OACETT IEPPE Exam With Confidence Using Practice Dumps

When raising money,lenders require financial securitybefore approving loans. Bothcorporations and partnershipscan borrow money, but acorporation has more financing options.

Step-by-Step Explanation:

Why Business Structure Affects Loan Approval:

Banksassess riskbefore lending money.

New businesses lack credit history, so banks requirepersonal guaranteesfromowners.

Acorporation has more flexibilitysince it canissue shares or bondsto raise money.

Key Considerations for Business Loans:

Partnerships and Corporations can borrow, but banks maydemand a personal guaranteefrom the owners.

Corporations can secure funding through investors, reducing reliance on loans.

Ajoint venture is temporaryand not ideal for long-term financing.

Why Option D Is Correct:

Both corporations and partnerships can raise money, butbanks often require a personal guarantee.

Corporations have additional financing options (e.g., issuing shares).

Why Other Options Are Incorrect:

A (Joint Venture)–Not designed for long-term borrowing.

B (Corporation without personal guarantee)–Banks usually require a guarantee for new businesses.

C (Partnership without personal guarantee)–Incorrect, as partners are personally liable for debts.

Ethical decision-making in engineering and technology often requires multiple perspectives.Theutilitarian approachfocuses onthe greatest good for the greatest number, whilethe respect-for-persons approachemphasizesindividual rights and dignity.

Step-by-Step Explanation:

Utilitarianism (Greatest Good for the Greatest Number):

This theory suggests that themorally right decision is the one that benefits the most people.

Example:A company installs extra safety featuresin a factory to protect workers, even if it costs more.

Respect-for-Persons (Duty-Based Ethics):

This theory emphasizesindividual rights, fairness, and ethical duties.

Example:A project manager refuses to use substandard materials, even though it would reduce costs and speed up the project.

Why Option D Is Correct:

A (Respect-for-persons taking priority)– This is often true in cases whereindividual rights must be protected, such as worker safety.

B (Reaching the same conclusions)– Ifboth theories align, it providesstrong ethical justification.

C (Deciding which takes priority if they diverge)– Sometimesa balance must be struck, prioritizing eitherindividual rights or overall benefits.

Why This Matters in Professional Practice:

Engineers and technologists oftenface ethical dilemmasrequiring a balance ofpublic safety, environmental responsibility, and business interests.

Apartnershipis theeasiest and lowest-cost wayfor two or more people to start a business together.

Step-by-Step Explanation:

What Is a Partnership?

A businessowned by two or more people.

Lower setup coststhan a corporation.

Profits and lossesare sharedbetween partners.

Why a Partnership Works for Brown & Green:

Theyshare expertise and investment.

Less paperwork and fewer legal requirementsthan a corporation.

Since they plan toretire in 10 years, a partnership offersflexibility without long-term obligations.

Why Option C Is Correct:

Requires minimal startup capital.

Simple to set up and dissolve.

Why Other Options Are Incorrect:

A (Corporation)– More complex,higher startup costs, and strict regulations.

B (Sole Proprietorship)–Only one owner allowed.

D (Joint Venture)– Used forshort-term projects, not long-term businesses.