question

Agricultural commodities are usually sold under which competitive environment?

answer

Pure Competition

question

The functions of organizing, staffing, planning, and controlling are most closely associated with

answer

Managers

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A continuing rise in prices over a period of time refers to

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Inflation

question

When a country devalues its currency, this encourages the sale of its

answer

domestic goods to foreign countries

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If a business is to be successful in the long run, it must produce quality products, operate efficiently, and be

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socially responsible

question

The legal documents that identify the basic agreements between partners are called:

answer

Articles of partnership

question

In creating a corporation, once the articles of incorporation are filed with the appropriate state office, the state may then issue a corporate

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charter

question

When a group of investors borrows money to buy a company or division, using the company's assets to guarantee the loan, it is called a(n)

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leverage buyout

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Because many countries do not permit foreign companies to purchase and operate facilities in their countries, a company wishing to do business in such a country may share the business costs with a firm from the host country by forming a

answer

joint venture

question

_______ exists when there are many small businesses selling one standardized product

answer

pure competition

question

A corporation that operates in several countries but without significant ties to any of them is a(n)

answer

multinational

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A specific amount of money levied on each unit of a product brought into the country is a(n):

answer

fixed tariff

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A group of nations or companies that band together to act as a monopoly is known as a:

answer

cartel

question

All of the following are advantages of a corporation except

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lower frequency of taxation

question

The U.S. has a trade deficit because

answer

the U.S. imports more products than it exports

question

When two companies combine to form a new company, it is called a(n):

answer

merger

question

Which of the following organizational forms is most expensive to set up?

answer

corporation

question

When a firm is facing a hostile takeover attempt, it may issue a poison pill, which is

answer

when the firm allows stockholders to buy up shares lower than market value

question

Common stockholders do not have the right to

answer

receive dividends before preferred stockholders

question

20. When Lever Brothers changes the formula of its bar soap to match different countries' water conditions and washing habits, this is an example of a:

answer

strategic alliance

question

The effective translation of product names can be crucial to the success of a foreign marketing effort because of:

answer

cultural barriers

question

When Nike has its athletic shoes produced by companies in Asia, the Nike name still appears on the shoes. This illustrates

answer

contract manufacturing

question

Economic expansion occurs when

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an economy is growing and people are spending more money

question

In a socialist system, citizens are dependent on ______ for many goods and services

answer

the government

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An important advantage of a corporation is its

answer

limited liability

question

_______ can be harmful if individuals' incomes do not increase at the same pace as rising prices because it reduces their buying power

answer

inflation

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When a firm's products are standardized in all countries

answer

advertising may have to be modified

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28. The function concerned with obtaining and managing money and using it effectively is called

answer

finance

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Which of the following forms of business organization restricts the number and type of shareholder?

answer

S corporation

question

Which of the following is an advantage of a partnership?

answer

ease of formation

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Ruji has realized that she does not like working for others. She wants to open a business in which she will have maximum control and the least interference from government regulation. Which business form might be best for her to use

answer

sole proprietorship

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Coca-Cola allows a Mexican firm to use its name, formula, and brands in return for a royalty. This arrangement is known as

answer

licensing

question

Not all countries trading in international markets package goods in the same measurement units. Unlike the United States, most countries rely on

answer

the metric system

question

34. The differences between the flow of money into and out of a country is called its:

answer

balance of payments

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An intermediary, or middleman, that markets goods in another country is acting as a(n):

answer

export agent

question

When businesses can promote different features of their products and consumers are willing to pay more for products containing the features they desire, the competitive environment is probably

answer

monopolistic competition

question

Which of the following forms of business ownership is directly limited by the life of its ownership?

answer

sole proprietorships

question

When two computer companies joined together in hopes of obtaining a competitive advantage on a worldwide basis, this exemplifies a

answer

strategic alliance

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_____ have both tangible and intangible characteristics

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products

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McDonald's had to adapt its menus to reflect local preferences in India because

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cows are sacred to many Indians, and many are vegetarians

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41. The purchase of overseas production and marketing facilities is

answer

a direct investment

question

Thomas thinks that organizing as a partnership would be best because

answer

it would allow them to rely on their own financial resources and talents

question

Why was the World Bank formed?

answer

an money to underdeveloped to developing countries

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

answer

economics

question

The American economic system is best described as _____ because the government regulates business to preserve competition and protect consumers and employees

answer

modified capitalism

question

46. When Apple introduced the iPad, the price of and demand for netbook and notebook computers were high. As a result:

answer

other suppliers introduced competing products to take advantage of the demand

question

The right of common stockholders to have the opportunity to purchase new shares of stock is called a

answer

a preemptive

question

The organizational form that many consider to be blend of the best characteristics of corporations, partnerships, and sole proprietorships is the

answer

limited liability company

question

Which of the following makes short-term loans to member countries with trade deficits and provides foreign currencies to member nations?:

answer

international monetary fund

question

Corporations distribute profits to their owners in the form of

answer

dividends

question

Increased unemployment can reduce consumer demand for goods and services, leading to

answer

deflation

question

Which countries were merged into one market by NAFTA?

answer

Canada, U.S., and Mexico

question

53. A forum to discuss trade problems and negotiate a reduction of trade barriers was first provided by the:

answer

general agreement of tariffs and trade

question

A change in administration in a foreign government that is hostile to foreign trade is an example of a(n)

answer

political power

question

Advertising, personal selling, coupons, and sweepstakes are forms of___

answer

promotion

question

Which stockholders usually have the right to vote and control the board of directors?

answer

common

question

The group of individuals elected by the stockholders to oversee the general operation of a corporation are known as the

answer

board of directors

question

Financial resources are also known as

answer

capital

question

Trends have gradually changed the U.S. to a(n)_____ economy focused on making life easier for busy consumers

answer

service

question

Joint ventures are popular in situations that call for

answer

larger investments

question

Because it virtually controls the world's deposits of gem-quality diamonds, DeBeers Consolidated Mines, Ltd. has a(n)

answer

absolute advantage

question

Because Colombia can produce coffee so much more efficiently than other items produced there, it has which of the following advantages?

answer

comparative

question

63. Customizing products, promotion, and distribution according to cultural, technological, and national differences indicates a:

answer

multinational strategy

question

The fact that the U.S. company 3M owns a film-manufacturing facility in Italy is an example of:

answer

a direct investment

question

Aand has been asked to join a new partnership that is developing wind energy technologies. Because the business is high risk, he does not want to be liable for the firm's debts if the project should fail. He could still participate as a:

answer

limited partner

question

A written authorization assigning a stockholder's voting privilege to another is a:

answer

proxy

question

A favorable balance of trade exists when a country:

answer

exports more than it imports

question

67. When there is only one business providing a product in a given market, there exists:

answer

monopoly

question

68. A favorable balance of trade exists when a country:

answer

exports more than it imports

question

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

answer

demand

question

The type of corporation represented by organizations such as the National Aeronautics and Space Administration (NASA) and the U.S. Postal Service is called

answer

quasi-public

question

Factors of production are:

answer

resources used to produce goods and services

question

A budget surplus, when a nation spends less than it takes in from taxes, is the opposite of a(n):

answer

budget deficit

question

In a capitalist system, individuals own and operate ____ businesses:

answer

the majority of

question

All of the following are advantages of a sole proprietorship except:

answer

unlimited liability

question

75. Economic circulation occurs when:

answer

spending declines

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