ENT 2113 Final Exam Study Guide | 100% Correct | Verified | 2024 Version

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 Identify an accurate statement about the hybrid compensation system. - An entrepreneur should provide bonuses in a timely manner that is relevant to the individuals in the firm and within the realities and constraints of the business. Which of the following statements is true of the Civil Rights Act? - It currently applies to all firms with more than 25 employees. Which of the following statements is true of the Fair Labor Standards Act (FLSA)? - It requires that all nonexempt employees who work over 40 hours a week should be paid at the rate of time and a half. Job advertisements written for a new hire should - be kept concise and should communicate the culture of the firm. Which of the following statements is true