Found in the following section(s) of the text:11.11: Corporate Governance24.Which of the following is not a basic requirement of good corporate citizenship?oEthical environmentoDisclosureoStrong and vigilant board of directorsoProvision of benefits to employeesFEEDBACK2 / 2 (100.0%)
Providing benefits to employees could be a minor facet of meeting stakeholders' interests, but it is not a main area of corporate citizenship.Found in the following section(s) of the text:11.11: Corporate Governance25.Under the notion of effective corporate governance, which of the following is not an example of an internal control?oPerformance reviews for managersoReporting to shareholdersoAccounting disclosure requirementsoEmployee satisfaction surveysFEEDBACK2 / 2 (100.0%)Accounting disclosure is highly regulated by law.Found in the following section(s) of the text:11.11: Corporate Governance26.Which of the following is restricted under the constraints of the Franchise Rule?oTerminating a franchiseoRequired training for franchiseesoRequiring the purchase of products and advertising from the franchisoroRaising prices or profit margins without noticeFEEDBACK2 / 2 (100.0%)Franchises may not be terminated without cause, but conditions for when or how a termination may occur are allowed. A requirement to purchase products is fair as long as the franchisor is not overcharging or arbitrarily raising prices. Training is also a fair and foreseeable part of a franchise agreement.Found in the following section(s) of the text:
2.9: Franchises1.Kara wants to build a business. She has plenty of capitaland potential investors and partners. She wants to avoid the burden of sole liabilityfor her business and wants to be able to close the business when she is no longer interested in it. Which of the following would lead Kara to choose a sole proprietorshiporganization for her business?oMany potential investors/partnersoAvoidance of sole liabilityoPlenty of capitaloAbility to close the business easilyFEEDBACK5 / 5 (100.0%)2.What role best fits the following situation?Manny wants to be involved in a business but is not sure which type of business to join or create. He has capital to invest. He has a good network of potential investors and partners. He has no experience in management.oGeneral partner in a limited partnership.oNeither a limited or general partner would be a good choice.oLimited partner in a limited partnership.FEEDBACK5 / 5 (100.0%)3.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.oProfessional
oSubchapter SoAlienoClosely-heldoDomesticFEEDBACK5 / 5 (100.0%)4.Hal organized his business in Canada. Most of his customers are in Montana. In Montana, Hal’s business would be considered a(n) __________ corporation.