Management 305 Study Guide Exam 2

Management 305 Study Guide Exam 2 - M anagement 305 Exam 2...

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Management 305 Exam 2 Study Guide: Chapters 7, 8, 9, 10 Chapter 7: 1. List 3 ways to establish a strong ethical culture in the new venture. 1) Lead by example 2) Establish a code of conduct 3) Implement an Ethics training program
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List 3 ways of avoiding legal disputes in the new ventureShort Answer Short Answer Short Answer Short Answer Short Answer Multiple Choice Multiple Choice 2. . 1) Meet all contractual obligations 2) Avoid undercapitalization 3) Get everything in writing 4) Promote business ethics/ Set standards 3. List 3 of the 4 ways for entrepreneurs to save on legal fees and increase the value of their relationship with their attorney. 1) Group together legal matters 2) Offer to assist the attorney 3) Ask your attorney to join your advisory board 4) Use non-lawyer professionals 4. List the 4 most common forms of business. 1) Sole proprietorship 2) Partnerships 3) Corporations 4) Limited liability company
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5. Define sole proprietorship and list 2 advantages AND 2 disadvantages of this legal form of business. 1) Sole proprietorship - business organization involving one person, and the person and the business are essentially the same. Most common form of legal ownership; not a separate legal entity. 2) Advantages: Creating one is easy and inexpensive The owner maintains complete control Not subject to double taxation, Business losses can be deducted against the sole proprietor’s other sources of income Business is easy to dissolve 3) Disadvantages: Liability on the owner’s part is unlimited The business relies on the skills and abilities of a single owner to be successful Raising capital can be difficult The business ends at the owner’s death or loss of interest in the business The liquidity of the owner’s investment is low
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Define general partnership and list 2 advantages AND 2 disadvantages of this legal form of business.Short Answer Short Answer Short Answer Short Answer Short Answer Multiple Choice Multiple Choice 6. 1)
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This note was uploaded on 06/12/2011 for the course MNGT 305 taught by Professor Chadwick during the Spring '11 term at Nicholls State.

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Management 305 Study Guide Exam 2 - M anagement 305 Exam 2...

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