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Business 100 Test 1 Review
Business 100 Test 1 Review
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1
As a factor of production, the term
capital
includes
services provided by the government.
stocks and bonds issued by corporations.
natural resources such as land and water.
tools, machinery, and buildings.
2
When businesses sell to other businesses online, these transactions are known as
hidden transactions.
B2B transactions.
B2C transactions.
e-wholesale transactions.
3
The four basic types of unemployment are frictional, structural, seasonal, and
cyclical.
traditional.
procedural.
industrial.
4
One of the major disadvantages of a sole proprietorship is the
possibility of disagreements between owners.
high cost of starting or ending the company.
unlimited liability the owner has for the debts of the firm.
threat of double taxation on income.
5
The most important difference between for-profit businesses and nonprofit organizations is that
nonprofit organizations seek profit for their owners and organizers.
nonprofit organizations do not seek a profit for their owners
nonprofit organizations do not answer to stakeholders.
for-profit businesses do not benefit society.
6
An _________is a limit on the number of products in certain categories that a nation can import.
import binder
import quota
import law
import rite
7
Efforts by the Federal Reserve Bank to control the money supply and interest rates are known as __________ policy.
monetary
securities
income
fiscal
8
The social and economic goals of __________ include private ownership of land and business.
command economies
capitalism
communism
socialism
9
Which term describes the set of values, beliefs, rules, language, and institutions held by a specific group of people?
culture
customs
ethnocentricity
institutional society
10
The gross domestic product
does not look at consumer spending
is not an economic indicator
provides the overall value of the goods and services that economy produces
does not include unemployment measures
11
The limited liability provided to limited partners means that they are not responsible for the debts of business beyond
the firm's total assets.
their total personal assets.
the percentage of profits they are entitled to earn.
the amount they have invested in the company.
12
When prices are free to adjust over time, in the long run, the market price of a good tends to
rise above the equilibrium price in the long run.
have no specific relationship to the equilibrium price.
fall below the equilibrium price in the long run.
equal the equilibrium price.
13
Taxes and government regulations are part of the __________ environment of business.
competitive
social
technological
economic and legal
14
A simple supply curve shows that an increase in the price of a good will cause the quantity supplied to
increase.
remain constant.
fluctuate randomly around its equilibrium value.
decrease.
15
The __________ is usually the easiest form of business to start and end.
limited partnership
sole proprietorship
cooperative
corporation
16
Businesses that produce and sell tangible products such as steel and machines are part of the
manufacturing industry.
knowledge-based industry.
social services industry.
service industry.
17
The freedom for people to buy, sell, and use buildings, machinery, and inventions are basic capitalist rights under
freedom of expression.
freedom of competition.
freedom of choice.
the right to own private property.
18
What are the 3 Modes of Social Control
Informal groups, laws & ethics
Personal opinions, Ethics & Laws
Codes, People, & Ethics
Ethics, Laws, & Informal/formal groups
19
Following an ethics-based approach to decision making will normally lead to higher
profits.
prices.
employee turnover.
trust and cooperation.
20
An owner of a corporation is known as a
general partner
director
limited partner.
stockholder.
21
What is De-anchoring of Inflation?
Increase in pricing is not tied to increase in wages
Inflation for sailors
Inflation that has to do with manufacturing
Increase in pricing is tied to increase in wages
22
Governments charged a ______, a tax on imports, making imported goods more expensive.
law
binder
tariff
rite
23
We need to ask 3 questions when looking at business morals. Which is not one?
who is being helped or hurt?
What actions produce the greatest amount of good?
How long will the consequences last?
Why is the change needed?
24
A __________ is a severe recession that is usually accompanied by deflation
dissolution
retraction
stagflation
depression
25
An advantage of forming a joint venture is
no shared costs or risk.
guaranteed profits for all participants.
shared marketing and management expertise.
a perpetual arrangement.
26
Free trade between nations generally results in
industrialized nations gaining at the expense of developing nations.
higher prices for imported goods.
mutually beneficial exchange relationships.
an increase of jobs in developed nations.
27
Organizational ethics begins with
the individual values of employees.
an understanding of the law.
strong managers.
traditional religious institutions.
28
What policies would tend to foster entrepreneurship?
Encourage government ownership of businesses.
Promote more regulations to protect the environment.
Develop policies to reduce corruption between individuals.
Minimize taxes and regulations.
29
Cause related maketing
marketing is for businesses in debt
marketing is for sole proprieitors
marketing is about laws
the corporation receives profit & the nonprofit receives benefit
30
Which is not one of the 4 types of dumping
forward
sporadic
predatory
persistent
31
One advantage of free trade is
service jobs are moved overseas.
advanced production operations are built in low-wage countries.
innovation for new products occurs & keeps firms competitively challenged.
jobs are shifted to low-wage global markets.
32
Although the details are still being negotiated, the expected successor to NAFTA is
the Central American Free Trade Agreement.
the United States–Mexico–Canada Agreement.
the ASEAN Economic Community.
Mercosur.
33
__________ is buying products from another country.
Outsourcing
Exporting
Importing
Retailing
34
A firm that has made sizable investments and has a physical presence in several foreign countries as a manufacturer
multinational corporation
host company
import trading company
franchiser
35
refers to output generated with a given amount of input, e.g., the number of pizzas produced per worker per hour.
Competence
Technology
Efficiency
Productivity
36
A common characteristic of most entrepreneurs is that they
accept the risks involved in starting and managing a business.
possess a great deal of personal wealth.
have experience in running large, complex organizations.
have a high level of scientific and technical expertise.
37
In recent years, almost all new job creation in the United States has occurred in the __________ sector.
telecommunications
agricultural
manufacturing
service
38
To many businesspeople, one of the major attractions of a sole proprietorship is
the chance to be their own boss.
the protection of limited liability.
the ability to obtain additional financial resources.
guaranteed financial success.
39
The balance of trade is defined as
trying to reduce the amount of debt between countries
balance of payments
net balance of export and import of goods in an given time
balance of trade, services, unilateral transfers and capital accounts
40
To eliminate the risk of partners making costly mistakes that could jeopardize your personal assets is to set up a
limited liability partnership.
sole proprietorship
master limited partnership.
limited amount of time each can actively spend in the business.
41
Which statement best describes ethical behavior in the United States?
Americans use the Golden Rule as the only statement of value
Respect human life, self-control, honesty & integrity are common standards
The cultures in the US make it difficult to identify any common standard
only common standards of ethical behavior is religious teaching
42
The amount of goods and services people can buy with the money they have is called their
nominal income.
standard of living.
consumer price index.
profit margin.
43
__________ comprise about 20% of all businesses but account for about 81% of U.S. business receipts.
Partnerships
Sole proprietorships
Corporations
Limited liability companies
44
Sprinkler Market Entry Strategy
The first choice of most businesses
Designed to outrun the competition
Simultaneous Business Expansion to a Number of Domestic Markets
not risky because it takes significant investment
45
What is an advantage of a partnership?
ease of starting and ending the business
little time commitment
shared management and pooled skills
unlimited liability
46
Which topic would be emphasized in a microeconomics class?
how market conditions determine the price of a specific product
how the government can provide adequate health care
how a nation's GDP is computed
the nation's unemployment rate
47
A benefit of a free market can be that
businesses provide customers with quality products at fair prices.
businesses all make the same amount of profit.
it tends to reduce government regulation.
it eliminates wealth inequalities in society.
48
Dumping
selling products in a country at a lower price than charges in that country
talking trash
sending trash to other countries
selling illegal goods to underdeveloped countries
49
Green marketing
Are St. Patrick's Day products
Are not prefered by customers
Makes only products that are the color green
products designed to minimize negative effects on the environment
50
Which is not true, ethical values are:
cannot go back in time
time oriented
Only cause related
situation-specific
51
Considering the potential impact on others prior to making a decision is consistent with _____ behavior.
anti-social
self-motivated
ethical
legal
52
A typical demand curve shows that
as supply increases, the amount purchased decreases.
people tend to buy more of a good than they really want.
people tend to buy more of a good when its price decreases.
as people earn higher wages, they buy more of a specific good.
53
Ethical Behavior depends on a
A Businessman's daily conduct
Codes
Laws
Formal groups
54
What is the most accurate statement about the impact of business on society?
Businesses improve the quality of life, but not the standard of living
Businesses cannot improve the standard of living for society
Businesses earn a profit for their owners at the expense of the rest world
Businesses can positively impact standard of living and the quality of life
55
What is the best strategy to improve U.S. business ethics?
Ethics must be taught in every business school around the globe.
Company leaders should adopt and support a corporate code of ethics.
Congress must pass an ethics bill.
A company's suppliers must be investigated for ethical violations.
56
Contemporary governments promote business development by
establishing a currency that is tradable in world markets.
increasing business regulations.
encouraging government ownership of businesses.
permitting businesspeople to conduct business without the use of contracts.
57
Consumer spending
accounts for two-thirds of U.S. gross domestic product
is limited in the amount one can actively spend in the business.
is not a good gauge of consumer health
predicts forgien policy
58
__________ describes an attitude held by some American businesspeople that American culture is superior to all others.
Cultural institutionalism
Primary culture
Social myopia
Ethnocentricity
59
Given the ethical lapses in our businesses, what can be done to restore trust in the free-market system and leaders
Government must take over all businesses displaying ethical lapses.
Making the government accountable for business behavior will restore trust.
Business leaders that have broken the law should be given another chance.
New laws making accounting records transparent may help restore trust.
60
Creating intense competition between employees within the corporation
can encourage employees to deceive customers.
will improve customer service.
must be ignored when corporate ethics are developed.
can bring out the best in employees.
61
When we compare the factors of production in wealthy versus poor nations, we find
rich and poor countries have knowledge; but rich have more land
poor countries have more land but little labor
Rich countries have more land poor countries have more capital
wealthy nations have opportunities, while poor nations lack knowledge
62
The _____ is the most common form of business ownership
sole proprietorship
partnership
joint venture
corporation
63
Efficiency in distribution systems around the world has led to
decreased world trade.
increased world trade.
decreased international competition.
reduced standards of living around the world.
64
What are the rules called people develop as a result of cultural values and norms
morals
deviontions
changes
responsibilities
65
A(n) __________ refers to a complete ban on importing or exporting of products from a specific country.
quota
protective tariff
absolute tariff
embargo
66
Inflation is
the general price level rise of goods and services in an economy
the decrease in consumer debt
the overheating of the economy
the increase in consumer debt
67
A very critical last step in the process of establishing an ethics code is
training.
identification of the organizational ethics officer.
middle management support.
enforcement.
68
A __________ is a form of business that is owned, and usually managed, by one person.
subchapter S corporation
limited partnership
cooperative
sole proprietorship
69
We describe charitable donations by corporations to nonprofit organizations as
structural commitment.
corporate philanthropy.
corporate responsibility.
corporate strategy.
70
Employers provide tools and technology for their employees in order to
improve their efficiency and productivity.
reduce corruption in business and eliminate scandals.
encourage the private ownership of businesses.
increase the cost of production and profitability.
71
The legislation that prohibits U.S. businesses from making questionable payments to foreign officials to secure business
Foreign Antitrust Act.
Multinational Collusion law.
Global Good Conduct law.
Foreign Corrupt Practices Act.
72
Technology affects people in
primarily high-income countries.
a few information technology industries.
Technology affects people in
most industries.
73
Which term describes someone who reports illegal or unethical behavior?
undercover agent
whistleblower
watch tower sentinel
horn blower
74
The goal of dumping is to
sell illegal goods
help low income countries find work
create a market for cheap goods
help the environment
75
What is an unresolved ethical issue that surrounds global trade?
labor standards
transportation issues
product quality
time to market issues
76
An ________ is a complete ban on the import or export of a certain product or stopping all trade with a country
foreign policy
restricitve tariff
embargo
restricitve quota
77
All else being equal, socially responsible firms
are viewed more favorably by consumers.
fail to earn sufficient profits for their owners.
enjoy significantly higher profits.
often experience customer loyalty problems.
78
What is trade protectionism?
protecting the environment
self monitoring
balancing trade
the use of government regulations to limit imports of goods and services
79
Unlimited liability means
you are responsible for all the business debts
you are liable for whatever advertising promises your firm makes.
your franchisor is responsible for the debts of the franchise
you are only liable for the money you invest in the business.
80
Wave Market Entry Strategy
Simultaneous Expansion to a Number of Foreign Markets BUT IN GROUPS
The first choice of most businesses
First stage involves markets similar to the forgein ones
usually are geographically farther away
81
A key to economic growth and development is to
provide people with better education.
emphasize a fair and equitable distribution of income.
locate more deposits of gold and other precious metals.
allow governments to guide the allocation of resources.
82
The __________ is the total value of a nation's exports compared to its imports measured over a specific period of time.
balance of trade deficit
balance of trade
balance of payments
balance of trade surplus
83
Waterfall Market Entry Strategy
Easily used
The knowledge obtained during one stage is used to enact the next one
Clearly defined entry stages and the sequential use of experience
Sequential Business Expansion to Foreign Markets
84
What is an example of an outside group urging ethical behavior in businesses?
union officials
suppliers
management teams
sales representatives
85
Which situation would most likely involve ethical concerns?
overstating an expense report
developing the marketing plan for the next year
forecasting sales for the next year
improving working conditions
86
Often in business the greater the risk, the
greater the number of stakeholders.
lower the value provided to society.
lower the expected revenues.
greater the potential reward.
87
The first and most basic step when facing an ethical dilemma is to ask
"Is it profitable?"
"Is it legal?"
"How will it make me feel about myself?"
"Is it balanced?"
88
In a limited liability partnership, each partner's risk of losing personal assets is
unlimited.
nonexistent.
limited to losses that result from that partner’s own acts and omissions
determined by the maximum loss provision established by the co-partnership
89
What is an advantage of offshore outsourcing?
Product quality improves permitting firms to charge more for products.
Wages increase in the home country.
Companies can create efficiencies by hiring low-wage employees.
Communication between the company and its customers improves.
