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Q:
(p. 611-612) Explain some of the contracting issues involved in business-to-business (B2B) transactions.
Q:
Differentiate between litigation, arbitration, and mediation.
Q:
What are the three characteristics that a person must display in order to be recognized as an independent contractor by the IRS?
Q:
Elucidate on the steps that can be employed to structure a negotiation so as to achieve a winning solution for both parties.
Q:
Differentiate between single taxation, double taxation, pass through (taxation), and check the box taxation.
Q:
Explain the major factors at play when deciding what form the business organization must take.
Q:
Describe the advantages and disadvantages of a sole proprietorship.
Q:
Discuss the advantages and disadvantages of corporations as a business form.
Q:
What are the four ways in which attorneys typically charge their clients?
Q:
Which of the following statements is true regarding a trademark?
A. A trademark can sometimes also function as a service mark.
B. A trademark once granted lasts for 25 years.
C. A trademark can only be renewed every 5 years.
D. A trademark is not an exclusive right to its creator.
Q:
Copyrights for new works last for: A. the creator's life.B. the creator's life plus 70 years.C. 120 years after creation.D. 25 years after its first publication.
Q:
A _____ is a type of intellectual property, not created by the government but is information known to certain people in a company that makes that company more competitive.A. copyrightB. trade secretC. patentD. trademark
Q:
Someone who uses intellectual property without the permission of the owner is referred to as a(n):
A. infringer.
B. arbitrator.
C. defaulter.
D. retainer.
Q:
A 20-year patent covering a process, machine, article of manufacture, composition of matter, or any new or useful improvement of an existing one is known as _____.
A. plant patent
B. utility patent
C. design patent
D. non-provisional patent
Q:
The Nike "swoosh" is an example of a _____.A. trade secretB. copyrightC. trademarkD. patent
Q:
Exclusive rights given to the creator of a literary or artistic work to make use of that work is called a:A. trade secret.B. copyright.C. trademark.D. patent.
Q:
Identify and discuss the strategies owners can use to reduce and control business risk through sharing.
Q:
What is credit insurance?
Q:
What are fidelity bonds?
Q:
What can a small business owners do to ensure that an internal audit effectively meets his or her goals?
Q:
How can a small business owner manage risk from violation of tax regulations?
Q:
How can a small business owner manage risk to intangible property?
Q:
Briefly outline a strategy that a firm could adopt in order to manage risk.
Q:
Elaborate on the types of risk related to events involving personnel.
Q:
What are the general types of events that cause business risk?
Q:
Define business risk. List the most commonly identified sources of business risk.
Q:
Which of the following statements is true of joint ventures?
A. It requires both partners involved to allocate revenues and expenses equally between them.
B. It is not considered a separate entity from any of the partners that own it.
C. It does not require its partners to lose more than what each partner has invested in it.
D. It is never taxed as a partnership.
Q:
Partnerships through which two or more businesses combine to undertake a specific economic activity are called _____.
A. corporations
B. sole proprietorships
C. joint ventures
D. S-corporations
Q:
The most highly desired form of insurance for most employees is _____.
A. life insurance
B. medical insurance
C. credit insurance
D. disability insurance
Q:
The most common type of disability coverage is _____ which provides funds to the business to purchase the ownership position of a disabled partner.
A. life insurance
B. medical insurance
C. credit insurance
D. buyout insurance
Q:
Which of the following is true regarding buyout insurance?
A. It is usually provided as a stand-alone policy.
B. It is only applicable for large businesses.
C. It is a type of disability insurance.
D. It is the most highly desired form of insurance for most employees.
Q:
_____ is a form of insurance that does not accumulate any value over the contract period.
A. Buyout insurance
B. Life insurance
C. Term insurance
D. Period insurance
Q:
_____ is the most common kind of coverage on key persons of a business.
A. Life insurance
B. Health insurance
C. Dental insurance
D. Credit insurance
Q:
Which of the following statements is true regarding credit insurance?
A. It does not cover losses from credit customers not paying their bills.
B. It refers to credit provided by merchants to their customers on purchased products.
C. It requires the merchant to provide co-insurance in the amount of 10 to 20 percent of the credit loss.
D. It is only available to retailers.
Q:
_____ repay employers for losses caused by dishonest or negligent employees.
A. Credit insurance
B. Business interruption insurance
C. Surety bonds
D. Fidelity bonds
Q:
A _____ is an agreement with an insurance or bonding company that will pay a specified amount in the event that the entity bonded fails to comply with specified contractual requirements.
A. business interruption insurance
B. credit insurance
C. surety bond
D. fidelity bond
Q:
Fidelity bonds help to:
A. protect against losses from crimes committed against the business.
B. cover losses incurred due to governmental audits.
C. cover losses incurred by the employer due to employee embezzlement.
D. cover abnormal losses from credit customers not paying their bills.
Q:
_____ insurance is normally included in insurance on physical assets.
A. Theft
B. Credit
C. Intellectual property
D. Safety
Q:
The computers at a graphics design company were stolen recently. Which of the following insurance that the company holds will repay the losses incurred?
A. Product liability insurance
B. Crime insurance
C. Surety bonds
D. Credit insurance
Q:
_____ provides funds to pay the ordinary operating expenses of a business should it be forced to close temporarily because of an insured event.
A. Crime insurance
B. Theft insurance
C. Business interruption insurance
D. Product liability insurance
Q:
Which of the following is true of co-insurance?
A. It is an amount of loss that is specifically excluded by the insurance contract.
B. It requires that an owner carry insurance equal to a stated minimum percentage of the market value of their property.
C. It results in the decrease of the amount of premium that the insurance company collects from businesses.
D. It is the amount of an asset for which a company will write an insurance policy.
Q:
______ is a contract requirement that works to prevent property owners from deliberately underinsuring.
A. Benchmarking
B. Co-insurance
C. Adverse possession
D. Separation of duty
Q:
Crux Inc. and Synapse Inc. are two competing businesses in the same city. They use the services of the same insurance company and have taken the same policy. Crux has a higher deductible than Synapse for the policy. Which of the following statements would be true in this case?
A. Both companies are not paying any premium.
B. Synapse pays a higher premium than Crux.
C. Both the companies pay the same premium.
D. Crux pays a higher premium than Synapse.
Q:
A(n) _____ is an amount of loss that is specifically excluded by the insurance contract.
A. insurable value
B. premium
C. deductible
D. coverage
Q:
Which of the following is true of insuring the property of a business?
A. All the value of a property has insurable value.
B. The value of land is the most commonly insured property.
C. The value of the historical significance of a building often cannot be insured.
D. The lower the deductible, the lower the policy premium payments will be.
Q:
Insurable value is defined as:
A. the amount of an asset for which a company will write an insurance policy.
B. the entire value of the property of a business.
C. the value of the historical significance of a building.
D. the amount of fees that a business has to pay to an insurance company.
Q:
_____ are used to pay losses that are not covered by other liability insurance.
A. Unemployment insurance
B. Worker's compensation insurance
C. General liability insurance
D. Product liability insurance
Q:
Which of the following is an example of a special type of liability insurance that covers losses from harm caused during the performance of a profession?
A. Unemployment insurance
B. Errors and omissions insurance
C. Disability insurance
D. Worker's compensation insurance
Q:
Liability insurance protects a business against:
A. disgruntled former employees filing suites.
B. current employees setting up businesses which turn into competition for the organization.
C. losses incurred due to the death of a key employee.
D. claims from harm caused by inadvertent consequences of actions of the business or its employees.
Q:
Which of the following is true of insurance coverages?
A. Vehicle liability insurance is mandated by the legislatures of all the states and territories of the United States.
B. Workers' compensation insurance is mandatory in all the states and territories of the United States.
C. Industries and businesses that have frequent seasonal layoffs pay lower amounts of unemployment premiums than do those that have stable employment.
D. A fixed amount of unemployment insurance is collected from all industries.
Q:
The most common mandatory insurance coverage includes:
A. liability for damages caused by vehicle accidents.
B. liability for loss of sales during recession.
C. travel cancellation liability.
D. damage at workplace caused by disgruntled employees.
Q:
_____ are contractual provisions of insurance policies that specify what risks the insurance company is assuming.
A. Internal controls
B. Coverages
C. Separation of duties
D. Premiums
Q:
Which of the following is a risk specific to dentists and physicians?
A. Business interruption
B. Malpractice claims
C. Errors and omissions claims
D. Product liability claims
Q:
The first task to be completed before a comprehensive insurance program for a business can be developed is:
A. to develop a financial plan.
B. to assess internal strengths.
C. to identify risks.
D. to provide a business succession plan.
Q:
Which of the following is true of insurance?
A. All risks are insurable.
B. An insurance company only charges a fee for large businesses with over 100 employees.
C. Insurance companies make profits by requiring a relatively large fee compared to the amount of loss that is possible.
D. The insurance company makes a profit by collecting premiums from many businesses for the same set of risks.
Q:
A contract between two or more parties in which one party agrees, for a fee, to assume the risk of another is called _____.
A. coverage
B. insurance
C. separation of duties
D. bailment
Q:
Which of the following is true of using internal audits to manage risk?
A. Every small business owners conduct internal audits on their own.
B. Internal audits have a fixed structure decided by the government and all employers are required to comply.
C. The owner should provide sufficient authority to the auditor to ensure that he or she can accomplish the goals of the audit.
D. The owner should accept that the auditor has final authority when it comes to approving the audit plan.
Q:
A(n) _____ is a valuable process that can greatly help an employer with the issues of keeping risks at acceptable levels. It is strictly a management tool which is not provided to outsiders; it can be structured and conducted in any systematic manner the owner finds acceptable.
A. adverse possession
B. internal audit
C. external audit
D. internal control
Q:
Which of the following statements is true regarding the OSHA Act?
A. It covers employees in mining, transportation, and state and local governments.
B. OSHA offers consultation services to employers for a fee.
C. It requires businesses to report any accidents that result in a fatality or in the hospitalization of three or more employees within 24 hours.
D. OSHA-defined "low-hazard" industries are exempt from the record keeping requirements of the regulations.
Q:
Julia recently set up a factory that manufactures shoes. To ensure that her business complies with the basic OSHA regulations, which of the following steps should she take?
A. She must provide medical examinations for all her employees.
B. She must set up a system that reports any workplace accident within 72 hours.
C. She must request the Technical Assistance Program to conduct an inspection of her factory.
D. She must make her employees aware of all the EEOC rules that pertain to her business.
Q:
Which of the following is true of the ADA Technical Assistance Program?
A. It provides specific advice to a business concerning how to comply with the pertinent requirements.
B. It provides inspection of the workplace to determine compliance.
C. It provides affirmation services to all businesses.
D. It provides its services only to large businesses that have more than 500 employees.
Q:
Which of the following helps limit risk from violation of tax regulations?
A. The owner should make payments to creditors by borrowing from tax money.
B. The owner should understate revenues and overstate deductible expenses.
C. The owner should take cash from the businesses before it is recorded as revenue.
D. The owner should hire an accountant and a lawyer who are expert in tax issues.
Q:
Which of the following should be undertaken in order to reduce a business's exposure to the risk of violating tax regulations?
A. Understate revenues and overstate deductible expenses
B. Reconcile the cash register tape to the cash register contents every day
C. Take cash from the businesses before it is recorded as revenue
D. Borrow from tax money in order to make payments to creditors
Q:
_____ are laws and regulations that specify the requirements of taxation.
A. Tax charts
B. Tax slabs
C. Tax codes
D. Tax exempts
Q:
Which of the following should be included in an employee contract for a key employee?
A. Offer rewards for providing adequate termination notice
B. Specify that the employee must work at the organization for a minimum of two years
C. Detail the consequences of insubordination within the workplace
D. Encourage employees to poach clients from competitors
Q:
Axion Inc. is a small business started by Robert. As the business grew, he decided to implement new company policies that would ensure that his employees are not encouraged to set up competition against Axion. Which of the following techniques should he adopt to achieve this?
A. Lay off employees who seem most likely to go into competition with Axion
B. Groom other candidates to replace the employees currently working at Axion
C. Cross train the employees to neutralize job specialization
D. Negotiate contracts with key employees that limit their freedom to go into competition
Q:
The most common form of employee collusion is:
A. selling trade secrets to competition.
B. theft of cash and inventory.
C. lying about work hours.
D. lying about absences.
Q:
Jacob often manipulates charges on his travel expenses to indicate higher amounts when he travels for the company he works for. Trent, the accounts manager, accepts fake bills and assists Jacob in deceiving the company. They split the profits made this way. This is an example of theft by:
A. adverse possession.
B. employee collusion.
C. employee nonfeasance.
D. vendor fraud.
Q:
According to the Wells Report submitted by the Association of Certified Fraud Examiners, what is the number one method for fraud detection?
A. Internal audits
B. Internal controls
C. Tips
D. External audits
Q:
_____ refers to a set of rules and procedures that work to limit the opportunity for employee theft or malfeasance.
A. Internal audit
B. Internal control
C. Malfeasance in office
D. Insider trading
Q:
_____ is the source of the largest amount of employee theft.
A. Employee collusion
B. Employee intoxication
C. Adverse possession
D. Employee nonfeasance
Q:
A type of internal control that separates the physical control of an asset from the person accounting for that asset is called _____.
A. asset liability
B. adverse possession
C. separation of duties
D. separation of liabilities
Q:
Martin, an employee at a boutique store, is required to handle store displays and also ensure that all the sales records tally at the end of each business day. However, he committed fraud by recording fake sales and then keeping the products to himself. Which of the following managerial concepts would have helped the store avoid this deception?
A. Adverse possession
B. Separation of duties
C. Accession
D. Rule against perpetuities
Q:
______ occurs when the owner of real property does not enforce property rights and allows a nonowner to use the property as if it were his or her own.
A. Abandonment
B. Accession
C. Property liability
D. Adverse possession
Q:
Which of the following represents the problem with legal protection methods for intellectual property?
A. There is no governmental agency that will assist small business owners in maintaining their legal rights.
B. The cost of legal protection for intellectual property is so high that it is practically useless for a small business owner.
C. Legal protection methods for intellectual property are primarily "reserved" for large businesses.
D. Legal protection methods can only be offered for tangible property and not intellectual property.
E. Holding legal rights to intellectual property provides the owner solely with grounds to pursue lawsuits against infringement.
Q:
Which of the following practices should be adopted to ensure that a computer is kept secure?
A. Writing down all your passwords where it's easily accessible
B. Using the same password for long durations
C. Setting a PC to lock itself up after a few minutes of inactivity
D. Opening downloads from unexpected sources
Q:
_____ are programs designed to report on a user's keystrokes or data, or give remote control of a PC to others.
A. Hubs
B. Firewalls
C. Viruses
D. Spyware
Q:
_____ are programs or pieces of equipment which serve as a barrier between a PC and the Internet.
A. Ethernets
B. Firewalls
C. Hubs
D. Spywares
Q:
Which of the following helps manage risks to physical assets of a business?
A. Employees should be allowed easy access of physical assets to assist them with their work.
B. Inspections should be deemed necessary only when an item is reported missing.
C. A manager's signature must be required to confirm that an item has been returned to its proper storage.
D. Only clerical-level employees need to sign for removing items from storage.
Q:
Ted's business, situated near the Missouri River, was partially destroyed when the river overflowed after a deluge. Which of the following measures would've helped Ted minimize the effect of the flood from interrupting the operations of his business?
A. Creating provisions for subcontracting work
B. Developing an informal code of ethics for all employees to follow
C. Ensuring that all employees have easy access to all assets
D. Securing valuable assets from low-level employees