Business Ethics and Social Responsibility

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Questions and Answers

Which of the following is NOT a characteristic of a corporation?

Corporation has complete control of its operations by a single owner. (correct)

Corporation typically hires a large workforce.

Corporation provides benefits such as connections with suppliers.

Corporation can raise significant capital from investors.

Which of the following is an advantage of a sole proprietorship?

The sole proprietor can share decision-making with other investors.

Tax preparation is generally more straightforward. (correct)

The business can easily raise capital from public investors.

There is limited liability for the owner.

What is one of the key features of a partnership?

Partnerships are only beneficial if there are four or more participants.

Partners share profits and liabilities equally regardless of investment.

Partnerships require a formal structure similar to corporations.

Partnerships allow for unlimited liability among owners. (correct)

What difficulty might a sole proprietor face?

Challenges in securing large amounts of capital. Signup and view all the answers

Which of the following statements about corporations is true?

Corporations can survive beyond the life of its owner. Signup and view all the answers

What is the liability of a shareholder in a corporation?

Limited to the amount of their investment Signup and view all the answers

Which statement is true regarding sole proprietorships?

The owner can single-handedly make decisions Signup and view all the answers

Which of the following describes a partnership?

There must be at least two individuals involved Signup and view all the answers

What is a characteristic of corporations compared to sole proprietorships?

More formal structure with distinct legal recognition Signup and view all the answers

Which type of business involves creating products from raw materials?

Manufacturing business Signup and view all the answers

What term describes the difference between income received and expenses spent?

Profit Signup and view all the answers

Which statement about partnerships is accurate?

Partners share management responsibilities informally Signup and view all the answers

What is a significant challenge of a sole proprietorship compared to other business structures?

The owner has to manage all aspects independently Signup and view all the answers

What is a primary advantage of a corporation?

It can raise substantial amounts of capital by selling shares. Signup and view all the answers

What is a disadvantage of being a corporation?

Income can be taxed twice. Signup and view all the answers

Which statement best describes the structure of a partnership?

The individuals share profits and liabilities. Signup and view all the answers

What is one reason individuals might choose to operate as a sole proprietorship?

It gives complete control over financial and operational matters. Signup and view all the answers

How does liability differ between corporations and sole proprietorships?

Sole proprietors are fully liable for business debts, while shareholders’ liability is limited. Signup and view all the answers

Which of the following best describes the longevity of a corporation?

Corporations can continue indefinitely, even after ownership changes. Signup and view all the answers

What is a significant challenge faced by partnerships compared to corporations?

Partnerships face potential conflicts in decision-making. Signup and view all the answers

What common tax issue do corporations face?

They experience double taxation on corporate income. Signup and view all the answers

What is the primary aim of most businesses?

To earn a profit Signup and view all the answers

Which of the following is NOT a type of business organization aimed at earning profit?

Non-profit organization Signup and view all the answers

Which of the following describes a service business?

A business that organizes events for clients Signup and view all the answers

What is a key disadvantage of a sole proprietorship?

Personal liability for all debts Signup and view all the answers

Which activity does NOT typically belong to the operations of a business?

Investing in real estate Signup and view all the answers

What is one advantage of operating a sole proprietorship?

Fewer government regulations Signup and view all the answers

How do merchandising businesses primarily generate revenue?

By selling products purchased from other businesses Signup and view all the answers

Which of the following is a potential downside of a sole proprietorship compared to other business forms?

Limited access to capital Signup and view all the answers

What is the main characteristic of a corporation?

It has an independent legal status. Signup and view all the answers

Which of the following statements about sole proprietorships is true?

The owner has full control over the business. Signup and view all the answers

Which statement is false regarding partnerships?

Partnerships can raise capital by selling shares. Signup and view all the answers

Which of the following is not an advantage of a partnership?

Limited decision-making power due to more partners. Signup and view all the answers

What best describes the nature of business?

The primary aim of business is to earn profits. Signup and view all the answers

Which of the following terms defines profit?

The amount received minus expenses. Signup and view all the answers

Which statement regarding the liability of shareholders is correct?

Shareholders can lose their investments, but no more. Signup and view all the answers

What is false about the life span of a corporation?

Its life span is always tied to its founders. Signup and view all the answers

What is a primary advantage of operating as a partnership compared to a corporation?

Increased privacy in business dealings Signup and view all the answers

Which of the following statements best describes a disadvantage of partnerships?

The partnership may lack formal legal status. Signup and view all the answers

What can be considered a key benefit of having partners in a business?

Diverse skills and connections contributing to success Signup and view all the answers

An important characteristic of a corporation is that it is:

Independent from its owners legally Signup and view all the answers

Which challenge is often faced by partnerships that may not affect corporations in the same way?

Potential for conflicts among partners Signup and view all the answers

Why might a partnership have a higher capacity for borrowing funds?

More partners mean increased shared wealth Signup and view all the answers

One disadvantage of a partnership is that:

Partners must equally share profits Signup and view all the answers

What unique tax implication applies to profits earned by a partnership?

They are passed onto individual partners as income Signup and view all the answers

Study Notes

Quarter 3, Module 1: The Nature and Forms of Business Organizations
This module covers business ethics and social responsibility, focusing on the nature and various forms of business organizations.
It aims to help students understand the different types of business organizations, their advantages and disadvantages, and the reasons people engage in business.

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Description

This quiz explores the nature and forms of business organizations as discussed in Quarter 3, Module 1 for Grade 12. Students will learn about business ethics, social responsibility, and the advantages and disadvantages of different types of business organizations. Prepare to deepen your understanding of why individuals engage in various business forms.

Business Ethics and Social Responsibility - Grade 12

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