ENT 2113 Final Exam Study Guide |
100% Correct | Verified | 2024 Version
A business can obtain liability insurance, which helps protect the business against lawsuit
judgments. - ✔✔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. - ✔✔True
In a Subchapter C Corporation, it is possible to have a double taxation situation. - ✔✔True
The insurance coverage obtained by a small business is directly proportional to the cost.
As the coverage increases, the cost also increases. - ✔✔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. - ✔✔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 - ✔✔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 - ✔✔Subchapter C
Corportation
In the context of legal forms of business, a Subchapter S Corporation - ✔✔allows the owners to treat the
income of the firm as part of their personal incomes.
,In the context of legal forms of business, which of the following is an area in which sole proprietorships
differ from general partnerships? - ✔✔the possibility of bringing in new equity partners
In the context of legal forms of business, identify a true statement about sole proprietorship firms. -
✔✔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 - ✔✔fringe benefits being treated
as income.
In the context of legal forms of business, identify a true statement about limited liability partnership
(LLP). - ✔✔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 - ✔✔has
unlimited liability for any debts or judgments against the firm.
When forming a sole proprietorship or a partnership, the business debts are - ✔✔the responsibility of
the owners.
In a lease, a landowner can enter a business premises for all the following reasons EXCEPT -
✔✔whenever the landowner wants to.
James and Mary own a business. When they pay themselves an advance in salary or a bonus, it is called
a(n) ________. - ✔✔Draw
Workers' compensation insurance rates are regulated by the federal government and are uniform across
the country. - ✔✔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. - ✔✔False
The setting of goals for an employee allows an entrepreneur to judge how well the employee is
performing. - ✔✔True
Large firms can absorb bad employees easier than small businesses because they have organizational
slack. - ✔✔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. - ✔✔True
Human resources, as defined in economics, is the ________ and ________ of human effort directed
toward producing goods and services. - ✔✔quantity; quality
Which of the following laws states an employer cannot discriminate in pay to men and women who do
the same job? - ✔✔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? - ✔✔The Civil Rights Act
What percentage of states has an unemployment compensation law? - ✔✔100
Which of the following entrepreneurial firms needs to pay special attention to OSHA guidelines
regardless of their size? - ✔✔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. - ✔✔living wage
What does OSHA stand for? - ✔✔Occupational Safety and Health Administration
100% Correct | Verified | 2024 Version
A business can obtain liability insurance, which helps protect the business against lawsuit
judgments. - ✔✔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. - ✔✔True
In a Subchapter C Corporation, it is possible to have a double taxation situation. - ✔✔True
The insurance coverage obtained by a small business is directly proportional to the cost.
As the coverage increases, the cost also increases. - ✔✔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. - ✔✔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 - ✔✔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 - ✔✔Subchapter C
Corportation
In the context of legal forms of business, a Subchapter S Corporation - ✔✔allows the owners to treat the
income of the firm as part of their personal incomes.
,In the context of legal forms of business, which of the following is an area in which sole proprietorships
differ from general partnerships? - ✔✔the possibility of bringing in new equity partners
In the context of legal forms of business, identify a true statement about sole proprietorship firms. -
✔✔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 - ✔✔fringe benefits being treated
as income.
In the context of legal forms of business, identify a true statement about limited liability partnership
(LLP). - ✔✔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 - ✔✔has
unlimited liability for any debts or judgments against the firm.
When forming a sole proprietorship or a partnership, the business debts are - ✔✔the responsibility of
the owners.
In a lease, a landowner can enter a business premises for all the following reasons EXCEPT -
✔✔whenever the landowner wants to.
James and Mary own a business. When they pay themselves an advance in salary or a bonus, it is called
a(n) ________. - ✔✔Draw
Workers' compensation insurance rates are regulated by the federal government and are uniform across
the country. - ✔✔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. - ✔✔False
The setting of goals for an employee allows an entrepreneur to judge how well the employee is
performing. - ✔✔True
Large firms can absorb bad employees easier than small businesses because they have organizational
slack. - ✔✔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. - ✔✔True
Human resources, as defined in economics, is the ________ and ________ of human effort directed
toward producing goods and services. - ✔✔quantity; quality
Which of the following laws states an employer cannot discriminate in pay to men and women who do
the same job? - ✔✔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? - ✔✔The Civil Rights Act
What percentage of states has an unemployment compensation law? - ✔✔100
Which of the following entrepreneurial firms needs to pay special attention to OSHA guidelines
regardless of their size? - ✔✔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. - ✔✔living wage
What does OSHA stand for? - ✔✔Occupational Safety and Health Administration
