Intro to Business Quiz Questions for Exam 1 – Flashcards
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Business will incur a _____ when expenses are higher than revenue
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Loss
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Business transactions that occur online are examples of:
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e-commerce
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Doing business today without harming the ability of future generations to meet their needs is referred to as:
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sustainability
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Nonprofit organizations are not in the business of:
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financial gain
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A product has value when its benefits to the customer are equal to or greater than the price that the customer pays.
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True
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An economic system is a structure for:
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allocating limited resources.
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A market structure with pure competition has all of the following characteristics EXCEPT:
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the firms use product differentiation allowing consumers to easily identify their favorite brands.
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A federal agency called the _____ was established to protect customer deposits in banks and thrift institutions for up to $100,000 per customer, per bank.
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Federal Deposit Insurance Corporation (FDIC)
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A basic characteristic of _____ is that both producers and consumers are free to make their own economic decisions on many basic issues.
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capitalism
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_____ is a period of robust economic growth and high employment indicating that businesses are capitalizing on new market opportunities.
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expansion
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A trade _____ occurs when a country imports more goods and services than it exports.
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deficit
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Foreign _____ involves a firm buying the rights to produce, promote, and use the domestic firm's trademark/patents in a defined geographical area as long as there is an agreement on specific operating procedures.
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licensing
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What is meant by the balance of trade?
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It is a measure of the difference between exports and imports.
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When a country lacks hard currency it must use _____ to complete international trade.
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countertrade
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Which of the following would be an appropriate reason for a country to eliminate trade restrictions?
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To increase domestic jobs in industries with a comparative advantage versus other countries
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Socially responsible employers:
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ensure that hard work, commitment, and talent pay off.
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A _____ is the systematic evaluation of how well a firm is meeting its goals of ethics and social responsibility.
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social audit
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A person who reports illegal or unethical behavior within an organization is known as a:
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whistle-blower.
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Stakeholders are:
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groups or individuals with a personal interest in the performance and actions of a business.
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Which of the following illustrates a true ethical dilemma?
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Jack has to cover for his manager who has been stealing from the cash register or else he will lose his job.
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_____ are by far the most common type of business organization in the United States.
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Sole proprietorships
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A "spin-off" is a common type of _____.
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divestiture
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Cathy and Denise open a business as a limited liability partnership in a state that offers partial-shield protection. From Cathy's perspective, this means that she:
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has unlimited liability for most types of debts the firm incurs, but she is protected from any debts that result from Denise's negligence or malpractice.
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Stockholders are _____ of a corporation. Common stockholders have the right to vote on issues affecting the operation of the business.
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owners
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The party in a franchise relationship that pays for the right to use resources supplied by another business entity is known as the _____.
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franchisee
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_____ are wealthy individuals who invest in new and growing firms.
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Angel investors
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A possible drawback when buying an existing business is that:
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you may inherit the mistakes made by the previous owner.
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Entrepreneurs tend to be tolerant of:
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uncertainty; they view business uncertainty as something they can turn to their advantage.
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People with a(n) _____ have a strong sense of personal responsibility for what happens in their lives.
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internal locus of control
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A(n) _____ is a formal document that describes a business concept and outlines the core business objectives while detailing the strategies and timelines for achieving those objectives.
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business plan
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A(n) _____ is a formal document that describes a business concept and outlines the core business objectives while detailing the strategies and timelines for achieving those objectives.
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business plan
