ENTREPRENEURSHIP UNIT 2

Which of the following may be considered an activity that falls under the corporate social responsibility of a lumber company?

• Cash donations towards reforestation

• Supporting company fun-day celebration

• Increasing workers‟ salaries and wages

• Spearheading the growth of the company

A Caribbean government recently asked an airline to obtain a license before operating in that territory. This means the airline was being asked to satisfy

• a social obligation

• a legal requirement

• an ethical obligation

• a corporate social responsibility

When an existing company grants a license to another company to operate using the formers name and design to provide the same service, the arrangement is called

• a franchise

• a partnership

• an undertaking

• limited liability

Which of the following contains guidelines for regulating process and service standards irrespective of the type of business?

• COSSH

• ISO Standards

• Employee Handbook

• Economic Partnership Agreement

Which of the following types of business has unlimited life and allows for the easy transferability of ownership interest?

• Partnership

• Corporation

• Sole proprietorship

• Limited liability partnership

The Corporate Charter is BEST described as the

• basic legal declaration contained in the bylaws

• legal document that establishes the corporation

• set of rules and procedures established to govern the daily operations of the corporation

• document that governs the relationship between the workers of the corporation and management

Which of the following courses of action is available to the regulatory agency in a country if a registered company fails to pay its taxes?

• Prosecute the company

• Arrest the company's employees

• Cut the company's source of raw material supply

• Ask buyers to boycott the company's products

An entrepreneur wishing to adopt open innovation must

• Maximize the returns of shareholders

• Focus on the firm’s core competencies

• Build an internal collaboration network

• Be willing to collaborate with customers and competitors

In a partnership venture, the partners share the management, profits, and debts of their business based on the terms of their

• Friendship or relationship

• Capital contribution

• Deed of partnership

• By-laws

One advantage of the franchise approach to business is that the entrepreneur gets more

• Profit

• Guidance

• Capital

• Partners