apparently as a direct result. Has Matchless acted unethically in any way? From an ethical perspective, is Matchless's conduct in this situation more important than whatever its moÂtive might be?
Q:
Limited partnerships are also known as ________.
Q:
In the above figure, the break-even output and price isA) $9 and 14. B) $13 and 14. C) $11 and 16. D) $10 and 17.
Q:
Recreation & Sports Equipment Corporation sells a product that is capable of seriously injuring consumers who misuse it in a foreseeable way. Does the firm owe an ethical duty to take this product off the market? What conÂflicts might arise if the firm stops selling this product?
Q:
The ________ Act is a uniform act that regulates the formation, operation, and termination of limited partnerships.
Q:
Good Health & Life Insurance Corporation suffers a security breach in its computer network. Before the company discovers the breach, the perpetrator obtains corporate financial records and other confidential data, including marketing plans. Is this a crime? If so, what are its elements? What steps might Good Health & Life take to ensure that going forward only authorized users access the data on its computers? Whose effortsthose of the federal government or Good Health & Lifeare most important in securing the company's computer infrastructure and why?
Q:
A limited partner may engage in voting on the dissolution of the limited partnership without losing his or her limited liability.
Q:
Ron is an accountant in Standard Business Company's accounting deÂpartment. Ron's daughter's college tuition is due within a week, or she cannot continue taking classes. To meet the due date, Ron transfers funds from Standard to a fictitious bank account, planning to repay the firm within one month. The transfer is discovered before the firm is reÂpaid, and Ron is arrested. What crime, or crimes, if any, has Ron committed?
Q:
If a limited partner personally guarantees a loan made to the limited partnership by a creditor, he or she is not personally responsible for the loan if the partnership defaults, since limited partners are liable for the debts of the limited partnership only up to their capital contributions.
Q:
Suppose the perfectly competitive equilibrium occurs such that too many units of the good are produced. This is an example ofA) marginal cost pricing. B) market failure.C) firms have not yet exited the industry.D) greedy business people behaving in an inappropriate manner.
Q:
Kino sees a DVD player on the porch of Lulu's house, takes the player to his home, and tells everyone he owns it. Maya, holding a knife, forces Nick to give her his boom box, and runs away with it. Ollie breaks into Pam's apartment, takes a computer, and leaves. Quico sells Randi an expensive wristwatch for a fraction of its value, admitting that the watch is stolen property but claiming that he is not the thief. Which of these acts are crimes, and what are the differences among them?
Q:
Limited partners have unlimited personal liability for the debts and obligations of the limited partnership.
Q:
Sophie is the president of Tasty Foods Corporation, a wholesale grocery company. An inspection by Uri, a government agent, uncovers unsaniÂtary conditions caused by Vic, a Tasty Foods employee, in the company's wareÂhouse. Will, a Tasty Foods vice president, assures Uri that the situation will be corrected, but a later inspection reveals no such corrections. Sophie knows nothing about any of this. Can Tasty Foods be convicted of a crime in these circumstances? Can Sophie be held personally liable?
Q:
Defective formation of a limited partnership occurs when a certificate of limited partnership is not properly filed.
Q:
Rashad accesses Quant Company's computer system without authority to obtain protected financial data. Under federal law, this is
a. a felony if it is committed for a commercial purpose.
b. a felony if Quant brings a civil suit against Rashad.
c. not a crime.
d. a crime, but not a felony.
Q:
The creation of a limited partnership is formal and requires public disclosure.
Q:
Patricia commits an act via e-mail against Othman Finance Company, a business in California, where the act is a cyber crime. Patricia resides in New York where the act is not a crime. Prosecution of Patricia in California involves questions of
a. jurisdiction.
b. "maximum contacts."
c. the immunity of Internet service providers.
d. encryption.
Q:
It is not necessary for a limited partnership to have general partners if the limited partners share management responsibility among themselves.
Q:
Suppose a perfectly competitive firm faces the following cost and revenue conditions: ATC = $25.00; AVC = $20.00; MC = $25.00; MR = $28.00. The firm shouldA) decrease output. B) increase output.C) shut down.D) continue to produce its current output.
Q:
General partners are not personally liable for partnership debts beyond their capital contributions.
Q:
Minka uses her computer to secretly install software on hundreds of personal computers without their owners' knowledge.
Minka's software is harmful to the computers on which she installed it. This program is
a. malware.
b. badware.
c. harmware.
d. infectware.
Q:
Minka uses her computer to secretly install software on hundreds of personal computers without their owners' knowledge.
Minka's secretly installed software allows her to forward transmissions from her unauthorized network to even more systems. This network is
a. a hacker.
b. a bot.
c. a botnet.
d. a worm.