ENT 2113 EXAM 2 QUESTIONS WITH
CORRECT ANSWERS
Which of the following statements is true of a performance review in an entrepreneurial
business? - Answer- The formal conversation with a worker who is doing a good job and
appreciating his or her work is a form of compensation.
Which of the following statements is true of the Fair Labor Standards Act (FLSA)? -
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.
Which of the following statements is true of worker's compensation? - Answer- All of the
answers are correct.
Which of the following laws states an employer cannot discriminate in pay to men and
women who do the same job? - Answer- The Equal Pay Act
________ is the quantity and quality of human effort directed toward producing goods
and services. - Answer- Human resource management
Human resource management includes ________ employees. - Answer- All of the
answers are correct.
When a small business owner pays an individual a percentage of sales, this is called a
________. - Answer- commission
Currently under the ________, firms with more than 50 employees are required to offer
their employees insurance. - Answer- Affordable Care Act
Founders cannot lend money to their own firm. - Answer- False
Shrinkage of a firm's inventory can result from either employee or customer theft. -
Answer- True
Job advertisements written for a new hire should - Answer- be kept concise and should
communicate the culture of the firm.
Which of the following statements is true of the Civil Rights Act? - Answer- It currently
applies to all firms with more than 25 employees.
, A profit and loss statement represents your business performance over time. - Answer-
True
In the context of business licenses, a business is required to pay a business license tax
that is determined by the number of employees it has. - Answer- False
Emerging economies are based upon laws. - Answer- False
An advantage of a sole proprietorship is that a business is very easy to form and
dissolve because there is virtually no separation between the founder and the business.
- Answer- True
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. - Answer- True
Boards of advisors are composed of key employees who advise a firm. - Answer- False
Carla and John enter into a partnership and form a business. Under the partnership
agreement, Carla is directly responsible for the management of the firm and its
liabilities. John has a minor financial stake in the firm and works there, but he is not held
responsible for the taxes and debts owed by the firm. In the context of the legal forms of
business, Carla and John have formed a ________, - Answer- Limited Liability
Partnership
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 - Answer- Subchapter C
Corporation
In the context of legal forms of business, a Subchapter S Corporation - Answer- allows
the owners to treat the income of the firm as part of their personal incomes.
In the context of legal forms of business, identify a benefit of a Subchapter S
Corporation over a Subchapter C Corporation. - Answer- A Subchapter S Corporation
has no limitations in the number and type of shareholders unlike a Subchapter C
Corporation.
All of the following are benefits of a Subchapter C Corporation EXCEPT - Answer-
fringe benefits being treated as income.
In the context of legal forms of business, identify an accurate statement about a general
partnership. - Answer- Established partners can bring in new equity partners by
surrendering a portion of their ownership position.
CORRECT ANSWERS
Which of the following statements is true of a performance review in an entrepreneurial
business? - Answer- The formal conversation with a worker who is doing a good job and
appreciating his or her work is a form of compensation.
Which of the following statements is true of the Fair Labor Standards Act (FLSA)? -
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.
Which of the following statements is true of worker's compensation? - Answer- All of the
answers are correct.
Which of the following laws states an employer cannot discriminate in pay to men and
women who do the same job? - Answer- The Equal Pay Act
________ is the quantity and quality of human effort directed toward producing goods
and services. - Answer- Human resource management
Human resource management includes ________ employees. - Answer- All of the
answers are correct.
When a small business owner pays an individual a percentage of sales, this is called a
________. - Answer- commission
Currently under the ________, firms with more than 50 employees are required to offer
their employees insurance. - Answer- Affordable Care Act
Founders cannot lend money to their own firm. - Answer- False
Shrinkage of a firm's inventory can result from either employee or customer theft. -
Answer- True
Job advertisements written for a new hire should - Answer- be kept concise and should
communicate the culture of the firm.
Which of the following statements is true of the Civil Rights Act? - Answer- It currently
applies to all firms with more than 25 employees.
, A profit and loss statement represents your business performance over time. - Answer-
True
In the context of business licenses, a business is required to pay a business license tax
that is determined by the number of employees it has. - Answer- False
Emerging economies are based upon laws. - Answer- False
An advantage of a sole proprietorship is that a business is very easy to form and
dissolve because there is virtually no separation between the founder and the business.
- Answer- True
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. - Answer- True
Boards of advisors are composed of key employees who advise a firm. - Answer- False
Carla and John enter into a partnership and form a business. Under the partnership
agreement, Carla is directly responsible for the management of the firm and its
liabilities. John has a minor financial stake in the firm and works there, but he is not held
responsible for the taxes and debts owed by the firm. In the context of the legal forms of
business, Carla and John have formed a ________, - Answer- Limited Liability
Partnership
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 - Answer- Subchapter C
Corporation
In the context of legal forms of business, a Subchapter S Corporation - Answer- allows
the owners to treat the income of the firm as part of their personal incomes.
In the context of legal forms of business, identify a benefit of a Subchapter S
Corporation over a Subchapter C Corporation. - Answer- A Subchapter S Corporation
has no limitations in the number and type of shareholders unlike a Subchapter C
Corporation.
All of the following are benefits of a Subchapter C Corporation EXCEPT - Answer-
fringe benefits being treated as income.
In the context of legal forms of business, identify an accurate statement about a general
partnership. - Answer- Established partners can bring in new equity partners by
surrendering a portion of their ownership position.
