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International Business Chapters 5 & 6 Flashcards | StudBud
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International Business Chapters 5 & 6
International Business Chapters 5 & 6
54 terms
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StudBud Administration
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International Business review game.
Flashcards
54 cards
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Questions
54
Answers
1
To start your own business you must
ask Barack Obama
obtain a business license
meet with the governor for approval
none of the above
2
A sole proprietorship is a business owned by two or more people.
false
true
3
Products bought by a company or government from a business in another country are called.
exports
imports
bartering
countertrade
4
A duty refers to
a tax on imports
the cost of shipping exports
the value of another nation's currency
interest rates
5
Which is a disadvantage?
ease of starting
net income
partnership
unlimited risk
6
The price of a product includes the cost of loading the goods into transport vessels.
Duty Free
C&F
CIF
FOB
7
A nonprofit corporation is
a business that wants to make money but does not
a way for the owner's to make a lot of money
provides a service and not concerned with making a profi
a way to get easy money
8
The main benefits of a joint venture is the sharing of
raw materials
all of the above
shipping and production facilities
management activities
9
A group of companies in the same type of business is called
countertrade
an economic community
an industry
a monopoly
10
One of the advantages of the corporation is double taxation.
false
true
11
The forces of supply and demand are the major influence of prices in
a duty-free zone
pure competition
an oligopoly
a monopoly
12
The owner's personal assets can be used to pay for any debts of the business.
unlimited liability
profit
sole proprietorship
none of the above
13
A trade deficit is created by a favorable balance of payments.
false
true
14
Which is an advantage of a corporation?
difficult creation process
specialized management
stock certificates
controlled by the owners
15
A freight forwarder is like a travel agent for cargo.
false
true
16
As an owner of a business you are free to make your own business decisions.
true
false
17
Wholly-owned subsidiary is an independent company owned by a parent company.
true
false
18
The owners of a corporation are called stockholders or shareholders.
true
false
19
Imports are products bought by a company or government from a business in another country.
true
false
20
If one partner dies or can't work anymore, the business can dissolve.
false
true
21
One disadvantage of a corporation include fixed financial liability of owners.
false
true
22
Customs officials inspect imported products for health and safety.
false
true
23
20% of business are sole proprietorship.
True
False
24
Market situation with many different sellers, each with a slightly different product.
a monopolistic competition
an oligopoly
a competitive market
a monopoly
25
Municipal corporations are run by the government to make a profit.
false
true
26
Multinational corp. consist of parent company in a home country and branches in host countries.
true
false
27
When a company sells its products in a foreign market without any special activity or purpose
indirect communication
indirect exporting
direct exporting
management contract
28
A _______ arranges the shipping of goods to customers in other countries.
freight forwarder
free-trade zone representative
bartering company
Customs official
29
Any or all of the partners may be held personally responsible for the debts of the business.
true
false
30
What is a nonprofit organization's purpose?
to make a profit
to provide a service
to embezzle money
to engage in international business
31
Availability of different talents is a disadvantage in a partnership.
true
false
32
Foreign Direct Investments is an agreement between two corporations from different countries.
true
false
33
An oligopoly exists when a few large companies control an industry.
true
false
34
What are stockholders usual two main rights?
earn dividends and grant charters
earn dividends and ability to vote on company policies
more pay and ability to vote on company policies
grant charters and ability to vote on company policies
35
A municipal corporation is an organization that conducts business in several countries.
true
false
36
The corporation has more sources of funds than a partnership or sole proprietorship because....
the people owning it are richer
more people are interested in being part owners
none of the above
it usually has more donators
37
Partnership is
a business that is owned by two or more people
your friend's boat
a foreign piece of candy
your partner does all the work for you
38
Partnership is a business that is owned by two or more people.
true
false
39
What is a cooperative?
few people trying to make a profit together internationally
a single person owning a business
a business operating for the benefit of its many members
a company providing stock options to its employees
40
When providing a licensing agreement, the payment is
in return for the money you will spend on the advertising
in return for the franchiser to run the business
in return for the right to use the brand name, or trademark
in return for the company to have more money to travel
41
Which one is a nonprofit corporation?
Burger King
Red Cross
Staples
Toys R Us
42
The document granted by the state or federal government that allows a corporation to form
limited liability
stock certificate
dividends
charter
43
The purpose of the Bill of Lading is to
agreement between an exporter and a transportation company
list import taxes due.
provide bartering information.
state the country in which goods being shipped were produced
44
A cooperative is a business owned by its members and operated for their benefit.
true
false
45
An organization that conducts business in several countries is
production plants
nonprofit corporation
municipal corporation
multinational company
46
Corporations act as a legal "entity" on behalf of the owners.
true
false
47
Franchising and licensing both involve a royalty payment.
false
true
48
Exporting is the opposite of importing.
true
false
49
What is unlimited Liability?
owner's personal assets can be used to pay for debts.
Corporate earnings
when the owner dies and business is sold
profit
50
What type of business has unlimited liability?
companionship
sole proprietorship
partnership
both sole proprietorship and partnership
51
A stockholder typically has how many votes per share of stock?
two
four
three
one
52
A bill of lading states the country in which goods were produced.
false
true
53
A partnership is only created to obtain additional money.
true
false
54
Strategic Partnership is another word for
Franchise
corporations
joint ventures
FDI
