BUS 102 Exam 1

Ethics refer to: legal codes written in the constitution. the obligation of a business to contribute to society. sets of beliefs about right and wrong. social movements that focus on key consumer rights.

sets of beliefs about right and wrong.

Nonprofit organizations: Do not contribute to a region's economic stability and growth. Are usually in the business of financial gain. Account for more paid workers than the entire construction industry. Are not business-like establishments.

Account for more paid workers than the entire construction industry.

Which of the following statements avoids gender bias? A manager who does not lead by example is a poor manager. A manager should support his team. A manager who loses his temper quickly is a poor manager. A manager should be fair when he conducts appraisals.

A manager who does not lead by example is a poor manager.

In the context of social responsibility, which of the following is a way of contributing to nonprofits? Cause-related marketing Green marketing Consumerism Planned obsolescence

Cause-related marketing

_____ refers to selling products in foreign nations that have been produced or grown domestically. Exporting Outsourcing Foreign licensing Foreign franchising

Exporting

Which of the following is a function of the International Monetary Fund (IMF)? Introducing common markets Using resources efficiently on a worldwide basis Increasing jobs from foreign companies Promoting global trade

Increasing jobs from foreign companies

Which of the following is one of the core purposes of the Fed? Correct! Influencing the size of the money supply Providing short term jobs Investing in critical public assets Regulating taxes

Influencing the size of the money supply

Which of the following statements is true of the economic environment of a business? It reduces the hassles associated with acquiring manpower. It is affected by customer satisfaction. It is affected by corruption. It prevents customers from turning into loyal advocates.

It is affected by corruption

Which of the following is the most costly form of foreign direct investment? Importing Offshoring Franchising Licensing

Offshoring

The _____ limits conflict-of-interest issues by restricting the consulting services that accounting firms can provide for the companies they audit. Dawes Act Sarbanes-Oxley Act Landrum-Griffin Act Blaine Act

Sarbanes-Oxley Act

In the context of price levels, which of the following is used by the government to evaluate inflation? The price-weighted activity index The knowledge pricing rank The consumer price index The seller pricing rank

The consumer price index

Which of the following is a key dimension of the business environment? The political environment The communal environment The technological environment The physiological environment

The technological environment

In the context of factors of production, which of the following statements is true of natural resources? The value of all natural resources tends to rise with high demand. They are also referred to as man-made resources. They do not require extraction, purification, or harnessing. Cereal crops are an example of natural resources.

The value of all natural resources tends to rise with high demand.

Which of the following statements is true of organizational barriers to communication? They are not related to organizational structure. They develop because of poor ergonomics at the workplace. They stem from the use of jargon. They are hard to change.

They are hard to change.

Value is the relationship between the price of a good or a service and the benefits that it offers its customers. False True

True

In the context of business ethics, _____ refers to a decision that involves a conflict of values. ethical consumerism ethical hacking an ethical dilemma an ethical lapse

an ethical dilemma

The most socially responsible companies establish _____ for their vendors, setting clear policies for human rights, wages, safety, and environmental impact. universal ethical standards human acts and morality basics greenwashing principles codes of conduct

codes of conduct

High taxation, excess regulation, and limited choices in a business environment are likely to result in a(n): decrease in entrepreneurial activities. increase in the level of personal freedom. increase in global trading. social crisis.

decrease in entrepreneurial activities.

Drumming one's fingers on a desk while talking can distract the audience and create a _____ to communication. language barrier body language barrier cultural barrier perceptual barrier

language barrier

Promoting high-calorie/low-nutrient foods with inadequate information about the risks is a(n) _____ practice. illegal but ethical legal and ethical legal but unethical illegal and unethical

legal but unethical

In the United States, people come from such diverse backgrounds that establishing broad agreement on specific ethical standards can be daunting. In this situation, a given country's _____ provides a solid starting point for examining ethical standards. economic system legal system gross domestic product population growth rate

legal system

In the context of the stakeholder approach to business, the federal government is a key stakeholder in: web design firms. local art studios. pharmaceutical companies. apparel companies.

pharmaceutical companies.

Uncomfortable chairs at a conference can create a(n) _____ to communication. perceptual barrier body language barrier organizational barrier physical barrier

physical barrier

During his English class, Ingrid was struggling to focus on the presentation given by his professor as the classroom was cold. Also, the professor's table was creaking. In this scenario, both the cold atmosphere in the classroom and the creaking table are _____ to communication. body language barriers perceptual barriers physical barriers organizational barriers

physical barriers

To bring inflation under control, the Fed: reduces the interest rates. offers loans to the commercial banks. buys government securities. reduces the money supply.

reduces the money supply.

In the context of social responsibility, _____ include employees and investors who have a personal interest in the performance and actions of an organization. philanthropists stakeholders prosumers focus groups

stakeholders

In the context of international trade restrictions, _____ are taxes levied against imports. quotas tariffs embargoes quorums

tariffs

The term _____ refers to the shortfall that occurs when the total value of a nation's imports is higher than the total value of its exports. trade deficit exchange rate balance of payments surplus positive balance

trade deficit

Which of the following statements best supports the concept of countertrade? Licensing and franchising are ways to seek foreign suppliers. Barter opportunities tend to increase during economic downturns. Countries with the lowest trade barriers have the most competition. Outsourcing and importing are ways to seek foreign customers.

Barter opportunities tend to increase during economic downturns.

Despite their huge populations, China and India represent a much smaller opportunity in terms of size and economic growth. True False

False

Socialism is an economic system that encourages privatization and believes that all enterprises should be publicly owned. False True

False

Texting is an example of a communication channel with high channel richness. False True

False

_____ means buying products domestically that have been produced or grown in foreign nations. Franchising Importing Outsourcing Licensing

Importing

In the context of the strategies for reaching global markets, which of the following is a key risk of foreign outsourcing? Increase in the costs of production Inability to lower labor wages Involvement of social responsibility Exclusion of the brand name of the outsourcer

Involvement of social responsibility

In the context of the free market system, which of the following statements is true of oligopoly? It has a single producer completely dominating the industry, leaving no room for competitors. It is a market structure that has many competitors selling virtually identical products. It typically avoids intense price competition.

It typically avoids intense price competition.

In the context of globalization, which of the following is the most challenging issue faced by companies and individuals that are involved in international business? Bribery Whistle-blowing Low span of control Lack of human resources

Low span of control

In the context of creating and delivering successful verbal presentations, which of the following is a tip for dynamic delivery? Memorize the material word for word. Slow down and listen to yourself. Avoid looking directly at the audience at any point during your delivery. Keep your voice and facial expressions the same throughout the delivery.

Slow down and listen to yourself.

Which of the following dimensions of the business environment covers the measurable characteristics of a population? The technological environment The economic environment The competitive environment The social environment

The Social Environment

Deflation refers to a period of falling average prices across an economy, which is a sign of economic trouble that goes hand-in-hand with very high unemployment. False True

True

Fiscal strategies are closely tied to political philosophy. False True

True

When writing high-impact messages, a _____ is an invaluable tool that you can use to engage your reader's attention whenever you have more than one of anything in your writing (e.g., next steps, similar sections, questions). bulleted list statistical footnote compelling story block paragraph

bulleted list

As life spans increase and birth rates decrease, the American population is rapidly aging. This may most likely lead to: A decrease in competition among companies to recruit top talent. A decline of companies in fields such as healthcare, pharmaceuticals, and financial management. An increase in taxes as state and federal governments stretch to serve the aging population. An increase in the size of the consumer market.

An increase in taxes as state and federal governments stretch to serve the aging population.

During the production era, managers focused mostly on customer satisfaction and not on production efficiency. True False

False

Economists declare an official recession when gross domestic product decreases for six consecutive quarters. False True

False

In the context of monetary policy, when the economy contracts, the Fed typically decreases the money supply. True False

False

Which of the following is a recommended practice to avoid race or ethnicity bias? Discuss a recent book you read about the pointlessness of racial issues. Mention your affinity for all things associated with the race or ethnicity of the listener. Forgo any references to race or ethnicity. Talk about a friend of yours who is of the same race or ethnicity as the listener.

Forgo any references to race or ethnicity.

In the context of foreign direct investment, which of the following is a benefit of offshoring? It has the potential for high profits. It represents a strong opportunity for small firms. It involves no significant risk. It requires little investment.

It has the potential for high profits.

Which of the following is a difference between the supply curve and the demand curve? The supply curve maps quantity on the x-axis, whereas the demand curve maps price on the x-axis. The supply curve maps price on the y-axis, whereas the demand curve maps quantity on the y-axis. Unlike the supply curve, the demand curve for most goods and services slopes downward as it moves to the right. Unlike the demand curve, the supply curve for most goods and services slopes downward as it moves to the right.

Unlike the supply curve, the demand curve for most goods and services slopes downward as it moves to the right.

If you encounter a hostile questioner while giving a presentation, you should avoid: reestablishing eye contact once you have answered the question. agreeing to disagree with the questioner and instead seek approval. pausing for a deep breath before proceeding to answer. using body language that implies you do not wish to interact with the questioner.

reestablishing eye contact once you have answered the question.

In the context of the technological environment of business, which of the following statements is true of e-commerce? Connecting a business's digital networks with its suppliers results in an inefficient flow of goods. Business-to-business selling comprises the vast majority of total e-commerce sales. It has eliminated the individualized buying experience for consumers. It excludes the provision of consultation services through websites or online portals.

Business-to-business selling comprises the vast majority of total e-commerce sales.