BUS12 Midterm
A corporation:
-is a taxable entity -is subject to the laws of the state in which it was formed -can own property -can sue and be sued
A code of ethics:
-is considered by some to be public relations gimmicks -provides employees with the knowledge of what their firm expects in terms of their responsibilities and behavior toward fellow employees, customers, and suppliers -can offer a lengthy and detailed set of guidelines to employees -is a summary statement of the firm's goals, policies, and priorities
A group of cotton growers in North Georgia and North Alabama pooled their resources to build a cotton gin and storage area for the ginned cotton. They marketed their cotton to textile mills under one label. This collective ownership organization is a:
cooperative
_____ is the concern of businesses for the welfare of society as a whole.
corporate social responsibility
What is the primary difference between a good and a service?
A good is tangible, and a service is intangible.
_____ is the concern of businesses for the welfare of society as a whole.
Corporate Social responsibility
What type of business organization generates the most total sales?
Corporation
With its ease of registration and pro-corporate policies, _____ is called the "state of incorporation." About half of the Fortune 500 companies are incorporated there.
Delaware
_____ is a set of moral standards for judging whether something is right or wrong
Ethics
_____ is the amount of money remaining from a firm's sales revenue after it deducts production costs, interest costs, and taxes.
Profit
_____ is the money a company earns from providing services or selling goods to customers.
Revenue
Curtiss Anaya is planning to sell kites on the beach this summer to pay for next year's school expenses. _____ refers to the potential that Curtiss will lose money and waste his time and end up at the end of the summer with not enough money to cover his expenses.
Risk
_____ is the concern of businesses for the welfare of society as a whole.
Social responsibility
Which type of business organization experiences the least governmental regulation?
Sole proprietorship
____ are the individuals or groups to whom a business has a responsibility.
Stakeholders
A business is an organization that strives for a profit by providing goods and services desired by its customers.
True
One of the disadvantages of the sole proprietorship is that the owner has unlimited liability.
True
The difference in value between a country's imports and exports is called its balance of trade.
True
The distributive process by which the burdens and rewards that society has to offer are shared varies from society to society.
True
The need for businesses to expand their markets is one of the most fundamental reasons for the growth in world trade.
True
The opposite of free trade is protectionism.
True
The signing of the Central America Free Trade Agreement by the United States will more than likely not result in a major increase of U.S. exports.
True
When a country sells its products in a foreign country at a cheaper price than usual, and sometimes even at a loss, it is dumping products.
True
Which of the following is a disadvantage of sole proprietor ownership?
Unlimited liability
The _____, formerly the International Bank for Reconstruction and Development, is a bank that offers low-interest loans to developing nations.
World Bank
IBM purchased MRO Software Inc. for $740 million. MRO was a niche provider of software and services to help customers including nuclear power plants and oil companies. IBM, plans to fold MRO into its software unit. This is an example of a(n):
acquisition
Social investing:
is the practice of limiting investments to companies that have ethical policies that match those of the investor
The standard of living is low in Honduras. This means:
its citizens cannot afford to buy much
Another factor influencing business ethics is _____, or what is fair according to prevailing standards of society.
justice
_____ is defined as whatever is considered fair according to the prevailing standards of society.
justice
Which of the following is probably the MOST difficult environmental factor for owners and managers to forecast, influence, or integrate into business plans?
social change
In a complicated negotiated, Minmetals in China agreed to purchase at least 24,000 tons of copper cathode for $35 million from Pasar in the Philippines. According to the terms of the sale, Pasar will provide at least $12 million worth of coal to a Chinese power company that will provide the electricity needed to operate Minmetals. This is an example of a(n):
countertrade
A country's _____ is its set of shared beliefs, values, and social norms in a society.
culture
A country's _____ is the set of beliefs, values, and social norms shared by members of a society that determines what is socially acceptable.
culture
Taxing a corporation's earnings and taxing the stockholder's dividends from the corporate earnings is called _____ taxation.
double
In 2018, Austria exported $122.5 billion and imported products valued at $118.8 billion. Austria had a(n):
favorable balance of trade
Peter Drucker, a well-known management scholar, has said that companies should be evaluated on two basic dimensions:
legality and responsibility
A policy of permitting the people of a country to buy and sell where they please, without restrictions, is called:
free trade
Sole proprietorships:
have unlimited liability
One of the keys to ethical business behavior is:
how the company's top management conducts themselves
Japan has limited the number of pounds of citrus fruit that can be imported into the country. This limitation is called a(n) _____.
import quota
The Blue Bird Bus Company in Georgia sells buses to the South African government. To South Africa, these buses are an example of:
imports
Which of the following is an example of a trend in ethics and social responsibility?
strategic giving
With _____, a business ties its philanthropy closely to the corporate mission or goals.
strategic giving
Which of the following is the BEST example of a not-for-profit business?
the American Cancer Society
Which of the following countries has a high standard of living?
the United States
Which of the following is NOT an example of a good that would be sold in a department store?
the advice of a wedding planner
In 2018, Country A exported $84.9 billion and imported products valued at $74.69 billion. The difference between the dollar value of its exports and imports represents a:
trade surplus
Which of the following is an example of a disadvantage associated with a partnership?
unlimited liability
The philosophy of _____ can be used to explain the idea that "people should act so as to greatest good for the greatest number of people."
utilitarianism
A _____ is a business that is established, owned, operated, and often financed by one person.
sole proprietorship
Which of the following is an example of an ethical business activity?
The employee reported to his supervisors that a co-worker had misappropriated company funds.
Venezuela can grow and sell cut flowers for floral bouquets more easily and more cheaply than most other countries can produce the same flowers. When it comes to flowers, Venezuela has a(n):
comparative advantage
A domestic firm may decide to contract for the production of its goods by an established foreign manufacturer. Such private-label manufacturing by a foreign company is called:
contract manufacturing
A _____ is an organization formed by individuals or businesses with similar interests to gain benefits from size and collective ownership.
cooperative
When Linda McAnem began Stirya, a New York-based computer services company, she ran it as a sole proprietorship. As the business grew, she realized that she did not want to be personally liable for the business's debts and wanted her business accounts to be separate from her personal accounts. Therefore, she should have:
incorporated Stirya
Jamaica has 35 airports, 18,700 kilometers of paved and unpaved road and a total of 272 kilometers of railroad track. This is a partial description of the nation's:
infrastructure
Not-for-profit organizations have the same goals as for-profit organizations.
False
The major difference between a good and a service is how the producer uses the factors of production to create each.
False
Which of the following statements about the partnership as a form of business ownership is true?
Formation of the partnership is simple.
_____ are the owners of a corporation.
Shareholders
How has terrorism affected global trade?
Terrorism has curtailed the liberal inflows of skilled and blue-collar workers.
Jayson Tully is contemplating the purchase of a Popeye's Chicken franchise. Tully has made a list of the disadvantages that he assumes he will face as a new business owner. Which of the following is actually an advantage?
assistance in building plans
The _____ is defined as the difference in value of a country's exports and imports over a period of time.
balance of trade
Which of the following businesses provides its customers with a good?
bicycle manufacturer
An economic system based on competition in the marketplace and private ownership of the factors of production is known as:
capitalism
Individual ownership of property is a key element in:
capitalism
The form of business ownership that has the most difficulty in raising capital is the:
sole proprietorship
Currency markets operate under a system called _____. This means that prices of currencies vary based upon demand and supply of that currency.
floating exchange rate
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
The growing popularity of bread machines has become a new business opportunity for Shelly Clemins and Jan Schoenbarr. The women make and sell bread machine covers and fabric gift bags to hold the bread loaves made in the machines. The women share the responsibilities of running the business (called Bread & Butter) as well as its profits equally. Bread & Butter would be an example of a(n):
general partnership
A _____ is a hybrid organization that offers the same liability protection as a corporation, but may be taxed as either a partnership or a corporation.
limited liability company
Karl Metzger plans to invest $5,000 in a partnership with his brother to produce and sell handcrafted violins, zithers, and other string instruments. Metzger does not plan to work in the business and wants no more liability than his investment. He should be a:
limited partner
As one of the factors of production, natural resources includes all of the following EXCEPT:
machinery
A company has achieved the level of _____ responsibilities when it has met its ethical, legal, and economic responsibilities.
philanthropic
The main incentive in capitalism is:
profit
Japan bans importation of rice to protect its domestic rice industry. This ban is an example of:
protectionism
A company that has a global vision:
recognizes and reacts to international business opportunities
Strategic giving:
refers to the practice of tying philanthropy closely to the corporation's mission or goals
All businesses approach ethics the same way.
False
Those people designated by demographics as _____ are defined as Americans born between about 1981 and 1997.
Millennials
A retailer that allowed its employees to handle a customer complaint without having to ask for permission or direction from management would have:
empowered its employees to help customers
Demography is the study of:
people's vital statistics
The _____ of any country is measured by the output of goods and services people can buy with the money they have.
standard of living
For partnerships to be legal, they must be established in writing.
False
Having a global vision simply means having a willingness to sell outside one's national borders if, and when, the opportunity arises.
False
If Syria gives Lebanon a tariff advantage over other countries, Lebanon has been given a biased tariff.
False
The newest free trade agreement is the _____. Participants in this agreement are the United States, Costa Rica, the Dominican Republic, El Salvador, Guatemala, Nicaragua, and Honduras.
Central America Free Trade Agreement (CAFTA)
Enlightened firms are realizing that empowerment puts too much stress on employees and are eliminating empowerment programs.
False
Ethics training programs typically teach how to disguise unethical behavior and not how to avoid unethical behavior.
False
A key element in capitalism is:
Individual ownership of property
Which of the following statements about those people designated by demographics as millennials is true?
Millennials are technologically savvy and prosperous young people.
Which of the following statements about a general partnership is true?
Partners in a general partnership co-own the company's assets.
_____ 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
Which of the following statements about utilitarianism is true?
Utilitarianism holds that an action that affects the majority adversely is morally wrong.
All careers have which of the following in common?
You need to have a basic understanding of business
Which of the following businesses provides its customers with a service?
a law office
Which of the following is an example of a demographic factor?
a person's age
Members of Generation X:
were born between 1965 and 1980