question

The general partnership avoids the problem of double taxation experienced by ?, because earnings of partnerships are taxed only as income of the ?, with no separate tax on the income of the ?.

answer

C corporations; partners; business

question

When comparing a nation's balance of trade with its balance of payments, it is important to realize that ?

answer

the balance of payments includes the balance of trade but it also includes other financial flows such as foreign borrowing and lending

question

What is NOT an accurate statement about a sole proprietorship?

answer

legally, the business is considered separate and distinct from its owner

question

Miguel Santos became very wealthy when his ten year old company made it big, and he sold it for several million. Now he is an ? who invests in other promising start up companies. His goal is to make a sizable return on his investments when these new companies grow to the point where they, too are sold to a larger firm, or when they go public.

answer

angel investor

question

In ?, many firms compete by selling differentiated products.

answer

monopolistic competition

question

? refers to government efforts to influence the economy through taxation and spending decisions designed to encourage growth, boost employment, and curb inflation.

answer

fiscal policy

question

? create benefits for others while seeking profit for themselves.

answer

entrepreneurs

question

? is the contractual relationship in which an established firm supplies another business with unique resources in exchange for payment and other considerations

answer

franchising

question

A limited liability partnership (LLP) is attractive to partners because ?

answer

there is no distinction between limited and general partners

question

A nations legal system provides businesses with ? for examining ethical standards.

answer

a starting point

question

Reasons to eliminate trade restrictions include all of the following EXCEPT ?

answer

protect National Security

question

Which of the following is NOT a significant drawback of getting into business by entering into a franchise arrangement?

answer

franchising is generally considered to be the riskiest option for starting a business

question

Nonprofit organizations are not in the business of ?

answer

financial gain

question

To evaluate inflation the government uses ?

answer

the consumer price index (CPI) and producer price index (PPI)

question

Suppose the values of the U.S. dollar strengthened considerably against the euro. Who would be most likely to benefit from this result?

answer

European firms exporting goods to America

question

A key difference between S corporations and C corporations is that ?

answer

S corporations may have no more than 100 shareholders who must all be citizens or permanent residents of the United States, while C corporations do not have these restrictions on ownership

question

? are companies that invest in start up businesses with high growth potential in exchange for an ownership stake.

answer

venture capital firms

question

Demand is defined as ?

answer

the quantity of products that consumers are willing to buy at different prices

question

Foreign ? involves a firm buying the rights to produce, promote, and use the domestic firms trademark/patents in a defined geographical area as long as there is agreement on specific operating procedures.

answer

licensing

question

Which of the following questions would an entrepreneur most likely ask in the aftermath of a business failure?

answer

What can I learn from this experience that will help me be more successful in the future?

question

Entrepreneurs tend to have an internal locus of control. This means they ?

answer

have a sense that they are personally responsible for what happens in their lives

question

A well-written partnership agreement for a general partnership can help the partners deal with all of the following issues EXCEPT how to ?

answer

avoid unlimited liability

question

A ? maintains limited liability but offers more flexibility in terms of tax treatment than other forms of business ownership.

answer

limited liability company

question

A trade ? occurs when a country imports more goods and services than it exports.

answer

deficit

question

What are the three types of partnerships?

answer

general, limited, and limited liability

question

The ? of a company that produces gourmet coffee include its employees, coffee bean growers who supply the company, people who drink its gourmet coffee, and the people who live in the community where the company produces the coffee.

answer

stakeholders

question

In the broadest sense, economics studies the choices that ?

answer

people, governments, and companies make in allocating resources

question

A supply curve shows that as prices rise the ?

answer

quantity of products produced rises

question

Ben & Jerry's is recognized for being a socially conscious trendsetter. As a socially responsible company, this maker of high quality ice cream is likely to focus on ?

answer

finding the proper balance between earning profits and meeting responsibilities to other stakeholders

question

A ? occurs when two companies agree to combine operations to form a new company.

answer

merger

question

The rate of entrepreneurship differs from country to country with countries like Bolivia and Columbia having the highest rates in the world. Research Conducted by the Global Entrepreneurship Monitor (GEM) theorized rates are highest in countries in which the people

answer

start their own businesses simply because they have no other options

question

A nonprofit corporation enjoys the benefit of ?

answer

earnings that are exempt from state and federal taxes

question

The purpose of a written code of ethics is to ?

answer

provide guidance to help employees make sound ethical decisions across a range of situations

question

Manufacturing jobs have migrated overseas due to increased productivity and low wages of workers in other countries. This contributes to ? unemployment for American workers in the manufacturing sector.

answer

structural

question

A ? merger is the combination of two or more firms at different stages of production of a given product or service, so the firms have a buyer-seller relationship.

answer

vertical

question

? refers to actions that shape the economy by influencing interest rates and the supply of money.

answer

monetary policy

question

Research suggests that many entrepreneurs fund their new business with ?

answer

personal resources of the founder

question

A possible drawback when buying an existing business is that ?

answer

you may inherit the mistakes made by the previous owner

question

A small mountain kingdom in the south of Africa, Lesotho is primarily an agrarian economy. If its king and political leadership made decisions that sank the kingdom into unmanageable debt through loans it could not hope to repay, to which international body would the king appeal for debt forgiveness?

answer

IMF

question

Basil Pappas spent his youth working in the restaurants of several of his close relatives. Now, he wants to venture into his own business and has decided that he will open his own restaurant. Basil needs more money than he can come up with on his own, so he plans to ask his two brothers to put up some money in exchange for a share of ownership. Such an arrangement means that the company CANNOT be formed as a ?

answer

sole proprietorship

question

Trading blocs are groups of countries ?

answer

that have reduced or eliminated tariffs allowing for a free flow of goods among member nations

question

The four major categories of factors of production are ?

answer

natural resources, capital, and ingenuity

question

The three countries participating in the North American Free Trade Agreement (NAFTA) are ?

answer

Canada, Mexico, and USA

question

Companies that attempt to monopolize a particular market are likely to violate the ?

answer

Sherman Antitrust Act of 1890

question

Macroeconomics focuses on ?

answer

the three major issues facing the national economy that may seem abstract, but directly affect an individual's day to day life

question

What is the difference between outsourcing and importing?

answer

importing is when a firm buys foreign products that have already been produced and outsourcing is when a firm contracts with foreign vendors to produce products

question

Types of corporations include ?

answer

general; S; statutory close; nonprofit

question

In a business world social responsibility refers to ?

answer

the obligation of a business organization to contribute to society

question

The goal of ? is to meet the needs of the current generation without harming the ability of future generations to meet their needs.

answer

socially optimal pricing

question

A ? is any activity that provides goods and services in an effort to earn a profit.

answer

business

question

In the business cycle, a transition period of rising economic growth and increasing employment is a ?

answer

recovery

question

Today the economies of virtually all nations would be classified as ?

answer

mixed economies

question

To facilitate trade, several European nations have adopted a single currency-the ?

answer

euro

question

eCommerce is different from bricks and mortar business because ?

answer

it's nearly irrelevant where the seller is located; there are low barriers to entry for merchants starting a new business; no travel is required to purchase goods

question

The ? shows the cash flowing in and out of a firm through its operating, investing, and financing activities.

answer

statement of cash flows

question

According to the ? method of accounting, revenues are recognized when they are earned, and payment is reasonably assured.

answer

accrual-basis

question

Stockholders would most likely use accounting information provided by their firm to ?

answer

gauge whether the firm is generating a satisfactory return on their investment

question

Which statement about enterprise resource planning (ERP) is false?

answer

a key advantage of ERP systems is that compared to older systems, they are relatively inexpensive to implement and easy to establish

question

For financial managers to be socially responsible, it requires them ?

answer

to make long-term commitment to the needs of many stakeholders

question

? provide reports, information, and analysis to managers to assist them with making better informed decisions.

answer

managerial accountants

question

For the past several decades, the ? and ? were the two largest securities exchanges in the United States.

answer

New York Stock Exchange (NYSE); NASDAQ

question

Equity financing is provided by ? while debt financing is provided by ?

answer

owners; creditors

question

In operations management, quality is defined in terms of ?

answer

how well a product satisfies the preferences of customers

question

Choose the best example of viral marketing.

answer

word of mouth promotion

question

The ? summarizes a firm's financial position at a specific point in time (i.e. a specific quarter of the year).

answer

balance sheet

question

Greg is a recent graduate with an accounting degree. He has also sat for and passed the CPA exam. At his new accounting position at GETWITHIT.com, Inc., he notices that depreciation expense is not calculated in what he understands to be an acceptable accounting method. Greg has decided to approach his supervisor and clarify what he believes to be a discrepancy in standard prices. To make his case, he should refer to ?

answer

GAAP

question

? accountants provide services such as tax preparation, external auditing, or management consulting to clients on a fee basis.

answer

public

question

The ? is an index based on adjusted average price of stocks of 30 major corporations picked by editors of The Wall Street Journal.

answer

Dow Jones Industrial Average

question

In some economies prices escalate causing currencies to not be stable. Zimbabwe is a recent example of this rapid price escalation which we call ?

answer

hyperinflation

question

Preferred stockholders enjoy a preference over common stockholders with respect to ?

answer

dividends

question

All of the following are assets EXCEPT ?

answer

salaries paybale

question

With debt capital, companies ?; with equity capital, companies ?

answer

repay borrowed money with interest; exchange ownership for money

question

iTunes, Expedia, and Charles Schwab are all examples of ? companies participating in e-commerce.

answer

B2C

question

For followers of Jesus, scripture says a great deal about money, such as ?

answer

God richly gives us everything to enjoy. Tell the rich people to do good, to be rich and doing good deeds, to be generous and ready to share.

question

An organization's activities and processes that involve the physical flow of good deeds from the raw material state to the final consumer is known as ?

answer

supply chain

question

Financial managers who have a good understanding of the risk-return tradeoff know that ?

answer

higher rates of return are riskier than lower rates of return

question

Profit is the difference between ?

answer

revenue and expenses

question

Moore's Law suggests that information technology ?

answer

advances at a rapid pace

question

Angel investors are ?

answer

wealthy persons who invest in young businesses

question

A firm's current liabilities ?

answer

are due to lenders in less than a year

question

When a company utilizes ? it arranges for other organizations in the value chain to perform functions that were performed internally.

answer

outsourcing

question

As a ? you work within an organization, preparing reports and analyzing financial information such as budgets and cost management.

answer

management accountant

question

Which of the following is not one of the big four international accounting firms?

answer

Boyd & Walker

question

Candidates wishing to become certified public accounts must complete all the following to reach certification EXCEPT ?

answer

must complete

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