Business

Supporters of increased social responsibility would most likely say that the goal of a firm is to _______.

create value and benefits for owners, employees, and society

Jeff Bezos, Elon Musk, and Beyoncé risked their time, effort, and money to establish and operate businesses; in this case, they are best described as _______.

entrepreneurs

According to economists, natural resources, labor, capital, and entrepreneurship are called _______.

factors of production

TRUE OR FALSE: Fewer workers producing more goods and services can lead to higher overall employment rates.

false

If the Canadian national government spends more than it receives within a fiscal year, is has a(n) ______

federal deficit

When the federal government takes steps, such as reducing or increasing spending levels, that affect savings and spending by consumers and businesses, it is called _______.

fiscal policy

The process of creating, making, delivering, and promoting products that are environmentally safe is called _______

green marketing

Firms have routinely rejected job applicants with little education or vocational training and a long history of unemployment, even when they lack skills and education because of disabilities, economic factors, or systemic racism. These individuals are known as _______.

hard-core unemployed

To create a workplace environment that discourages bullying, sexual harassment, and abusive conduct, an organization should do all the following except _______.

ignore verbal or physical abuse to avoid first-amendment challenges

The total flow of money into a country minus the total flow of money out of that country over a specified period of time

Balance of Payments

The total value of a nation's exports minus the total value of its imports over a specified period of time

Balance of Trade

Exportation of large quantities of a product at a price lower than that of the same product in the home market.

Dumping

In a communist country such as North Korea, what types of goods have the greatest importance?

Goods needed by the government

Purchasing raw materials or products in other nations and bringing them into one's own country

Importing

All business activities that involve exchanges across national boundaries

International Business

Which of the following is the Federal Reserve applying when it lowers the interest rate charged to banks on short-term loans?

Monetary policy

A firm that operates on a worldwide scale without ties to any specific nation or region

Multinational Corporation

A nontax measure imposed by a government to favor domestic over foreign suppliers

Nontariff Barrier

What two additional rights have been added to the original Consumer Bill of Rights?

Right to consumer education and right to service

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 Interstate Commerce Act

The consumer price index (CPI) _______.

is a monthly index that tracks the prices paid by consumers

LG fails to provide an instruction manual with one of its new high efficiency washing machines. Which basic consumer right has LG's omission violated?

The right to safety

Only about half of business firms survive the first five years TRUE OR FALSE

True

TRUE OR FALSE: Once they are made aware of a pollution problem, most firms are proactive in addressing it rather than waiting to be cited by the Environmental Protection Agency (EPA)

True

A plan designed to increase the number of underrepresented employees within an organization is known as _______

an affirmative action program

An e-business differs from a traditional business only in that _______.

an e-business distributes through facilities available on the internet

Business ethics ______

applies moral standards to business settings

Jagdish had a problem with a coffee maker he purchased recently. He has been trying for days to speak with the company by emailing and calling its toll-free number, but it rings forever or sends him through a long menu with no opportunity to speak to an individual or to leave a message; his emails go unanswered. Jagdish feels his basic consumer right to _______ has been violated.

be heard

The organized effort of individuals to produce and sell, for a profit, the goods and services that satisfy society's needs is called _______.

business

Fluctuations in a nation's economy are referred to as its _______.

business cycle

A system where the basic economic questions are determined, at least to some degree, through centralized government planning is referred to as a _______ economy.

command

Ga-ram works at an institutional bakery and is paid a wage set by the government. He does not like his job but is not allowed other options. Ga-ram must purchase necessities for his family at fixed prices. The country Ga-ram lives in can be described as a _______ economy

command

If Ford, GMC, Honda, Toyota, and Volkswagen merged into one multinational corporation, this would effectively _______.

create a monopoly

When people or organizations foul water, air, or land, whether knowingly or unwittingly, the action is called _______.

pollution

Due to the COVID-19 pandemic, the United States suffered more than two consecutive three-month periods of decline in its gross domestic product; this is best described as a(n) _______

recession

Economists define a _______ as two consecutive three-month periods of decline in a country's gross domestic product.

recession

Some economists believe that sound fiscal and monetary policy can reduce the amount of time the economy is in the _______ stage of the business cycle.

recession

A social audit is best characterized as a _______.

report on a business's performance and initiatives with regard to social issues

The right to be heard implies that companies should listen to consumer complaints and _______.

take appropriate action

One issue that affirmative action programs have confronted is _______. *

that not all businesspeople favor such programs

One of Samuel Slater's contributions to the development of business in the United States was the use of _______.

the factory system

All of the following are considered major events that shaped the nation's economy during the period of 1910 to 2000 except _______.

the golden age of inventions

As a manager, when faced with an ethical conflict, Ari should always _______.

think about their own ethics; the company's ethics; and the interest of employees, stockholders, and customers

Provides a link between buyers and sellers in different countries

trading company

TRUE OR FALSE: According to Adam Smith, under laissez-faire capitalism, everyone should be allowed to work toward their own economic gain without government interference.

true

TRUE OR FALSE: An effective program for social responsibility takes time, money, and organization.

true

TRUE OR FALSE: Inflation is a general rise in the level of prices experienced by people in a nation.

true

When consumers spend their money to purchase Apple iPhones or computers with an AMD processor, or when they discontinue buying such items as DVDs, they are telling resource owners ______

what to produce

Which of the following best describes cultural diversity? *

Appreciating the differences among people in a workforce

Which of the following is not one of the four states included in a typical business cycle?

Repression

The ability to produce a specific product more efficiently than any other nation

Absolute Advantage

Which of the following best illustrates a command economy?

Communism

The ability to produce a specific product more efficiently than any other product

Comparative Advantage

An arrangement in which one firm contracts with another business, often in another country, to manufacture products or product components to its specifications

Contract Manufacturing

An international barter transaction which goods and services are exchanged for different goods and services.

Counter trade

To achieve affirmative action goals, companies turned to quotas; however, the courts have done which of the following with regard to quotas as a part of affirmative action programs

Courts have ruled quotas unconstitutional but commended their purpose.

The reduction of the value of a nation's currency relative to the currencies of other countries

Currency Devaluation

A complete halt to trading with a particular nation or of a particular product

Embargo

A restriction on the amount of a particular foreign currency that can be purchased or sold

Exchange Control

Selling and shipping raw materials or products to other nations

Exporting

TRUE OR FALSE: The problems associated with the disposal of waste have declined in recent years because of modern technology.

FALSE

TRUE OR FALSE: Manufacturers are not required by law to inform consumers about the potential dangers of using their products.

False

Caveat emptoris a _______.

Latin phrase meaning "let the buyer beware."

A contractual agreement in which one firm permits another to produce and market its product and to use its brand name in return for a royalty or other compensation

Licensing

An arrangement in which one firm contracts manufacturing or other activities to a firm in another country that specializes in those activities and can offer them at a lower cost than domestic firms

Outsourcing

As Vanessa and her friends prepare to graduate from college, they are getting numerous job offers with starting salaries better than they could have imagined when they began college four years ago. Based on this information, which stage of the business cycle is the economy likely to be in?

Peak

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?

Plagiarism

Which of the following scenarios provides the best example of whistle-blowing?

Raquel has grown frustrated with her company's unsafe practices and reports them to OSHA, a governmental agency that regulates safety.

Sabina is opening her own bakery. To bake the cookies, pies, cakes, and bread she will be selling, she will need money to rent a store and purchase an oven, baking pans, various kitchen tools, thermometers, sugar, yeast, salt, flour, oil, milk, water, spices, and other ingredients. She will also need people to work in the business baking the goods, delivering the goods to stores, and waiting on customers. She will also need a computer with software to keep track of income and expenses and to track how effectively she is using the ingredients. Which of the following best describes the resources used by Sabina's bakery?

Sabina will be using material resources, human resources, financial resources, and information resources.

Which of the following best expresses the relationship between sales and profits?

Sales revenue−expenses = profit

A partnership formed to create competitive advantage on a worldwide basis

Strategic Alliance

A tax levied on a particular foreign product entering a country

Tariff

An instruction pamphlet detailing steps for the care and use of a new electric appliance would fulfill which provisions of Kennedy's Consumer Bill of Rights?

The right to safety and the right to be informed

Beechcraft, Embraer, Bombardier, and Gulfstream are among the eight manufacturers and sellers of business jets. Because the production of jets requires a sizeable investment, it is difficult to enter this market and these sellers are quite large. Which of the following best describes the market in which these companies operate?

These businesses operate in an oligopoly.

Which of the following best characterizes how the government uses tax dollars?

To purchase resources and products needed to provide services

A negative balance of trade.

Trade Deficit

Which of the following would not be included in the gross domestic product (GDP) of the United States?

Value of Pizza Hut's sales for its Tokyo locations

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

Perfect competition is characterized by _______.

many buyers and many sellers

Online interaction that allows people and businesses to communicate and share ideas, personal information, and information about products is known as _______.

social media

Adidas organizes the annual Run for the Oceans to raise funds and awareness about the global problem of plastic waste polluting the oceans. It has also partnered with Parley to recycle plastic waste into sportswear products. This is an example of _______.

social responsibility