BUSI 1301 – Flashcards
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Which term refers to the body of decisions handed down by courts ruling on individual cases?
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common law
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Which term identifies law created by constitutions or by federal, state, or local legislative acts
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statutory law
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Which term refers to the elimination of administrative laws and rules that restrict business activity?
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deregulation
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What is another name used to identify federal trial courts?
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D. district court
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What term is used to identify the lowest level of general courts that hear cases NOT specifically assigned to another court?
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C. trial court
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Which of the following is NOT one of the three Levels in the Federal judicial system and most States?
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family
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What is an agreement between two of more parties that is enforceable by law?
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contract
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What term is used to identify the serious, definite, and communicated offer and acceptance of the same terms?
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agreement
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A contract is NOT enforceable if consent is absent, meaning that:
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C. any of the parties may have been affected by an honest mistake, pressure, or fraud.
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Which condition of a contract is being met when the parties exchange items of value?
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consideration
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What is a noncriminal injury to people, property, or reputation for which compensation must be paid?
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tort
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What term describes conduct falling below legal standards for protecting others against reasonable risk?
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B. negligence
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What type of property includes a garden fountain that Judy installed at her new home?
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A. tangible real property
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How long will a copyright issued to Karen be valid?
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B. For Karen's entire life and to her estate for 70 years thereafter.
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The three major sources of international law are:
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B. Custom and traditional, trade agreements, and trade treaties.
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How do courts remedy torts?
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A. Courts usually impose compensatory damages.
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What kind of tort remedy involves fines that exceed actual losses (injury) and is intended to punish defendants?
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B. punitive damages
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What represents a legal monopoly for the use and licensing of manufactured items, manufacturing processes and designs for objects?
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patents
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When Scott is sent by his employer to a customer's home to repair a refrigerator, he is acting as:
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D. an agent
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Which of the following is NOT one of the types of authority for an agent?
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A. court authority
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Which of the following is NOT one of the responsibilities of principals?
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B. Principals are not responsible for agent's criminal acts performed while acting as an agent.
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What is the purpose of the Uniform Commercial Code (UCC)?
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C. It describes the rights of buyers and sellers in transactions.
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Which type of warranty is available to Nancy when she cannot get a picture on a new television set?
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implied
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Under what conditions may an individual or firm file for bankruptcy?
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D. when debts exceed total assets by at least $1,000
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________ are people who assume the risk of business ownership.
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A. Sole proprietors
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The most significant disadvantage of owning a franchise is ________.
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A. startup costs
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Which of the following was started from scratch?
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D. All of these
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Which of the following represents the most businesses in the United States?
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A. sole proprietorships
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The owners of a corporation are the ________.
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stockholders
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The U.S. Department of Commerce considers a business "small" if it has fewer than how many employees?
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D. 1,500
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Small businesses account for ________ of all new jobs in high technology sectors.
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B. 40 percent
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Which of the following is the most significant disadvantage of franchising?
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high startup costs
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Which of the following sources of funding is most commonly used to start a new business?
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personal resources
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According to authors of your textbook, a new business should have enough capital to operate at least how many months without earning a profit?
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6
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A major drawback of sole proprietorships is ________.
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unlimited liability
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A partner who actively manages a firm and has unlimited liability for its debts is called a ________.
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general partner
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The organizational form defined as a business that is legally considered an entity separate from its owners and is liable for its own debts is a ________.
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cotporations
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The biggest advantage of regular corporations is ________.
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limited liability
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The biggest potential drawback to the corporate form of ownership is ________.
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double taxation
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A(n) ________ is organized to operate like a corporation but is taxed like a partnership.
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: S-corporation
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Today, about ________ of all businesses in the United States are sole proprietors.
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72
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Shirley Rathke is opening a flower shop and has decided to operate as a sole proprietorship. Which of the following is NOT one of the advantages of operating the business as a sole proprietorship?
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: limited liability
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In a ________, an entrepreneur summarizes the business strategy for a new venture and shows how it will be implemented.
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: business plan
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An arrangement that permits the buyer to sell the product of the seller, or parent company, is called a ________.
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franchise
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According to SBA estimates, roughly ________ of all new businesses can expect to survive for four years.
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44
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Which of the following factors contribute to small business failure?
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any of these
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Which of the following legal forms of business is owned and usually operated by one person who is responsible for its debts?
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: sole proprietorship
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The most common type of partnership is a ________.
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general partnership
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A limited partner ________.
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is liable for debts only to the limits of their investment
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________ corporations are most likely comprised of doctors, lawyers, accountants, or other professionals.
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Professional
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The governing body of a corporation is its ________.
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board of directors
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Which of the following industry groups is the fastest growing segment of small business enterprise?
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Services
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In a franchise agreement, the franchisee is ________.
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the local owner
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In a franchise agreement, the franchiser is ________.
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the parent company
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A(n) ________ invests money in a partnership but is liable only to the extent of his /her investment.
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limited partner
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Which form of business ownership generates the most sales in the United States?
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corporation
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The political-legal environment reflects the relationship between the business and ________.
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Governmen
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A(n) ________ is a nation's basis for allocating its resources among its citizens.
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economic system
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The process of converting government enterprises into privately owned firms is called ________.
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privatization
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A ________ shows how many of a given product will be bought at different prices.
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daman curve
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The price at which the quantity of goods demanded and the quantity of goods supplied are equal is referred to as ________.
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the equalibrium price
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The price at which the quantity of goods demanded and the quantity of goods supplied are equal is referred to as ________.
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the market price
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The ________ is a measure of the prices of typical products purchased by consumers living in urban areas.
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consumer price index
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________ exists when an industry has only a handful of sellers, most of which are large.
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an oligopoly
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The ________ refers to the total value of all goods and services produced within a given period by a national economy through domestic factors of production.
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gross domestic product (GDP)
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A nation manages the collection and spending of its revenues through ________ policy.
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fiscal
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A nation controls the size of its money supply through ________ policy.
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monetary
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What are profits?
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Selected Answer: B. difference between revenues and expenses
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The key difference between economic systems is the different ways in which they manage ________.
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the factors of production
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Which of the following is NOT a factor of production?
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government
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The two most basic forms of planned economies are ________.
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communism and sicialism
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In a market economy, the factors of production are allocated by ________.
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producers and consumers
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Which economic system provides for the private ownership of the factors of production and encourages entrepreneurship by offering profits as an incentive?
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capitalism
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In which economic system does the government own and operate select major industries?
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socialist
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The term supply is best defined as ________.
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the willingness and ability of producers to offer a good or service for sale
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The law of demand maintains that buyers will purchase more of a product as its price ________.
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drops
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"Producers will offer more of a product for sale as its price rises and less as its price drops." The situation being described refers to ________.
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law of supply
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Which of the following statements best captures the notion of private enterprise?
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Individuals pursue their own interests with minimal government restriction.
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Which of the following is NOT one of the elements required in private enterprise?
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...
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U.S. agriculture is a good example of ________.
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perfect competition
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Which of the following best defines the term business cycle?
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the pattern of short-term ups and downs in an economy
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Which of the following best defines the term aggregate output?
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the total quantity of goods and services produced by an economic system during a given period
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Which of the following best describes the term gross domestic product?
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total value of all goods and services produced within a given period by a national economy through domestic factors of production
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Which of the following best describes purchasing power parity?
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the principle that exchange rates are set so that prices of similar products in different countries are about the same
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Increases in an economic system's standard of living result primarily from increases in ________.
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...
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Under the law of demand, which of the following situations will likely result in increases in product purchases?
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...
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A ________ economy has characteristics of both planned and market economies.
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mixed market
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A ________ economy has characteristics of both planned and market economies.
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mixed market
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A ________ economy has characteristics of both planned and market economies.
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mixed market
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A ________ economy has characteristics of both planned and market economies.
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mixed market
