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Study Resources (Business Management)

    61.Businesses with a formal code of ethics are less common now than in the past.          62.Compliance-based ethics codes focus on preventing unlawful behavior by increasing control and by penalizing wrongdoers.          63.In order to be successful, efforts to improve the ethical behavior of businesses must begin with top management's support of a corporate.
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    301.Adam is a major stockholder in Precision Transmission Services (PTS), a nationwide network of transmission repair shops founded by his father. Currently, PTS stock is sold on the open market, but Adam has talked to several relatives about his desire to get all of the PTS stock back in his.
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  345.Describe and differentiate between the three types of corporate mergers. Give an example of each type.      346.Franchising has certainly become a key component of the U.S. economy. What are the major advantages and disadvantages of franchising?            .
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    41.Management can create an environment in which unethical behavior can develop.          42.Corporate values, like personal values, are learned by observing what others do.          43.Effective corporate values start with employees and develop throughout the organization to include top management.          44.In order to maintain a good reputation, it is good strategy to manage your business.
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  Essay Questions  341.Although most new firms start out as sole proprietorships, few large firms are organized this way. Why is the sole proprietorship such a popular form of ownership for new firms? What features of the sole proprietorship make it unattractive to growing firms?          342.What is the difference between a general partner.
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    91.Some investors believe it makes financial as well as moral sense to invest in companies whose practices promote sensitivity towards the environment.          92."Fair disclosure" refers to a Securities and Exchange Commission rule that states when a publicly traded firm discloses information, it must share it with everyone.          93.Insider trading occurs when employees.
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    281.Three types of corporate mergers are:    A.Economic, geographic, and financial.   B.Vertical, horizontal, and conglomerate.   C.Flexible, differentiated, and conditional.   D.Explicit, implicit, and intrinsic.         282.A ______________ merger unites firms at different stages of related businesses.    A.vertical   B.horizontal   C.diagonal   D.conglomerate         283.When two companies in the same industry agree to become one firm, the result is called a:    A.Vertical merger.   B.Joint venture.   C.Monopoly.   D.Horizontal merger.         284.When two companies in.
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    291.A merger involving a commercial bakery and a grocery retailer would be an example of a:    A.Vertical merger.   B.Horizontal merger.   C.Linear merger.   D.Conglomerate merger. A vertical merger involves two firms in different stages of related businesses. The bakery would make bread and other items to be sold in the grocery.       292.A merger involving a software producer.
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    161.Franchising is popular in the United States, but legal barriers have limited its popularity in foreign countries.          162.Global franchising is unlikely to experience major growth due to the high costs of operations in global markets.          163.Franchising in global markets has demonstrated that high operating costs are counterbalanced by high profit opportunities.          164.Franchisors sometimes.
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    161.Cigarette producers refused to voluntarily place health warnings on their packages. In response, the federal government passed laws requiring health warnings on all cigarette packages. With respect to ethical behavior, this sequence of events is:    A.The intended approach.   B.The desired approach.   C.Not the desired approach.   D.Not really a concern. Ethical behavior by businesses is a.
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    41.One advantage of a partnership is that there is a simple process for partners to terminate their business.          42.Compared to sole proprietorships, an advantage of partnerships is their ability to obtain more financial resources.          43.Setting up a partnership under the terms of a written agreement is a bad idea, because written agreements.
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    101.A social audit is a systematic evaluation of an organization's progress toward implementing programs that are profitable.          102.The green movement has resulted in a positive impact on U.S. jobs.          103.A firm's net social contribution is a company report that measures the difference between its positive social contributions and its negative social impact.          104.A.
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    91.An advantage of corporations is their ability to attract good talent by offering stock options and other employee benefits.          92.It is said that corporations have perpetual life.          93.One advantage of an S Corporation is that the profits are distributed to the owners and taxed as each owner's personal income, thus avoiding the.
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    111.Defining a socially responsible company is complicated. Businesses differ from other businesses, as well as the people they serve, on what we mean by "socially responsible."    Two-thirds of the MBA students surveyed said that they would take a lower salary to work for a socially responsible company. But when asked to.
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    91.Juanita wants to start a small business. If her primary goal is fast growth and high profits, her best chances would be in the manufacturing sector.    Although manufacturing firms are difficult to start and keep going, they do have the greatest potential for the high rates of growth that Juanita needs.
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  343.What is a C corporation? What are the major advantages and disadvantages of this form of business ownership?        344.What is a limited liability company (LLC)? How does it compare to an S corporation? What are the major advantages and disadvantages of an LLC?              .
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    141.A few years ago, several U.S. clothing manufacturers were sued in Los Angeles courts by watchdog groups who learned of poor working conditions in manufacturing plants on a U.S. territory known as the Marianas Islands. Customers are concerned with human rights abuses and other problems with supplier relationships abroad.    Companies who.
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    311.Global franchising offers:    A.Few opportunities for American investors.   B.Opportunities for large franchise systems, but not small ones.   C.Opportunities for both large and small franchises.   D.American firms the opportunity to market goods overseas without any need to adjust for cultural differences.         312.Opening and operating a franchise in a different country:    A.Is illegal according to the Clayton Antitrust.
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    111.The major differences between an S-Corporation and a Limited Liability Company are limits on the number of owners, and, the citizenship status of individuals who are owners.    A limited liability company (LLC) is similar to an S corporation but without the special eligibility requirements. S-Corporations require its owners to be U.S..
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    True / False Questions  1.Entrepreneurship involves accepting the risk of starting and running a business.          2.Entrepreneurship is another name for management.          3.Entrepreneurs are less important now than in the past to the U.S. economy.          4.People who are 16 to 34 years old are not attracted to starting their own business.          5.While entrepreneurs frequently earn significant.
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    111.Getting a business plan into the hands of the right people is nearly as important as getting the right information in the plan.          112.The entrepreneur's integrity is not relevant to bankers when determining the credit worthiness of a business loan.          113.Software designed to help create business plans has proven to be of.
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  272.Provide examples that serve to explain the differences between the following terms: (1) corporate responsibility; (2) corporate social initiatives; (3) corporate philanthropy.      Multiple Choice Questions  Mini-CaseHarry, Sirly, and Bo are in the midst of a heated discussion. As the chief operating officers of the U-Scream Ice Cream Corporation, they are reviewing the.
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    121.Chipper's Golf Resort has the opportunity to buy 1000 acres of property adjacent to its 18-hole golf course. After talking with her banker, the owner is encouraged to begin the paperwork to change from a Limited Liability Company form of business ownership to a corporation. You applaud this strategy because.
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    81.Most business opportunities offer entrepreneurs high levels of security and profits.          82.The easiest businesses to start also have the least growth potential and the greatest failure rates.          83.While the first job for many people is working for a small business, most of the permanent new jobs are created by larger corporations.    Small businesses.
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    151.In a franchise arrangement, ownership remains in the hands of the franchisor.          152.One of the major advantages for the franchisee is instant business name recognition and important management assistance from the franchisor.          153.Franchisees must follow more rules, regulations, and procedures than if they operated independently-owned businesses.          154.The "coattail effect" refers to the burden.
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    331.A ___________ is an organization that is owned and controlled by the people who use it—producers, consumers and workers with similar needs pool their resources for mutual gain.    A.corporation   B.limited partnership   C.mutual fund   D.cooperative         332.In rural areas electrical power is often sold by ____________ that take advantage of the government's policy to sell them electricity.
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    151.Given the ethical lapses that are prevalent today in our businesses, which of the following can be done to restore trust in the free-market system and leaders in general?    A.Business leaders that have broken the law should be given another chance.   B.New laws making accounting records transparent may help restore trust.   C.Making the.
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    131.The objective of the Inter-American Convention Against Corruption document formulated and signed by the Organization of American States is to identify common global ethics.          132.The International Organization for Standardization (ISO) plans to publish a standard on social responsibility called ISO 26000.          133.U.S. businesses consider The Foreign Corrupt Practices Act as legislation that.
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    141.Hole In One Golf Company announced plans to purchase the property and assume the obligations of Champion Golf, Inc., one of its major competitors. Hole In One Golf Company's plans are an example of a merger.    Hole In One Golf Company's actions are an acquisition rather than a merger. An acquisition.
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    131.A horizontal merger refers to a merger between two companies in the same industry, and serving the same markets.          132.A leveraged buyout is an attempt by top management to gain control of a company by issuing a large amount of new stock.          133.When a group of investors take a firm private, they.
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    71.Since most ethics violations are small and rather insignificant in nature, employees need to understand that addressing these issues is secondary to making profits. CEOs may be justified in putting these on the back-burner, waiting for more convenient moments to address them.    Ethics violations should be addressed in a timely manner,.
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    31.A limited partnership consists of one or more general partners and one or more limited partners.          32.Although shares of master limited partnerships can be purchased on one of the national stock exchanges, these companies are taxed like partnerships.          33.The Uniform Partnership Act is law in every state except Louisiana.          34.According to the Uniform.
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    11.Laws that protect us from fraud, theft and violence determine ethical behavior.    Ethical behavior requires more than following the law, but following the law is an important first step. Legality is narrower.       12.Moral behavior refers to behavior that is accepted by society as right versus wrong.    Ethics defines the standards of moral behavior,.
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    101.Like stockholders of a C corporation, owners of a limited liability company (LLC) are free to sell their ownership without the approval of other members.          102.The limited liability company requires a minimum of 10 members.          103.The organization structure of a corporation allows for stockholders to exert a significant degree of control over.
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    21.A common form of cheating in schools today is plagiarizing material from the Internet.          22.Making ethical choices is always easy.          23.Two recent studies found a strong correlation between academic dishonesty among undergraduates and dishonesty at work.          24.The question "Is it legal?" establishes ethical behavior.          25.It can be very difficult to maintain a balance between.
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    31.Business behavior determines the ethics of society. We can improve society's moral and ethical behavior by first making a commitment to improving business's moral and ethical behavior.    Ethical behavior begins with you and me. We cannot expect society to become more moral and ethical unless we as individuals commit to becoming.
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    11.The profits of a sole proprietorship are taxed as the personal income of the owner.          12.The sole proprietorship form of ownership tends to be attractive to people who want to invest in a company without taking an active role in management.          13.A major advantage of sole proprietorships is that an owner has.
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    51.An ethic of care is based on principles like justice, fairness, equality, or authority.          52.Employers should proceed cautiously when designing an employee incentive program that rewards employees strictly on increased sales.    Increased pressure on employees to meet sales quotas can create an environment where management is insensitive to ethical considerations. The text.
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    81.An alien corporation does business abroad but is chartered in the U.S.          82.A domestic corporation does business in the state in which it's chartered.          83.A foreign corporation is chartered in a country outside the U.S.          84.Delaware is a popular state to seek incorporation due to its reduced costs and other perks.          85.A closed corporation.
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    21.Unlike partnerships, if sole proprietorships find themselves in bankruptcy, they need not worry about a court of law requiring them to sell-off personal assets to pay for the debts of the firm.    Sole proprietorships have unlimited liability. This means that the proprietor is financially responsible for all debts incurred by the.
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    171.If an established franchisor agrees to provide you the opportunity to become a franchisee in its franchise system, the franchisor may also be willing to serve as a source of financing for your operation.    One advantage of entering into a franchise arrangement is that the franchisor will often provide financing. The.
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  Multiple Choice Questions  Mini-CaseFor as long as she could remember, Jenna Raiter's passion was cars. As a teenager, she spent hours with her dad tinkering with the family car, learning to change the oil and making minor repairs. She got a job at a local garage while still in high school..
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    171.The Connecting through Social Media box titled "Facebook or Fakebook" depicts the social media sites' widespread popularity. It asks members to consider:    A.Using the site for creating legitimate viral marketing messages.   B.The ethical and unethical activities of social media sites and how to remain an ethical participant.   C.Eliminating photos from social media sites.
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  True / False Questions  1.The corporation is the most common form of business ownership.          2.The three major forms of business ownership in the U.S. are sole proprietorships, partnerships, and corporations.          3.Few people today start their own business.          4.Once a business is established, it's almost impossible to change from one form of business ownership to.
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    71.A disadvantage of corporations is that an owner must get the approval of all other owners before selling his or her interest in the firm to another investor.          72.Stockholders in a corporation normally exert a significant degree of control over the company's daily operations.          73.The stockholders in a corporation elect a board.
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    51.According to Figure 5.2, attributes such as trust and integrity are not something you should get overly concerned about when selecting partners, due to the fact that this is a business decision, not a friendly game of golf.    Prospective partners should concern themselves with several aspects of the business relationship, including.
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    101.There are several ethical considerations when starting a business, but competing against current and former work relationships is always fair game.    Similar to managers who work for large organizations, small business owners/managers must consider ethics when making decisions. The Making Ethical Decisions box depicts a situation where two employees plan to.
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    121.At a recent town hall meeting, citizens expressed concern regarding the impact of a proposed new gambling casino. The owner of the proposed casino responded, "I don't know what all of this fuss is about. I'm just a businessman trying to earn a profit, provide new jobs, and pay taxes.".
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    321.When an owner of a franchise wants to pass ownership on to their heirs:    A.they don't have to take any action or contact the franchisor.   B.they only must contact the franchisor.   C.they must pay a fee to the franchisor.   D.they must tell the franchisor of their plan and arrange for training for those wanting.
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