bus x 100 final

question

Despite trade restrictions, international business is Correct A. growing. B. slowing down. C. moving slowly. D. decreasing. E. struggling for survival.
answer

A. growing.
question

The United Kingdom sells industrial supplies and materials to many nations around the world. The United Kingdom thus engages in A. deficit trading. B. importing. C. exporting. D. tariffing. E. dumping.
answer

C. exporting.
question

A limit on the amount of a particular good that may be brought into a country during a given period of time is called a(n) A. trade embargo. B. import deficit. C. import tariff. D. import quota. E. import duty.
answer

D. import quota.
question

When a business has plants located in several foreign countries, it is called a A. countertrade. B. joint venture. C. trading company. D. multinational company. E. licensing firm.
answer

D. multinational company.
question

Which of the following is not a characteristic of an international direct investment in a “totally owned” facility? A. Low financial risk. B. High degree of control. C. Requires direct international investment. D. Utilizes subsidiaries. E. All of the above are characteristics.
answer

A. Low financial risk.
question

The United States buys automobiles from Japan and Germany and petroleum products from many OPEC nations. The United States thus engages in A. tariffing. B. dumping. C. importing. D. deficit trading. E. exporting.
answer

C. importing.
question

When the U.S. government will not allow meat from another country to be marketed in the United States, it is imposing a(n) A. duty. B. devaluation. C. embargo. D. tariff. E. quota.
answer

C. embargo
question

An organization of nations formed to promote the free movement of resources and products among its members and to create common economic policies is called a(n) A. international alliance. B. economic community. C. free-trade association. D. common market. E. None of these answers is correct.
answer

B. economic community.
question

Miller Beer allows a Canadian firm to use its name, formula, and brands in return for a royalty. This is known as A. manufacturing in foreign countries. B. direct investment. C. exporting. D. licensing. E. None of these answers is correct.
answer

D. licensing.
question

An unfavorable balance of trade occurs when A. exports equal imports. B. the total outflow of money is greater than the total inflow of money. C. the total outflow of money is less than the total inflow of money. D. imports are greater than exports. E. exports are greater than imports.
answer

D. imports are greater than exports.
question

The total dollar value of all goods and services produced by all people within the boundaries of a country is called A. standard of living. B. gross national product. C. gross domestic product. D. balance of trade. E. trade surplus.
answer

C. gross domestic product.
question

By definition, nations engage in international trade because every country has a(n) _________ advantage in some product or service. A. comparative B. absolute C. relative D. superior E. inferior
answer

A. comparative
question

Which of the following is NOT a feature of the U.S. “Free Enterprise” system? A. Competition B. Guaranteed income C. Private ownership of property D. Limited role of government E. Profit motive
answer

B. Guaranteed income
question

In a capitalist economy, the question of what to produce is answered by _________, and the question of how to produce is answered by _________. A. consumers; producers B. consumers; government C. producers; government D. consumers; consumers E. producers; producers
answer

A. consumers; producers
question

The markets for detergent, beer, and cigarettes all are dominated sellers who differentiate their products. These markets are best described as: A. monopolistic competition. B. perfect competition. C. an oligopoly. D. a legal monopoly. E. a natural monopoly.
answer

A. monopolistic competition.
question

The market price of peaches is currently falling. In a free-market economy, the most likely explanation of this price change is that: A. the government has decided to set a lower price because sellers have been price gouging. B. there is a surplus in the market for peaches. C. the supply of money has increased. D. the equilibrium price is higher than the market price. E. there is a shortage of peaches in the market.
answer

B. there is a surplus in the market for peaches.
question

_______________ is a necessary and extremely important by-product of the U.S. “Free Enterprise” system. A. Monopoly B. Competition C. Communism D. Socialism E. Poverty
answer

B. Competition
question

“Monopolistic competition” differs from pure competition because it can be characterized by A. many buyers and few sellers. B. few buyers and many sellers. C. product differentiation. D. a few companies that control the market. E. few buyers and few sellers.
answer

C. product differentiation.
question

Because it controls the world’s diamond deposits, the DeBeers Consolidated Mines, Ltd. has a(n) A. comparative advantage. B. advantage based on efficient production. C. absolute advantage. D. trade deficit. E. trade surplus.
answer

C. absolute advantage.
question

The use of money for labor and capital in exchange for goods and services is referred to as: A. inflation problem. B. depression cycle. C. recession period. D. circular flow of resources. E. business cycle.
answer

D. circular flow of resources.
question

An economic system in which individuals and businesses make the decisions about what to produce and what to buy, and the market determines how much is sold and at what prices is called a _________ economy. A. product B. producer’s C. command D. market E. planned
answer

D. market
question

With regard to taxation of partnerships, which of the following statements is correct? A. Partnership income is exempt from taxes. B. The partnership is taxed as a separate entity. C. Each partner is taxed on his / her share of the partnerships profits. D. Profits are taxed twice. E. Taxes are paid on a partnership’s profits, after which each partner pays taxes on his or her share of the profits.
answer

C. Each partner is taxed on his / her share of the partnerships profits.
question

By law, the minimum capital requirements for beginning a sole proprietorship are A. established by the laws of each state. B. nonexistant generally. C. at least $1,000. D. at least $5,000. E. at least $10,000.
answer

B. nonexistant generally.
question

A voluntary association of two or more people acting as co-owners of a business is known as a A. sole proprietorship. B. partnership. C. corporation. D. syndicate. E. conglomerate.
answer

B. partnership.
question

Which business forms incur “unlimited personal liability” for all owners and are viewed as an “extension” of the owner(s)? A. C-Corporations and S-Corporations B. Limited Partnerships and Limited Liability Partnerships C. Sole Proprietorships and General Partnerships D. Sole Proprietorships and LLC’s E. All Forms of Partnerships (General, Limited, and LLP’s)
answer

C. Sole Proprietorships and General Partnerships
question

All business forms require A. a formal, written agreement. B. a charter and registartion with the secretary of state. C. filing tax returns with the IRS. D. filing with the SEC. E. all of the above.
answer

C. filing tax returns with the IRS.
question

The simplest form of business owned and operated by more than one person is called a A. C-corporation. B. limited liability company. C. general partnership. D. S-corporation. E. sole proprietorship.
answer

C. general partnership.
question

The partner who can lose only what he or she has invested in a business is the A. employee. B. manager. C. sole proprietor. D. limited partner. E. general partner.
answer

C. sole proprietor.
question

Unless specified in the charter, a sole proprietorship has a A. perpetual life. B. life of 50 years. C. life of 17 years, which is renewable. D. legally recognized life, which varies from state to state. E. legal life limited to the life of its owner
answer

E. legal life limited to the life of its owner
question

Which of the following is the most popular form of business based on the number of businesses in the U.S. ? A. Corporation B. General partnership C. Sole proprietorship D. Not-for-profit corporation E. Co-operative
answer

C. Sole proprietorship
question

Which of the following is necessary for starting a sole proprietorship? A. Articles of proprietorship B. A contract C. No specific legal documents required D. A written agreement E. An application to the secretary of state
answer

C. No specific legal documents required
question

When incorporating, a business A. must incorporate in the state in which its headquarters are located. B. may incorporate in any state it chooses. C. must incorporate in the state in which it does the most business. D. must receive the secretary of state’s permission to incorporate in any state other than the one in which its corporate headquarters will be located. E. None of these answers is correct.
answer

B. may incorporate in any state it chooses.
question

Which of the following business forms are created under state law and require registration with the Secretary of State? A. Corporations B. Limited Liability Companies C. Limited Partnerships D. Limited Liability Partnerships E. All of the above
answer

E. All of the above
question

Peter Piper approached Jane B. Nimble about becoming a partner or active owner in a firm that destroys environmental waste. While Peter would like to become an active owner in the firm, he is concerned about his liability because he has recently inherited a lot of money. In this situation, Peter should: A. become a general partner with a majority ownership interest in a partnership. B. become a sole proprietor. C. become a general partner with a minority ownership interest in the business. D. become a member in an LLC. E. become a limited partner in a limited partnership.
answer

D. become a member in an LLC.
question

A publically traded ‘open’ corporation A. must be chartered in its state of incorporation. B. pays its own income taxes on profits. C. files annual and quarterly reports as required by the SEC. D. may pay dividends to shareholders. E. All of the above.
answer

E. All of the above.
question

Articles of organization are filed with the Secretary of State to form a(n) A. C-corporation. B. S-corporation. C. LLC. D. General Partnership. E. Sole Proprietorship.
answer

C. LLC.
question

The largest forms of business ownership in the U.S. as measured by revenue dollars are: A. Sole proprietorships B. Partnerships C. For-Profit Corporations D. Limited Liability Companies E. Co-operatives
answer

C. For-Profit Corporations
question

With regard to taxation of limited liability companies, which of the following statements is correct? A. LLC income is exempt from taxes. B. The LLC is taxed as a separate legal entity. C. Each member is taxed on his / her share of the LLC’s profits. D. Profits are taxed twice. E. Taxes are paid on a LLC’s profits, after which each member pays taxes on his or her share of the profits
answer

C. Each member is taxed on his / her share of the LLC’s profits.

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