question

Individuals in the country may pursue their own economic gain and self-interest by doing whatever is best for them.

answer

Which of the following scenarios would best exemplify Adam Smith's view of best serving the interests of society?

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Guaranteed income

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Which of the following is not a feature of laissez faire capitalism?

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Regulating business activity

answer

In Adam Smith's view, which of the following is not the role of government in business?

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what to produce.

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When consumers spend their money to purchase Apple iPhones or computers with an Intel processor, or when they discontinue buying such items as compact discs, they are telling resource owners

question

both households and businesses in various forms of taxes.

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For the U.S. government to provide services, it collects revenue from

question

purchase resources and products needed to provide services.

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The government uses tax dollars to

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food production.

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In a socialist economy, key industries owned by the government include all except

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All capital and capital goods are privately owned.

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Which of the following is uncharacteristic of a socialist economy?

question

socialist

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The nationalization of key industries in countries such as Sweden and India is indicative of a(n) ____ economy.

question

an adequate supply of consumer goods.

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All of the following are characteristics of communist countries such as Cuba except

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Increased productivity can lead to higher manufacturing costs.

answer

Which of the following statements is false?

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Value of McDonald's sales for their Tokyo locations

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Which of the following would not be included in the gross domestic product of the United States?

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A nation benefits from unemployment due to a lower level of wages required to be paid by employers.

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Which of the following is false in regard to the unemployment rate?

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Create a more extensive physical infrastructure

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All except ____ was a part of the U.S. federal government's stimulus plan.

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two or more consecutive three-month periods of GDP decline

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Which of the following is not a characterization of a depression?

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monetary policy

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The Federal Reserve uses ____ when it lowers the interest rate charged to banks on short-term loans.

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is the application of moral standards to business situations.

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Business ethics

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ethics.

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The study of the morality of choices made by people is known as

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a conflict of interest.

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You are the executive vice president for Cooper Tire, the sixth largest U.S. tire maker. You have the responsibility to locate land for a new distribution center in Mississippi, and you own over 1,000 acres of land near one site in Tupelo. This could create for you

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unethical communications.

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When medical research indicated that a high-fiber diet might help reduce one's risk of colon cancer, a few producers of fiber cereals suggested in their advertisements that if you eat fiber cereal, you will not get cancer. This is an example of

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demographic factors.

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All of the following are factors that affect the level of ethical behavior in an organization except

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social.

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Publix, a southeastern grocery store chain, has signs saying that tips are not accepted and employees are all informed of this policy. However, many of the baggers commonly accept tips from customers anyway and they often compare to see who makes the most. The factor affecting the ethical behavior of Publix's employees is

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Opportunity

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At Victoria's Secret, managerial approval is required whenever an employee makes a purchase at the store using an employee discount. Which factor affecting ethical behavior is Victoria's Secret seeking to control?

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Develop and enforce a written code of ethics for the organization.

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What is probably the most effective way for a company to encourage ethical behavior?

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requiring that ethical behavior be profitable.

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As a result of the Bhopal incident, in which a toxic gas leak killed thousands of people, leading officials at Union Carbide have dedicated themselves to operating their business ethically. Ways in which the company can encourage ethical behavior include all of the following except

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whistle-blowing.

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Informing the press or government officials about unethical practices within one's organization is called

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think about his or her own ethics; the company's ethics; and the interest of employees, stockholders, and customers.

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When faced with an ethical conflict, a manager should always

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is costly but provides tremendous benefits to society and the business.

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Social responsibility

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Employees earning vacation time

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Dorothy worked at a meat packing plant during the 1920s. What would she have been most surprised to see happening at the plant?

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is a Latin phrase meaning "let the buyer beware."

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Caveat emptor

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protection of the free-market system.

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Before the 1930s, most government involvement in day-to-day business was aimed at

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short-run profits and survival.

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The economic model of social responsibility was developed in a period when the primary concern of firms was

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Social responsibility promotes environmental stability and long-run profitability.

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By establishing Ronald McDonald Houses, temporary lodging for individuals with seriously ill family members, McDonald's has committed itself to more than just shareholder wealth maximization. The corporation's active role in improving societal conditions suggests that it is responsive to which of the following arguments?

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The right to choose

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If Casio were to buy out all other calculator manufacturers, what consumer right would be at stake?

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that not all business people favor such programs.

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One problem affirmative action programs have encountered is

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Courts have ruled quotas unconstitutional but commended their purpose.

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What have the courts ruled about quotas as a part of affirmative action programs?

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True

answer

Ethics is the study of right and wrong and of the morality of the choices we make.

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True

answer

For those who like dealing with people, small business is the place to be.

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True

answer

Statistically, one can expect about two out of every three new businesses to fail within six years of their founding.

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False

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The SBA is a private organization rather than a government agency.

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True

answer

John Wells, an African-American small business owner, might be eligible for a grant from the Minority Business Development Agency.

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True

answer

A license to operate an individually owned business as though it were part of a chain is a franchise.

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False

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About one-third of franchised businesses fail during the first two years of operation.

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dominant in its field.

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A small business is all of the following except

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Wholesaler with 50 employees

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Which of the following organizations would be considered a small business?

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Mismanagement resulting from lack of business know-how

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What is the primary reason that so many new businesses fail?

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over 50 percent

answer

Approximately what percentage of the jobs in the United States do small businesses provide?

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Electricity company

answer

Which of the following would least likely be started as a small business?

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Desire for a guaranteed financial return

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Which of the following is not a reason for starting a small business?

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The risk of failure for women-owned businesses is lower than average

answer

Which of the following statements is correct?

question

the low risk and high rewards inherent in entrepreneurship.

answer

Steven Jobs and David Wozniak, the founders of Apple Computer, Inc., were creative, free-spirited individuals who decided that being corporate underlings was not what they wanted from a career. They had an innovative idea for a product and desired to create their own business based on this idea. All of the following are factors that could have led them to go into business except

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It may take several years for a new business to begin showing a profit.

answer

Which of the following statements is true regarding the profitability of new businesses?

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They overexpand without proper planning.

answer

What is a common mistake that small-business owners make when their businesses begin growing?

question

created by individual inventors and small companies.

answer

Penicillin, airplanes, and air conditioning were all

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greater potential for making a profit.

answer

All of the following are advantages that small businesses have except

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False

answer

About three-quarters of all small businesses are in the service industry.

question

True

answer

Small businesses are typically managed by people who started and own them.

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