Chapter 6,7,8,9

Question 1

Legal behavior follows the laws, which may change over time.

Answer 1

True

Question 2

Many businesses will set the ethical tone through their organizational leadership.

Answer 2

True
Tone “ Culture”

Question 3

A code of practice tends to support a company’s obligation to its stakeholders rather than regulating a profession.

Answer 3

False
practice - ex. medical practice individual

code of ethics - for company

Question 4

A negotiated agreement to participate in an illegal activity in exchange for money is known as bribery

Answer 4

False

Negotiated agreement -kickback
bribery- no agreement, just receives

Question 5

Whistleblower laws in the United States are designed to protect employees

Answer 5

True
Whistleblower -telling on protocols being broken

Question 6

6. A sole proprietorship is owned and managed by a group of individuals who share in decision-making and risk.

Answer 6

False

Sole proprietorship is one individual person not a group

Question 7

7. Partnerships have several limitations including the potential for disagreements among partners.

Answer 7

True
Partnership between two people can cause conflict

Question 8

8. When you buy a stock from a broker for XYZ, this company is considered an S corporation

Answer 8

False

C corp - A business structure in which owners, or shareholders, are taxed separately from the entity

S Corp - IRS designation for corporations pass their income through shareholders and thus avoid double taxation

Question 9

To be part of the SBA and other government contracting programs, businesses must be a for-profit enterprise

Answer 9

True

Has to be pro-fit and help grow the economy

Question 10

A merger usually creates one larger company and one of the original two companies ceases to exist.

Answer 10

True

Merger - legally have to cease vs. acquisition- takes over more than 50% of the opposing side

Question 11

The primary role of middle managers is to plan and make decisions, scan the environment, set objectives.

Answer 11

False
Answer : Top Management
3 Types of Managers (From top to bottom)
Top Mangers
Middle
First Line Managers

Question 12

A transformational leader is one who mentors employees and provides opportunities for challenge and growth

Answer 12

True
Three Types of Leader

Transformational
Transactional
Narcissistic

Question 13

The democratic leadership style is best described as orders the employees to vacate the building.

Answer 13

False

3 Management styles
Democratic
Autocratic
Transformational

Question 14

Peter Drucker suggests that operational objectives should be SMART

Answer 14

True

specific, measurable, achievable, relevant, and time-bound.