bus 101
Bank of America provides all its employees a written guide to acceptable and ethical behavior as defined by the organization, outlining uniform policies, standards, and punishments for violations. This written guide is known as which of the following? A social audit The Sarbanes-Oxley Act of 2002 A nondisclosure agreement A code of ethics
A code of ethics
Suppose that to expand its gum sales to consumers in China, the Wrigley Company forms a 5-year partnership with a Chinese-based marketing firm. The Wrigley Company partners with the Chinese firm for the strategic purpose of gaining market knowledge and access in China. This business arrangement is known as which of the following? Direct investment A multinational corporation A strategic alliance A joint venture
A joint venture
In 2020, retailer JCPenney was forced to file bankruptcy because it experienced a negative profit caused by the COVID-19 pandemic. This negative profit is referred to as which of the following? Inverse sales revenue A loss Expenses Negative sales revenue
A loss
Manu, a student enrolled in an undergraduate economics class, has studied the various types of economic systems. He has concluded that the best type of economic system is one that encourages private enterprise, subject to regulation by the government. He also believes that certain services, such as social security and health care benefits, should be managed by the government. Manu supports which of the following types of economic systems? Socialism A command economy Capitalism A mixed economy
A mixed economy
Headquartered in Irving, Texas, ExxonMobil is one of the world's largest publicly traded energy providers and chemical manufacturers. It operates facilities or markets products in most of the world's countries and explores for oil and natural gas on six continents. As such, ExxonMobil is best described as which of the following? A joint venture Correct answer.A multinational corporation A contract manufacturer A strategic alliance
A multinational corporation
Salesforce.com is a Fortune 500 company and one of the largest enterprise software companies in the United States. As one of its goals, Salesforce.com strives to use 100 percent renewable energy, and it tracks its progress annually, releasing its findings in a stakeholder impact report on its website. This is an example of which of the following? A social audit The economic model of social responsibility Consumerism Affirmative action
A social audit
With its ideal climate, Colombia grows coffee more efficiently than any other nation in the world. With regards to coffee production, Colombia is said to have which of the following? Absolute advantage Comparative advantage A diplomatic sanction An economic sanction
Absolute advantage
Intech Contracting, based in Lexington, KY, is competing for a job painting bridges in Ottawa, Canada. Canada's government is taking bids and Intech would like some assistance from a U.S. Government Export Assistance Program. Intech would likely seek help from _____. Advocacy Center Small Business Administration U.S. Export Assistance Center U.S. Commercial Service International Trade Administration
Advocacy Center
In May 2021, the total flow of money into Luxembourg exceeded the total flow of money out of the country by EUR 266 million. In terms of Luxembourg, the number EUR 266 million represents which of the following? Balance of trade Balance of payments Comparative advantage Absolute advantage
Balance of payments
A new medical study indicates that eating a diet of high-fiber foods might help reduce one's risk of cancer. Advertising for a few producers of fiber cereals indicate that if you eat fiber cereal, you will not get cancer. This is an example of which type of ethical issue? A conflict of interest Communications Fairness and honesty Organizational relationships
Communications
Due to its climate and a large amount of land suitable for dairy cows, Ireland can produce cheese and butter more efficiently than other products. Because of this, Ireland is said to have which of the following in cheese and butter production? Absolute advantage A diplomatic sanction Comparative advantage An economic sanction
Comparative advantage
Google is an American multinational technology company that incorporates a workplace system that recognizes and respects the differences among people because of their age, race, ethnicity, gender, sexual orientation, and ability. Which of the following terms refers to the system that Google uses? Cultural subjectivity Socioeconomic objectivity Cultural diversity Socioeconomic homogeneity
Cultural diversity
Suppose that to increase its volume of exports to the United States, the Chinese government lowers the comparable worth of its national currency, the yuan, by 25 percent relative to the U.S. dollar. This practice is known as which of the following? Exchange control A tariff Currency devaluation Dumping
Currency devaluation
Suppose that Japan produces a particular make and model of television for sale in the United States with a manufacturer's suggested retail price of $699, while customers in Tokyo and Kyoto must pay $999 for the same television. This may be evidence of which of the following? A tariff An exchange control Dumping An import quota
Dumping
Which of the following is correct regarding a recession? During a recession, it is typical for the unemployment rate to decrease. In response to a recession, many businesses focus on producing discretionary goods and services that increase consumer confidence. It is a one or more three-month period(s) of decline in a country's gross domestic product. During a recession, it is typical for consumer buying power to decrease.
During a recession, it is typical for consumer buying power to decrease.
Suppose that in an attempt to stimulate the economy, the Federal Reserve Board chooses to cut corporate tax rates. This action is an example of which of the following? Both monetary and fiscal policy Fiscal policy Neither monetary nor fiscal policy Monetary policy
Fiscal policy
In 2020, the total dollar value of all goods and services produced by all people within the boundaries of the United States was $20.9 trillion. Which of the following does this statistic measure? Inflation Gross national product Gross domestic product Deflation
Gross domestic product
Which of the following is not included in material resources? Machinery Buildings Labor Minerals
Labor
What are the characteristics of perfect competition? Few buyers and many products Many buyers and many sellers Few buyers and many sellers Few products and many buyers
Many buyers and many sellers
Suppose that the Federal Reserve Board chooses to increase interest rates to reduce the possibility of inflation in the overall economy. This action is an example of which of the following? Both monetary and fiscal policy Fiscal policy Monetary policy Neither monetary nor fiscal policy
Monetary policy
Dick's Sporting Goods, the biggest sporting goods retailer in the United States, earned significant publicity several years ago when it decided to stop selling guns to customers younger than 21 and removed assault rifles and high-capacity ammunition magazines from all of its stores. This decision is most consistent with which of the following public responsibilities of business? The economic model of social responsibility Public health The right to choose Consumerism
Public health
You own a construction company headquartered in North Carolina and you plan to compete for a large infrastructure (roads and bridges) contract with the Haitian government. Which of the following organizations would be best suited to assist you in competing for this contract? The Small Business Administration's Office of International Trade The United States Commercial Service The Uniform Commerce Commission The Advocacy Center
The Advocacy Center
Which of the following banks was established in 1944 and offers low-interest and interest-free credit to developing countries? The Export-Import Bank of the United States The Inter-American Development Bank (IDB) The World Bank The International Monetary Fund (IMF)
The World Bank
Honda was investigated because the airbags used in some of its models could explode spontaneously when exposed to high heat and humidity, which has led to injuries and deaths. Honda failed to inform regulators and consumers of a risk of rupture, and there have now been lawsuits from all over against the auto company. By failing to immediately investigate and correct the problem, Honda ignored which of the six basic rights of consumers? The right to safety. The right to be informed. The right to choose. The right to be heard.
The right to safety.
Which of the following is not a frequently cited reason for restricting trade with other countries? To lower prices for consumers To equalize a nation's balance of payments To protect national security To protect new or weak industries
To lower prices for consumers
The total flow of money into a country minus the total flow of money out of that country over a specified period of time is the ______. balance of trade export balance trade deficit balance of payments
balance of payments
One reason to study business includes _______, which includes having an understanding of cultural (or workplace) diversity. being a better informed consumer starting your own business being a successful employee helping to choose a career
being a successful employee
A newly formed country in Oceania has no high tariffs but other countries find it difficult to trade with it because of its extensive labeling, product testing, and certification requirements. These restrictions can best be classified as _____. import quotas trade embargos bureaucratic red tape trade deficits
bureaucratic red tape
Although it lacks sources of hops and olive oil, Normandy Road Vineyards, vintner of Normandy Road Red, has a plentiful supply of cabernet sauvignon grapes for its wineries which means it has (a) ____. comparative advantage in wine production no comparative or absolute advantages disadvantage in wine production relative advantage in wine production
comparative advantage in wine production
All of the following except _____ are personal factors affecting ethical behavior. personal central attitudes knowledge of the issue personal moral values cultural norms
cultural norms
After graduation you are interested in starting a company that creates, makes, delivers, and promotes products that are environmentally safe. You are interested in ______. pollution sustainability recycling green marketing
green marketing
The human resource manager at Used Cars 4 U wants to encourage a more ethical climate in the organization. A likely way to do this is to _____. avoid any mention of ethics to employees so they will not think unethical thoughts make sure the company has a code of ethics and that it is enforced add an ethics department to constantly monitor employee behavior set a good example and hope employees will follow it
make sure the company has a code of ethics and that it is enforced
Costco stores would most likely be classified as _____. service businesses sole proprietorships manufacturing establishments marketing intermediaries
marketing intermediaries
Mikkel is a 45-year-old male with a tenth-grade education. He has been unemployed on numerous occasions and for extended periods of time during his adult life. Mikkel's mother has encouraged him to take classes at the local community college to learn a marketable trade skill, but to no avail. Mikkel is classified as which of the following? Cyclically unemployed Hard-core unemployed Systematically unemployed Seasonally unemployed
Hard-core unemployed
Which of the following laws established the Environmental Protection Agency (EPA) to enforce federal laws that involve the environment? The American Recovery and Reinvestment Act (2009) The Resource Conservation and Recovery Act (1984) The National Environmental Policy Act (1970) The Resource Recovery Act (1970)
The National Environmental Policy Act (1970)
Jamaica is experiencing balance-of-payment deficits and is seeking financial support. Jamaica should probably seek assistance from ____. the International Monetary Fund (IMF) the World Bank the Inter-American Development Bank (IDB) the Export-Import Bank of the United States
the International Monetary Fund (IMF)
General Motors Corporation plans to offer 30 new electric vehicle models globally by 2025. It remains to be determined whether consumers will embrace (in other words, purchase) electric vehicles to the extent required by the company's plan. General Motors' decision to commit to electric vehicle technology, despite the risk, is an example of which of the following economic systems? A mixed economy A shareholder economy A market economy A command economy
A market economy
The Coca-Cola Company, a Fortune 500 company, actively seeks to increase the number of employees from underrepresented groups at all levels within its organization. This means that Coca-Cola supports which of the following? Consumerism The economic model of social responsibility Workplace homogeneity Affirmative action
Affirmative action
According to economists, factors of production would not include which of the following: _______. entrepreneurship money labor capital
money
Suppose you own a tractor manufacturing company that has historically sold exclusively in the United States. You plan to expand your sales to Europe, and you would like to seek input regarding the best ways to market your tractors to consumers in European countries. Which of the following organizations would be best suited to provide you with the international marketing advice you seek? A Small Business Administration U.S. Export Assistance Center The Small Business Administration's Office of International Trade The International Commerce Commission The Advocacy Center
A Small Business Administration U.S. Export Assistance Center
Suppose the president of Nauru, a small developing nation, would like to obtain a loan from the International Monetary Fund (IMF) for his country. Which of the following requests would most likely result in a loan from the IMF to Nauru? An interest-free loan to make the loan more affordable for the country A loan to enhance the country's military strength for the purpose of its self-defense A loan to enhance security for the country's government leaders, including the president A short-term loan to address the country's balance-of-payment deficit
A short-term loan to address the country's balance-of-payment deficit
Several businesspersons are discussing their businesses and all assert that they have international businesses. Which of the following is not considered an international business? A large amber jewelry store in Poland purchasing silver from a mining operation in Nevada in the United States A Chinese manufacturer selling toys to a large toy retailer in England A tire manufacturer in Kentucky that sells its tires to a Toyota plant in South Carolina A computer chip manufacturer in Mexico selling its processors to a computer manufacturer in Korea
A tire manufacturer in Kentucky that sells its tires to a Toyota plant in South Carolina
If Argentina imported $1,672 billion worth of goods and services and exported $1,238 billion of goods and services, which of the following is true? Argentina has a trade deficit. Argentina's balance of payments is $434 billion. Argentina's balance of trade is $2,910 billion. Argentina has a favorable balance of trade.
Argentina has a trade deficit.
n Adam Smith's view, which of the following is the role of government in business? Determining business production quotas Furnishing public works Redistributing the wealth created by business Regulating business activity
Furnishing public works
Following World War II, an international organization involving 22 countries and the United States was formed to reduce or eliminate tariffs and other barriers to world trade. This organization is called the _____. World Trade Organization (WTO) European Union (EU) General Agreement on Tariffs and Trade (GATT) United States-Mexico-Canada Agreement (USMCA)
General Agreement on Tariffs and Trade (GATT)
A firm looking for assistance in export marketing and trade finance would likely contact which U.S. Government Export Assistance Program? International Trade Administration Small Business Administration U.S. Export Assistance Center U.S. Commercial Service Advocacy Center
Small Business Administration U.S. Export Assistance Center
Which of the following is not a service provided by the African Development Bank? Loans Subsidies to the military-industrial complex Technical assistance Development of trade programs
Subsidies to the military-industrial complex
______ is an economic community made up of 27 countries that uses a common currency to facilitate trade. The United States-Mexico-Canada Agreement (USMCA) The European Union (EU) The Dominican Republic-Central America Free Trade Agreement (CAFTA-DR) The World Trade Organization (WTO)
The European Union (EU)
______ is an independent agency of the U.S. government whose function is to assist in financing the exports of American firms. The Inter-American Development Bank (IDB) The International Monetary Fund (IMF) The Export-Import Bank of the United States The World Bank
The Export-Import Bank of the United States
Yuki is a graduate student enrolled in an International Trade Law course. To learn more about organizations that facilitate international trade, Yuki chooses as the topic of his major research paper the international organization created at the end of World War II and currently comprised, in its new form, of 164 nations dedicated to reducing or eliminating tariffs and other barriers to world trade. Which of the following is the subject of Yuki's research paper? The Association of Southeast Asian Nations (ASEAN) The United States-Mexico-Canada Agreement (USMCA) The European Union (EU) The General Agreement on Tariffs and Trade (GATT)
The General Agreement on Tariffs and Trade (GATT)
The United States-Mexico-Canada Agreement (USMCA) updated the North American Free Trade Agreement (NAFTA) in all but which of the following ways? The USMCA strengthens labor laws and provides for greater enforcement of them, creating a more equitable situation for U.S. workers. The USMCA includes provisions related to digital technology and intellectual property. The USMCA has significant dispute resolutions systems, which NAFTA lacked. The USMCA will be formally reviewed at least every three years to ensure that it remains beneficial to the United States, Mexico, and Canada.
The USMCA will be formally reviewed at least every three years to ensure that it remains beneficial to the United States, Mexico, and Canada.
Hina is an undergraduate student enrolled in an International Economics course. During one class session, Hina's professor devotes a portion of her lecture to discussing the most widely known multilateral development bank (MDB), a cooperative of 189 member countries that provides loans to developing countries to help them grow. To which of the following organizations was Hina's professor referring? The European Bank for Reconstruction and Development The Asian Development Bank The Inter-American Development Bank The World Bank
The World Bank
Suppose the federal government suspects that China is illegally dumping semiconductors into the United States market and would like to have its concerns addressed by an international forum. In which of the following organizations should the United States pursue its claim? The World Trade Organization (WTO) The Dominican Republic-Central America Free Trade Agreement (CAFTA-DR) The Common Market of the Southern Cone (MERCOSUR) The United States-Mexico-Canada Agreement (USMCA)
The World Trade Organization (WTO)
BP p.l.c. is a British multinational oil and gas company headquartered in London, England. It is one of the world's seven oil and gas "supermajors." BP p.l.c. is a vertically integrated company operating in all areas of the oil and gas industry, including exploration and production, refining, distribution and marketing, power generation, and trading. It also has renewable energy interests in biofuels, wind power, smart grid, and solar technology. BP p.l.c. has operations in roughly 80 countries worldwide, and approximately 19,000 service stations worldwide. Which of the following is correct regarding BP p.l.c. and all other multinational corporations? They operate on a worldwide basis while maintaining substantial ties to a specific region or nation. Their national geographic boundaries significantly limit their operations. They represent a moderate level of involvement in international business. They are organized under the laws of their home country.
They are organized under the laws of their home country.
Jamila's Transport issues a(n) ____ to an exporter to prove merchandise has been shipped. invoice bill of lading draft confirmation
bill of lading
Organizations that combine machinery, labor, and raw materials to produce goods are called _____. market intermediaries manufacturing businesses service businesses processing plants
manufacturing businesses
Armenia, Belarus, Kazakhstan, Russia, and five other countries are part of ______, an economic community. the World Trade Organization (WTO) the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) the Commonwealth of Independent States the Association of Southeast Asian Nations (ASEAN)
the Commonwealth of Independent States
Several federal laws have been passed to protect the environment. The act which requires federal regulation of potentially dangerous solid-waste disposal is the ______. Resource Conservation and Recovery Act (1984) Water Quality Improvement Act (1970) Oil Pollution Act (1990) Clean Air Amendment (1970)
Resource Conservation and Recovery Act (1984)
Target buys products from manufacturers and then resells them to consumers. As such, Target is which of the following? A promotional enterprise A manufacturing business A marketing intermediary A service business
A marketing intermediary
Immediately after their business ethics class on Tuesday morning, Beatriz and Yang began to debate the relative merits of the economic and the socioeconomic views of social responsibility. Beatriz supports the economic model of social responsibility, while Yang supports the socioeconomic model. Which of the following is an argument in support of Beatriz's position? Business has the technical, financial, and managerial resources needed to tackle today's complex social issues. Business managers are responsible primarily to stockholders, so management must be concerned with providing a return on owners' investments. Because business is a part of our society, it cannot ignore social issues. By helping resolve social issues, business can create a more stable environment for long-term profitability.
Business managers are responsible primarily to stockholders, so management must be concerned with providing a return on owners' investments.
Which of the following statements is correct regarding the United States' economic outlook for international trade? Approximately one out of every 10 jobs in the United States depends on international trade. The percentage of American jobs tied to global trade has increased 25 percent since 1992. International trade is only a minor economic growth vehicle for the United States. Canada and Mexico are the United States' best partners for its exports
Canada and Mexico are the United States' best partners for its exports.
Sophie is a tattoo artist who operates a small tattoo shop in the Bronx, New York City. There are dozens of tattoo shops in New York City, and Sophie would like to attract more customers. What should she do? Differentiate her services from the services provided by her competitors Decrease her marketing budget Increase the price for her services Closely align her services with the services provided by her competitors
Differentiate her services from the services provided by her competitors
Katharina owns a business in Michigan that produces solar panels for residential and commercial use. So far, Katharina's business has only sold solar panels to customers here in the United States, but Katharina would like to expand her business to include sales to foreign customers. Which of the following is the least complicated and lowest risk method of business Katharina can choose to expand her business internationally? Franchising Exporting Licensing Contract manufacturing
Exporting
Which of the following is correct regarding advertising? False and misleading advertising is both illegal and unethical. Advertisers of health-related products are not subject to Federal Trade Commission guidelines on the use of descriptive product labels. It is not a recognized type of business communications. Sponsors of advertisements aimed at children are held to a lower legal and ethical standard compared to sponsors of advertisements aimed at adults.
False and misleading advertising is both illegal and unethical.
Which of the following statements is correct regarding absolute and comparative advantage? Goods are produced more efficiently when a country specializes in the products for which it has a comparative advantage. A country can only have an absolute advantage in the production of one product. Many countries do not have a comparative advantage in the production of a particular product. Every country has an absolute advantage in the production of some good or service.
Goods are produced more efficiently when a country specializes in the products for which it has a comparative advantage.
Suppose that The TJX Companies, Inc., purchases wicker baskets produced in China and sells them to customers in its stores in the United States. Regarding the purchase of wicker baskets produced in China and bringing them into the United States for resale, The TJX Companies, Inc., is engaging in which of the following forms of business activities? Exporting Comparative advantage Absolute advantage Importing
Importing
Joel is a farmer in Eastern Idaho. His small farm has been in his family for five generations and produces primarily the potatoes that have made Idaho famous for its agricultural capabilities. When Joel sells his potatoes to an agricultural wholesaler, market forces dictate that he accept the market rate for his crop. In other words, Joel cannot expect to receive a higher price for his potatoes that the market rate. What type of competition does Joel face in owning and operating his small potato farm? Oligopoly Monopolistic competition Monopoly Perfect competition
Perfect competition
In writing his final paper for Business Ethics class, Nikolaj copied significant parts of the paper from other sources without acknowledging those sources. Once his professor discovered this, he failed Nikolaj for the course. Which of the following violations did Nikolaj commit? Patent infringement Plagiarism A conflict of interest Attribution
Plagiarism
Tiana, a manufacturing employee for a company headquartered and doing business in the United States, believes that the company is denying her promotional opportunities due to her race. If Tiana decides to pursue a workplace discrimination claim, with which of the following federal administrative agencies should she file her claim? The Federal Trade Commission The Occupational Safety and Health Administration The Equal Employment Opportunity Commission The United States Department of Commerce
The Equal Employment Opportunity Commission
Teresa Ross brought a lawsuit against Group Health Cooperative under the False Claims Act. Ross, who worked as Director of Risk Adjustment Services for the healthcare firm, believed that Group Health Cooperative was defrauding Medicare by inflating or altering patients' diagnoses to receive higher payments. The company eventually settled the case with the United States Department of Justice for $6.3 million, and Ross was awarded approximately $1.5 million for engaging in which of the following? A code of ethics A conflict of interest Corporate citizenship Whistle-blowing
Whistle-blowing
Tangelique is concerned about unethical behavior occurring at her company. She informed the government about the unethical actions. Tangelique _____. went against her code of ethics violated a law is encouraging trade association guidelines became a whistle-blower
became a whistle-blower
Idris has started his own company. He believes that his stockholders will benefit the most if his company solely focuses on making products that society needs. Idris _____. believes that corporations must act as good citizens believes he has a responsibility to not only his stockholders but also to his customers, employees, suppliers, and the general public believes in a socioeconomic model of social responsibility believes in an economic model of social responsibility
believes in an economic model of social responsibility
Roberto is researching South Africa's economy. He looks up the country's ______, which is a monthly index that measures the changes in prices of a fixed basket of goods purchased by a typical consumer in an urban area. gross domestic product (GDP) balance of trade consumer price index (CPI) producer price index (PPI)
consumer price index (CPI)
Fernando is Charu's supervisor. Charu has a really good idea for a way to expand the company's business and told Fernando about it. Fernando presents it at the next department meeting but takes complete credit for the idea. This is an ethical issue regarding _____. organizational relationships a conflict of interest communications fairness and honesty
organizational relationships
Noelle has a Capital One credit card. Each month, Capital One provides an enclosure with each billing statement that provides the true cost of borrowing if Noelle chose to pay only a portion of her balance. Capital One is required to provide this information in order to comply with standards related to a customer's _______. right to be heard right to be informed right to choose right to safety
right to be informed
Separating the manufacturing process into distinct tasks and assigning each task to an individual or unit is called _____. ambulation industrialization specialization differentiation
specialization
Warby Parker offers customers a virtual try on feature which allows them to see how they might look in a pair of glasses. This feature shows the effect of the _____ environment on business. competitive technology economic global
technology
Imasu plans to become a licensed realtor and open his own real estate sales office in his hometown of Petaluma, California. What type of business will Imasu be operating? A factoring business A hybrid business A service business An oligopoly
A service business
Suppose that to reduce the number of Japanese-manufactured cars sold in the United States, the federal government elects to impose a 25-percent tax on all Japanese cars imported for sale in the United States market. This tax is known as which of the following? An embargo A tariff An import quota An exchange control
A tariff
Which of the following statements is correct regarding the Export-Import Bank of the United States? In 2019, approximately 90 percent of its transactions directly supported Canadian, Mexican, and European small businesses. Its function is to assist U.S. consumers in financing imports from foreign nations. It is a subcommittee of the United States Senate. It extends and guarantees credit to overseas buyers of American goods and services and guarantees short-term financing for imports.
It extends and guarantees credit to overseas buyers of American goods and services and guarantees short-term financing for imports.
Adebola is preparing a research paper for her Introduction to Business class regarding early government regulations that affected American business. Which of the following was the first federal act to regulate business practices? The Sherman Antitrust Act The Clayton Antitrust Act The Federal Trade Commission Act The Interstate Commerce Act
The Interstate Commerce Act
Tobias, a first-year student at the local community college, has just inherited $25,000 from his dear aunt Katharina, and Tobias would like to pursue a course of study that will help him earn the best financial return on his inheritance. Which of the following is a reason Tobias should study business? To receive help in choosing a career To become a better informed consumer To become a better informed investor To be a successful employee
To become a better informed investor
Economists describe inflation as ______. a general rise in the level of prices an unnatural rise in prices periodically adjusted by corporations a general rise in the cost of goods
a general rise in the level of prices
Businesses in Germany have approached its government leaders and requested trade restrictions. The leaders review the nation's trade situation and elect to impose restrictions. The leaders most likely did this to _____. raise prices for consumers equalize the nation's balance of payments restrict consumers' choices protect national security
equalize the nation's balance of payments
If the United States limited the quantity of Mexican tequila that could be brought into the country for the next five years, this is called a(n) _____. tariff import quota exchange control embargo
import quota
Freeport Manufacturing forms a joint venture with Cheng Merchandise, a Chinese company located in Hong Kong. Freeport Manufacturing may have entered the joint venture because it offered all of the following advantages except _____. it provides control over product attributes it requires less commitment from all parties than other methods of entering foreign markets it provides immediate marketing knowledge Freeport Manufacturing would be joining an established firm
it requires less commitment from all parties than other methods of entering foreign markets
Which of the following is a material resource for General Motors? Paint Money Labor Leadership intellect
Paint
Bowen's job requires them to meet quarterly sales goals. Bowen is at risk of not meeting this quarter's goal which means they would miss out on a bonus check. In the past, they have exaggerated their sales numbers in order to meet the goal and receive the bonus. Bowen was planning on taking a vacation with this quarter's bonus check, so they decide to exaggerate their sales numbers. Bowen has been influenced by _____ to act unethically. opportunity social factors personal factors money
opportunity
Charlotte has grown her lumber business in the United States, and she would now like to sell and ship a portion of her lumber produced in the United States to customers in Europe. Regarding her plan to sell and ship some of her lumber to European customers, Charlotte plans to engage in which of the following forms of business activity? Importing Absolute advantage Intranational business Exporting
Exporting
In July 2020, Apple Inc. (headquartered in Cupertino, California) announced its plan to become carbon neutral across its entire business, manufacturing supply chain, and product life cycle by 2030. The company's "climate roadmap" includes steps to increase the use of low carbon and recycled materials in its products, expand its energy efficiency, move its entire supply chain to renewable energy sources, improve its processes and materials, and actively work to remove carbon from the atmosphere. This is an example of which of the following? Green marketing The economic model of social responsibility Strict legal compliance with federal law Affirmative action
Green marketing
______ is the study of the national and global economy. Entrepreneurship Microeconomics Economics Macroeconomics
Macroeconomics
Isabel is interested in taking an Introduction to Business course during her freshman year at university. Which of the following is not a reason why she should study business? To pursue the sole path to self-actualization To be a successful employee To start her own business To become a better informed consumer
To pursue the sole path to self-actualization
Suppose that as chief executive officer of the United States Chamber of Commerce, Suzanne Clark is very concerned that due to economic turbulence in the United States, product prices in various industries will decrease due to the lack of consumer willingness and/or ability to pay currently existing prices. Mrs. Clark is concerned about which of the following? Inflation Deflation Gross national product Gross domestic product
Deflation
Amber has recently graduated from college and would like to play a major role in seeing that legislation for protecting the environment is enforced. Which of the following government agencies would be the best employment fit for Amber? Environmental Protection Agency Federal Aviation Administration The Commission for Cleaner Air Food and Drug Administration
Environmental Protection Agency
What is the distinction between ethics and business ethics? Ethics is the study of right and wrong and the morality of the choices individuals make, while business ethics is the application of moral standards to business situations. Business ethics is the study of right and wrong and the morality of the choices individuals make, while ethics is the application of moral standards to business situations. Ethics may become part of the law, while business ethics may not. Business ethics may become part of the law, while ethics may not.
Ethics is the study of right and wrong and the morality of the choices individuals make, while business ethics is the application of moral standards to business situations.
Suppose that Vincente, founder of his own investment firm, orchestrates a Ponzi scheme designed to defraud investors. Vincente's actions are most indicative of which of the following factors affecting ethics? Opportunity Socioeconomic Social Individual
Individual
What is the legislative impact of the Sarbanes-Oxley Act of 2002? It effectively waives the constitutional privilege against self-incrimination for those who report corporate misconduct. It implicates by reference those who report corporate misconduct. It provides sweeping legal protection for those who report corporate misconduct. It subjects those who report corporate misconduct to double jeopardy.
It provides sweeping legal protection for those who report corporate misconduct.
In its latest social responsibility report, General Mills describes how it contributed more than $93 million in 2019 to a wide variety of charitable causes, including support for programs that feed the hungry and nonprofit organizations, schools, and communities across the globe. This is an example of General Mills' attempt to satisfy its obligations to which of the following? Its stakeholders Its board of directors Its independent contractors Its shareholders
Its stakeholders
Levi Strauss & Co. is a venerable American clothing company known worldwide for its Levi's brand of denim jeans. It was founded in May 1853 when German immigrant Levi Strauss moved from Buttenheim, Bavaria to San Francisco, California to open a west coast branch of his brother's New York dry goods business. Levi's jeans are known for both their brand and their durability, and as a result, Levi Strauss & Co. can command a higher price than many of the other numerous jean manufacturers globally. What type of competition does Levi Strauss & Co. face in selling the jeans it produces? Monopolistic competition Monopoly Perfect competition Oligopoly
Monopolistic competition
Patrick, a receptionist in a dental office, has been put in sole charge of his employer's financial records. Shortly after this occurred, Patrick embezzled $15,000 from the practice, and manipulated the financial records to hide the fact that he had stolen the money. Patrick's actions are most indicative of which of the following factors affecting ethics? Socioeconomic Social Opportunity Individual
Opportunity
During her annual performance evaluation, Maira's supervisor Camille expressed that she was very pleased that Maira's output per hour had improved by 17 percent compared to the previous year. Based on her comment, Camille was encouraged with Maira's improvement in which of the following? Profitability Productivity Efficiency Revenue
Productivity
For months, Miguel, a waiter, has watched his coworker and fellow server, Oliver, steal money from the restaurant cash register. On numerous occasions, Oliver has encouraged Miguel to do the same, contending that such action is justified because the restaurant does not pay them adequately. Eventually, Miguel does take money from the register, and he is immediately caught by his employer. Miguel's action is most indicative of which of the following factors affecting ethics? Social Socioeconomic Individual Opportunity
Social
Chloe, a young entrepreneur, plans to open a small textile manufacturing company in Asheville, North Carolina. They plan to hire 20-25 employees. Which manufacturing technique should Chloe use in their textile business for productivity? Specialization Homogenization Heterogenization Diversification
Specialization
Ford, Chevrolet, and GM, are among the top U.S. auto manufacturers and sellers. Because the production of vehicles requires a sizeable investment, it is difficult to enter this market and the sellers are quite large. Which of the following best describes the market or industry in which these companies operate? These businesses operate in a market best described as monopolistic competition. These businesses operate in a perfect competition market. These businesses operate in an oligopoly. These businesses operate in a market that would best be described as a monopoly.
These businesses operate in an oligopoly.
Jamar and Ezekiel are discussing recessions. They can't agree on how many periods of three-month consecutive decline in a country's gross domestic product (GDP) is considered a recession. A recession is _______ or more consecutive three-month periods of decline in a country's GDP. Five Four Three Two
Two
Anjali's Microscopes sells its products in educational supply and toy stores in the United States. In order to make the microscopes more inexpensively but still to Anjali's specifications, Anjali's opens a totally-owned facility overseas. This facility is an example of ____. importing direct investment a joint venture a licensing agreement
direct investment
Government can encourage ethical behavior in business by _____. providing ethical guidelines for members writing codes of ethics for organizations enacting more stringent regulations and laws appointing ethics officers in Fortune 500 companies
enacting more stringent regulations and laws
Jackson Fracking Company recently discovered that pumping the chemical-laden water used in the fracking process back into the hole drilled to extract the oil from the shale is polluting the local drinking water. Removing the chemicals and cleaning up the water will bankrupt the company and cause the loss of hundreds of local jobs but doing nothing will endanger the health of the community. Jackson Fracking Company faces a serious _______ decision. ethical revenue moral spiritual
ethical
A local technology company has developed a training program that begins with a "soft skills" course—teaching participants punctuality, professional appearance, and oral and written communication. If participants successfully complete the "soft skills" course, they can enroll in a number of different "hard skills" courses which would teach them actual skills they would use on the job. This training program is likely an effort to _____. diminish reverse discrimination at the technology company help the hard-core unemployed reduce sexual harassment and abusive behavior in the workplace meet affirmative action quotas
help the hard-core unemployed
The main purpose of the _____ is to promote exchange rate stability and assist in establishing a multilateral system of payments. Export-Import Bank of the United States Inter-American Development Bank (IDB) World Bank International Monetary Fund (IMF)
International Monetary Fund (IMF)
At what stage in the business cycle do companies become more focused on value in their production decisions? Recession Trough Peak Recovery
Recession
Suppose that Ford Motor Company decides to shut down entirely its domestic automobile production in the United States and move its operations to other countries. All the individuals in the United States who would be negatively impacted by such a decision are referred to as which of the following? Independent contractors Stakeholders Shareholders Corporate citizens
Stakeholders
A producer may decide not to use licensing as a means of expanding their brand because ____. licensing will give the original producer experience with a foreign market it is a relatively inexpensive way to enter the international market if quality is compromised, it will reflect poorly on the company providing the license it provides no compensation for the original producer
if quality is compromised, it will reflect poorly on the company providing the license
As part of her undergraduate education, Isabel would like to study the application of moral standards to business situations. Which academic discipline should she pursue to best fulfill this academic objective? Business ethics Law Economics Ethics
Business ethics
Rishaan just researched the Bernard Madoff scandal, and he is appalled by what he has learned. Bernard Madoff was a fraudster and financier who ran the largest Ponzi scheme in history, defrauding his clients of approximately $50 billion in investments. Rishaan's research and his reaction relate most closely to which of the following academic disciplines? Law Ethics Economics Business ethics
Business ethics
As a retiree living on a fixed income (primarily Social Security benefits), Marlon is very concerned that after the height of the COVID-19 pandemic, grocery store prices are rising significantly. Marlon is concerned about which of the following? Gross domestic product Gross national product Deflation Inflation
Inflation
Suppose that Marta, a Facebook employee, works during her "off hours" for a start-up company that is developing a social networking site designed to compete with Facebook. Marta is faced with which of the following ethical dilemmas? A non-compete agreement Correct answer.A conflict of interest A failure to communicate A nondisclosure agreement
A conflict of interest
In 2020, the United States imported $2,810.6 billion worth of goods and services and exported $2,131.9 billion worth of goods and services. Based on this data, the United States had which of the following that year? An absolute advantage of $2,131.9 billion worth of goods and services A trade surplus of $678.7 billion worth of goods and services An absolute advantage of $2,810.6 billion worth of goods and services A trade deficit of $678.7 billion worth of goods and services
A trade deficit of $678.7 billion worth of goods and services
Maricel has a horrible boss named Dimitri. Dimitri verbally humiliates and intimidates Maricel daily, telling her on the shop floor and in front of her coworkers that she is a terrible employee, and that he will fire her soon if she does not improve her performance. Dimitri's actions have made Maricel anxious and deeply depressed, and her productivity has only decreased as a result. Dimitri's statements to Maricel likely constitute which of the following? Workplace bullying Legally permissible performance evaluation Affirmative action Legally permissible discretionary supervision
Workplace bullying
Rosalina is having a garage sale and posts a sign on her garage door that says, "Caveat emptor." She did this because she wants people to know ____. she will give refunds and exchanges at any time she guarantees satisfaction with all purchases she is selling low quality items all sales are final (no refunds or exchanges)
all sales are final (no refunds or exchanges)
Aquarius Investments has established a program for social responsibility. The CEO of the company and the top managers have drafted a policy statement regarding key areas of concern that will be used by employees as they become involved in the program. In order to implement the program, Aquarius Investments should now _____. hire an outside service to implement the program write a press release touting its social mindedness appoint a committee of managers to plan the program hold a press conference
appoint a committee of managers to plan the program
_____ is adopting a strategic approach to fulfilling economic, ethical, environmental, and social responsibilities. Bottom-line management Corporate citizenship Activism Business ethics
Corporate citizenship
Businesses in Finland sell a wide variety of products with manufacturing, woods, telecommunications, metals, engineering, and electronics being the primary exports. Businesses are free to sell any legal product they want in any manner they desire as long as it does not violate any laws or ordinances. The nation has a very liberal welfare policy with most citizens, even at an early age, receiving monthly pension checks from the government. What type of economic system is employed in Finland? Correct answer.Finland has a free market capitalistic economy. Finland has a command economy. Finland has a mixed economy similar to the United States. Finland has a socialist economic system as demonstrated by its pension program.
Finland has a free market capitalistic economy.
Which of the following most accurately reflects the criteria used to establish an affirmative action program? If 50 percent of the local population is Hispanic, then 50 percent of the company's software developers should be Hispanic. If 40 percent of the local population is Hispanic, the software development department at the local college should have 40 percent Hispanic students. If 10 percent of the software developers in the local area are Black, then a company should have about 10 percent Black employees on its software development staff. If 55 percent of the local population is female, then 55 percent of all employees in the area should be female and this percentage should be maintained throughout all departments in the organization.
If 10 percent of the software developers in the local area are Black, then a company should have about 10 percent Black employees on its software development staff.
Where does a program to implement social responsibility in a business begin? It begins with conducting a social media audit. It begins with a total commitment of all employees. It begins with the appointment of a manager to make the program operational. It begins with a total commitment of top management.
It begins with a total commitment of top management.
Jun is a single parent of two children, Bohai and Jian. She has applied for numerous home mortgages, but she has been denied credit every time, even though Jun has a full-time job as a surgical technician making $55,000 per year. Based on several comments made by bank representatives during the mortgage application process, Jun believes that she has been discriminated against because she is unmarried. Which of the following may provide a legal remedy for Jun if she can establish that she was in fact discriminated against because she is single? The Equal Credit Opportunity Act (1974) The Fair Credit Billing Act (1974) The Fair Debt Collection Practices Act (1977) The Consumer Credit Reporting Act (1997)
The Equal Credit Opportunity Act (1974)
If a report was released that showed using olive oil for cooking dramatically reduced the risk of heart disease in adults, what would be the likely effect on the demand for olive oil? The demand for olive oil would decrease. The demand price for olive oil will be unaffected. The demand for olive oil will decrease at every price. The demand for olive oil will increase at every price.
The demand for olive oil will increase at every price.
Aisha owns and operates a food truck in San Antonio, Texas. Aisha believes that there is too much government regulation of business (she is particularly concerned about all the health regulations governing food sales). She believes that both her business and her customers would benefit most if the government simply left her alone to make and sell the food that her customers want. Which model of social responsibility does Aisha's views represent? The sociodemographic model of social responsibility The sociocultural model of social responsibility The socioeconomic model of social responsibility The economic model of social responsibility
The economic model of social responsibility
In fiscal year 2020, the federal government spent approximately $3.1 trillion more than it received. What does this statistic represent? The federal deficit Inflation The national debt Deflation
The federal deficit
In her Principles of Economics course, Valentina learned about the characteristics of socialism. These characteristics include all but which of the following? Land, buildings, and raw materials may be the property of the state. The government owns all smaller businesses. People may usually choose their own occupations. Many people work in state-owned industries.
The government owns all smaller businesses.
Inspired by her visit to a Voodoo Donut shop in Austin, Texas, Nahia decided to start her own donut shop in her hometown of Jacksonville, Florida. As a result of her passion for donuts and her hard work, Nahia's donut shop became very successful. As a result, Nahia became personally wealthy, she paid, local, state, and federal taxes on her earnings, and she contributed generously to local causes. This is an example of which theory of economics? The discernible brain The invisible hand The steady hand The strong back
The invisible hand
Which of the following would be included in the gross domestic product (GDP) of the United States? The value of sales of Hewlett Packard computers in Poland The value of BMW automobiles manufactured in England and sold in the United States The value of McDonald's sales for its Tokyo locations The total value of Procter & Gamble products produced in Michigan
The total value of Procter & Gamble products produced in Michigan
Which of the following is correct regarding trade associations' role in encouraging ethics? Trade associations rarely provide ethical guidelines for their members. The authority to implement ethical guidelines for members is the same among trade associations. Trade associations are in a poor position to exert pressure on members to stop engaging in questionable business practices that may harm all firms in the industry. Trade associations must ensure that their ethical codes do not contain provisions that run afoul of antitrust laws.
Trade associations must ensure that their ethical codes do not contain provisions that run afoul of antitrust laws.
Which of the following equations represents the relationship between sales and profits?
sales rev - exp = profit
Suppose that to be more competitive with General Motors Corporation (GMC) in the United States market, Ford Motor Company decides to lower its automobile prices across its product line. Which of the following will likely occur? General Motors Corporation will lower its automobile prices across its product line. The United States Federal Trade Commission will investigate Ford Motor Company for attempted monopolization of the automobile industry. Ford Motor Company will become an automobile monopoly in the United States. General Motors Corporation will become an automobile monopoly in the United States.
General Motors Corporation will lower its automobile prices across its product line.
