Business Study Questions Essay

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Keynesian economic theory suggests
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short- term increases in government spending to stimulate the economy
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Effectiveness
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producing the desired result
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contemporary economic challenge
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creating profitable businesses by selling goods and services that contribute toward a healthier environment
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what to venture capitalist prefer
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investing in smaller start up businesses in order to reduce their overall risk
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US Business standards
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U.S. businesses are held to high ethical standards, whether they are dealing with customers in the U.S. or internationally. Large and small companies are scrutinized by “watch dog” groups. International bodies such as the Organization of American States, the European Union, and the Organization for Economic Cooperation and Development have adopted global ethical policies.
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The Small Business Administration sponsors volunteers from industry, trade associations, and education who offer advice to small business owners. These volunteers are called
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the Service Corps of Retired Executives
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True or False a corporation can raise financial capital by selling shares of stock to interested investors
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True
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True or False: The transition from an agricultural economy to a manufacturing economy to a service based economy has resulted in a serious increase in long-term unemployment.
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False
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The concept of free trade means:
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goods and services can be traded freely across borders without political and/or economic barriers
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Explain the concept of the invisible hand
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The concept of the invisible hand suggests that the primary motivation of entrepreneurs is their own individual gain. However, in seeking to earn a profit for themselves, entrepreneurs will create jobs and produce goods and services that satisfy the wants of others.
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True or False:Kylie is employed by Street Wheels, a large corporation that produces accessories for scooters, bicycles, and other children’s vehicles. She is a creative force within the company and has helped create and launch several new successful products. Kylie is an example of an intrapreneur.
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True
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True or False: An important step in improving U.S. business ethics is for companies to hire whistleblowers
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False because…Whistleblowers report illegal or unethical behavior. They are not purposefully hired by firms. However, legislation now protects employees who act as whistleblowers from corporate retaliation in the event that the company is convicted of illegal or harmful activity.
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True or False: Prior to creating a business plan, discussions with bankers and investors can help entrepreneurs determine the amount of financing available.
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False because….Bankers and investors will want to look at an entrepreneur’s business plan in order to determine whether they are interested in providing funds. Entrepreneurs who are unable to provide bankers and potential investors with a well-developed plan will appear disorganized and unprepared.
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True or False: the principle of mercantilism encouraged nations to keep economics separate from politics
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False because…. Mercantilism resulted in tariffs, which basically are taxes on imports, thus making imported goods more expensive to buy. This helps to achieve the economic goal of a favorable balance of trade.
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True or False: Since patent and copyright laws are the same in all nations, they are not of much impact to firms that compete globally
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False because ….Unfortunately there is no universal set of laws that govern the global market. Companies often must adapt legally market-by-market.
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True or False: Export trading companies assist businesses in reaching buyers, and dealing with customs, documentation, and payment.
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True
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Entrepreneur
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a person who assumes the risk of starting a business
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True or False: Anthony is an employee of a textbook publisher. However, his desire is to establish a home-based business providing his services to a variety of publishers. Anthony’s primary motivation is to escape the 9 to 5 world of corporate publishing and to enjoy the opportunity of working for himself. Anthony is an example of a micropreneur.
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True because….”Micropreneur” to refers to a business owner interested in simply enjoying a better lifestyle and want the opportunity to make a living doing the kind of work they enjoy.
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True or False:Countries that wish to avoid shortages and surpluses of goods should adopt a communist system.
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True because…. In a communist system, prices do not reflect supply and demand as they do in a free market system. Thus, the government has no way of knowing what to produce to best satisfy the wants of consumers.
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True or False: One advantage of corporations is that the initial cost of organization is usually lower than for other forms of business ownership.
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False
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True or False: A major advantage of sole proprietorships is that an owner has a limited liability for the debts of his or her business
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False
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True of False:Most entrepreneurs are more interested in personal achievement than in power
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True
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The two basic types of tariffs are:
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revenue and protective
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True or False: Liam owns a Far Horizons Travel Agency franchise. As a franchisee, Liam is guaranteed the right to retain all of his franchise’s revenues and profits
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False because… Franchisees usually pay a royalty to the franchisor. This royalty is sometimes expressed as a share of the franchisee’s revenues or a share of the franchisee’s profits.
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True or False: Sarah owns a bakery that specializes in cupcakes. Until recently, she charged a price of $5 for each treat. At this price Sarah’s customers bought an average of 384 cupcakes each week. For the last few weeks, she has reduced her price to $3.95 per cake, and her customers have purchased an average of 596 cupcakes each week. These results are consistent with the economic concept of demand
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True because…Generally speaking, the quantity demanded tends to rise when the price of a good falls.
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True or False: U.S. businesses claim that unethical business practices are common outside the U.S
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True
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True or False:Most communist countries today are suffering from severe economic problems.
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False
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True or False: If the national debt is $14 trillion, the national deficit will be considerably higher
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False because…The national deficit is the amount the government has overspent in one year’s time. The national debt is the total of all yearly deficits, overtime.
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True or False: When a group of investors take a firm private, they purchase all the company’s outstanding stock.
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True
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True or False: Once a business is established, it’s almost impossible to change from one form of business ownership to another.
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False
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both socialism and communism are variations of
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command economies
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the first step when facing an ethical dilemma is to ask:
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is it balanced
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True or False: Business provide goods jobs and services to others
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True
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True or False: An increase in productivity indicates that more can be produced in a given time period with the same amount of resources
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True
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Which of the following nations has joined the U.S., Japan, and the EU as a key driver of the world economy?
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China
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Women currently own less than ten percent of all businesses
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False

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