BUS201 Test Exam 1

44) income in sole proprietorship is: A) taxed B) taxed personal income. C) exempted from tax. D) taxed as business income. E) quasi-taxable.

taxed as personal income

17) T/F: A common reason for establishing quotas or tariffs is to encourage dumping.

False

73) Because of an unfavorable political situation between the countries, the country of Thetasia has placed a government order to prohibit the trade of private vehicles within the country of Calibria. Thetasia his maintained a(n) A) trade embargo B) ad valorem tariff C) quota limit D) trade tariff E) fixed tariff

...A) trade embargo

2) Advertising, personal selling. coupons. and sweepstakes are forms of the ____ aspect of marketing activities. A) fundraising B) social responsibility C) finance D) promotion E) production

...D) promotion

59) One role of the Federal Trade Commission's Bureau of Consumer Protection is to protect consumers from A) fraudulent practices C) misuse of resources B) whistleblowing D) price rise E) competition

A) fraudulent practices

Il) When the assembly line applied to more industries, America entered the: A) indigenous manufacturing economy. B) service economy. C) production economy. l)) marketing economy. E) agrarian economy.

A) indigenous manufacturing economy.

3) A U.S. company, 3M Inc., owns a film-manufacturing facility in Italy. This is an example of: A) a direct investment. B) exporting. C) strategic alliance. D) a joint venture. E) licensing.

A

Distinguish between an absolute advantage and a comparative advantage. Cite an example of a country that has an absolute advantage and one with a comparative advantage.

A comparative advantage is when country that can produce items more cheaply than other items. These advantages can be in forms such as climate, human labor, or size of a specific operation to manufacture. A example of this is France and their wine-making, as they have the climate along with the labor and techniques to produce this very well. An absolute advantage is when a country is the only manufacturer of a specific item. For technological or other reasons it could not be found anywhere else in the world. A example of this is Africa where they are the monopolistic exporters of some of the rarest diamonds in the world.

Which of the following organization forms is the most expensive to set up

A corporation

What is an import tariff? A quota? Dumping? How might a country use import tariffs and quotas to control its balance of trade and payments? Why can dumping result in the imposition of tariffs and quotas?

A import tariff is a tax levied by a nation on goods imported into another country. A quota is a limit to the amount of a certain product that can be imported into a specific country. A big reason to enforce tariffs and quotas is to prevent dumping, which is when countries sell products to eachother for less than what it costs to make them. This is done to get quick entry into a market where the size cannot compete, it is also sometimes done to discard old electronics. The reason for the tariff or quotas in this case is to raise the price and make it not worth to export the item to those countries.

62) _______ can he best defined as the sharing of the costs and operations of a business between a foreign company and a local partner. A) A joint venture B) Contract manufacturing C) A direct investment D) Licensing E) Exporting

A) A joint venture

10) Which of the following is an example of an intangible product? A) A music concert C) Jewelry E) A DVD B) sandwich

A) A music concert

28) Which of the statements is true? A) Companies can be both profitable and socially responsible. B) Businesses sole objective is to earn profit may not consider their social responsibility. C) the terms social responsibility and ethics should b: interchangeably. D) All actions deemed unethical by society are also illegal. E) the concerns of that is legal and ethical do not change over time.

A) Companies can be both profitable and socially responsible.

_____ can be best defined as the ratio at which one nation's currency can be exchanged for another nation's currency. A) Exchange ratio B) Currency ratio C) National rate D) Value ratio E) FA'Change rate

A) Exchange ratio

52) Catalina opens a fashion boutique with the money she inherited from her parents. She is successful in creating a strong brand image and a loyal customer base. In order to meet the increasing demands of her business, she hires a store manager. However she finds it hard to let the manager take important decisions about the store. She often finds herself disagreeing with the managers decisions and in the process loses a lot of existing customers. Which of the following causes of small business failure does this scenario best illustrate? A) Inability to cope with growth B) Undercapitalization C) Debt factoring D) Debt financing E) Dis economies of scale

A) Inability to cope with growth

Small businesses usually have only one layer of management. Which of the following is an implication of this fact? A) Small businesses have great flexibility to adapt to changing market condition. B) Small businesses have better access to managerial experience and skills than larger firms. C) The decision-making press is lengthy in small businesses. I)) Small business owners have a limited amount of direct authority. E) Small businesses face a low risk of failure.

A) Small businesses have great flexibility to adapt to changing market condition.

76) Economic expansion occurs when: A) an economy is growing and people are spending more money. B) fewer goods and services are produced than consumer demand. C) a nation's standard of living drops dramatically. D) employment levels decline over time. E) prices begin to rise and incomes begin to fall.

A) an economy is growing and people are spending more money.

16) In a socialist economic system ____, A) competition is restricted in major industries B) there is no concept of small businesses owned by individuals C) individuals own and operate all businesses D) very few people for government organizations E) demand and supply have no role to play in the pricing of products and services

A) competition is restricted in major industries

77) A major social responsibility for businesses is providing A) equal opportunities B) higher wages C) better health care D) equal holiday pay E) more free time

A) equal opportunities

78) While offering its usual menu, McDonald's in Vietnam its menu because: A) it recognizes that Vietnamese consumers have their preferences. B) McDonalds had a bad reputation before opening franchises in Vietnam. C) all Vietnamese people are vegetarians. D) Vietnamese people prefer a low-fat diet. E) Vietnam people do not like hamburgers.

A) it recognizes that Vietnamese consumers have their preferences.

58) A manager attempting to take credit for a subordinates ideas is engaging in a of A) plagiarism C) capture bonding D) conflict of interest E) misplaced loyalty

A) plagiarism

65) Common stockholders within a corporation: A) receive dividends after preferred stock'holders. B) act as the board of directors. C) are restricted from exercising preemptive rights. D) are completely isolated from its operations. E) have the right to make a cumulative claim to dividends.

A) receive dividends after preferred stock'holders.

On which of the following grounds are multinational corporations (MNCs) often criticized by anti globalization activists? A) they increase the gap between the rich and poor nations. B) they increase unemployment in the host country. C) they bring in technology that is to the host country. D) They are liable to pay the taxes by the government of the host country. E) They use capital-intensive mode of production

A) they increase the gap between the rich and poor nations.

45) A private corporation is one: A) whose stock is not traded in public markets. l)) that can be bought, sold, or traded by anyone. C) that does not pay taxes on its income. D) stock can be purchased on the New York Stock Exchange. E) that discloses proprietary information to the public.

A) whose stock is not traded in public markets.

What is an ethical issue? What are some of the ethical issues discussed in your text? Why ore they ethical issues?

An ethical issue is defined as a issue that is defined as a problem, solution, or opportunity that requires a person to choose from among several actions that may be evaluated as right or wrong. Many ethical issues are not complex on the surface but can be very complex beyond that. Time theft is a common example of a ethical issue, however multiple issues can happen as a result of that issue. Certain countries have various traditions that would be considered illegal in the U.S, such as in Japan how gift giving is considered polite while in the U.S. the same gift could be considered bribery. The implications of the various issues is that while they might be considered harmless to the parties involved they in fact do damage to the reputation and accountability of the company involved. They can be views as unhonest and deceitful by others who view the actions, and are generally done intentionally for short term gain while doing much more damage in the long run.

2) Which of the following is an international trade alliance between 21 nations that promotes open trade and economic and technical cooperation among its member nations? North American Free Trade Agreement (NAFTA) Asia-Pacific Economic Cooperation (APEC) ) Association of Southeast Asian Nations (ASEAN) D) General Agreement on Tariffs and Trade (GATT) E) European Union (EU)

Asia-Pacific Economic Cooperation (APEC)

10) Colombia can produce coffee much more efficiently than it can produce other items; this gives Colombia a(n) advantage. A) marginal B) comparative C) domestic D) competitive E) absolute

B

3) Economic contraction is said to have occurred when: A jobs increase B spending declines C GDP increases D unemployment falls E inflation decreases

B spending declines

70) Which of the following is considered a command economy? A) Private enterprise B) Communism C) Laissez-faire market D) Liberalism E) Capitalism

B) Communism

14) ___ than what it costs to produce them. A) Franchising B) Dumping C) Outsourcing D) Offshoring E) Monopolizing

B) Dumping

___ is best described as the sale of goods and services to foreign markets. A) Outsourcing B) Exporting C) Importing D) Offshoring E) Franchising

B) Exporting

____ refers to all activities concerned obtaining and managing money and using it effectively. A) Marketing B) Finance C) Advertising D) Public relations E) Production

B) Finance

A forum to discuss trade problems and negotiate a reduction of trade barriers first provided by the: A) North American Free Trade Agreement (NAFTA). B) International Monetary Fund (IMF). C) World Bank. D) Exim bank. E.) General Agreement on Tariffs and Trade (GATT).

B) International Monetary Fund (IMF).

75) Which of the following is an implication of technological advances to small businesses? A) It fails to make any significant changes small business cannot afford to use sophisticated technology in their operations. B) It provides new opportunities for small businesses to expand their operations abroad, C) It reduces a small company's ability to customize their senices and products. D) It increases the ratio of baby boomers as employees in small businesses. E) It reduces a small business's ability to adapt to changing trends and market demands.

B) It provides new opportunities for small businesses to expand their operations abroad,

17) Which of the following behavior is an example of ethical consideration the view of business relationships? A) Whistleblowing B) Keeping company secrets C) Obeying Environmental Laws D) Communicating with customers E) Donating to local charities

B) Keeping company secrets

____ is the transferring of manufacturing or other tasks —such as data processing —to countries where labor and supplies are less expensive A) Exporting B) Outsourcing C) Importing D) Dumping

B) Outsourcing

61) Which of the following rights assures consumers that their interests receive full and sympathetic consideration when the government formulates policy? A) Right to choose B) Right to be heard C) Right to safety D) Right to privacy E) Right to be informed

B) Right to be heard

60) Which of the following laws criminalized securities fraud and stiffened penalties for corporate fraud? A) The Sherman Act B) The Sarbanes-Oxley Act C) GIass-Steagall Legislation Act E) The clayton act

B) The Sarbanes-Oxley Act

Which of the following is a disadvantage of partnerships over sole proprietorship? A) In sole proprietorship, the owners have access to more funds than in partnerships. B) Unlike a sole proprietorship. a partnership is terminated her a partner dies or withdraws C) In partnerships profits have to be shared, in sole proprietorship all profits belong exclusively to the owner D) In partnerships, all Owners have unlimited liability. in sole proprietorship they have limited liability. E) Unlike sole proprietorship, partnerships do not fate any regulatory controls that affect their activities.

B) Unlike a sole proprietorship. a partnership is terminated her a partner dies or withdraws

8) Which of the following is formally called the International Bank for Reconstruction and Development? A) International Monetary Fund B) World Bank C) Organization for Economic Cooperation and Development D) International Trade Bank E) World Trade Organization

B) World Bank

21) The principles and standards that determine acceptable conduct in business organizations are referred to as: A) business stances. B) business ethics. C) social responsibility. D) corporate citizenship. E) business strategies.

B) business ethics.

79) Partnerships are quasi-taxable organizations. This means that they. A) are completely exempted from paying taxes. B) do not pay taxes submitting the partnership tax return to the Internal Revenue Service. C) need to pay a high rate of tax irrespective of whether or not a profit is made. D) are subjected to double taxation. E) have to pay taxes only if they decide to adopt initial public offering.

B) do not pay taxes submitting the partnership tax return to the Internal Revenue Service.

22) Being profitable relates to the ____ dimension of social responsibility. A) voluntary B) economic C) corporate citizenship D) legal E) ethical

B) economic

If a small business has to cope with growth, it requires the owner to:

B) give up a certain amount of direct authority

36) Tiffany & Co. learned that more attentive customer service was necessary in order to succeed in Japan. this is an example of a(n) barrier. A) technological B) social C) political D) legal E) economic

B) social

Define business ethics, Who determines whether a business activity is ethical? 1s unethical conduct always illegal?

Business ethics are the principles and standards that determine acceptable conduct in business. Consumers and the government determine if a business activity is ethical. Unethical conduct is not always illegal but it is generally frowned on and can hurt the business and your general reputation.

The is the closest thing the world has to an international central bank. A) World Bank B) Organization for Economic Cooperation and Development C) International Monetary Fund D) Citicorp Bank E) World Trade Organization

C

19) Studies appear to show that while there are plenty of people unemployed, approximately ________ percent of companies cite employments lack of experience as to why there are so many unfilled positions. A 11 B 3 C 35 D 66 E 51

C 35

1 5) Which of the following is an example Of foreign direct investment? A) A U.S. investor buying stocks of a German automobile manufacturing company B) A software development company in the United States investing in shares of an American computer manufacturing firm C) A Canadian firm purchasing a majority stake in a Japanese company D) A Chinese steel manufacturing firm exporting 60 percent of its output to European nations E) A U.S. cell phone manufacturer hiring an Indian firm to provide customer support services and troubleshooting

C) A Canadian firm purchasing a majority stake in a Japanese company

51) Which of the following statements is true about franchising? A) A franchisee receives cash payments from the franchiser on a monthly basis. B) A franchisee does not receive accounting from the franchiser. C) A franchisee often receives building specifications and designs from the franchiser. D) An individual only acquires the rights to a name and not the rights to methods of operation. E) An individual experiences most freedom in this form of business

C) A franchisee often receives building specifications and designs from the franchiser.

Which of the following can be best defined as a corporation that operates in countries but without significant ties to any to any of them? A) A contract manufacturing corporation B) An exporter C) A multinational corporation E) A monopolist corporation

C) A multinational corporation

55) Which of the is true of a free market system? A) It is also called modified capitalism. B) It is different from laissez fair capitalism. C) In a free market system, all economic decisions are made without government intervention. D) In a free market system, central government planning determines Nshat gods and services satisfy citizens' needs, E) In a free market, a government regulates business

C) In a free market system, all economic decisions are made without government intervention.

25) Which of the following is a key step in evalutating ethical decisions in business? A) Recognizing that social responsibility and ethics are inversely related to each other B) Assuming that ethical issues do not include all areas of organisational activities C) Learning how to recognize and resolve ethical issues D) Understanding that business ethics does not go beyond legal issues E) Identifying that ethics is not culture-specific

C) Learning how to recognize and resolve ethical issues

63) country of Thelisia pays a 12 percent duty on imported TV sets which is calculated as a fixed percentage of the of the imported TV sets. Thelisia is paying a(n) : A) transactional tax B) fixed tariff C) ad valorem tariff D) export tariff E) sales tax

C) ad valorem tariff

26) A video gaming company was investigated for allegedly raising prices of its video game consoles during the Christmas shopping season and manipulating the supply of games available at that time. This ethical issue is primarily concerned A) rules of games. B) cost control. C) fairness and honesty. I)) communications. E) conflict of interest.

C) fairness and honesty.

72) According to the National Business Ethics Survey, ___ is the number one area of misconduct observed in the workplace. A) discrimination B) stealing C) misuse of company lime D) plagiarism E) abusive behavior

C) misuse of company lime

A ___ has defined as an "association of two or more persons who carry on as co-owners of a business for profit." A) C corporation B) sole proprietorship C) partnership D) quasi-public corporation E) cooperative

C) partnership

In which of the following economic systems do most people work for government-owned industries or farms: A Socialist B Libertarian C Capitalist D Communist E Neo-realist

Communist

Which of the following is a human resource ? A Financial Assets B Company Reputation C Forests and minerals D Physical and mental abilities of people E Economic capital

D Physical and mental abilities of people

Which of the is an example of a tangible product? A) A theater play B) A music concert C) A business conference D) An automobile E) A movie

D) An automobile

42) Which of the following is an advantage of a sole proprietorship? A) Limited liability B) Increased life expectancy C) Equally shared profits among owners D) Ease of dissolving the business E) Varied sources of funds

D) Ease of dissolving the business

4) Identify the correct statement regarding trading companies. A) They rarely offer warehousing facilities. B) They handle manufacturing activities. C) They refrain from handling consulting activities. D) They handle marketing research for other companies. E) Their activities do not encompass advertising for other companies.

D) They handle marketing research for other companies.

When a firm's products are standardized in all countries ____ A) using different advertisement content is illegal B) only publicity can be used for promotion C) advertising cannot used D) advertising may still modification E) distribution is more expensive

D) advertising may still modification

53) Increased unemployment can reduce consumer demand for goods and services, leading to: A) budget surplus. B) recovery. C) economic expansion. D) deflation. E) inflation.

D) deflation.

64) A fixed tariff differs from an ad valorem tarriff: A) is based on the value of an item. B) is a amount of money levied on each unit of a product sold by a country. C) limits the number of units of a particular product that can imported into a country. D) is a specific amount of money levied on each unit of a product brought into a country. E) prohibits trade in a particular product

D) is a specific amount of money levied on each unit of a product brought into a country.

Which of the following is a disadvantage of a partnership?

Difficulty of selling the partner interest

8) Briefly discuss domestic, foreign, alien, private, and public corporations.

Domestic companies are those companies that conduct business in the state they are incorporated in. Foreign companies are those that conduct business elsewhere than in the state they are conducted in. An alien company is one that is created in the US and conducts business outside of the United State (import export or such). Private corporations are those that are owned by 51% of a private owner and that owner has decided not to trade on a public stock. This allows the owner or a small group of people to own the company without interference from investors and activists. A public company is one that is publicly traded on a exchange such as the Nasdaq or Dow Jones. These companies allow anyone to purchase and sell shares as long as they can afford them.

Explain the Concept of dumping in international trade.

Dumping is where a companies sells a product in excess to another country to the point where it costs less than it is to manufacture it. This is done to gain quick entry into another market or to destroy a local market that could not produce to such a scale. This is also done to get rid of junk products like outdated electronics. The importing country might impose tariffs or quotas, also possibly embargoing the product or country altogether to cut back on products being sold.

1) If the Coca-Cola Company allows a Mexican firm to use its name, formula, and brands in return for a royalty, then this arrangement would be known as: A) a joint venture. B) contract manufacturing. C) direct investment. D) exporting. E) licensing.

E

56) ___ are the funds used to acquire the natural and human resource to provide products. A) Skills B) Barter charges D) Labor charges E) Capital resources

E) Capital resources

7) Commercial Service is the global business solutions unit of the U.S. Department of A) Business B) Security C) Trade D) Justice E) Commerce

E) Commerce

13) Identify the correct statement about dumping. A) Dumping occurs when a business sells products at much more than what it costs to produce them. B) Dumping occurs when the domestic market for a firm's product is too big for match the level of production. C) Quotas cannot be imposed based on suspicion of dumping unless proven. D) Dumping occurs when the country of origin has products with the latest technologically that are in high demand in overseas markets. E) Dumping permits quick entry into a market. can be best defined as the act of a country or business selling products at less

E) Dumping permits quick entry into a market.

54) Which of the emerged in the United States as a result of industrialization? A) Government ownership of business B) Increase in number of farmers C) Low standard of living D) Price regulation by planning commissions E) Increase in the variety of goods available

E) Increase in the variety of goods available

Which of the following is an example of a conflict of interest? A) Renegotiated buyout B) Mediation C) Arbitration D) third party transaction E) Insider trading

E) Insider trading

37) Which of the makes short-term loans to member countries trade deficits and provides foreign currencies to member nations? A) World Trade Organization B) Foreign Credit Insurance Association C) Exim Bank D) World Bank E) International Monetary Fund

E) International Monetary Fund

The concept of social responsibility is universally accepted

F

27) Which of the following is true about the right to choose? A) It ensures that detailed information about ingredients, risks. and instructions for use are printed on labels and packages. B) It ensures the fair treatment of consumers who voice complaints about a purchasered product. C) It provides the assurance of only Satisfactory quality and not service at a fair price. D) It provides the of only service at a fair price and not satisfactory quality. E) It ensures that consumers have to a variety of products and services at competitive prices

E) It ensures that consumers have to a variety of products and services at competitive prices

35) Many countries do not permit foreign companies to and operate facilities in their country. A company that wants to do in such a country may share the business costs a firm from the host country by forming a: A) corporation. B) sole proprietorship. C) greenfield venture. D) direct investment, E) Joint Venture

E) Joint Venture

Codes of ethics foster ethical behavior by:

E) Limiting opportunity to behave unethically by providing punishments for violations of the rules and standards

Laws regarding workplace safety are enforced by the A) Environmental Protection Agency B) Consumer Bill of Rights C) Federal Trade Commission D) Corrupt Practices Act E) Occupational Safety and Health Administration

E) Occupational Safety and Health Administration

6) With respect to multinational strategies, companies are beginning to move away from the ____ strategy. A) standardization B) globalization C) generalization D) normalization E) customization

E) customization

71) Egalitarianism refers to the: A) restrictions on taking up non-government jobs. B) restriction of competition in small businesses by government regulations. C) concept of the rich getting richer and the poor getting poorer. D) exemption of taxes for successful businesses. E) equal distribution of income and social services.

E) equal distribution of income and social services.

57) According to Adam Smith, competition: A) increases prices. B) prevents low prices. C) mitigates D) increases demand. E) fosters efficiency.

E) fosters efficiency.

15) After World War Il, the United States a(n): A) market economy B) manufacturing economy C) agricultural economy l)) indigenous economy E) service economy

E) service economy

16) In most countries, participation in international business is restricted to large corporations.

F

18) Sociocultural differences, such as variations in body language and personal space, usually have almost negligible impact on international business.

F

19) The U.S. set up maquiladoras in China.

F

Businesses have the right to keep and use their profits as they choose without limitations.

F

Owners have little responsibility to provide funds for the operation of the business.

F

How is GDP used as a measure of a nations economic health?

GDP or Global domestic product is the amount or a increase or a decrease of which a country makes. It is generally not measured as an all in one but more of a growth or shrink. This is the total product whether it is a product or service made by the country. It does not take into account the GDP per capita and profit from a firms overseas operations as well. A large increase can be seen as a economy growing, while a decrease can be seen as a shrinking or contracting economy.

Do you think that business should regulate its own activities or that the federal government should establish and enforce ethical standards?

I believe that the federal government should establish and enforce ethical standards. It is true that corporations have been more accountable since the Sarbanes-Oxley act, which greatly increases the penalties for such things as fraud and false statements and holds CEOs more accountable. This did not stop the security and mortgage fraud Fannie Mae and Freddie Mac did during the 2008 Mortgage crisis. All American companies and companies in America should be held to a ethical standard that is a representation of American standards.

Differentiate between communist and capitalism economic systems.

In a communist system the government owns most, if not all businesses, roads, public utilities, and property. The economy is fixed and with no free trade everything is distributed equally throughout the population (theoretically). Russia, Cuba and once China were seen as largely communist. In a capitalism economic system the majority of businesses, houses, and other things are owned by people. The government allows free trade and free market, which allows you to fail or succeed. This is generally seen in the U.S. and many of the EU countries.

Compare and contrast licensing, franchising, contract manufacturing, and outsourcing. Give a example

Licensing is a trade agreement in which one company allows another company to use its company name. products, patents, brands, trademarks, raw materials, and/or production processes in exchange for a fee. This differs from a franchise, because in the agreement the franchisee uses the franchisors company name, products, logo, and methods of operations among other things to sell in exchange for a upfront cost and a share of the profits Contract manufacturing is when a business hires a outside firm to build a specified amount of products for them in a continual or one time basis. This is different than outsourcing, for outsourcing could be any number or tasks. Outsourcing generally is a transfer of jobs while contract of manufacturing is giving the jobs to another country.

Naomi, a human resource executive in Enigma Corp.. bought a pair of sunglasses online during her office hours. In this scenario, discuss the kind of misconduct that Naomi engaged in and other kinds of misconduct that belong to the same category as per the National Business Ethics Survey.

Naomi is engaged in various misconduct during her work hours. She was using company time for her own personal reason also known as misuse of company time. Additionally she is misusing company resources by shopping online during her work hours. Misusing technological equipment such as computers also puts her company at risk for viruses, worms, and other various problems her IT network could potentially run into.

Natah, an employee at shield corp, bullies new employees in the workplace. In this context, discuss the kind of misconduct that Nathan engages in.

Natah is engaging in abusive or intimidating behavior in the workplace, which leads to a counter-productive environment. These can be minor or disruptive but can also be seen as a way to see the personality of different employees. Bullying is generally not accepted in workplaces unless the intent was not to do that. Hopefully in Natah's case he is trying to grow comradery between the new employees but if he is seen as bullying against one specific group or if his bullying is too specific he could be seen as harassing and could risk a lawsuit or losing his job.

What are nonprofit organizations? Differentiate between nonprofit organizations and businesses.

Non profit organizations such as The Red Cross, Salvation Army, NFL (until November of 2015) and Easter Seals, are businesses that are run not to generate a profit but to provide a service instead. The Red Cross and Doctors Without Borders give aid to places that have been affected by tragedy, and their services are free. The difference between these companies and a usual business is that nonprofits are not actually in mind to earn a profit, while businesses are run with profit in mind.

___ indicates the income level of "average" Americas. It is useful in determining how much "average" consumers spend and how much money Americans are earning. A) Consumer price index B) deficit C) GDP D) Worker productivity E) Pct capita income

Per capita income

Choose an issue that has been prominently featured in the news and discuss the ethical implications of this issue. Define ant key terms that you use in the response.

Recently Wells Fargo was recently investigated for opening fraudulent accounts for the people who banked with them. This was done by employees who were urged under a contest to get people to sign up various accounts for the bank. The ethical implications of this were that banks committed fraud towards business relationship they had with the customers. A code of ethics or formalized standards of what the company expects the employees to do was either not in place or gravely violated. Customers were blantantly lied too, and company resources were used in a illegal way for personal gain.

9) How do small businesses contribute to the American economy?

Small businesses contribute to the U.S economy by making up 99.7 of all employer firms in the US. They also generate 63 percent of all new jobs in the workforce, using 37 percent of all high tech workers and create a large percentage of tax money and almost half of the payroll in the U.S.

Discuss the arguments for and against social responsibility by business. What is the fundamental goal of business? Do all organizations share this goal?

Social responsibility is the ability of a business to maximize their positive impact and minimize their negative impact on society. It is viewed positively rests on the stakeholders engagement and results in beneftis to society and improved performance as a member of society, businesses should support thru taxes and other benefits businesses are responsible because of their technical and financial resources to address various issues responsibility can stop furhter government regulation is nessecary for economic survival; promotes happy and healthy employees against it sidetracks managers from their jobs participation gives businesses greater power and therefore worries questioning the ability to assess and make decisions about social and economic issues social problems are the problem of the government and should be addressed as so creation and implemenetation of nonprofits are the best way to implement social responsibility. The fundamental of business is to maximize profit and most organizations share this goal. Non-Profit organizations do not however, their goal is to provide a service low cost or free.

41) Which of the forms of business is associated with unlimited liability to the owners A) C Corporations B) Sole proprietorships C) S Corporations D) Cooperatives E) Quasi-public corporations

Sole Proprietorships

21) Describe a few of the laws and regulations adopted by the United States regarding international trade.

Some laws regarding international trade include the Webb-Promenade export trade acto f 1918 which exempts american firms from antitrust laws if those firms are acting together to enter international trade. This allows firms to form monopolies as long as they are there is free trade within the U.S. They also have a number of treaties with foreign countries, which allow U.S. businesses to do business with there foreign countries.

What are the benefits of studying business?

Studying business is a universal degree when it comes to the world. Every company uses some processes taught and the skills are used in big and small companies. Studying business can also help in the real world. By studying you can determine what the manufacturers real intentions are or if you really are getting a good deal or not. Seeing every part of a industry also helps see why your boss or supervisor does what he does, and business can tie that all together.

Explain the terms supply, demand, and competition, and equilibrium. How do these forces interact in the American economy?

Supply is the amount of a goods on the market, demand represent the amount of goods wanted by the consumer and equilibrium is where the two forces collide at, creating a price. If the actual supply is too high it is considered a oversupply and prices are lower, which is bad for the business. If the actual demand is too high then there is a under supply and prices will remain high until there is adequate supply.

20) Even when products are standardized, advertising often has to be modified to adapt to local cultures.

T

87) An ethical issue is an identifiable problem, situation. or opportunity that requires a person or organization to choose from among several actions that may be evaluated as ethical or unethical.

T

89) Nations trade with other nations to obtain resources that would otherwise be unavailable to them.

T

A Strategic alliance is a partnership formed to Create competitive advantage on a worldwide basis.

T

A major responsibility for business is providing equal opportunities for all employees

T

Finance refers to all activities concerned all activities concerned with obtaining money and using it effectively.

T

The equilibrium price is represented by the point where a supply and demand curves intersect.

T

23) Explain the purpose and functions of the International Monetary Fund (IMF).

The IMF or international monetary fund promotes trade among member nations and fosters financial cooperation. It also make short terms loans to member countries and will warn if a country cannot make their financial obligations. They are the closest thing to a international central bank. This helped in the financial crisises however has created challenges as many of these countries rely on private business of the one country.

Before the industrial revolution the economy of North America under the colonist was characterized by: A The export of manufactured goods to England B The domestic system of manufacturered goods C a scarcity of natural resources D dependence on England for everyday goods E hunting and gathering instead of agriculture

The domestic system of manufacturered goods

Who are the main participants of business? What are the main activities? What other factors impact on the conduct of business in the United States?

The main participants of business are the owners, employees and customers. The main activities are finance, marketing and management. Other factors that impact on the conduct of business in the US are the economy, competition from other sources, social responsibility and ethics, legal, political and regulatory forces, and information technology.

Describe the pre-industrial economic phase of the United States.

The pre-industrial economy consisted of what is known as the agricultural economy. In this economy many people were self-sufficient in crafting their own clothes, growing their own food and there were few manufacturers of goods. Eventually more natural resources were found and they made simple tools and would barter with other families for stuff.

In the context of the various forms of business ownership, discuss the two basic types of partnerships

The two basic types of partnerships are a general partnership and a Limited partnership. In a general partnership all parties involved have unlimited liability in the company. They all can lose their house, cars, and other assets if they fall into bankruptcy. In a limited partnership only one partner has unlimited liability. The other partners are only partially liable, while the other partner holds the majority of the liability.

At what levels might a firm get involved in international business? What level requires the least commitment of resources? What level requires the most?

There are four ways a country might get involved into international business. The first way, a joint venture, is when a company partners with a local firm to sell products and share the cost of the business and profits as well. This is the level of least commitment because the foreign firm as well . The next level is a strategic alliance, in this level the firms partner to create a competitive advantage on the worldwide scale. This is done in very small occasions as this requires the most amount of resources and the entry into this market is very high. A direct investment is when a company opens a company directly or purchases an existing company to get into a international market. This strategy is expensive and runs into social, political, and other barriers. The most expensive investment is the multinational corporation. This requires creating a global brand and various working parts around the world. This investment is the target of various groups due to the belief it abuses cheap labor and furthers the gap between the rich and the poor.

22) Briefly explain the economic barriers to trade and the important factors involved in it.

There are many economic barriers to businesses. Economic development in a foreign government or lack of could cause there being little or no business in the place you are going. Exchange rates can cause problems if the monetary amount is not worth doing business or if exports cannot be sold at a profit. Laws and regulations overseas tend to be protective and judgement in the court of law favor the local competitors. Tariffs and embargoes are used to limit foreign products from entering a country. Social and cultural barriers can make it harder due to language and custom barriers for those entering the market. Technological barriers keep monopoly and oligopolies in foreign countries in power and make it harder for a competitor to conduct business.

90) Most tender offers of corprate raiders are hostile,

True

What is under capitalization? How does it contribute to the failure of a business?

Under capitalization is a big ptoblem for small businesses. It is said during your first 3 years of business you do not have a income. During this time and other times during a economic depression or if you encounter some other sort of problem you will need funds to back up your business. Under capitalization is when you do not have enough saved to properly pay for business expenses. Rent, Liability, Payroll costs, and various other things all still need to be paid, and without proper funding you can be out of business right when you start really breaking into your industry.

What is the difference between a multinational and a globalization strategy?

Various roles of getting involved in international business include a multinational strategy and a global strategy aka globalization. In a multinational strategy companies must customize their products and directly cater to the country which they are selling to. This requires more resources because promotions, advertising, R&D and the product themselves must be specifically sold to the country. Globalization is a strategy where the products are sold in a standardized format, as far as even trying to promote the same from one country to another. Such brands as Starbucks and Coca Cola engage in this practice and their brand is known worldwide. This is a cheaper strategy due to not having to customize as much to each individual market.

List and define the various measures government may use to gauge the state of their economies. IF unemployment is high, will the growth of GDP be great or small?

Various tools that measure the economy such are such like the GDP or Gross Domestic Product, which is a combined total of all of the goods the a country makes. the CPI or consumer price index is seen a measurement of the price of a particular category of goods from the month prior. A shortage would cause the price to go up signficantly while a glut could cause the opposite. If unemployment is high the GDP growth would be smaller as there would be less people contributing to the society.

An ____ is elected by the stockholders of a corporation to oversee its general operation

board of directors

To make profits from a small business, the owner must first provide or obtains ____ to start the business and keep it running smoothly:

capital

91) A sole proprietor has limited liability in the debts of his or her Business.

false

all business decisions cannot be judges as right or wrong, ethical or unethical

false

ethical decisions in an organzaton are influcenced by induividuals moral standards

false

exporting is the purchase of products from another nation

false

licensing allows a company to enter international marketplace without spending large amounts of money abroad

false

limited partnerships has no voice in the management of the partnership

false

9) An entrepreneur has been primarily associated the to: A) posesses a government job. B) work under authority. C) be conservative. D) take risks. E) change employers frequently.

take risks.

20) If a manager pressures a subordinate to engage activities that he or she may otherwise view as unethical, such as engaging in accounting fraud or stealing a competitors secrets, this would be an ethical issue related to: A) conflicts of interest. B) fairness and honesty. C) plagiarism. D) business relationships E) communication.

l)) business relationships

11) An intermediary who handles international transactions for other firms is acting as a(n): A) licensing agent. B) franchising agent, C) direct investor. D) export agent. E) contract manufacturer.

licensing agent.

14) The market for corn in Brazil has a large number of sellers and there is no difference in the products sold by each seller. As there are also a large number of buyers for corn. the actions of a single seller or buyer cannot affect the price. The market for corn in Brazil can be described as A) an oligopoly B) pure competition C) monopolistic competition D) modified competition E) a monopoly

pure competition

Businesses differ from nonprofit organizations in that a business's focus is on: profit goods price fund raising charity

profit

a written authorization that assigns a stockholders voting privilege to another is called: leveraged buyout preemptive right profit deed stock certificate proxy

proxy

92) A drawback of franchising is the need for franchisees to strictly adhere to standardized operations.

true

a central issues of economics is how to fulfill an unlimited demand for goods and services in a world with limited resources

true

an aquisition occurs when one company purchases another companies stock

true

entrepenurship is the process of creating and managging a business to achieve desired objectives

true