Question: Utilitarian theory of ethics focuses on…
Answer Choices:
a. the consequences of an action
b. religious beliefs
c. moral values
d. the nature of an action
Answer: a. the consequences of an action
Question: Stefani & Tyler agree via email to form a partnership to buy/sell property. Is it binding?
Answer Choices:
a. without more
b. only if filed with state office
c. only if printed and signed
d. only if valid consideration
Answer: a. without more
Question: Restful Inn wants to terminate a franchise with no specified time for termination. The result is…
Answer Choices:
a. any time, with or without notice
b. immediate closure
c. notice but nothing more
d. a reasonable time, with notice
Answer: d. a reasonable time, with notice
Question: Rita considers a distributorship franchise with Sports Equipment. This involves transferring…
Answer Choices:
a. a trade name
b. the formula to make a certain product
c. a license
d. the ownership of the business
Answer: c. a license
Question: Codex Marketing does an Internet search about a job candidate. This act is…
Answer Choices:
a. a personnel problem
b. none of the choices
c. an ethical issue
d. a legal question
Answer: c. an ethical issue
Question: Ethical standards would be violated if Team Logos deals with a company that routinely violates labor/environmental standards.
Answer Choices:
a. agrees to produce goods at Team Logos’s desired price
b. routinely violates labor and environmental standards
c. goes unnoticed by “corporate watch” groups
d. pays workers less than the U.S. minimum wage
Answer: b. routinely violates labor and environmental standards
Question: Emma is buying a franchise from Fine Jewelry; franchisor must disclose material facts under…
Answer Choices:
a. the Federal Trade Commission’s Franchise Rule
b. the Petroleum Marketing Practices Act
c. federal antitrust laws
d. no law
Answer: a. the Federal Trade Commission’s Franchise Rule
Question: Quisa manages the partnership. By default, she is…
Answer Choices:
a. not entitled to compensation
b. entitled in proportion to capital
c. entitled in proportion to effect on business
d. entitled in proportion to effort
Answer: a. not entitled to compensation
Question: Orlando is a limited partner but participates in firm management; now he’s liable…
Answer Choices:
a. to the extent of capital
b. in proportion to partners
c. to the full extent
d. to no extent
Answer: c. to the full extent
Question: Mary in accounting at New Trends must apply what principles to “padding” expenses?
Answer Choices:
a. the same ethical principles that apply to employees
b. a different set of principles
c. produce the most favorable financial outcome
d. whatever benefits New Trends the most
Answer: a. the same ethical principles that apply to employees
Question: Digital Wizards wants to standardize pricing for its franchises. The most prudent action might be…
Answer Choices:
a. suggest the prices at which franchises sell
b. threaten with breach of contract
c. require a premium share
d. mandate the prices
Answer: a. suggest the prices
Question: Applying ethical principles to Kelso’s firm, Julie will most likely evaluate…
Answer Choices:
a. how to maximize profits in the long run only
b. marketing campaigns to counter bad publicity
c. how to maximize short-run profits
d. what duties and responsibilities should exist for the business
Answer: d. what duties and responsibilities should exist for the business
Question: Daisy’s job is “spin” on successes/failures; in context, ethics has to do with…
Answer Choices:
a. corporate guidelines
b. moral and ethical principles
c. legal doctrine
d. financial priorities
Answer: b. moral and ethical principles
Question: Territory for Fong’s franchise is typically determined by…
Answer Choices:
a. Genuine Asian Sushi House
b. other franchisees
c. the Federal Trade Commission
d. Fong
Answer: a. Genuine Asian Sushi House
Question: Jumbo Juice must provide which earnings figures to potential investors?
Answer Choices:
a. none of the choices
b. hypothetical earnings figures
c. projected earnings figures
d. actual earnings figures
Answer: a. none of the choices
Question: Housemate’s decision makers can predict whether an action is legal in…
Answer Choices:
a. no situations
b. few situations
c. all situations
d. many situations
Answer: d. many situations
Question: Paradise Footwear’s franchise from Quad Shoes is governed by…
Answer Choices:
a. the Automobile Dealers’ Day in Court Act
b. contract law
c. the Franchise Disclosure Document
d. no law
Answer: b. contract law