Business test 1 Test Questions – Flashcards
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A ___ is a wrongful act that results in physical or mental harm to an individual or damage to that person's property
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tort
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___ are enacted by legislative bodies. These laws may be written and passed by federal, state, county, or city governments
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Statutory laws
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Developed by the national conference of commissioners on uniform state laws, the ___ is the most important uniform act for businesses
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Uniform Commercial Code
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A comparison of the standard of proof needed to win civil cases and criminal cases suggest that"
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The standard of proof is the same for both types of cases- the case must be proven beyond a reasonable doubt
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A civil law court would be most likely to hear cases concerning:
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Robbery or theft
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The judgement handed out in civil court typically entails:
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Compensation for injury or requirements for specific performance.
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Corporations are allowed to use___ to reorganize their operations in order to improve their financial position
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Chapter 11
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A ____ is any activity that provides goods and services in an effort to earn a profit
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Business
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Business will incur a ___ when expenses are higher than revenue
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loss
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___ refers to the quality and quantity of products and goods available to a population at a given time
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Standard of living
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Entrepreneurs
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Create benefits for others while seeking profit for themselves
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Entrepreneurs are commonly characterized as
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risk takers and decision makers
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According to a Forbes Magazine survey described in your textbook, ___ is the richest American with a net worth exceeding 57,000,0000,000
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Bill Gates
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The evolution of business included the ____
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Entrepreneurship era. Marketing Era production era (all of the above)
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In the broadest sense, economics studies the choices that
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People, governments, and companies make in allocating resources
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Economics is divided into two core areas of study known as:
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macroeconomics and microeconomics
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____ refers to government efforts to influence the economy through taxation and spending decisions designed to encourage growth, boost employment, and curb inflation
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Fiscal policy
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When tax revenue is higher than government expenditures, the government incurs a
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budget surplus
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___refers to actions that shape the economy by influencing interest rates and the supply of money
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Monetary policy
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___ is the current chairman of he federal Reserve
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Ben Bernake
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The father of modern capitalism is
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Adam Smith
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A comparison of economic indicators among the five most populous actions indicates that the:
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U.S. has by far the largest per capita GDP
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since 1946 advances in technology and the overall decline in worldwide trade barriers have resulted in:
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more market opportunities but companies are experiencing greater market competition
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Although many U.S. firms want to expand their sales in nations with high populations, they face some challenges in doing so, including the fact that in many of these nations the:
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purchasing power of most citizens is very low
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Which of the following is a benefit of global trade to producers?
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inflow of innovative ideas
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The size of the Chinese population gives the country a ____ as compared to the US since it can produce more of a good than other nations, using the same amount of resources.
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absolute advantage
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one of the key reasons Japanese companies like sony and Toyota thrived during the 1990s was because:
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They reduced their risk by doing business globally instead of focusing solely on the Japanse market
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When the total value of exports is higher than the total value of imports, a country experiences a _____
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trade surplus
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A nonprofit, nonpartisan organization, Character Counts has created a set of universal ethical standards that transcend cultures. Which of the following is not a universal ethical standard:
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religion
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____ are the moral principles that govern behavior, while a___ occurs when the behavior results in a choice among alternatives, each of which has negative consequences.
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Ethics, ethical dilemma
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The goal of universal ethical standards is to
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provide guidelines that apply to everyone across a broad spectrum of situations
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Business ethics are a set of beliefs about
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what is right and wrong in a business setting
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Business ethics and individual ethics differ based on the fact that
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Business ethics focus on the application of right and wrong in a business setting, while individual ethics are one's personal standards of right and wrong.
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Research indicates that the organizational culture
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has significant influence on the individual employee's ethical behavior
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As owner of your company, you are considering expansion. Two options you might explore would be leasing a building or buying a building. You ask your finance officer to explore the options. your finance officer is likely to talk to
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Operations, Marketing and Accounting
