TLI4801 EXAM QUESTIONS AND ACCURATE ANSWERS WITH
RATIONALE|VERIFIED BY EXPERTS| (100% PASS GUARANTEED
) A GRADED |LATEST UPDATE 2024/2025
Government and business leaders are being held to - CORRECT ANSWER higher ethical
standards than in the past.
What type of ethical code serves to define the organization's guiding values, create an
environment that supports ethically sound behavior, and stresses shared accountability? -
CORRECT ANSWER integrity-based ethics codes
Besides environmental groups, unions, and socially conscious investors, a relatively new type of
watchdog organization that reports on corporate social responsibility efforts is - CORRECT
ANSWER socially conscious research organizations
Individuals who report unethical or illegal behavior within an organization are referred to as -
CORRECT ANSWER whistleblowers
Kendra works as a salesperson at an appliance store. Her boss instructs employees to steer all
customers to higher-priced models with extra features, as these appliances generate more profit
for the store. Sometimes Kendra feels guilty about misleading customers who just want basic
features. According to Norman Vincent Peale, which question should Kendra refer to as she
proceeds to make an ethical decision? - CORRECT ANSWER How does this practice make me
feel about myself?
With regard to socially responsible behavior, U.S. businesses are - CORRECT ANSWER
demanding socially responsible behavior from international suppliers, particularly in the areas of
environmental standards and human rights issues
What are U.S. companies like Dow Chemical doing with regard to suppliers and conformance to
pollution and safety laws? - CORRECT ANSWER asking foreign suppliers to conform to U.S.
pollution and safety laws
The owners of a corporation are called - CORRECT ANSWER stockholders
Which are characteristics typical of a C corporation? - CORRECT ANSWER Owners have
limited liability
One of the key advantages of a franchise is - CORRECT ANSWER receiving management and
marketing expertise from the franchisor.
T-Mobile and Sprint, two major players in the telecom industry, recently merged under the T-
Mobile banner, boosting their total customer base to 100 million. Both companies provided
,similar services and originally competed against one another. In business, we would call the
joining of these two firms a(n) - CORRECT ANSWER horizontal merger
You inherited 300 shares of L'Oréal stock from your Aunt Agnes. When you are awarded the
first dividend from this stock, you learn from your accountant that it is considered a source of
income and you will be taxed on that amount. You find this bothersome because the firm paid
the dividend from after-tax profits (these dollars were already taxed). This phenomenon is called
- CORRECT ANSWER double taxation
In his search for a franchised business that would earn him a decent living, Rowan noted that the
shared profit criterion required of franchisors had significant variance. Some required franchisees
to pay 7 percent of their monthly revenues to the franchisor. Others required 4 percent of the
profits. In business we refer to this obligation as a - CORRECT ANSWER royalty
A firm's management purchases all the issued and outstanding stock of the firm and takes the
company off the stock market. The management of this company has engaged in - CORRECT
ANSWER taking the firm private
Thirty years ago, your parents invested in The Walt Disney Company. As the years have gone
by, the investment has grown. However, if Disney should go out of business and declare
bankruptcy, what would happen to your parent's investment? - CORRECT ANSWER Your
parents will only lose the value of their shares
Allerton Fittings was a small manufacturing company that made shut-off valves for gas pipe used
in home and building construction. Allerton purchased Tri-State Pipelines, which was its largest
customer. This strategic decision bringing the two companies together is called a - CORRECT
ANSWER vertical merger
At Pretty Posies, a floral shop, there is only one general partner, Sandy. She spends all her time
running the business, and makes all the decisions. Sandy's mother and brother put up money for
her to buy the store, but they work full time at other jobs and have no management say in the
running of Pretty Posies, but share in some of the profits. This is an example of a - CORRECT
ANSWER limited partnership
When Yasmin bought a Martinizing Dry Cleaning franchise, she became a - CORRECT
ANSWER franchisee
When Ross, Dave, and Elian lost their jobs during the recent recession, they pooled their
resources, borrowed a little more, and bought a local bar. All three were concerned about the risk
involved in owning their own business, particularly the risk of losing personal assets. As their
advisor, which form of business ownership would you recommend? - CORRECT ANSWER
limited liability company
Damita and Hugo took over the family's restaurant business when their father died. Damita
operated one of the three locations, kept the firm's books, and ordered supplies and equipment
for all three locations. Hugo operated the other two restaurants. Hugo thought he should get two-
,thirds of the company profits because he was responsible for two out of three locations. Damita
saw it differently because she felt her responsibilities spanned the entire business. What's
important for them to remember in their situation is - CORRECT ANSWER they both shared
unlimited liability and if one or the other failed to meet their financial commitment, the other
partner would also be liable for all debts
What remedy is often offered to brick-and-mortar franchises if their sales are hurt by franchise-
sponsored online sites? - CORRECT ANSWER reverse royalties
Partnerships refer to more than one owner. What describes a limited partnership? - CORRECT
ANSWER It consists of general partners and limited partners, at least one of each
When your profitable franchise fails simply because other similar franchisees have failed, this is
known as the - CORRECT ANSWER coattail effect
When Mariah joined her family's manufacturing business, she was given several hundred shares
of stock in the firm, and was officially made a partner. The firm's accountant explained that the
company paid taxes the same way as regular partnerships, by passing the profits through to each
partner. Mariah could purchase more shares of the company on a public stock exchange, as long
as someone was willing to sell their shares. This firm was likely a special form of ownership
called a - CORRECT ANSWER master limited partnership
If the employees of a company successfully borrowed a large sum of money and purchased the
firm from its current owners, we would call this event a - CORRECT ANSWER leveraged
buyout
Lily and Ashok would like to start a business selling a beauty product new to the U.S. market.
Lily and Ashok have done a considerable amount of research on this product, and think it would
be successful in the United States. However, they are still concerned about the risk of a new
venture, and both would like to avoid losing any personal assets. They should organize their firm
as a - CORRECT ANSWER corporation
Which form of business ownership is the most common in the United States? - CORRECT
ANSWER sole proprietorship
Organizations known as ________ are often a source of funding for lower-income communities.
These organizations have a significant role in the economic recovery and some start-up
businesses have successfully found sources of capital by going through one of these
organizations. - CORRECT ANSWER CDFIs (Community Development Financial Institutions)
Small businesses often have advantages in international markets. One advantage is - CORRECT
ANSWER individualized customer service as opposed to impersonal corporate bureaucracies
Doreen works for a company that promotes an entrepreneurial culture. Employees are
encouraged to discuss new ideas and development time is provided on the job for those ideas that
, float to the top. As Doreen spends part of each week generating ideas and applying her creative
talents, she can be called a(n) - CORRECT ANSWER intrapreneur
Camila wants to start a small business importing some products from her native Guatemala.
Before she starts, some good advice to Camila would be - CORRECT ANSWER talk to others
who have been or are in the import business
Entrepreneurs emphasize the importance of believing in your own ideas even when no one else
does. Characteristically, they also know that success or failure is "on them." These attributes are
described as - CORRECT ANSWER self-directed and self-nurturing
Lauren wants to start a small private chef business out of her home. Her target audience is
working couples who do not have the time to cook for themselves. While she is an accomplished
cook, she has never earned money by preparing food for others. Which statement seems to be
good advice for Lauren? - CORRECT ANSWER Become an apprentice for a private chef, or
work for a similar business for a few years
The primary concerns when first starting your business are - CORRECT ANSWER financing
and planning
What is an advantage shared by most small businesses? - CORRECT ANSWER the ability to
quickly adapt to customer needs
For a market to exist, there must be potential buyers - CORRECT ANSWER who have a
willingness and the resources to buy
Although the business plan has a great amount of detail and requires thoroughness, a well-
explained business idea will come to life almost immediately in which part of this document? -
CORRECT ANSWER the executive summary
Which statement about small business is false? - CORRECT ANSWER Most Americans will
never work for a small business
When developing and maintaining good stakeholder relationships, companies find that -
CORRECT ANSWER most often, they must balance the needs of the stakeholders with the need
to make profits
The branch of economics that looks at the operation of a nation's economy as a whole is -
CORRECT ANSWER macroeconomics
Which of these industries is among the fastest growing today? - CORRECT ANSWER Health
________ economies exist when the government controls what goods and services will be
produced and how the economy will grow, while ________ economies exist when the market
largely determines what goods and services get produced and how the economy grows. -
CORRECT ANSWER Command; free-market
