question

A written guide to acceptable and ethical behavior as defined by an organization

answer

Code of Ethics

question

All activities undertaken to protect the right of consumers

answer

Consumerism

question

A law that adopted tough provisions to deter and punish corporate and accounting fraud and corruption

answer

Sarbanes-Oxley Act of 2002

question

In the early 1900s, buyers had no recourse after purchasing a product; buyer beware

answer

Caveat Emptor

question

The application of moral standards to business situations

answer

Business Ethics

question

The recognition that business activities have an impact on society and the consideration of that impact in business decision making

answer

Social Responsibility

question

Informing the press or government officials about unethical practices within one's organization

answer

Whistleblowing

question

Customers expect a firm's products to

answer

be safe, reliable, and reasonably priced

question

The Jackson Springs Coal Mine recently discovered that the mine was contaminating the local drinking water. Cleaning up the mine and the surrounding areas would probably bankrupt the mine, causing the loss of hundreds of local jobs, but doing nothing would endanger the health of the community. The mine faces a serious _____ decision.

answer

Ethical

question

Investors expect management to do all of the following except

answer

Consult them on ethical decisions

question

You are the executive vice president for Cooper Tire, the sixth largest US tire maker. you have the responsibility to locate land for a new distribution center in Mississippi, and you own over 1000 acres of land near one site of Tupelo. This could create for you ____.

answer

A conflict of interest

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Taking credit for others' ideas or work or not meeting one's commitments in a mutual agreement are ethical issues concerning ____.

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Organizational relationships

question

When medical research indicated that a high-fiber diet might help reduce one's risk of colon cancer, a few producers of fiber cereals suggested in their advertisements that if you eat fiber cereal, you will not get cancer. This is an example of _____.

answer

Unethical communications

question

Publisher's Clearing House has a policy that no employees or their family members are eligible to win the big sweepstakes. This policy was likely implemented to ____.

answer

Avoid an apparent conflict of interest

question

All of the following are factors that affect the level of ethical behavior in an organization except

answer

demographic factors

question

At Victoria's Secret, managerial approval is required whenever an employee makes a purchase at the store using an employee discount. Which factor affecting ethical behavior is Victoria's Secret seeking to control?

answer

Opportunity

question

Dell's global outreach programs that help bring technology to underserved communities in various parts of the world is an example of

answer

Social Responsibility

question

T/F A consumer education class is required at all Illinois high schools

answer

True

question

T/F Major advances in consumerism have come through federal legislation.

answer

True

question

T/F The Consumer Bill of Rights was first enacted by Bill Clinton

answer

False

question

The exportation of large quantities of a product as at prices lower than that of the same product in the home market

answer

Dumping

question

A negative (unfavorable) balance of trade where imports exceed exports in value

answer

Trade Deficit

question

A complete halt to trading with a particular nation or in a particular product

answer

Embargo

question

The ability to produce a specific product more efficiently than any other nation

answer

Comparative Advantage

question

A contractual agreement in which one firm permits another to produce and market its product and use its brand name in return for a royalty or other compensation

answer

Licensing

question

Partnerships formed to create competitive advantage on a worldwide basis

answer

Strategic Alliances

question

A partnership formed to achieve a specific goal or to operate for a specific period of time

answer

Joint Venture

question

A tax levied on a particular foreign product entering a country

answer

Tariff

question

Because Saudi Arabia and Australia have ________, Saudi Arabia can specialize in the production of crude oil and petroleum products, and Australia can specialize in the production of wool.

answer

A comparative advantage

question

Purchasing products or materials in other nations and bringing them into one's own country is

answer

importing

question

The UK sells industrial supplies and materials to many nations around the world. The UK thus engages in

answer

exporting

question

General Motors and Ford products produced in the US are found around the world. The US is ______ these automobiles.

answer

exporting

question

If the Land of Mercury had total exports of $150 billion and total imports of $234 billion, it had a ___

answer

trade deficit

question

An unfavorable balance of trade occurs when

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imports are greater than exports

question

China is selling school supplies in the US for very low prices, even lower than the prevailing prices in China, and thus making it extremely difficult for American manufacturers to compete. This is referred to as

answer

dumping

question

Taiwanese manufacturers are dumping toys in Germany. What will happen to German toy manufacturers if the German gov't allows this dumping to continue?

answer

The will be put out of business because they can not compete with the prices

question

The US bans Cuban cigars and other Cuban products from entering the US due to political difficulties. This action is called

answer

embargo

question

When the US gov't will NOT allow meat from another country to be marketed in the US, it is imposing an

answer

embargo

question

At present, the US has an embargo against North Korea because

answer

the two countries have extremely poor political relations

question

In addition to political considerations, all of the following are reasons for trade restrictions EXCEPT

answer

(All of the following are reasons for trade restrictions)

question

The US does not sell fighter jets, such as F-16s, to Libya. The rationale for this restriction is most likely to

answer

Protect national security

question

T/F Walmart is considered a multinational company.

answer

True

question

T/F Texas exports more merchandise than any other US state

answer

True

question

T/F As of August 2012, the US has a trade surplus of $44.2 billion

answer

False

question

T/F The US imports more goods from Japan than any other country

answer

False

question

The total amount the federal government owes

answer

National Debt

question

The constant shifting of strategies and tactics to reshape the business and take competitors by surprise

answer

Perpetual Innovation

question

An index that measures prices that producers receive for their finished goods

answer

PPI (Producer Price Index)

question

The separation of a manufacturing process into distinct tasks and the assignment of the different tasks to different individuals

answer

Specialization

question

Individuals are free to decide what to produce, how to produce it, and at what price to sell it

answer

Free Enterprise

question

The study of how wealth is created and distributed

answer

Economics

question

The state of the economy when there is a severe, extended recession and a decline in business activity

answer

Depression

question

The total value of all goods and services produced within a country during a one-year period

answer

GDP (Gross Domestic Product)

question

What remains after all business expenses have been deducted from sales revenue

answer

Profit

question

The average level of output per worker per hour

answer

Productivity Index

question

A person who risks his or her time, effort, or money to start and operate a business

answer

Entrepreneur

question

When a business makes a profit by buying products from manufacturers and reselling to customers

answer

Marketing Intermediary

question

A monthly index that measures the changes in prices of a fixed basket of goods purchased by a typical consumer in an urban area

answer

CPI (Consumer Price Index)

question

The state of the economy when there are 2 or more consecutive three-month periods of decline in a country's GDP

answer

Recession

question

A shortfall created when the federal government spends more in a fiscal year than it receives

answer

Federal Deficit

question

All the people who are affected by the policies and decisions made by an organization

answer

Stakeholders

question

The relationship between sales and profit can be written as

answer

sales revenue - expenses = profit

question

Andrew Cooper decides to become a part owner of a corporation. As a part owner, he expects to receive a profit as payment because he has assumed the risk of

answer

losing the money he has invested in the corporation and not receiving profits

question

The study of an individual's economic decisions would be an example of

answer

microeconomics

question

When economists study the national economy or global economy, they are using a(n) ______ approach.

answer

macroeconomics

question

According to economists, natural resources, labor, capital, and entrepreneurship are called

answer

factors or production

question

Which of the following is not a feature of laissez faire capitalism?

answer

Guaranteed income

question

The US, whose economy exhibits elements of both capitalism and socialism, has what is known as a ____ economy.

answer

mixed

question

According to economists, inflation is

answer

a general rise in the level of prices

question

Which of the following is not one of the four states included in a typical business cycle?

answer

Repression

question

During which phase of the business cycle would a company like GE introduce new products?

answer

Peak

question

Exxon/Mobil and Shell are two of the relatively few sellers in the oil-refining industry. This market situation is referred to as

answer

oligopoly

question

A market or industry with only one seller is referred to as

answer

a monopoly

question

Who is the head of the US Federal Reserve?

answer

Janet Yellen

question

Which of the following is not one of the four resources used by businesses today?

answer

Governmental

question

T/F Most small businesses show a profit after the first fiscal year.

answer

False

question

T/F Adam Smith argued the creation of wealth is properly the concern of private individuals, not the government

answer

True

question

T/F If you were to get a loan from the bank, they would use the current Prime Rate to calculate interest.

answer

True

question

T/F Currently, our economy would be in the Contraction phase of the business cycle.

answer

False

Intro to Business Ch. 1-3 – Flashcards

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