BUSI-1301 Foundations of Business Ch. 1-3 – Flashcards
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The major forces in consumerism are
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all of the above
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Which president stated that consumers have the right to safety, to be informed, to choose, and to be heard?
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John F. Kennedy
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A ____ is a partnership formed to achieve a specific goal or to operate for a specific period of time.
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joint venture
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____ is a necessary and extremely important by-product of capitalism.
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Competition
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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.
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market
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Mondie Weller decides to start a residential landscaping business. How would this business most likely be classified?
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Service business
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A large computer manufacturer forbids its executives and managers from serving as directors or officers for Intel Corporation or any other corporations from which it might purchase component parts. The company is trying to prevent
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a conflict of interest
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The newest forms of international business structure developed to create competitive advantage on a worldwide basis are called
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strategic alliances
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Bill Phillips dropped out of high school the day he turned sixteen. Over the next seven years he had brief employment at McDonald's and a lawn mowing business. Bill could be classified as
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hard-core unemployed
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Which bank was established in 1991 to encourage reconstruction and development in the Eastern and central European countries?
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The European Bank for Reconstruction and Development
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Eleven republics of the former Soviet Union are members of the
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Commonwealth of Independent States
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Productivity can best be described as
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the average level of output per worker per hour
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An import duty has the effect of all of the following except
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reducing the number of units exported
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Ranee is a businessperson who works for a successful and admired Fortune 500 company. About how often is Ranee likely to encounter ethical issues in the workplace?
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On a daily basis
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Which of the following represents the biggest customer of American business?
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Consumers
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Gail Nelson begins her first job after graduating from college and starts putting money away in a savings account. She believes she has removed this money from the circular flow between buyers and sellers that she studied in Introduction to Business. Is Gail correct?
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No, even though she has saved this money, the bank will in turn invest the money back into the circular flow.
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What are the Kennedy Round, the Tokyo Round, the Uruguay Round, and the Doha Round?
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Negotiations sponsored by GATT to reduce trade restrictions
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Supporters of increased social responsibility would most likely say that the goal of a firm is to
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create value and benefits for owners, employees, and society.
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Ed works in a position where there is very little supervision. In fact, although he considers himself ethical, he figures he could go away for a week without anyone noticing. Which general set of factors is most likely to influence Ed's ethical behavior?
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Opportunity
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Ford Motor Company, Mazda Motor Corporation, and Matsushita Electrical Industrial Company formed a ____ to make heating and cooling units in Japan for Mazda cars beginning in 1988. The new company's heating and cooling units may also be used in Ford's cars.
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joint venture
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Which of the following is false in regard to the unemployment rate?
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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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Jacque owns a medium-sized business in the United States. Approximately how likely is it that her company exports?
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About one-third of the companies in the United States export to foreign countries, therefore Jacque's company has about a 33 percent chance of being an exporter.
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A plan designed to increase the number of minority employees within an organization is known as
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an affirmative action program
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An instruction pamphlet detailing steps for the care and use of a new electric appliance would fulfill which provisions of Kennedy's Consumer Bill of Rights?
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The right to safety and the right to be informed
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The separation of a manufacturing process into distinct tasks and the assignment of different tasks to different individuals is called
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specialization.
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Which type of pollution has seen the least improvement since environmental issues became important?
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Land
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Monopolistic competition is a market situation in which
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similar but not identical products are available.
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Least-favored-nation (LFN) status was the famous principle of GATT.
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False
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When a business distributes profits to business owners, these profits become household income and are removed from the circular flow of the economy.
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False
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Basically, there are four recognized degrees of competition: perfect competition, monopolistic competition, oligopoly, and monopoly.
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True
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Social responsibility is good business, but it does cost money.
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True
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Generally, social responsibility does not cost money.
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False
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The Doha Round of negotiations focuses on industrial and nontariff barriers, agriculture, services, and easing trade rules.
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True
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According to Adam Smith, under laissez-faire capitalism, each person should be allowed to work toward his or her own economic gain without government interference.
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True
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Decreases in trade barriers create more choices for consumers and new opportunities for job seekers.
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True
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Adam Smith argued that the creation of wealth is a proper concern of government.
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False
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Economists define a recession as two or more consecutive three-month periods of decline in a country's gross domestic product
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True
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Improved water quality is not only necessary, it is attainable at no cost.
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False
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A letter of credit is issued in favor of the importer.
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False
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Employees have an easier time determining what is acceptable behavior if their company provides them with a code of ethics.
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True
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Joint venture agreements generally require a very low level of commitment from all the parties involved.
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False
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The Food and Drug Administration's ability to force businesses making or selling defective products to recall them is most closely related to consumers' right to choose.
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False
