Chapter 4
Considering the potential impact on others prior to making a decision is consistent with ________ behavior.
What is ethical?
A(n) ___________________ is a state-chartered legal entity with authority to act and to have liability separate from its owners.
What is a conventional corporation or C-corp?
The form of business ownership best suited to raising large amounts of money for expansion is the
What is a corporation?
Silver Screen Pictures, Inc. recently bought Superstar Entertainment, Inc. for an undisclosed amount of money. It now owns all of Superstar Entertainment's properties and obligations. This is an example of a(n)
What is an acquisition?
Which of the following terms describes someone who reports illegal or unethical behavior?
What is whistleblower?
The first step when facing an ethical dilemma is to ask
What is "Is it legal?"
An owner of a corporation is known as a
What is a stockholder?
A ____________ is two firms combining to form one company.
What is a merger?
When two companies in completely unrelated industries agree to become one firm, the result is called a
What is conglomerate?
A business' concern for the welfare of society and the environment.
What is corporate social responsibility?
These are earned by observing the actions of others in the organization
What are corporate values?
Which of the following is normally considered a disadvantage of the corporate form of business?
What is double taxation?
Mackenzie's dream is to open a chain of salons. She hopes to attract investors to help finance growth. Having once considered forming a C corporation, Mackenzie wants to have more flexibility about how the new business will be taxed. She also wants to offer investors/owners limited liability. Mackenzie can satisfy her objectives by setting up a(n)
What is limited liability company or LLC?
An attempt by employees, management, or a group of investors to purchase an organization primarily through borrowing is called a(n)
What is leveraged buyout or LBO?
We describe charitable donations by corporations to nonprofit organizations as __________.
What is corporate philanthropy?
A(n) ________-based ethics code emphasizes the prevention of unlawful behavior by increasing control and penalizing wrongdoers.
What is compliance?
Beau has agreed to invest $19,000 in a partnership with his brother and sister-in-law. Not being in the same line of work as them, Beau does not intend to actively work in the partnership. He also does not want to risk any of his own assets other than the $19,000 investment. The partnership has agreed to permit him to share in the profits. As an expert on forms of business ownership, you know that Beau is a __________ in this partnership.
What is a limited partner?
Three types of corporate mergers are
A(n) ___________ is an arrangement whereby someone with a proven idea for a business sells the rights to use the business model, to sell a product or service to others in a given territory.
What is franchise?
In recent years, progressive firms have embarked upon ____________, where they will commit company resources and expertise toward helping out in emergency type situations.
What are corporate social initiatives?
A(n) ________-based ethics code defines corporate values, creates a supportive environment, and stresses shared accountability among employees.
What is integrity?
This type of business must have shareholders who are individuals or estates and qualify as permanent residents of the United States.
What is S-corporation?
This type of business provides a benefit to society, local community or environment while still making a profit.
What is benefit corporation or B-corp?
The __________ is usually the easiest form of business to start and end.
What is sole proprietorship?
The position a firm takes on issues that affect the corporation as well as society is known as its
What is corporate policy?