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Ethical Culture in Companies Quiz

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Questions and Answers

What is a common reason why a sole proprietorship is a popular form of business?

It is taxed more than other forms.

It is heavily regulated by the government.

It is easy to form. (correct)

The proprietor does not have direct control.

What is the term used when a sole proprietor's personal assets can be used to pay business debts?

Unlimited liability (correct)

Asset liability

Professional liability

Business risk

Who are the individuals elected by shareholders to oversee the general operation of a corporation?

Shareholders

Top managers

Directors (correct)

Officers

What characteristic is common among entrepreneurs?

All the choices are characteristics of many entrepreneurs. Signup and view all the answers

Which is the easiest and quickest way to start a business?

Sole proprietorship Signup and view all the answers

What does a private corporation mean?

Owned by less than 50 people and not traded on the open market. Signup and view all the answers

Which of the following scenarios best exemplifies a company with a strong ethical culture?

Top management at Randy's company clearly communicates the expected ethical behavior to all employees. Signup and view all the answers

Which term refers to the buying or selling of stocks by insiders who possess material information that is still not public?

Insider Signup and view all the answers

For long-term success, a business must treat its customers, employees, and community with social:

Responsibility Signup and view all the answers

Which of the following is at the peak of the Pyramid of Social Responsibility?

Philanthropic responsibilities Signup and view all the answers

One effective way companies can help curb global warming is by reducing:

Greenhouse-gas emissions Signup and view all the answers

Of the following options, which is NOT a good way to reduce daily carbon and greenhouse gas output?

Eating more red meat and dairy products Signup and view all the answers