BUS101 Unit Exams

True or False: Entrepreneurs, as a general group, dislike risk taking.

False

True or False: Ethical decision making begins in the marketing department.

False

True or False: Ethics training programs typically teach how to disguise unethical behavior and not how to avoid unethical behavior.

False

True or False: The short-range, detailed planning that focuses on current operations is called functional planning.

False

True or False: Social responsibility is a voluntary obligation.

True

True or False: The major difference between a good and a service is how the producer uses the factors of production to create it.

False

True or False: The distributive process by which the burdens and rewards that society has to offer are shared varies from society to society.

True

True or False: The most basic responsibility of all businesses is its economic responsibility.

True

True or False: The opposite of free trade is protectionism.

True

True or False: The tax that the United States imposes on imported carbon steel products is called a tariff.

True

What is the primary difference between a good and a service?

A good is tangible, and a service is intangible.

What type of business organization generates the most total sales?

Corporation

True or False: A good manager is never faced with unforeseen problems.

False

True or False: Labor, as a factor of production, relates only to the production of manufactured goods; services are not included.

False

True or False: Not-for-profit organizations have the same goals as for-profit organizations.

False

True or False: To be a useful code of ethics, the code should offer broad policies and procedures rather than detailed rules.

False

True or False: Established small businesses are defined as companies that have been in business at least fifteen years and employ between 50 to 500 employees.

Falso

Which of the following is an advantage of sole proprietor ownership? Limited liability Freedom from government regulation Ease with which capital can be raised Ease with which qualified employees can be found None of the above

Freedom from government regulation

Canadian logging companies sell timber in the United States. To the U.S., the timber is a(n)_____, and for Canadians, the timber is a(n) _____.

Import; export

_____ is the process of guiding the development, maintenance, and allocation of resources needed to attain organizational goals.

Management

When Allison Logue found out her children were allergic to corn, she started looking for sweets and starches that were corn-free and was dismayed to find very few such products on the market. As a result, she has started her own small business to produce and market corn-free desserts. It is a small market, and Logue plans to keep her business small. Logue is an example of a(n):

Micropreneur

The form of business ownership that has the most difficulty in raising capital is the:

Sole proprietorship

The most common form of business organization is the:

Sole proprietorship

Which type of business organization experiences the least governmental regulation? Joint venture Private corporation Limited partnership Public corporation Sole proprietorship

Sole proprietorship

Manila Water, the provider of the water and sewerage services in the capital of the Philippines has purchased the government owned water and sewerage system for the entire country. It promises to make the nation's water and sewerage system run as efficiently and profitably as the one it operates in Manila. To achieve this goal, Manila Water's top management will first need to engage in _____ planning to determine what resources are needed to achieve this goal.

Strategic

True or False: Arranging a firm's human and material resources to carry out plans is called organizing.

True

True or False: Business owners and managers have a great deal of control over the internal environment of business, which covers the day-to-day business decisions.

True

True or False: Dividing up the tasks (division of labor) is an important part of organizing.

True

True or false: Management is the process of guiding the development, maintenance, and allocation of objectives.

True

Which of the following statements about utilitarianism is true?

Utilitarianism holds that an action that affects the majority adversely is morally wrong.

In the 21st century, we define justice as:

an equitable distribution of the burdens and rewards that society has to offer

The difference between the small business owner and the entrepreneur is that the entrepreneur:

assumes the risk of the business

The _____ is defined as the difference in value of a country's exports and imports over a period of time.

balance of trade

The person who takes the risk of starting and managing a business to make a profit is called a(n):

entrepreneur

Summer Dean was walking through the mall and found a gym bag lying on the ground. The decision Dean must make as to whether to keep the gym bag and its contents for herself or turn it into the mall's lost and found department involves:

ethics

Botswana produces diamonds, copper, nickel, soda ash, meat, and textiles, which it sells to the members of the European Union. To Botswana, the diamonds, copper, nickel, soda ash, meat, and textiles it produces are examples of:

export

When Linda McAnem began Stirya, a New York-based computer services company, she ran it as a sole proprietorship. As a sole proprietor, McAnem:

found the business to be easy and inexpensive to form

Paul Hyatt owns and operates DeepClean, a Florida-based company that cleans up mold and mildew in homes and businesses. As the sole proprietor of the business, he has unlimited liability, which means:

he is fully liable for all business debts

The United States buys copper from Chile's Escondido copper mine. The copper is used to make wiring for the U.S. telecommunications industry and for many other purposes. For the U.S., the copper is an example of a(n):

import

The Blue Bird Bus Company in Georgia sells buses to the South African government. To South Africa, these buses are an example of:

imports

_____ are products that are bought from one country for use in another just as the U.S. buys wood pulp and timber from Canada.

imports

Utilitarianism

is a philosophy that focuses on the consequences of an action to determine whether it is right or wrong. This philosophy holds that an action that affects the majority adversely is morally wrong.

Utilitarianism

is difficult to implement because it is hard to tell how one decision will impact a large number of people

Another factor influencing business ethics is _____, or what is fair according to prevailing standards of society.

justice

The standard of living in any country is:

measured by the output of goods and services people can buy with the money they have

When Suzanne Pogell wanted to learn to sail, but she could find no one to teach her because men were the ones who sailed, and women were their crew. She finally convinced someone to teach her to sail, and after mastering sailing, she started an all-woman sailing school called Womanship. Pogell started small and plans to stay small. She would be correctly called a(n):

micropreneur

An organization's _____ is its general purpose or reason for existence.

mission

An entrepreneur is a person who _____ a business.

owns and operates

A company that has a global vision:

recognizes and reacts to international business opportunities

Of all forms of business ownership, corporations account for the largest share of both:

sales and profits

The form of business ownership that is easiest to dissolve is the:

sole proprietorship

The _____ of any country is measured by the output of goods and services people can buy with the money they have.

standard of living

Ethics

the set of moral standards for judging whether something is right or wrong

True or False: A positive aspect of opening a small business is that it takes very little management skill because it is small.

False

True or False: According to the principle of absolute advantage, each country should specialize in the products that it can produce most readily and cheaply and trade those products for products that foreign countries can produce most readily and cheaply.

False

True or False: Armenia had a favorable balance of trade in 2018 when it exported $800 million in goods and services and imported $1.5 billion.

False

True or False: As a factor of production, capital includes money.

False

True or False: Dissolving a partnership is easier than dissolving a sole proprietorship.

False

How has terrorism affected global trade?

Terrorism has curtailed the liberal inflows of skilled and blue-collar workers.

True or False: Factors of production are common to all productive activities, regardless of the economic system.

True

True or False: Human rights include an individual's right to life, to freedom, and to the pursuit of happiness.

True

True or False: International trade-dependent jobs have grown at a rate three times the growth of U.S.-dependent jobs.

True

True or False: Leadership is the process of guiding and motivating others toward the achievement of organizational goals.

True

True or False: Many people consider knowledge to be a fifth factor of production.

True

True or False: Micropreneurs are entrepreneurs who start small and plan to stay small

True

True or False: Mines in Colombia produce emeralds and sell them to jewelers in the United States. To Colombia miners, emeralds are an export.

True

True or False: More than half of small businesses have between one and four employees.

True

Which of the following statements about utilitarianism is true?

Utilitarianism is designed to create both winners and losers.

The difference between small business owners and entrepreneurs is that small business owners:

accept the status quo and take a short-term view of the future

The U.S. has one of the very few areas in the world where kaolin can be mined. Kaolin is a necessary ingredient in many products ranging from stomach medication to paper. The U.S.-produced kaolin is sold all over the world. Kaolin is a(n) _____ for the countries that purchase it.

import

Reader's Digest Association, Inc., has published Reader's Digest magazine for over 80 years, and many believe the publication is dated and can no longer attract many readers. They believe _____ plans are needed to revamp the magazine's content, editorial staff, and readership.

strategic

True or False: Entrepreneurs are people with vision, drive, and creativity, who are willing to take the risk of starting and managing a business to make a profit.

true

True or False: One of the basic functions of management is controlling.

true

True or False: Having a global vision simply means having a willingness to sell outside one's national borders if, and when, the opportunity arises.

False

True or False: If the company wants employees to take ethical training seriously, the training should not include games.

False

True or False: If the sole proprietorship acquires a legal business name, the owner then has limited liability.

False

True or False: In a limited partnership, all of the partners have limited liability.

False

True or False: Multipreneurs are businesspeople who have tried a succession of entrepreneurial start-ups without finding an area in which they could be successful.

False

True or False: Registration procedures for incorporation are uniform from state to state across the U.S.

False

True or False: Some global corporations are large enough to create major changes in the external environment.

False

True or False: Telecommunications equipment manufacturers in the United States sell their products to people who live in Canada. To Canadians, the telecommunications equipment is an export.

False

True or False: The exchange rate is the interest rate that foreign banks receive when borrowing money from the United States.

False

True or False: The first step in starting your own business is the creation of a unique marketable idea.

False

True or False: The lowest level of management is engaged in strategic planning process.

False

True or False: The philosophy of utilitarianism is used to explain why restaurants, theaters, and hotels should make themselves handicapped accessible.

False

True or False: The sole proprietorship is considered a legal entity; therefore, it is taxed separately from the owner.

False

True or False: One of the disadvantages of the sole proprietorship is that the owner has unlimited liability.

True

True or False: People who combine natural resources, labor, and capital in a profitable venture are called entrepreneurs.

True

True or False: Planning is the process of deciding what needs to be done to achieve organizational objectives; identifying when and how it will be done, and determining by whom it should be done.

True

True or False: The corporation's board of directors elects the corporate officers.

True

True or False: The difference in value between a country's imports and exports is called its balance of trade.

True

True or False:An entrepreneur is a person who opens and manages his or her own business.

True

Criticism of South Africa's post-apartheid government contends that the new government has not extended liberties to its black majority population, but has instead concentrated on proving to a white minority that a black-run administration can govern a reasonably sophisticated economy and society. The belief that the new South African government is behaving unethically is an expression of the philosophy associated with:

utilitarianism

Management involves: organizing controlling leadership planning All of the above

All of the above

_____ are goods and services that are made in one country and sold to other countries.

Exports

When Art Baer read that Singapore would lift its ban on chewing gum, he thought to himself, "There has to be a market there." Baer, 26, knew if he was going to move beyond the daydreaming stage, he had to move fast. After investing $20,000 of his own money into developing a product he called Impress Gum, Baer quit his job, flew to Singapore, talked to the right people in the government, lined up a manufacturer, and hired a marketing firm to promote his gum, which fights tooth decay. Baer is an example of a(n) ______ entrepreneur.

classic

When he read Chicken Soup From the Soul, Joe Farmer was struck by how many of the stories mentioned the scent of the islands. So Farmer created bottles filled with Hawaiian air and some scented essence beads. When customers shake the bottles up and open the lids, they're transported back to paradise. While many marketing experts did not think that consumers would buy bottles of air, Farmer has earned more than half a million dollars of sale during his first year of operation. Farmer was an example of a _____ entrepreneur.

classic

Mamma's Diner was a small restaurant that was a popular hangout for many Bedford College students, but because of the owner's inability to make the bathroom stalls handicapped accessible for the one wheel-chair student on campus, it was forced to close down. The belief that this it was morally wrong to deprive the majority of the people of this experience is an expression of the philosophy associated with:

utilitarianism

Andy Yocom saw prime advertising space on the flags on the golf course. He reasoned that any marketing messages would get prominent attention if they were placed on the flags since golfers focus on them when they take their shots. As a result Yocom used his own initiative and money to start Invision Golf Group Inc. Yocom is an example of a(n):

entrepreneur

Jules Sylvester had always loved reptiles. When he was asked by a movie producer if he could locate some anaconda snakes for a movie, a business was born. Sylvester is the proud owner and operator of Reptile Rentals. The California-based business, which he started with no financial help from anyone, is often called on to provide "creepy, crawly" moments in the movies. Jules Sylvester is an example of a:

sole proprietorship