Test Answers on Bus 101 Final – Flashcards
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buying products from another country
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Importing
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selling products to another country
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Exporting
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The movement of goods and services among nations without political or economic barriers
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Free Trade
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a country selling products that they produce most efficently
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comaprative advantage
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a country has a monopoly on a certain product
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absolute advantage
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When you export more than import (prefered)
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trade surplus
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when you import more than export (unfavorable)
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trade deficit
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selling products for less than it cost to make it
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dumping
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allowing someone to manufacture a product and use its trademark for a fee.
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licensing
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business that owns the trademark that is then used by another business
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licensor
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a company that uses another company's trademark
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licensee
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fee charged to the licensee for using the licensor's trademark
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royalty
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selling someone the right to use the name of your business and sell your product/service in a given area
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franchising
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False
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T/F: Absolute Advantage is the basis for the most global trade today
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Exchange of goods and services for other goods and services with no exchange of money traded
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Bartering
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D) Comparative Advantage
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Many of the toy products sold in the United States are imported from Taiwan because the Taiwanese can produce these products more efficiently than U.S. companies. This is an example of: A) Absolute Advantage B) Unilateral Advantage C) Bilateral Advantage D) Comparative Advantage
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True.
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T/F: The Nissan automobile assembly plant in Tennessee is an example of foreign direct investment in the United States
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True
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T/F: A devaluation of the US dollar would make American goods cheaper to foreign buyers.
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False. In this licensing agreement, Tsingtao Brewing is the licensee and Anheuser-Busch is the licensor. The fee paid is indeed the royalty
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T/F: The Tsingtao Brewing company pays a fee to Anheuser-Busch for the right to brew and distribute Budweiser in China. Tsingtao is the licensor and the fee paid is a royalty.
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True
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T/F: Even though the US exports a vast amount of goods globally, it exports a much lower percentage of its products than other countries do.
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D) Barter
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A Mexican firm as agreed to trade petroleum to an American importer in return for US made computers. This arrangement is an example of: A) Arbitrage B) A nontariff trade C) A letter of credit arrangement D) Barter
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B) Franchising
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_________ Is an arrangement by which someone with a good idea for a business sells the rights to use the business name and sell the parent company's product to others in a given territory in a specified manner: A) Contract Manufacturing B) Franchising C) Import trading D)Export trading
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True
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T/F: Since the approval of the North American Free Trade Agreement (NAFTA), the value of US exports to Mexico and Canada has increased.
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a foreign company produces private-label goods to which a domestic company then attaches its own brand name or trademark. a form of outsourcing.
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Contract manufacturing
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a partnership in which two or more companies join to undertake a major project
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Joint Venture
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a long term partnership between two or more companies established to help each company build competetive market advantages
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Strategic alliance
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the buying of permanent property and businesses in foreign nations
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Foreign direct investment
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a company that manufactures and markets products in many countries
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multinational corporation
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The value of one nation's currency relative to the currencies of other countries
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Exchange rate
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lowers the value of a nation's currency relative to others
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devaluation
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taxes on imports, making imported goods more expensive
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tariffs
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raise the retail price of imports so domestic goods are competively priced
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Protective tariff
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raise money for governments
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revenue tariff
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limits the number of products in certain categories a nation can import
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import quota
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ban on an import or export of a certain product or the stopping of all trade with particular country
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embargo
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a global forum for reducing trade restrictions
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World Trade Organization
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agreement between USA, Mexico and Canada which created a free trade area
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NAFTA, North American Free Trade Agreement
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process by which a firm contracts with other companies to do some or all of its functions
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Outsourcing
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Trans-Pacific Partnership
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The US is considering an agreement with a nine-nation free trade block called the ___________
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a business owned, and usually managed, by one person
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Sole propreitorship
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two or more people legally agree to become co-owners of a business
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partnership
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a legal entity with authority to act and have liability apart from its owners
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corporation
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a unique government creation that looks like a corporation, but is taxed like sole propreitorships and partnerships
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S Corporation
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-Have no more than 100 shareholders -Have shareholders that are individuals or estates and are citizens or permanent residents of the US -Have only one class of stock -Derive no more than 25% of income from passive sources
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Qualifications for S Corporations
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Similar to an S corporation, but without the eligibility requirements
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Limited Liability Company (LLC)
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-limited liability -choice of taxation -flexible ownership rules -flexible distribution of profits and losses -operation flexibility
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Advantages of LLCs
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-No stock, therefore ownership is nontransferable -limited life span -fewer incentives -taxes -paperwork
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Disadvantages of LLCs
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-limited liablility -size -perpetual life -ease of ownership change -anyone can incorporate
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Advantages of Corporations
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-Initial Cost -Extensive paperwork -double taxation -two tax returns -size -difficulty of termination
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Disadvantages of Corporations
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-Management and marketing assistance -personal ownership -nationally recoginzed name -lower failure rate
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Advantages of Franchising
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-Large start-up costs -Shared profit -management regulation -restrictions on selling
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Disadvantages of Franchising
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a. can encourage employees to deceive customers
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Creating competetion between employees within the corporation: a) can encourage employees to decieve customers b) can bring out the best in employees c) should focus on improving corporate profit d) must be ignored when corporate ethics are developed
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True
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T/F: Businesses have a social responsibility to create jobs
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True. The objective of a compliance-based ethics code is to avoid criminal misconduct.
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T/F: Dewy Bronner encourages his employees to create and use legal loopholes to gain a competetive advantage. In keeping within the legal limits of the law, the employees are within their compliance-based ethics rights.
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False.
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T/F: Due to the complicated laws and ethical standards abroad, US businesses are encouraged to adopt a "don't ask, don't tell" policy.
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B. a company report that measures the firm's social contributions inside and outside of the firm.
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The social audit is: a) a government mandated report required of all firms who have a business license b) a company report that measures the firm's social contributions inside and outside the firm c) a company report that always includes a net social contribution d) a recent development that creates a ratio to compare a firm's corporate philantropy to its profits.
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True
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T/F: Making accounting records more transparent may help restore trust in the free-market system and leaders in general
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True.
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T/F: Since most ethics violations are small and rather insignificant in nature, employees need to understand that addressing these issues is secondary to making profits. CEOs may be justified in putting these on the back-burner, waiting for more convenient moments to address them.
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C. Whistleblower
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A phone call to a government official by an employee of Enron Corporation disclosed the decpetion and dishonesty of the firm's accounting records. This employee played the role of a: a) moral policeman b) horn blower c) whistleblower d) cheerleader
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A. they are not in agreement with what it means to be socially responsible.
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Although college graduates would prefer to work for a socially responsible companies: A) they are not in agreement with what it means to be socially responsible b) they are not interested in companies that spend resources are corporate social incentives c) they favor Milton Freidman's philosophy on the subject d) they would not consider less pay to do so
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c) investors using private company information to further their own fortunes.
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Insider trading involves: a) an internet activity that establishes a barter exchange system between businesses b) a payment or reward for socially conscious behaivor c) investor using private comapny information to further their own fortunes d) the exchange of assets between companies in the same industry
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Accepting the risk of starting and running a business.
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Entrepeneurship
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A group of experienced people from different areas of business who join to form a managerial team with the skills to develop, make and market a new product.
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Entrepreneurial team
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Entrepreneurs willing to accept the risk of starting and managing a business that remains small, lets them do the work they want to do, and offers a balanced lifestyle.
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Micropreneurs
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An Internet-based marketing strategy in which a business rewards individuals or other businesses for each visitor or customer the affiliate sends to its website.
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Affiliate Marketing
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A creative person who works as an entrepreneur within a corporation.
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Intrapreneur
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Specific geographic areas to which governments attract private business investment by offering lower taxes and other government support.
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Enterprise Zones
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Offer new businesses low-cost offices with basic services
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Incubators
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Independently owned and operated, not dominant in its field of operation and meets certain standards of size.
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Small Business
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A detailed written statement that describes the nature of the business, the target market, the advantages the business will have over competition, and the resources and owners' qualifications.
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Business Plan
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A U.S. government agency that advises and assists small businesses by providing management training and financial advice.
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Small Business Administration (SBA)
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A program through which private investment companies licensed by the SBA lend money to small businesses.
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Small Business Investment Company (SBIC)
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Consumers with unsatisfied wants and needs who have both resources and willingness to buy.
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Market
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True
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T/F: Juanita wants to start a small business. If her primary goal is fast growth and high profits, her best chances would be in the manufacturing sector.
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C) They look at problems and see opportunities
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Which of the following statements is characteristic of entrepreneurs? A) They have the ability to visualize a clear path B) They like certainty C) They look at problems and see opportunities D) They prefer to be inventive rather than worry about whether the invention solves a customer need
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True
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T/F: Enterprise zones offer lower tax rates and government assistance to attract private business investment
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D) A great majority of American workers find their first jobs with a small business.
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Which of the following employment statistics about small businesses is true? A) Growth of minority-owned businesses in the U.S. is declining. B) The number of women owning small businesses has remained constant. C) Small businesses create about 15% of all new jobs in the U.S. D) A great majority of American workers find their first jobs with a small business.
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False
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T/F: Large multinational firms dominate the international market, leaving few opportunities for small businesses.
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True
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T/F: Success in running a business depends on knowing your customers, managing your employees, and keeping efficient records.
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True
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T/F: The most important difference between entrepreneurs and micropreneurs is the focus placed by micropreneurs on balancing the demands of work and family.
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B) meet with experienced entrepreneurs and learn from their advice.
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A small business management course at a community college may offer entrepreneurs an opportunity to: A)listen to a qualified instructor solve all of the problems of small business owners. B) meet with experienced entrepreneurs and learn from their advice. C) try out ideas on a computer simulation before risking real time and money. D) be part of a group that will include angel investors.
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C) bringing together a group of talented and experienced managers to conceive, develop, and market products.
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Apple Computer's "smart team" is an example of a firm that succeeded by: A) encouraging each manager to focus on a well defined area of the business and build his own specialized department. B) emphasizing a low price and low cost strategy right from the beginning. C) bringing together a group of talented and experienced managers to conceive, develop, and market products. D) assembling a group of employees whose inexperience was a plus, because they did not come with the baggage and institutional ideas of larger companies.
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6.9 Billion
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The size of the world market is
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The process of determining human resource needs and then recruiting, selecting, developing, motivating, evaluating, compensating and scheduling employees to achieve organizational goals.
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Human Resource Management
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Policy designed to "right past wrongs" by increasing opportunities for minorities and women.
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Affirmative Action
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Discriminating against members of a dominant or majority group (e.g. whites or males) usually as a result of policies designed to correct previous discrimination against minority or disadvantaged groups.
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Reverse Discrimination
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A study of what employees do who hold various job titles.
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Job Analysis
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A summary of the objectives of the job, the type of work, the responsibilities and duties, working conditions and relationship to other jobs.
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Job Description
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A summary of the minimum qualifications needed to do a particular job.
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Job Specifications
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The set of activities for obtaining the right number of qualified people at the right time.
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Recruitment
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The process of gathering information and deciding who should be hired, under legal guidelines, to serve the best interest of the individual and the organization.
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Selection
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Include part-time and temporary workers, seasonal workers, independent contractors, interns and co-op students.
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Contingent Workers
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All attempts to improve productivity by increasing an employee's ability to perform.
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Training and Development
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The process of training and educating employees to become good managers and monitoring the progress of their skills over time.
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Management Development
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Establishing and maintaining contacts with key managers in and out of the organization and using those contacts to develop relationships.
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Networking
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Managers who supervise, coach and guide selected lower-level employees by acting as corporate sponsors.
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Mentors
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An evaluation that measures employee performance against established standards in order to make decisions about promotions, compensation, training or termination.
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Performance Appraisal
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Sick leave, vacation pay, pension and health plans that provide additional compensation to employees beyond base wages.
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Fringe Benefits
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Allow employees to choose the benefits they want (up to a certain dollar amount).
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Cafeteria-Style Fringe Benefits
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Gives employees some freedom to choose which hours to work as long as they work the required number of hours or complete their tasks.
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Flextime Plan
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Employees work the full number of work hours, but in fewer than the standard number of days.
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Compressed Work Week
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Lets two or more part-time employees share on a full-time job.
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Job Sharing
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When all employees are expected to be at their job stations.
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Core Time
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D) he will have to work longer hours.
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Tony is an office manager with a financial company. His company recently announced that it will soon implement a flextime plan. Under this new system, Tony is likely to find that: A) workers tend to forget their work schedules. B) he will have to work harder to maintain high morale among the employees in his office. C) almost all of his workers decide to change to an earlier schedule. D) he will have to work longer hours.
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the labor force.
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The changes in the American business system that have had the most dramatic impact on the workings of the free enterprise system are the changes in:
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false
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Expenditures on fringe benefits have declined as a percentage of total payroll costs over the past several decades.
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true
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A performance appraisal is an evaluation in which the performance level of employees is measured against established standards to make decisions about promotions, compensation, additional training, or firing.
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it enables them to avoid the prohibitively high costs associated with terminating employees.
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One of the reasons many firms have chosen to use temporary employees rather than rehire full-time employees is that:
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false
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Because of the continuous flow of potential employees into the labor market, recruiting usually is the easiest task for a human resource manager to accomplish.
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true
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Fringe benefit payments account for about thirty percent of payroll costs today.
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true
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An HR manager at a large company interviewed several candidates for a position opening at her firm. Based on her interviews, she assesses that one candidate looks particularly promising. She will recommend a second interview between this candidate and the manager who will supervise the new employee.
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true
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The human resource function has become so critical that it is now a concern of all managers.
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false
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Mario and Marla are web development professionals for a popular high tech company. Due to injuries Mario sustained while serving in the Army Reserves, upon his return the company provided him and other returning soldiers with ergonomic desks and chairs that accommodates wheel chairs and bad backs. Although Marla is hearing impaired, the company does not need to consider providing her with a headset that magnifies sound because she is the only employee out of 200 requiring this accommodation.
