Chapter 7

Question 1

7.1 A set of rules outlining the norms, rules, and responsibilities for proper practices of an organization is referred to as ______.

Answer 1

a code of conduct

Question 2

four key metrics of the 2021 Global Business Ethics Survey providing insight into an organization’s environment

Answer 2

Pressure to compromise organizational standards, Observed conduct, Report observed conduct, Experience retaliation for reporting misconduct

Question 3

7.3 The written agreement that binds an employee or another party such as a supplier to not share a company’s trade secret or other proprietary information is referred to as a(n) _______ agreement.

Answer 3

nondisclosure

Question 4

7.4 To avoid misunderstandings and ultimately legal disputes, one of the simplest recommendations is to _______.

Answer 4

get everything in writing

Question 5

7.5 What type of agreement deals with the relative split of the equity among the firm’s owners and the type of compensation they will receive for the cash or the “sweat equity” they put into the firm?

Answer 5

Founders’

Question 6

7.6 What is one of the most common state-level requirements for starting a business?

Answer 6

Sales tax permit

Question 7

7.7 What type of permit is required if a business plans to use a name other than the business owner’s name?

Answer 7

Fictitious business name

Question 8

7.8 When selecting a form of business ownership, what are the four factors identified in the textbook as critical?

Answer 8

The cost of setting up and maintaining the legal form, The number of types of investors involved, The extent to which personal assets can be shielded from the liabilities of the business, Tax considerations

Question 9

7.9 Which of the following forms of business ownership generally has the lowest cost of setting up and maintaining?

Answer 9

Sole proprietorship

Question 10

7.10 A _______ is a separate legal entity organized under the authority of a state.

Answer 10

Corporation