A+ Business Studies Exam Prep – Practice Questions and Answers.

A+ Business Studies Exam Prep – Practice Questions and Answers. 1. are conduct approved and enforced by the government of and over a certain territory. a. Laws 2. Law is a body of rules defined by . d. legal force and effect, prescribed, recognized, and enforced by a controlling authority. * 3. Laws are intended to: c. protect the fundamental rights and liberties of citizens 4. What are four main purposes for law? c. establishing standards, maintaining order, resolving disputes, and protecting liberties and rights 5. Most roads in the United States have a stated speed limit. This is an example of what purpose of law? d. maintaining order 6. The United States Constitution sets limits on the branches of government. This is an example of what purpose of law? b. protecting individual rights and liberties * 7. The body of law resulting from laws passed by legislature is d. Statutory law 8. Laws that are based on an act of Congress are . a. statutory law 9. Common law is based on . c. precedent 10. Precedent means that future cases are decided by similar previous cases unless . b. new precedent is established 11. A tort . 12. Tort law is different from criminal law in that . a. tort lawsuits have a lower burden of proof. 13. Negligence may result in: b. emotional, economic, or reputational damage. 14. Strict liability . d. acknowledges that some products are inherently dangerous. 15. Product liability claims are based on the following: a. manufacturing defects, design defects, and/or failure-to-warn defects 16. Examples of compensatory damages include . c. payment for mental anguish. 17. Intellectual property law governs the protection of . a. ideas 18. Intellectual property is intangible. How would you best describe its value to businesses? b. It can be a company's most significant asset. 19. Patents, trademarks and are three main ways to protect intellectual property. d. copyrights 20. awards the inventor with the exclusive right to make and sell an invention for a period of time. Patent 21. Nike uses a "swoosh" on their apparel. This is an example of a: a. trademark 22. A is a guarantee that a product meets certain standards of performance. b. warranty 23. Sylvania claims that their light bulbs "last 10 times longer and use 75% less energy than standard bulbs." This is an example of a(n) . c. express warranty 24. Under an/the , a product must do what its supposed to do. b. implied warranty of merchantability 25. Sylvania provides light bulbs that, one might assume, are safe to use and will last for a reasonable period of time. This is an example of a(n): a. implied warranty 26. Dell's Rugged Extreme laptop is marketed for use in rugged conditions, including extreme heat and moisture. This is an example of an . d. implied warranty of fitness 27. The Uniform Commercial Code provides that the warranty of merchantability and warranty of fitness are . b. implied 28. What is a contract? b. an agreement that is enforceable by law 29. The in a contract describe the details of what the parties commit to do or not do. d. covenants 30. is a legally enforceable agreement. a. A contract 31. is the failure of a party to fulfill their obligations under the contract. d. breach of contract 32. A breach of contract is when a party in a contract fails to . c. fulfill their obligations 33. An enforceable contract creates legal obligations, and failure to comply with them creates a . d. breach of contract 34. When both parties are relieved of their obligations under the contract, the courts may issue a . b. discharge of duties 35. One of the basic objectives of antitrust laws is: d. to create and maintain a competitive market 36. The primary goal of antitrust legislation is: b. to protect businesses and consumers against unfair business practices that limit competition and control prices 37. The Federal Trade Commission Act bans . d. unfair methods of competition 38. The bans unfair or deceptive acts or practices. b. Federal Trade Commission Act 39. Only the brings cases under the Federal Trade Commission Act. a. Federal Trade Commission 40. Companies planning large mergers or acquisitions must notify the government in advance to abide by . d. The Clayton Act * 41. are a set of standards that govern the conduct of a person, especially a member of a profession. A good example is the medical profession's oath to "do no harm." b. Ethics 42. Google's statement of "don't do evil" is an example of . 43. While beliefs are held by individuals, they can also be reflected in the values, practices and policies of decision makers in organizations. Ethical 44. follow(s) the dictates of laws, which are written down and interpreted by the courts. a. Legal behavior 45. As society evolves, what constitutes legal behavior . d. changes 46. Determining the legality of a course of action will include a review of: d. Statutes, regulations, and codes 47. regulate(s) actions and behaviors that lie beyond control from government and applies to all aspects of business conduct relevant to an entire organization and individual actions. b. Business ethics 48. Often the ethical tone of a business is set by: d. organizational leadership. 49. A tends to support a company's obligation to its' stakeholders, rather than regulating a profession. c. code of ethics 50. Expulsion from membership in a professional organization could occur due to failure to comply with its' . a. Code of practice * 51. When executives set aggressive goals, it becomes more important to: b. openly address issues with employees. 52. In the National Business Ethics Survey, of the employees identified pressure to meet unrealistic objectives as the most likely cause for them to compromise their ethical standards. b. the majority * 53. When executives bend the rules or turn a blind eye to bad behavior, the policies value and executives the respect of employees. c. lose, lose 54. To assist you in distinguishing the difference between a gift and a bribe you should: b. refer to company policy regarding the acceptance of gifts. 55. A framework that helps establish guidelines for keeping business gifting above board includes consideration of: d. Context, content, culture 56. Bribery, conflict of interest, honesty and integrity, whistle-blowing are: a. Common business ethical challenges 57. Kickback is a form of bribery distinguished on the basis of: a. A negotiated agreement among both the giver and receiver. 58. A healthcare service company delivering in-home treatment to the elderly receives referrals from a Medicare authorized provider for a fee. This activity becomes an illegal kickback scheme when: d. the provider makes unnecessary treatment referrals and gets paid for them by Medicare 59. Golf outings, meals, entertainment, and vehicles have been used in lieu of cash to pay purchasing agents in exchange for business deals. This type of payment is known as: b. Bribery * 60. Whistleblower laws in the United States are designed to protect: a. Employees 61. A company wishing to reinforce its commitment to ethical behavior could institute: b. A Whistleblower program 62. The CEO of Wells Fargo resigned in October 2016 due to the scandal surrounding the bank's: d. Practice of forcing employees to open new customer accounts without the customer's permission. 63. Corporate Social Responsibility strategies encourage: c. a positive impact on the environment and stakeholders. * 64. Consumers wishing to encourage corporate social and environmental responsibility can: a. Vote with their wallet 65. Stock prices may be impacted by a company's social responsibility performance, when: a. Poor performance drives stock prices down. 66. Examples of approaches to Corporate Social Responsibility include: b. Corporate Philanthropy, Cause-related Marketing, Sustainability 67. Companies that use the pink ribbon symbol for Breast Cancer awareness on their product packaging are practicing: d. Cause-related marketing 68. Facts supporting the importance and nature of corporate social responsibility include: b. Most large corporations spend money on lobbying. 69. In spite of the controversial nature of Corporate Social Responsibility corporations are adopting programs because: a. Profit related benefits, recruiting and keeping the best employees, risk management. 70. You are thinking about starting your own business. What are the most important factors you should consider when thinking about your form of business ownership? d. Cost of start up, taxation and risk tolerance. 71. What are some important factors to consider when choosing an organizational type? c. Control versus responsibility, and risk tolerance. 72. Cost of start up, control nsibility, profits, taxation, entrepreneurial ability, risk tolerance, financing and continuity or transferability are each: a. Factors to consider when choosing an organizational type. 73. What is the most important question a business owner needs to ask themselves if they are considering their business continuity or transferability in the future? b. How can I set up my business to either continue on without me or be sold? 74. In a sole proprietorship, the owner of the business: a. enjoys complete control over all aspects of the business. * 75. A is owned by a single individual who is responsible for all decisions and liabilities. d. sole proprietorship 76. A(n) is an unincorporated business owned and run by one individual in which there is no distinction between the business and the owner. b. sole proprietorship 77. If an owner of a business were to die, which of the following entities would cease to exist (which type of business would "die" too)? a. a sole proprietorship 78. The most common form of business ownership in the U.S. is a: d. sole proprietorship 79. A is owned and managed by a group of individuals who share in decision-making and risk. b. partnership 80. A partnership is: b. a single business in which two or more people share ownership. 81. In a limited partnership: d. a general partner runs the business. 82. A general partnership: a. assumes profit, liability and management duties are divided equally among partners. 83. In an LLP: c. One partner IS NOT responsible or liable for another partner's misconduct or negligence. 84. Partnerships have several advantages over sole proprietorships including: d. the partners bring diverse skills and perspectives. 85. The disadvantages of partnerships include: a. the need to share decision making across the partners. 86. The main thing that makes S Corporations different from C Corporations is: b. That the business is not taxed itself. Only the shareholders are taxed. 87. Advantages of an S Corporation include: d. Tax savings, business expense tax credits and the business has an independent life from its shareholders. 88. Which of the following entities can pursue a broader mission that may sometimes be at odds with maximizing profits for shareholders: c. B corporation. 89. A seeks to provide a return to shareholders while pursuing other goals that benefit community or society. d. B corporation 90. Which of the following is a legal entity completely separate from the entities who own it? a. corporation * 91. Corporations whose stock can be sold to the general public are, by definition: d. public corporations * 92. The disadvantages to starting and running a corporation include: b. double taxation 93. Which of the following entities are subject to limited liability? a. corporations 94. Which of the following entities are subject to double taxation? b. corporations franchise c. provides a proven product, business model and brand to the franchisee. * 96. Examples of franchises include: b. Subway restaurants. 97. Benefits of being a franchisee include: a. access to a template for the business. 98. Disadvantages for a franchisee include: b. the high cost of start-up. 99. A franchisee is generally expected to pay: a. royalty fees for support from the franchiser. 100. The typical fee structure for a franchise including initial franchise fees and royalties, is an example of: a. an advantage for the franchisor. 101. Once a franchise is established with multiple locations, the company may be able to take advantage of economies of scale with suppliers, advertisers and vendors. This is an example of: b. an advantage for the franchisor. * 102. When two companies combine to form a new company it is called a(n): merger 103. usually creates one larger company and one of the original two companies ceases to exist. a. A merger 104. When one company purchases and absorbs another company it is called a(n): c. acquisition. 105. In 2014 Microsoft purchased the popular game Minecraft for $2.5B. This is an example of a(n): a. acquisition. 106. In 2016, Microsoft announced that it would buy LinkedIn for $26.2 billion, in an all cash deal, making it the 6th largest deal if its kind on record. This is an example of: c. an acquisition 107. Why would a company undertake a horizontal merger or acquisition? b. To take advantage of synergies and potential market share gains. 108. Why would a company choose to engage in a vertical a. To increase synergies by merging firms that would be more efficient operating as merger or acquisition? one. 109. You are an entrepreneur in the process of purchasing a small business. You want your investment to be safe, so you need to select a business that can be classified as a small business so as to qualify for SBA financing and government contracts. Which of the following would qualify? d. A For-Profit commercial bakery with 475 employees. 110. A business classified as a Small Business is based on the "size standard" which: b. is based on either number of employees or annual revenue based on the industry. 111. A business must also meet the following criteria in order to be eligible for SBA and government contracting programs in addition to meeting the relevant numerical size standard EXCEPT: b. be a public company. 112. 99% of all U.S. business is made up of: a. Small business. 113. The crucial role small business plays in the U.S. economy is demonstrated by the fact that small business is responsible for half of the Gross Domestic Product (GDP) and roughly half of: c. all U.S. employees in the workforce. 114. Small business provides THIS "multiplier" benefit to their local community: *d. More of the dollars spent at a locally-owned small business stay in the community. 115. The term "entrepreneurial DNA" means: b. The characteristics and traits of an entrepreneur. 116. The author states that this trait is missing from the Merriam Webster definition of an entrepreneur "one who organizes, manages, and assumes the risks of a business or enterprise": initiative * 117. Entrepreneurs share the following personality traits EXCEPT: c. Team player. 119. Creativity, vision, and are the elements without which there is not entrepreneurial venture according to the author. d. an ability to identify opportunities. 120. At the end of this section, the author provides links to self-assessments to help determine if an individual has what it takes to be an entrepreneur. He also refers to the "Miles Davis" test. Considering these, and the psychological and personal toll that entrepreneurs endure, would lead you to conclude that: a. entrepreneurs are born, not made. 118. According to the Harvard Business Review, the following are the 5 common traits of the successful entrepreneur EXCEPT: d. Attention to detail. 121. Entrepreneurs are grouped into these 4 categories by Abraham's BOSI framework: b. Builder, Opportunist, Specialist, and Innovator * 122. Attracting talent, investors, and is typical of Builders. d. customers. 123. The major shortcoming of the Specialist as an entrepreneur is: b. demand-generation. * 124. Becoming an entrepreneur is attractive to many because it is not just a job, but a: d. lifestyle. 125. The gender pay gap refers to: d. Women earn 20% less than men on average. 126. Careers choices, including becoming an entrepreneur, depends on: a. an individual's values and priorities. 127. Owning your own small business has this as the biggest advantage: b. the freedom to choose your business's purpose and goals. 128. Owning your own small business has the following disadvantages EXCEPT: d. No boss to answer to. 129. You are considering creating your own startup business and are weighing the advantages and disadvantages of doing so. According to the author, what would be your most important consideration before making the decision? b. Having what it takes both personally and professionally to deal with both the freedom and the responsibility of creating a business. 130. Carol Denbow is cited by the author in stating this as the primary reason for small business failure: d. Lack of planning. 131. Some small business ventures fail for the following reasons: a. Inability to execute on the business concept, lack of or insufficient market demand, inability to manage growth, and insufficient management experience or product/services expertise. 132. The term "failing forward" refers to: b. Learning from mistakes. 133. When starting a business these are the fundamental questions that should be asked EXCEPT: d. Do you have the right education? 134. The most important quality a entrepreneur can have to start a business according to startup expert Anne Dwane is: a. adaptability. 135. The daily stress of day-to-day business in a startup requires an entrepreneur to have these (have what it takes) to survive: c. Motivation and passion. 136. The first 3 steps to start a business according to the SBA are: b. conduct market research, write a business plan, and fund your business. 137. Which of these tasks would be among the last things to do on the SBA list of starting a business? a. Open a bank account for your business. 138. Of the 10 steps listed by the SBA for starting a business, how many deal exclusively with government regulation? b. Three. 139. According to the SBA list of steps to do when starting a new business, market research is the first task. The two areas that should be the focus of that research are: d. Market and competitive. 140. The following are affected by the business structure you choose when you start your business. b. day-to-day operations, personal liability, and taxes. 141. Business registration requirements are based on business structure and location. When you register your business the following could be in play EXCEPT: b. College degree. 142. According to the SBA, the following items are needed by Federal and State government in the Registration step in order to start your business: d. permits, licenses, and tax ID's. * 143. The SBA-recommended format for the business plan has this as the first section: c. Executive Summary. 144. The first three topics in Guy Kawasaki's more V.C.- friendly business plan structure are: d. Problem, Your Solution, and Business Model. 145. How many sections are focused on solely financial factors in a nine-section SBA business plan? two 146. The structure of the business, the introduction of the team, and an organization chart would be described in this section of the business plan:o organizational 147. The following would be included in the Appendix section of a business plan EXCEPT: Product descriptions 148. The SBA recommends this for the first-year c. quarterly or monthly projections projections in the Financial Projections section: 149. Who said: Ronald Reagan "We must reject the idea that every time a law's broken, society is guilty rather than the lawbreaker. It is time to restore the American precept that each individual is accountable for his actions."