Forms of Business
This form of business is praised for being easy, quick, simple, and affordable, while giving the owner full control with minimal administration.
What is a sole proprietorship?
These private investors put money into emerging startups in exchange for equity stakes and make up one of the fastest-growing segments of the small business capital market.
Who are angels?
A workplace allows employees to decide the best way to reach objectives, encourages autonomy, and relies heavily on trust. This environment reflects which leadership style?
What is free-rein leadership?
A company wants to sell in multiple countries to increase revenue, access cheaper labor, and reduce costs by taking advantage of different regulations. Which broad business trend is the company pursuing?
What is globalization?
A company donates to community programs, ensures fair labor practices, sources materials sustainably, and focuses on ethical decision-making in all business activities. This approach is an example of what?
What is corporate social responsibility (CSR)?
Laws enacted by a federal or state legislature are known as this.
What is statutory law?
This type of partnership features mutual agency, unlimited liability, and partners who share risk and wealth equally.
What is a general partnership?
Entrepreneurship is described as being centered around this core activity, which involves identifying opportunities and creating value.
What is problem-solving?
A manager carefully defines a situation, gathers information, evaluates alternatives, and later checks whether the choice worked. This full cycle reflects what structured approach to selecting the best option?
What is the rational decision-making model?
Country A produces wine more efficiently than any other country but must import computers because it cannot produce them efficiently. This is an example of what economic principle?
What is comparative advantage?
You imagine your decision being on the front page of the newspaper to judge its morality before acting. What ethical test are you applying?
What is the front-page test?
Bernie Madoff and Sam Bankman-Fried are famous examples of people who committed this type of deception that promises high returns with low risk.
What is a Ponzi scheme?
This regulatory body oversees the sale of stock and financial reporting, requiring full disclosure and due diligence.
What is the SEC (Securities and Exchange Commission)?
This concept describes applying entrepreneurial thinking inside an established organization to spark innovation while still operating within its goals.
What is intrapreneurship?
A manager sets clear performance standards, monitors results, compares them to the standards, and takes corrective action when needed. What management function is this describing?
What is controlling?
A government places a tax on imported cars, raising their price relative to domestic cars, to protect local manufacturers. This type of trade policy instrument is known as what?
What is a tariff?
A pharmaceutical company markets a drug claiming it is safe and non-addictive, despite evidence showing otherwise. This is an example of what kind of unethical business practice?
What is deceptive or unethical marketing?
Assault, slander, libel, and fraud are all examples of this type of civil wrong.
What are torts?
This type of stock gives its owners voting rights and residual claims to assets.
What is common stock?
When a growing business forces its founder into a management role they weren’t prepared for, this missing trait in typical entrepreneurial characteristics becomes obvious.
What is leadership?
An organization determines long-term goals, develops strategies to achieve them, allocates resources, and sets measurable standards to track progress. Which function of management is this?
What is planning?
A U.S. firm operating overseas refuses to pay bribes to local officials, even though competitors do, following a law that criminalizes bribery of foreign public officials. What is the name of this law?
What is the Foreign Corrupt Practices Act (FCPA)?
This approach argues that a corporation has responsibilities not just to maximize profits for shareholders but to consider the impact of its actions on employees, customers, communities, and the environment.
What is stakeholder theory (Freeman)?
In this non-binding approach, a neutral third party helps disputing parties reach an agreement without going to court.
What is mediation?
This business structure combines flexibility and pass-through taxation with limited liability, while avoiding double taxation and the burden of corporate structure.
What is a Limited Liability Company (LLC)?
An entrepreneur who evaluates whether customers will want their product and whether they can provide it at a profit is performing this specific type of feasibility analysis.
What is product or service feasibility analysis?
A CEO establishes corporate values, communicates a vision, promotes ethics, embraces change, and emphasizes accountability and transparency. This set of actions reflects the fundamental responsibilities of which role?
What is a leader?
A U.S. company partners with a local firm in another country to share marketing expertise, technology, and risk, in order to enter a market where foreign firms are restricted. This partnership is called what?
What is a joint venture?
Passed after the Enron scandal, this law established stricter standards for U.S. public companies, accounting firms, and boards to improve financial transparency and corporate accountability.
What is the Sarbanes-Oxley Act of 2002 (SOX)?
An inventor can secure exclusive rights to an invention for 20 years with this form of protection.
What is a patent?