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ETH 321T Week 2 Apply Assignment

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ETH 321T Week 2 Apply Assignment 

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ETH 321 Week 2 Apply Assignment

  1. Abigail is a manager at her company. The company just launched an initiative to improve its corporate citizenship practices. Abilgail is responsible for all but which of the following areas?
  • Safeguarding shareholders' interests
  • Disclosure and transparency
  • Vigilance of the board of directors
  • Integrity and ethical behavior

 

  1. Which of the following roles best fits the situation?

Apol wants to start or join a business but is not sure which business organization would be best. She has a large amount of capital but does not yet have any partners who can invest or effectively manage the business.

  • Neither a limited or general partner would be a good choice.
  • Limited partner in a limited partnership.
  • General partner in a limited partnership.

 

  1. What is the appropriate description for a distributorship?
  • A franchisee sells a franchisor’s product in a specific geographic area.
  • A franchisee produces and sells a franchisor’s product using the franchisor’s name.
  • A franchisee makes or sells a franchisor’s product.

 

  1. What is the appropriate description for a plant-processing franchise?
  • A franchisee produces and sells a franchisor’s product using the franchisor’s name.
  • A franchisee sells a franchisor’s product in a specific geographic area.
  • A franchisee makes or sells a franchisor’s product.

 

  1. What is the appropriate description for a chain-style franchise?
  • A franchisee sells a franchisor’s product in a specific geographic area.
  • A franchisee produces and sells a franchisor’s product using the franchisor’s name.
  • A franchisee makes or sells a franchisor’s product.

 

  1. J-Chron's board of directors periodically meets with the CFO of the company. The CFO reports on the financial status of a company project, after which the board inquires about the project's compliance with legally-required accountings principles. It asks no other questions about the project. Which of the following is true?
  • The board is not meeting any basic vigilance requirements.
  • The board is meeting legally-required vigilance standards, but not necessarily those which would protect shareholders' interest.
  • The board is meeting all of its vigilance requirements.
  • The board is not legally required to meet vigilance requirements.

 

  1. Lily wants to build a business. She has very little capital. She does, however, have a partner with which she could run a business. Lily wants to be able to avoid being held personally liable for any problems the business has. Which of the following would lead Lily to choose a sole proprietorship organization for her business?
  • Avoidance of personal liability
  • Little capital
  • Possession of a partner
  • None of the above

 

  1. Which description that properly completes this prompt?

Zoey is the CEO of a corporation she organized herself with 15 shareholders. The company operates in several states, as well as outside of the U.S. Her business consists mostly of training services for in-home medical care personnel. Her company would be a __________ corporation.

  • Closely-held
  • Alien
  • Domestic
  • Subchapter S
  • Professional

 

  1. Which description that properly completes this prompt?

Tucker works for a retail distribution company that was recently started. Tucker has invested a lot of his earnings into shares of the company. When quarterly earnings are posted, Tucker receives a check for 8% of the quarterly profit of the company. Tucker belongs to a __________ corporation.

  • Professional
  • Closely-held
  • Subchapter S
  • Alien
  • Domestic

 

  1. Which description that properly completes this prompt?

Lenny organized his business in Delaware. He has customers in Delaware, other states in the U.S., and in foreign countries. Lenny’s business is __________ in Delaware.

  • Domestic
  • Subchapter S
  • Professional
  • Closely-held
  • Alien

 

  1. Juan wants to be involved in business. He has plenty of capital to invest, but he does not want to be involved in management. He also does not want to worry about fluctuations in the market prices of debt and equity instruments. Which form of business would be best for Juan?
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