TEST BANK FOR
Organizational Behaviour Understanding and Managing Life at Work, 12th edition Gary Johns,
Alan M. Saks
Chapter 1-15 Answers are at the End of Each Chapter
Sure! I’ll expand on the topics related to "Taxation of Business Entities," providing a more detailed exploration. This overview will cover fundament al concepts, applications, and implications relevant to the study of business taxation. ---###
Overview of Business Entities#### 1. Types of Business EntitiesBusiness entities can be categorized based on ownership struct ure and tax treatment. Understanding these types is crucial for determining tax obligations and benefits. - **Sole
Proprietorships**: - Owned by a single individual, this is the simplest form of business entity. Income is reported on the owner’s personal tax return (Form 1040, Schedule C), which simplifies tax filing but also means personal liability for debts
and obligations.- **Partnerships**: - Consisting of two or more individuals, partnerships do not pay federal income taxes. Instead, they are considered pass-through entities, meaning income is taxed at the partners' individual rates. Form 1065 is
used to report partnership income, while partners receive Schedule K-1 to report their share on their returns.- **Corporations**: - Corporations are separate legal entities that provide limited liability protection to their owners (shareholders). C -
Corporations face double taxation: once at the corporat e level on profits and again at the individual level when dividends are distributed. S -Corporations, on the other hand, are pass-through entities but have restrictions on ownership and number of
shareholders.- **Limited Liability Companies (LLCs)**: - LLCs combine the flexibility of partnerships with the liability protection of corporations. An LLC can choose to be taxed as a sole proprietorship, partnership, or corporation, allowing for
strategic tax planning. ### 2. Tax Implications of Each Entity TypeUnderstanding the tax implications of each entity type is critical for effective business planning. - **Sole Proprietorships**: - Income is taxed at the owner’s individual tax rate. All
profits and losses are reported on the owner’s tax return. This simplicity, however, can expose owners to significant personal risk. - **Partnerships**: - Each partner reports their share of income and losses on their personal returns, allowing for loss
deductions. Partners are also subject to self-employment taxes on their share of the income, which can significantly impact tax liability. - **Corporations**: - C-Corporations are taxed at the corporate tax rat e (currently 21%). Dividends are taxed
again at the shareholder level. S-Corporations avoid double taxation, but there are restrictions on the number and type of shareholders. - **Limited Liability Companies (LLCs)**: - By default, single-member LLCs are treat ed as sole proprietorships
for tax purposes, while multi-member LLCs are treated as partnerships. However, they can elect to be taxed as a corporation if beneficial.### Key Tax Concepts#### 1. Income RecognitionIncom e recognition is a fundamental principle in taxation,
determining when income must be reported.- **Cash vs. Accrual Accounting**: - Businesses can choose between cash and accrual methods. Cash accounting recognizes income when received and expens es when pai d, making it straightforward.
Accrual accounting recognizes income when earned and expenses when incurred, aligning revenue with the period it relates to, but can complicate cash flow management.#### 2. DeductionsDeductions reduce taxable income, directl y impacting tax
liability.- **Ordinary and Necessary Expenses**: - The IRS allows deductions for expenses that are ordinary (common in the industry) and necessary (helpful and appropriat e for the business).
Chapter 1
1
The most important goal of virtually all organizations is
a. profit.
b. survival.
c. employee development.
d. cost reduction.
e. increased productivity.
2. Organizational survival is often dependent on how well the organization can adapt. Which of the following
behaviours on the part of individuals is necessary for the organization to survive?
a. Being motivated to join and remain with the organization
b. Performing their work in terms of productivity, quality, and service
c. Being flexible
d. Being innovative
e. All of the above
3. Which of the following statements best defines an "organization"?
a. A social convention for accomplishing individual goals through group effort
b. A group which accomplishes common goals through social interactions and individual effort
c. A social invention for accomplishing common goals through group effort
d. A collection of formally organized social entities
e. A combination of people and physical capital designed to accomplish a common goal
4. When we say that organizations are social inventions, we mean that
a. organizations don't exist without members.
b. physical assets and implements of technology are irrelevant to organizations.
c. they don't really exist.
d. the existence of organizations is what differentiates humans from animals.
e. they must have both people and things to be considered organizations.
5. A social invention for accomplishing goals through group effort is a(n)
a. managerial task.
b. contingency.
c. organization.
d. operative goal.
e. manager.
, 6. Which of the following is NOT usually a requirement for organizational survival?
a. The continuing membership of particular, specific individuals in the organization
b. The ability to induce persons to join and remain in the organization
c. Innovative activities which go beyond members' usual assignments
d. The reliable performance of usual assignments
e. Flexible and innovative behaviour
7. What do 87 percent of executives believe is a strategic priority for their organization?
a. Employee engagement
b. Psychological capital
c. Human capital
d. Corporate social responsibility
e. Innovation
8. Organizational behaviour is concerned with groups because
a. informal groups can influence organizational effectiveness.
b. much work is performed by formal work groups.
c. groups can influence new organizational members.
d. organizations depend on interaction and coordination among people to accomplish their goals.
e. all of the above.
9. Social inventions for accomplishing goals through group effort are called .
10. is a goal of virtually all organizations.
Sure! I’ll expand on the topics related to "Taxation of Business Entities," providing a more detailed exploration. This overview will cover fundament al concepts, applications, and implications relevant to the study of business taxation. ---###
Overview of Business Entities#### 1. Types of Business EntitiesBusiness entities can be categorized based on ownership struct ure and tax treatment. Understanding these types is crucial for determining tax obligations and benefits. - **Sole
Proprietorships**: - Owned by a single individual, this is the simplest form of business entity. Income is reported on the owner’s personal tax return (Form 1040, Schedule C), which simplifies tax filing but also means personal liability for debts
and obligations.- **Partnerships**: - Consisting of two or more individuals, partnerships do not pay federal income taxes. Instead, they are considered pass-through entities, meaning income is taxed at the partners' individual rates. Form 1065 is
used to report partnership income, while partners receive Schedule K-1 to report their share on their returns.- **Corporations**: - Corporations are separate legal entities that provide limited liability protection to their owners (shareholders). C -
Corporations face double taxation: once at the corporat e level on profits and again at the individual level when dividends are distributed. S -Corporations, on the other hand, are pass-through entities but have restrictions on ownership and number of
shareholders.- **Limited Liability Companies (LLCs)**: - LLCs combine the flexibility of partnerships with the liability protection of corporations. An LLC can choose to be taxed as a sole proprietorship, partnership, or corporation, allowing for
strategic tax planning. ### 2. Tax Implications of Each Entity TypeUnderstanding the tax implications of each entity type is critical for effective business planning. - **Sole Proprietorships**: - Income is taxed at the owner’s individual tax rate. All
profits and losses are reported on the owner’s tax return. This simplicity, however, can expose owners to significant personal risk. - **Partnerships**: - Each partner reports their share of income and losses on their personal returns, allowing for loss
deductions. Partners are also subject to self-employment taxes on their share of the income, which can significantly impact tax liability. - **Corporations**: - C-Corporations are taxed at the corporate tax rat e (currently 21%). Dividends are taxed
again at the shareholder level. S-Corporations avoid double taxation, but there are restrictions on the number and type of shareholders. - **Limited Liability Companies (LLCs)**: - By default, single-member LLCs are treat ed as sole proprietorships
for tax purposes, while multi-member LLCs are treated as partnerships. However, they can elect to be taxed as a corporation if beneficial.### Key Tax Concepts#### 1. Income RecognitionIncom e recognition is a fundamental principle in taxation,
determining when income must be reported.- **Cash vs. Accrual Accounting**: - Businesses can choose between cash and accrual methods. Cash accounting recognizes income when received and expens es when pai d, making it straightforward.
Accrual accounting recognizes income when earned and expenses when incurred, aligning revenue with the period it relates to, but can complicate cash flow management.#### 2. DeductionsDeductions reduce taxable income, directl y impacting tax
liability.- **Ordinary and Necessary Expenses**: - The IRS allows deductions for expenses that are ordinary (common in the industry) and necessary (helpful and appropriat e for the business).
11. Much of the intellectual and physical work done in organizations is quite literally performed by
.
12. 87 percent of executives believe that is a strategic priority for their organization.
13. Organizational behaviour is interested in
a. the attitudes of individuals and groups in organizations.
b. the behaviours of individuals and groups in organizations.
c. the structure of organizations.
d. the formation of groups in organizations.
e. all of the above.
14. Knowledge of organizational behaviour will help you understand the use and effectiveness of .
15. refers to the social resources that individuals obtain from participation in a social structure.
16. Define and describe the differences and relationship between organizational behaviour and human resources
management.
,17. Management is defined as
a. the art of telling people what to do.
b. the art of getting things accomplished through others.
c. the art of getting people to do what you want.
d. the art of controlling employees.
e. the art which prescribes how things get accomplished in organizations.
18. Two important managerial tasks are the analysis of problems and taking action to deal with these problems.
Analysis is closely related to which goal(s) of the field of organizational behaviour?
a. Management
b. Prediction and explanation
c. Explanation and control
d. Prediction and management
e. Prediction and control
19. If prediction and explanation constitute analysis, then management constitutes
a. change.
b. action.
c. behaviour.
d. structure.
e. reason.
20. Which of the following best represents the meaning of evidence-based management?
a. A manager designs a program to reduce absenteeism based on a program implemented in another
organization.
b. A manager designs a program to reduce absenteeism based on previous experience and intuition.
c. A manager designs a program to reduce absenteeism based on a principle learned in an OB course.
d. A manager designs a program to reduce absenteeism based on an article read in the newspaper.
e. A manager designs a program to reduce absenteeism based on a book read on leadership.
Sure! I’ll expand on the topics related to "Taxation of Business Entities," providing a more detailed exploration. This overv iew will cover fundament al concepts, applications, and implications relevant
to the study of business taxation.---### Overview of Business Entities#### 1. Types of Business EntitiesBusiness entities can be categorized based on ownership st ructure and tax treatment.
Understanding these types is crucial for determining tax obligations and benefits. - **Sole Proprietorships**: - Owned by a single individual, this is the simplest form of business entity. Income is
reported on the owner’s personal tax return (Form 1040, Schedule C), which simplifies tax filing but also means personal liability for debts and obligations.- **Partnerships**: - Consisting of two or
more individuals, partnerships do not pay federal income taxes. Instead, they are considered pass-through entities, meaning income is taxed at the partners' individual rates. Form 1065 is used to report
partnership income, while partners receive Schedule K-1 to report their share on their returns.- **Corporations**: - Corporations are separate legal entities that provide limited liability protection to
their owners (shareholders). C-Corporations face double taxation: once at the corporate level on profits and again at the individual level when dividends are distributed. S -Corporations, on the other
hand, are pass-through entities but have restrictions on ownership and number of shareholders. - **Limited Liability Companies (LLCs)**: - LLCs combine the flexibility of partnerships with the
liability protection of corporations. An LLC can choose to be taxed as a sole proprietorship, partnership, or corporation, al lowing for strategic tax planning. ### 2. Tax Implications of Each Entity
TypeUnderstanding the tax implications of each entity type is critical for effective business planning. - **Sole Proprietorships**: - Income is taxed at the owner’s individual tax rate. All profits and
losses are reported on the owner’s tax return. This simplicity, however, can expose owners to significant personal risk. - **Partnerships**: - Each partner reports their share of income and losses on their
personal returns, allowing for loss deductions. Partners are also subject to self-employment taxes on their share of the income, which can significantly impact tax liability. - **Corporations**: - C-
Corporations are taxed at the corporate tax rate (currently 21%). Dividends are taxed again at the shareholder level. S -Corporations avoid double taxation, but there are restrictions on the number and
type of shareholders.- **Limited Liability Companies (LLCs)**: - By default, single-member LLCs are treat ed as sole proprietorships for tax purposes, while multi-member LLCs are treated as
partnerships. However, they can elect to be taxed as a corporation if benefi cial.### Key Tax Concepts#### 1. Income RecognitionIncom e recognition is a fundamental principle in taxation, determining
when income must be reported.- **Cash vs. Accrual Accounting**: - Businesses can choose between cash and accrual methods. Cash accounting recognizes income when received and expenses when
paid, making it straightforward. Accrual accounting recognizes income when earned and expens es when incurred, aligning revenue with the period it relates to, but can complicate cash flow
management.#### 2. DeductionsDeductions reduce taxabl e income, directly impacting tax liability. - **Ordinary and Necess ary Expenses**: - The IRS allows deductions for expenses that are ordinary
(common in the industry) and necessary (helpful and appropriate for the business).
21. Which of the following statements is FALSE?
a. If we can accurately predict organizational behaviour, then we can explain the reason for the
behaviour.
b. "Organizational behaviour" refers to both the behaviour and attitudes of organizational members.
c. The field of organizational behaviour is concerned with both formal and informal groups in
organizations.
d. The field of organizational behaviour is concerned with the impact of culture on organizations.
e. The field of organizational behaviour is concerned with determining the most effective structure for
organizations.
22. Which goal of the field of organizational behaviour is most clearly exemplified by the practice of introducing
a new pay system?
a. Explanation
, b. Analysis
c. Managing
d. Prediction
e. Survival
23. Which of the following is FALSE?
a. Contingent means dependent.
b. Prediction is a more complex process than explanation.
c. All organizations have survival as a goal.
d. Organizational behaviour involves both theory and practice.
e. Accurate prediction usually precedes explanation.
24. Effective management of organizational behaviour
a. is predicated on good prediction and explanation of behaviour.
b. is an example of the managerial task of analysis.
c. was the first or earliest goal of the field of organizational behaviour.
d. is impossible to achieve since each organizational member is a unique individual.
e. requires quick and decisive action on the part of management.
Sure! I’ll expand on the topics related to "Taxation of Business Entities," providing a more detailed exploration. This overview will cover fundament al concepts, applications, and implications relevant to the study of business taxation. ---###
Overview of Business Entities#### 1. Types of Business EntitiesBusiness entities can be categorized based on ownership struct ure and tax treatment. Understanding these types is crucial for determining tax obligations and benefits. - **Sole
Proprietorships**: - Owned by a single individual, this is the simplest form of business entity. Income is reported on the owner’s personal tax return (Form 1040, Schedule C), which simplifies tax filing but also means personal liability for debts
and obligations.- **Partnerships**: - Consisting of two or more individuals, partnerships do not pay federal income taxes. Instead, they are considered pass-through entities, meaning income is taxed at the partners' individual rates. Form 1065 is
used to report partnership income, while partners receive Schedule K-1 to report their share on their returns.- **Corporations**: - Corporations are separate legal entities that provide limited liability protection to their owners (shareholders). C -
Corporations face double taxation: once at the corporat e level on profits and again at the individual level when dividends are distributed. S -Corporations, on the other hand, are pass-through entities but have restrictions on ownership and number of
shareholders.- **Limited Liability Companies (LLCs)**: - LLCs combine the flexibility of partnerships with the liability protection of corporations. An LLC can choose to be taxed as a sole proprietorship, partnership, or corporation, allowing for
strategic tax planning. ### 2. Tax Implications of Each Entity TypeUnderstanding the tax implications of each entity type is critical for effective business planning. - **Sole Proprietorships**: - Income is taxed at the owner’s individual tax rate. All
profits and losses are reported on the owner’s tax return. This simplicity, however, can expose owners to significant personal risk. - **Partnerships**: - Each partner reports their share of income and losses on their personal returns, allowing for loss
deductions. Partners are also subject to self-employment taxes on their share of the income, which can significantly impact tax liability. - **Corporations**: - C-Corporations are taxed at the corporate tax rat e (currently 21%). Dividends are taxed
again at the shareholder level. S-Corporations avoid double taxation, but there are restrictions on the number and type of shareholders. - **Limited Liability Companies (LLCs)**: - By default, single-member LLCs are treat ed as sole proprietorships
for tax purposes, while multi-member LLCs are treated as partnerships. However, they can elect to be taxed as a corporation if beneficial.### Key Tax Concepts#### 1. Income RecognitionIncom e recognition is a fundamental principle in taxation,
determining when income must be reported.- **Cash vs. Accrual Accounting**: - Businesses can choose between cash and accrual methods. Cash accounting recognizes income when received and expens es when pai d, making it straightforward.
Accrual accounting recognizes income when earned and expenses when incurred, aligning revenue with the period it relates to, but can complicate cash flow management.#### 2. DeductionsDeductions reduce taxable income, directl y impacting tax
liability.- **Ordinary and Necessary Expenses**: - The IRS allows deductions for expenses that are ordinary (common in the industry) and necessary (helpful and appropriat e for the business).
25. The interventions or technologies for change proposed by the field of organizational behaviour (such as
certain forms of supervision and job design) most clearly reflect which goal of the field?
a. Prediction
b. Analysis
c. Explanation
d. Management
e. Innovation
26. A supervisor is aware that a large proportion of employees are absent on Fridays. However, the supervisor
doesn't know why they are absent and can't figure out what to do about it. Which goal of the field of
organizational behaviour has the supervisor achieved?
a. Prediction
b. Analysis
c. Explanation
d. Management
e. Diagnosis
27. Translating principles based on the best scientific evidence into organizational practices is known
as .
28. If we understand the reasons for a behaviour, we can often that behaviour effectively.
29. is the goal of the field of organizational behaviour that involves determining the true reason for
behaviour.
30. The goals of the field of organizational behaviour as portrayed in the text include management, explanation,
and .
31. Prediction and explanation of organizational behaviour correspond to the managerial task of .
