Module 1

Question 1

is an active process which is an integral part of human society.

Answer 1

business

Question 2

refers to the difference between the amount received and the amount spent on something purchased, produced, or manufactured.

Answer 2

profit

Question 3

provide services to customers rather than products.

Answer 3

Service businesses

Question 4

sell to customers products they buy from other businesses.

Answer 4

Merchandising businesses

Question 5

turn basic inputs into products which are sold to consumers.

Answer 5

Manufacturing businesses

Question 6

The fundamental reason for examining business activities from a moral point of view

Answer 6

help promote the common good and protect the rights and interests of individuals.

Question 7

It is a one-person business. The owner has full control over the finances and operations and decides alone.

Answer 7

1. Sole Proprietorship

Question 8

It is a business relationship between two or more people.

Answer 8

2. Partnership

Question 9

It is an entity created by law that is independent and distinct from its owners and relies on the corporate laws of the state in which it is incorporated to continue its existence.

Answer 9

3. Corporation.

Question 10

This is the standard of judging which is exempted from bias or prejudice.

Answer 10

Fairness

Question 11

is giving to a person what is due to him/her.

Answer 11

Fairness

Question 12

The most important aspect of preventing and detecting corruption is the sound accountability structures

Answer 12

Accountability

Question 13

considers intrinsic or ethical salience as an important feature of the relational dimension of a person.

Answer 13

Transparency

Question 14

why is a civil society organization without proper systems of accountability is fragile and open to rumors of mismanagement and abuse of authority?

Answer 14

A lack of accountability in a civil society organization can result in rumors of mismanagement and abuse of power and undermine trust and confidence among stakeholders.

Question 15

advantages Sole Proprietorship

Answer 15

Tax preparation is faster

Sole proprietorship has lower start-up costs

Handling money for the
business is easier

least government rules and regulations that affect them.

can own the business for as long as he/she wants

can pass the business down to his/her heir.

Question 16

advantages of Partnership

Answer 16

lacks formality as compared with managing a limited company

It is easy to start

You share the burden

Every partner would add his/her own expertise

There is better decision-making.

There is privacy

The partners own and control the business

more funds are available in the company, which can be used for possible expansion.

There is an easy access to profits in a business partnership. The partners just have to divide the profits.

Question 17

advantages of corporation

Answer 17

The liability of the shareholders of a corporation is limited up to the amount of their investments.

A publicly held corporation may sell shares or issue bonds to raise substantial amounts.

It is easy for a shareholder to sell shares in a corporation.

A corporation’s life has no limit

Question 18

Disadvantages of sole proprietorship

Answer 18

personally liable for all debts and actions of the Enterprise

lack of financial control because of looser structure of sole proprietorship.

difficulty in raising capital.

Question 19

Disadvantages of partnership

Answer 19

does not have any independent legal status.

has no separate legal personality

lack the sense of prestige more closely associated with a corporation.

Question 20

Disadvantages of corporation

Answer 20

a. The corporation pays taxes on its income depending on its type and the shareholders pay dividend taxes, so income gets taxed twice.

b. The management team of a corporation can operate the business without any real oversight from the owners.