question

C

answer

When people or machines provide or process something of value to customers, it is known as: capital. A. a tangible resource. B. a factor of production. C. a service. D. an intangible resource.

question

A

answer

The focus of all marketing activities is to: A. satisfy customer needs. B. ensure operating efficiency. C. facilitate manufacturing. D. enable healthy competition. E. provide resources for the operation of a business.

question

A

answer

Which of the following statements is true with regard to resources associated with a business? A. A firm's good reputation for quality products is a resource. B. Being socially responsible does not constitute a resource. You Answered C. Human resources are the products that are made by people. D. The funds used to acquire land can be classified as natural resources. E. Intangible resources are those that do not provide a competitive advantage.

question

B

answer

In a capitalist economy: A. most businesses are owned and operated by the government. B. individuals are free to keep profits and use them as they wish. C. consumers have a limited choice of goods and services. D. excess income goes to the government. E. all decisions regarding production are taken by the government.

question

B

answer

Which of the following statements is true of a free-enterprise system? A. In a free-enterprise system, there is no constraint of society's laws. B. Individuals have the right to choose what career to pursue in a free-enterprise system. C. In a free-enterprise system, businesses succeed or fail on the basis of central government planning. D. A free-enterprise system is independent of competition. E. There is no government regulation in a free-enterprise system.

question

E

answer

The price at which the number of products that businesses are willing to supply equals the amount of products that consumers are willing to buy at a specific point in time is known as the _____ price. A. value-based B. stabilizing C. mark-up D. balance E. equilibrium

question

C

answer

The market for a product would be considered to be an oligopoly if: A. there is only a single buyer for the product. B. there are many sellers of the product. C. there are very few businesses selling the product. D. there are many buyers for the product. E. there is only a single business selling the product.

question

B

answer

_____ is a condition of the economy in which unemployment is very high, consumer spending is low, and business output is sharply reduced. A. Inflation B. Depression C. Hyperinflation D. Deflation E. A budget deficit

question

C

answer

The gross domestic product (GDP) is defines as: the difference between exports and imports of a country. A. the increase in price of consumer goods and services over specified periods of time. B. the changes in prices of goods and services purchased for consumption by typical urban households. C. the sum of all goods and services produced in a country during a year. D. the amount of goods and services produced for each hour worked.

question

E

answer

Which of the following statements is true of the agricultural economy that existed in America before the industrial revolution? A. Money for the colonies' burgeoning industries was supplied exclusively from within the American territory. B. The construction of railroads allowed farmers to send their surplus crops and goods all over the nation for barter or for sale. C. Farmers began to move to cities to find jobs in factories and have a higher standard of living. D. Factories began to spring up along the railways to manufacture farm equipment and a variety of other goods to be shipped by rail. E. Abundant natural resources and a moderate climate nourished industries such as fishing, shipping, and fur trading.

question

C

answer

All the following are factors of production used to make goods and services. EXCEPT: A. natural resources. B. human resources. C. customers. D. capital. E. financial resources.

question

False

answer

Owners always manager their businesses.

question

False

answer

When a nation takes more from taxes than it spends, it has a budget deficit.

question

A

answer

The functions of organizing, staffing, planning, and controlling are most closely associated with: A. managers. B. assembly line workers. C. investment advisors. D. stockbrokers. E. direct sales executives.

question

A

answer

Financial resources are also known as: A. capital B. labor C. barter D. natural resources E. exchange

question

False

answer

Nonprofit organizations such as Habitat for Humanity do not engage in management, marketing, or finance activities.

question

False

answer

An oligopoly exits when there are many small businesses selling one standardized product.

question

B

answer

Advertising, personal selling, coupons, and sweepstakes are forms of the _____ aspect of marketing activities. A. finance B. promotion C. production D. fund raising E. social responsibility

question

D

answer

Which of the following is an example of an intangible product? A. A movie DVD B. A sandwich C. A sports car D. A music concert E. Jewelry

question

D

answer

Which of the following is a factor of production for a firm? A. Advertising media B. Legal consultants C. Customers D. Natural resources E. Company reputation

question

budget deficit

answer

the condition in which a nation spends more than it takes in from taxes

question

business

answer

individuals or organizations who try to earn a profit by providing products that satisfy people's needs

question

capitalism or free enterprise

answer

an economic system in which individuals own and operate the majority of businesses that provide goods and services

question

communism

answer

first described by Karl Marx as a society in which the people, without regard to class, own all the nation's resources

question

competition

answer

the rivalry among businesses for consumers' dollars

question

demand

answer

the number of goods and services that consumers are willing to buy at different prices at a specific time

question

depression

answer

a condition of the economy in which unemployment is very high, consumer spending is low, and business output is sharply reduced

question

economic contraction

answer

a slowdown of the economy characterized by a decline in spending and during which businesses cut back on production and lay off workers

question

economic expansion

answer

the situation that occurs when an economy is growing and people are spending more money; their purchases stimulate the production of goods and services, which in turn stimulates employment

question

economic system

answer

a description of how a particular society distributes its resources to produce goods and services

question

economics

answer

the study of how resources are distributed for the production of goods and services within a social system

question

entrepreneur

answer

an individual who risks his or her wealth, time, and effort to develop for profit an innovative product or way of doing something

question

equilibrium price

answer

the price at which the number of products that businesses are willing to supply equals the amount of products that consumers are willing to buy at a specific point in time

question

financial resources

answer

the funds used to acquire the natural and human resources needed to provide products; also called capital

question

free-market system

answer

pure capitalism, in which all economic decisions are made without government intervention

question

gross domestic product (GDP)

answer

the sum of all goods and services produced in a country during a year

question

human resources

answer

the physical and mental abilities that people use to produce goods and services; also called labor

question

inflation

answer

a condition characterized by a continuing rise in prices

question

mixed economies

answer

economies made up of elements from more than one economic system

question

monopolistic competition

answer

the market structure that exists when there are fewer businesses than in a pure-competition environment and the differences among the goods they sell are small

question

monopoly

answer

the market structure that exists when there is only one business providing a product in a given market

question

natural resources

answer

land, forests, minerals, water, and other things that are not made by people

question

nonprofit organizations

answer

organizations that may provide goods or services but do not have the fundamental purpose of earning profits

question

oligopoly

answer

the market structure that exists when there are very few businesses selling a product

question

product

answer

a good or service with tangible and intangible characteristics that provide satisfaction and benefits

question

profit

answer

the difference between what it costs to make and sell a product and what a customer pays for it

question

pure competition

answer

the market structure that exists when there are many small businesses selling one standardized product

question

recession

answer

a decline in production, employment, and income

question

socialism

answer

an economic system in which the government owns and operates basic industries but individuals own most businesses

question

stakeholders

answer

groups that have a stake in the success and outcomes of a business

question

supply

answer

the number of products—goods and services—that businesses are willing to sell at different prices at a specific time

question

unemployment

answer

the condition in which a percentage of the population wants to work but is unable to find jobs

question

A

answer

Organizations that exhibit a high ethical culture: A. encourage employees to act with integrity. B. receive very low revenues and profits. C. engage only in activities aimed at high profitability. D. maintain weak employee relations. E. have low returns on investments.

question

A

answer

Which of the following statements best describes a difference between business ethics and social responsibility? A. Business ethics relates to an individual's or a work group's decisions that society evaluates, whereas social responsibility concerns the impact of the entire business's activities on society. B. Business ethics relates to an individual's values and standards of conduct, whereas social responsibility concerns the values and standards of conduct of society as a whole. C. Business ethics is determined solely by an organization itself, whereas a social responsibility decision is made by the organization's stakeholders. D. Business ethics is a voluntary norm, whereas social responsibility is mandatory for every organization. E. Business ethics is independent of government regulations, whereas social responsibility is greatly influenced by government regulations.

question

A

answer

Abusive behavior in the workplace is difficult to assess and manage because: A. of diversity in culture and lifestyle. B. it is associated with conflict of interest. C. employees are unwilling to recognize such behaviors. D. of organizational hierarchy. E. it leads to workplace discrimination.

question

E

answer

Within the concept of abusive behavior, _____ should be a consideration. A. work B. time C. hierarchy D. authority E. intent

question

A

answer

It is difficult for employees to determine what conduct is acceptable within a company if: A. the firm does not have established ethics policies. B. there exists a diversity in workplace culture and lifestyle. C. the rate of employee turnover is high. D. lateral communication channels are blocked. E. there exists a conflict of interest.

question

D

answer

An organization that contributes to the community and quality of life is fulfilling its: A. economic responsibility. B. legal responsibility. C. ethical responsibility. D. voluntary responsibility. E. political responsibility.

question

A

answer

For a business, _____ responsibilities are additional activities that may not be required but which promote human welfare or goodwill. A. voluntary B. ethical C. legal D. economic E. political

question

E

answer

_____ involves the activities and organizational processes adopted by businesses to meet their social responsibilities. A. Organizational support B. Operational efficiency C. Organizational commitment D. Corporate justice E. Corporate citizenship

question

E

answer

_____ refers to conducting activities in such a way as to provide for the long-term well-being of the natural environment, including all biological entities. A. Environmental analysis B. Organizational justice C. Outsourcing D. Adaptability E. Sustainability

question

C

answer

Which of the following statements is true of a business entity with regard to its relations with owners, stockholders, employees, and consumers of the company? A. Instead of concentrating on maximizing owners' investments in the firm, a business must focus on maintaining consumer relations. B. Consumers are forbidden from lobbying government agencies. C. Without employees, a business cannot carry out its goals. D. Even in a large corporation, ensuring responsibility to its owners is fairly easy. E. A business must first be responsible to its employees.

question

False

answer

The concept of social responsibility is universally accepted.

question

False

answer

Only for-profit organizations have to worry about ethics scandals and social responsibility issues.

question

true

answer

Like sexual harassment, workplace bullying creates a hostile environment, but unlike sexual harassment, workplace bullying has little legal recourse at this time.

question

True

answer

Without a code of ethics or formal policy on ethics, employees are likely to base their decisions on how their peers and superiors behave.

question

true

answer

A major social responsibility for business is providing equal opportunities for all employees.

question

Trust

answer

One of the most difficult things for a business to restore after an ethics scandal is: regulations. ethics training programs. trust. codes of conduct. morale.

question

False

answer

Ethics and social responsibility mean the same thing.

question

False

answer

Since all ethical standards are universally accepted, they do not depend on the culture in which a business operates.

question

true

answer

The most basic ethical concerns have been codified by laws and regulations that encourage businesses to conform to society's values and norms.

question

legal responsibility

answer

Obeying the law is a business's ____. right choice economic responsibility legal responsibility ethical responsibility

question

business ethics

answer

principles and standards that determine acceptable conduct in business

question

social responsibility

answer

a business's obligation to maximize its positive impact and minimize its negative impact on society

question

ethical issue

answer

an identifiable problem, situation, or opportunity that requires a person to choose from among several actions that may be evaluated as right or wrong, ethical or unethical

question

bribes

answer

payments, gifts, or special favors intended to influence the outcome of a decision

question

plagiarism

answer

the act of taking someone else's work and presenting it as your own without mentioning the source

question

codes of ethics

answer

formalized rules and standards that describe what a company expects of its employees

question

whistleblowing

answer

the act of an employee exposing an employer's wrongdoing to outsiders, such as the media or government regulatory agencies

question

corporate citizenship

answer

the extent to which businesses meet the legal, ethical, economic, and voluntary responsibilities placed on them by their stakeholders

question

consumerism

answer

the activities that independent individuals, groups, and organizations undertake to protect their rights as consumers

question

sustainability

answer

conducting activities in a way that allows for the long-term well-being of the natural environment, including all biological entities. Sustainability involves the assessment and improvement of business strategies, economic sectors, work practices, technologies, and lifestyles so that they maintain the health of the natural environment.

question

business law

answer

refers to the rules and regulations that govern the conduct of business

question

lawsuits

answer

there one individual or organization takes another to court using civil laws

question

jurisdiction

answer

is the legal power of a court, through a judge, to interpret and apply the law and make a binding decision in a particular case

question

trial court

answer

two tasks must be competed. First, the court must determine the facts of the case. Second, the judge must decide which law or set of laws is pertinent to the case and must then apply those laws to resolve the dispute.

question

appellate court

answer

deals solely with appeals relating to the interpretation of law

question

mediation

answer

is a form of negotiation to resolve a dispute by bringing in one or more third-party mediators, usually chosen by the disputing parties, to help reach a settlement

question

arbitration

answer

involves submission of a dispute to one or more third-party arbitrators, usually chosen by the disputing parties, whose decision usually is final

question

mini trial

answer

both parties agree to present a summarized version of their case to an independent third party

question

private court system

answer

is similar to arbitration in that an independent third party resolves the case after hearing both sides of the story

question

Federal Trade Commission

answer

most influences business activities related to questionable practices that create disputes between businesses and their customers

question

Uniform Commercial Code

answer

is a set of statutory laws covering several business law topics

question

express warranty

answer

stipulates the specific terms the seller will honor

question

implied warranty

answer

is imposed on the producer or seller by law, although it may not be a written document provided at the time of sale

question

tort

answer

is a private or civil wrong other than breach of contract

question

fraud

answer

is a purposefully unlawful act to deceive or manipulate to damage others

question

product liability

answer

businesses' legal responsibility for any negligence in the design, production, sale and consumption of products

question

contract

answer

a mutual agreement between two or more parties that can be enforced in a court if one party chooses not comply with the terms of the contract

question

breach of contract

answer

is the failure or refusal of a party to a contract to live up to his or her promises

question

agency

answer

is a common business relationship created when one person acts on behalf of another and under that persons control

question

principal

answer

is the one who wishes to have specific task accomplished

question

agent

answer

the one who acts on behalf of the principal to accomplish the task

question

real property

answer

consists of real estate and everything permanently attached to it

question

personal property

answer

basically is everything else

question

intellectual property

answer

refers to property, such as musical works, artwork, books, and computer software, that is generated by a person's creative activities

question

Sherman Antitrust Act

answer

passed in 1890 to prevent businesses from restraining trade and monopolizing markets, condemns "every contract, combination, or conspiracy in restraint of trade"

question

Clayton Act

answer

prohibits price discrimination, tying and exclusive agreements, and the acquisition of stock in another corporation when the effect may be to substantially lessen competition or tend to create a monoply

question

Sarbanes Oxley Act

answer

which criminalized securities fraud and strengthened penalties for corporate fraud

question

E

answer

Which of the following is true of absolute advantage? A. It is the basis of most international trade. B. It exists when the domestic supply of a product is higher than the domestic demand. C. It is likely to occur when a country's exports are higher than its imports. D. It is unlikely to occur when a country is the sole producer of a certain good. Correct! E. It is likely to last when it is based on the availability of natural resources.

question

E

answer

Outsourcing by domestic firms is likely to cause: A. an increase in employment opportunities within the country. B. an increase in immigration in the domestic country. C. an advantage to non-English speaking developing countries. D. a trade surplus for the country. Correct! E. a decrease in production costs.

question

A

answer

Balance of trade equals the difference in value between the: A. exports and imports of a country. B. expense and saving of a country. C. assets and liabilities of a country. D. flow of money into and out of a country. E. earnings on foreign investment and the payments made to foreign investors.

question

D

answer

Which of the following is likely to cause a trade surplus? A. A decrease in quotas on imports B. An increase in the currency value C. A limit on the export of services Correct! D. A limit on the import of products E. A decrease in import tax

question

E

answer

A country may experience decline in production when: A. there is a trade surplus. B. the balance of payment is favorable. C. the value of exports is more than the value of imports. D. more money flows in from tourism and other sources. E. more money flows out of the country than into it.

question

C

answer

Unlike the United States, most countries across the globe rely on the _____ to measure units. A. imperial unit system B. Planck unit system C. metric system D. barter system E. Stoney unit system

question

B

answer

Which of the following was created in 1995 by the Uruguay Round to deal with the rules of trade between nations? A. The General Agreement on Tariffs and Trade (GATT) B. The World Trade Organization (WTO) C. The North American Free Trade Agreement (NAFTA) D. The European Union (EU) E. The Asia-Pacific Economic Cooperation (APEC)

question

C

answer

A major advantage of using an export agent is that the company does not have to deal with: A. a middleman. B. rising resource prices. C. foreign currencies. D. the possibility of providing discounts. E. procurement of resources

question

D

answer

A major disadvantage of using an export agent is that the company may have to: A. arrange for the storage of products in the export market. B. deal with foreign currencies. C. deal with the red tape. D. increase the product price. E. arrange for the transportation of products to the export market.

question

C

answer

Which of the following is an example of a global strategy? A. Domino's introducing pizzas with Indian spices B. Apple moving its Mac production to China C. Starbucks standardizing its products across the U.S. and other countries D. General Motors creating electric vehicles specifically for the Chinese market E. McDonald's refraining from using pork or beef for the Indian market

question

C

answer

The difference between the flow of money into and out of a country is called its ____. A. balance of trade B. domestic gain C. balance of payments D. credit balance E. exchange rate

question

TRUE

answer

Nations trade with other nations to obtain resources that would otherwise be unavailable to them. true false

question

FALSE

answer

Exporting is the purchase of products from another nation. true false

question

FALSE

answer

The World Trade Organization agreements are the optional ground rules for international commerce. true false

question

FALSE

answer

In most countries, participation in international business is restricted to large corporations. true false

question

FALSE

answer

Direct investment is the least risky and least expensive way to participate in foreign trade. true false

question

B

answer

A favorable balance of trade exists when a country: A. imports more than it exports. B. exports more than it imports. C. has more debt liabilities than assets. D. spends more than it saves. E. saves more than it spends.

question

FALSE

answer

Sociocultural differences, such as variations in spoken language and body language, usually have almost negligible impact on international business. true false

question

B

answer

When a country devalues its currency, this causes: A. an increase in its imports. B. an increase in its exports. C. an increase in sale of international goods in domestic market. D. an increase in sale of international services in domestic market. E. an increase in trade deficits.

question

E

answer

Colombia can produce coffee much more efficiently than it can produce other items; this gives Columbia a(n) ____ advantage. A. absolute B. competitive C. domestic D. marginal E. comparative

question

international business

answer

the buying, selling, and trading of goods and services across national boundaries

question

absolute advantage

answer

a monopoly that exists when a country is the only source of an item, the only producer of an item, or the most efficient producer of an item

question

comparative advantage

answer

the basis of most international trade, when a country specializes in products that it can supply more efficiently or at a lower cost than it can produce other items

question

outsourcing

answer

the transferring of manufacturing or other tasks—such as data processing—to countries where labor and supplies are less expensive

question

exporting

answer

the sale of goods and services to foreign markets

question

importing

answer

the purchase of goods and services from foreign sources

question

balance of trade

answer

the difference in value between a nation's exports and its imports

question

trade deficit

answer

a nation's negative balance of trade, which exists when that country imports more products than it exports

question

balance of payments

answer

the difference between the flow of money into and out of a country

question

infrastructure

answer

the physical facilities that support a country's economic activities, such as railroads, highways, ports, airfields, utilities and power plants, schools, hospitals, communication systems, and commercial distribution systems

question

exchange rate

answer

the ratio at which one nation's currency can be exchanged for another nation's currency

question

import tariff

answer

a tax levied by a nation on goods imported into the country

question

exchange controls

answer

regulations that restrict the amount of currency that can be bought or sold

question

quota

answer

a restriction on the number of units of a particular product that can be imported into a country

question

embargo

answer

a prohibition on trade in a particular product

question

dumping

answer

the act of a country or business selling products at less than what it costs to produce them

question

cartel

answer

a group of firms or nations that agree to act as a monopoly and not compete with each other, in order to generate a competitive advantage in world markets

question

General Agreement on Tariffs and Trade (GATT)

answer

a trade agreement, originally signed by 23 nations in 1947, that provided a forum for tariff negotiations and a place where international trade problems could be discussed and resolved

question

World Trade Organization (WTO)

answer

international organization dealing with the rules of trade between nations

question

North American Free Trade Agreement (NAFTA)

answer

agreement that eliminates most tariffs and trade restrictions on agricultural and manufactured products to encourage trade among Canada, the United States, and Mexico

question

European Union (EU)

answer

a union of European nations established in 1958 to promote trade among its members; one of the largest single markets today

question

Asia-Pacific Economic Cooperation (APEC)

answer

an international trade alliance that promotes open trade and economic and technical cooperation among member nations

question

World Bank

answer

an organization established by the industrialized nations in 1946 to loan money to underdeveloped and developing countries; formally known as the International Bank for Reconstruction and Development

question

International Monetary Fund (IMF)

answer

organization established in 1947 to promote trade among member nations by eliminating trade barriers and fostering financial cooperation

question

countertrade agreements

answer

foreign trade agreements that involve bartering products for other products instead of for currency

question

trading company

answer

a firm that buys goods in one country and sells them to buyers in another country

question

licensing

answer

a trade agreement in which one company—the licensor—allows another company—the licensee—to use its company name, products, patents, brands, trademarks, raw materials, and/or production processes in exchange for a fee or royalty

question

franchising

answer

a form of licensing in which a company—the franchiser—agrees to provide a franchisee a name, logo, methods of operation, advertising, products, and other elements associated with a franchiser's business, in return for a financial commitment and the agreement to conduct business in accordance with the franchiser's standard of operations

question

contract manufacturing.

answer

the hiring of a foreign company to produce a specified volume of the initiating company's product to specification; the final product carries the domestic firm's name

question

offshoring

answer

the relocation of business processes by a company or subsidiary to another country. Offshoring is different than outsourcing because the company retains control of the offshored processes.

question

joint venture

answer

the sharing of the costs and operation of a business between a foreign company and a local partner

question

strategic alliance

answer

a partnership formed to create competitive advantage on a worldwide basis

question

direct investment

answer

the ownership of overseas facilities

question

multinational corporation (MNC)

answer

a corporation that operates on a worldwide scale, without significant ties to any one nation or region

question

multinational strategy

answer

a plan, used by international companies, that involves customizing products, promotion, and distribution according to cultural, technological, regional, and national differences

question

global strategy (globalization)

answer

a strategy that involves standardizing products (and, as much as possible, their promotion and distribution) for the whole world, as if it were a single entity

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