Question 1

An activity which seeks to earn a profit by providing a good or service is known as a(n)

Accepted Answer

Business

Question 2

_______ is the amount a business earns after deducting what it spends for salaries and other expenses.

Accepted Answer

Profit

Question 3

Which of the following is an advantage of utilizing technology?

Accepted Answer

Productivity increases

Question 4

Jill is looking into the possibility of opening up a day care center in her community, because she is aware of many single-parent families that need a place for their children to stay while the parents work. She is concerned about the long term prospects for such a business. Jill believes the future of her day care will depend on whether birth rates and the number of single-parent families remain high. These concerns illustrate how businesses can be affected by:

Accepted Answer

Demographic trends

Question 5

Which of the following statements best describes how firms must treat their frontline workers in order to remain competitive?

Accepted Answer

Empowered with the authority to respond quickly to the unmet needs of customers

Question 6

True or false: Effectiveness means producing goods and services using the least amount of resources.

Accepted Answer

False

Question 7

True or false: stakeholders are all the people who stand to gain or lose by the policies and activities of a business.

Accepted Answer

True

Question 8

True or false: currently people between the ages of 45 and 54 are the richest group in the United States.

Accepted Answer

False

Question 9

Since the beginning of the 1900s, the agricultural sector of the United States has:

Accepted Answer

Experienced a significant drop in employment, mainly because of tremendous improvements in efficiency

Question 10

True or false: with the emergence of the internet, Jasmine finds it easy to do all of her gift buying online. She takes comfort in the fact that new technologies if installed properly are seldom used in unethical ways.

Accepted Answer

False

Question 11

The service industry represents about ____% of the value of the U.S. economy.

Accepted Answer

~70%

Question 12

True or false: technological innovation has a ripple effect. With the advent of the Internet, Tyler, a certified tech-nerd, is being courted by companies to write the next generation of antivirus software. He tells us it\'s big business!!!!!

Accepted Answer

True

Question 13

A nation progresses socially when it has good schools, clean air and water, and more. Which of the following statements addresses conditions for social progress?

Accepted Answer

A city, state, or nation\'s social progress needs the right business environment

Question 14

True or false: Sue is a single mother with two small children. Her employer is considering providing family leave. Since sue is a single mom with small children, she is unlikely to benefit from this program.

Accepted Answer

False

Question 15

True or false: A surplus currently exists for a product called widgets. In a free-market system, the government must step in and buy any widgets that consumers do not buy in order to eliminate the surplus and establish equilibrium.

Accepted Answer

False

Question 16

True or false: brain drain is the loss of the best and brightest people to other countries.

Accepted Answer

True

Question 17

________ is considered by some to be the father of modern economics.

Accepted Answer

Adam Smith

Question 18

The four basic types of unemployment are frictional, structural, seasonal, and:

Accepted Answer

Cyclical

Question 19

The market price of apples is currently rising. In a free market economy, the most likely explanation of this price change is that:

Accepted Answer

There is a shortage in the market for apples

Question 20

There are some restrictions on freedom of assembly and freedom of speech under a _________ system.

Accepted Answer

Mixed economy

Question 21

True or false: Deanne is a vocal critic of socialism (bitch). She likes to point out that I. Recent years the governments in many socialistic nations have cut back on government services and have reduced taxes. Deanna believes that this trend will ultimately result in all nations adopting pure capitalistic ideals. Recent evidence suggests that Deanne\'s views are essentially correct.

Accepted Answer

False

Question 22

True or false: In perfect competition, each firm produces a product that is clearly differentiated from the products of other firms in the same market.

Accepted Answer

False

Question 23

The measure used to report price changes at the wholesale level is the:

Accepted Answer

Producer price index (PPI)

Question 24

True or false: Thomas Malthus believed that people in most countries would never be able the achieve high standards of living unless the problems of overpopulation were addressed.

Accepted Answer

True

Question 25

Which of the following people would tend to favor a socialist economy? 1) robin wants to live in a country that encourages rapid economic growth 2) Liz wants to live in a country with limited government regulations 3) Fred prefers to live in a country that promotes social equality 4) John wants to live in a country with low marginal tax rates

Accepted Answer

3

Question 26

Brain drain has occurred in many socialistic nations because:

Accepted Answer

Tax rates on well respected professionals such as doctors tend to be very high.

Question 27

True or false: a firm desiring to enter a foreign market with a limited investment should consider licensing.

Accepted Answer

True

Question 28

True or false: any corporation that exports at least 50% of its total output can be classified as a multinational corporation

Accepted Answer

False

Question 29

Fred Bergsten of the institute for international economics estimated that every $1 billion of US exports:

Accepted Answer

Generates over 7,000 jobs in the United States

Question 30

_________ tariffs are designed to raise money for the government

Accepted Answer

Revenue

Question 31

The nation of Redland reported that its imports for the previous year were $4 billion greater than its exports. During the same period, Redland reported a favorable balance of payments. This information suggests:

Accepted Answer

Money inflows from tourism, foreign aid, foreign investment and other sources more than offset Redlands trade deficit

Question 32

Pepsi cola entered into a long term contract with s south African beverage company. The contract calls for the south Adrian firm to produce and market Pepsi cola in South Africa. Pepsi will receive royalties on each case of beverage sold. This is an example of:

Accepted Answer

Licensing

Question 33

Boasting a $1.6 billion ketchup brand, the Heinz company is flying high with a 44% increase in its sales of Indonesian based ABC, a soy sauce company that it owns. ABC is a ________ of Heinz.

Accepted Answer

Foreign subsidiary

Question 34

True or false: one advantage of licensing is the relatively low cost of entering a foreign market.

Accepted Answer

True

Question 35

True or false: many US companies fail to think globally.

Accepted Answer

True

Question 36

Licensing is a popular strategy because:

Accepted Answer

The licensee has incentive to work hard and succeed because he or she has borne the cost

Question 37

Business is under pressure from society to be more socially responsible. However, even the strongest advocates for corporate responsibility can\'t seem to agree:

Accepted Answer

On what social responsibility involves

Question 38

Onside fin band potential impact on others prior to making a decision is consistent with ___________ behavior

Accepted Answer

Ethical

Question 39

True or false: a social audit measures a firms progress in the area of worker management relations.

Accepted Answer

True

Question 40

An accurate statement regarding this chapter is: \"business law establishes ethical behavior\"

Accepted Answer

False

Question 41

Overly ambitious business goals and employee incentives can lead to unethical behavior.

Accepted Answer

True

Question 42

At Fast-Track Financial Servies, it is not unusual for a financial consultant to lose a client to another consultant working out of the same office. Clients have a right to do business with whomever they choose. If it is a high net worth client, with the potential for high commissions on sales, the incentive to steal a fellow workers client exists because the firms culture had not established intengrity based ethics to deter this activity.

Accepted Answer

True

Question 43

True or false: Promoting social justice is a responsibility of society, but not business

Accepted Answer

False

Question 44

When Angela graduated with a degree in computer science and started Her software company, she posted a sign that read, \"this company will always operate within the legal limits of the law.\" Posted where all employees could clearly see it each day, this demonstrated

Accepted Answer

Her expectation that all employees follow the laws that apply to the business

Question 45

A charitable donation contributed by a corporation is an example of corporate philanthropy

Accepted Answer

True

Question 46

Which of the following is a reason why a business should be managed ethically? 1) strict global regulations require it 2) is it the law in the US 3) it is the right thing to do 4) employees demand it

Accepted Answer

3

Question 47

True or false: the question \"is it legal?\" establishes ethical behavior

Accepted Answer

False

Question 48

True or false: a multinational corporation is a firm that operates in several countries

Accepted Answer

True

Question 49

True or false: a limited liability company is similar to an S corporation, but without the special eligibility requirements

Accepted Answer

False

Question 50

True or false: Franchisors sometimes pay reverse royalties to franchises if it is evident that the franchisers internet sales have negatively impacted the profits of traditional brick and mortar franchisee businesses

Accepted Answer

True

Question 51

True or false: The fairest way to handle profits in any partnership arrangement is to divide things evenly. If there are two owners in the business, each gets 50%. If there are three owners (even if one is a limited partner) each gets 33.333% of any accumulated profits

Accepted Answer

False

Question 52

A merger involving a commercial bakery and a grocery retailer would be an example of a:

Accepted Answer

Vertical merger

Question 53

True or false: when two firms job together to form one company, it is called a merger

Accepted Answer

True

Question 54

A master limited partnership (MLP) is:

Accepted Answer

Taxed like a partnership

Question 55

True or false: it is not unusual for members of a cooperatives to work for and help manage their cooperative

Accepted Answer

True

Question 56

Although sole proprietors do not pay any special taxes, as the won\'t of s business you ate also an employee of the business, which requires you to:

Accepted Answer

Pay self employment taxes

Question 57

With respect to taces, the sole proprietorship

Accepted Answer

Pay taxes on the profits of the business, at the owners personal tax rate

Question 58

One reason limited liability companies had become so popular is that they:

Accepted Answer

Can be taxed either as a corporation or as a partnership, so owners ca choose the tax treatment that is more advantageous for their situation

Question 59

If a firm is advertising that it is selling franchise opportunities, the prospective franchise can be assured that the government has performed due diligence on this company, and has deemed it a safe investment

Accepted Answer

False

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