Business Chapter 4 Study Guide

A state or local tax on goods and services that is collected by the seller is called a a. sales tax b. income tax c. property tax d. gift tax

A

Government is mainly concerned with all of the following roles EXCEPT a. making a profit b. regulating utilities c. hiring public employees d. providing services to citizens

A

Suppose one company owned all of the grocery stores in your state. This situation would constitute a(n) a. monopoly b. union c. competitive environment d. cartel

A

Valid, enforceable contracts must contain consideration, which is defined as a. something of measurable value that must be exchanged by the parties involved b. wording that is kind and unobjectionable to the parties involved c. the requirement that those entering into the contract must be of legal age and mentally competent d. the requirement that the contract must be for a product or service that may be legally sold

A

Which of the following would NOT be considered a utility company? a. a gas station b. a telephone company c. a water works d. an electric company

A

A valid contract must contain _______________: an offer must be made, and an acceptance must occur

Agreement

A patent gives an inventor of a new product the sole right to make, use, or sell the item for a. 7 years b. 20 years c. 25 years d. 50 years

B

About how many American workers are public employees? a. 9 percent b. 16 percent c. 22 percent d. 29 percent

B

Governments borrow money by selling a. stock b. bonds c. promissory notes d. all of the above

B

If a company has a code of ethics, a. employees will always know how to behave under all circumstances b. the company will more easily be able to identify proper employee behavior c. it should be worded in such a way as to stress forbidden actions rather than acceptable behavior d. all of the above are true

B

In the United States, total government purchases of goods and services make up about _____ percent of all the goods and services the country produces a. 10 b. 20 c. 50 d. 75

B

The Age Discrimination in Employment Act protects all persons aged____ and older from employers who attempt to use age as a basis for employment decisions. a. 30 b. 40 c. 50 d. 60

B

All of the following are non-renewable resources EXCEPT: a. oil b. gas c. lumber d. coal

C

Antitrust laws protect consumers from all of the following EXCEPT a. false advertising b. deceptive packaging c. products becoming outdated too quickly d. misleading labeling

C

In the United States, police and fire protection are usually provided by a. the federal government b. the state government c. the local government d. large corporations

C

Property tax revenue is used to pay for all of the following EXCEPT a. schools b. police protection c. Medicare and Medicaid d. community parks

C

Which of the following is a copyright symbol? a. ™️ b. (R) c. (C) d. all of the above are types of copyright symbols

C

A(n) __________ of interest occurs when an action by a company or individual results in an unfair benefit

Conflict

Saving scarce resources is called

Conservation

A(n) ___________ is an agreement to exchange goods or services for something of value.

Contract

A(n) _____________ protects the creative work of authors, composers, and artists

Copyright

The largest source of revenue for the federal government is the a. inheritance tax b. luxury tax c. corporate income tax d. individual tax

D

Which of the following is a way the United States government gets involved in business activities? a. It orders certain people to take specific jobs b. It tells all businesses what they should produce and what they can charge their customers c. It owns almost all of the factors of production d. It attempts to prevent unfair business practices

D

Which question should you NOT ask yourself when considering the ethics of a business situation? a. is the action legal? b. does the action violate professional standards? c. who is affected by this action? d. can i get away with this action?

D

________ are principles of morality or rules of conduct a. Customs b. Traditions c. Cultures d. Ethics

D

Business __________ are rules about how businesses and their employees ought to behave

Ethics

T/F: A public utility company is a company that is owned by the government

False

T/F: All written contracts are legal

False

T/F: Larry's Trucking Company is located in Columbus, Ohio. The company delivers products to its sole customer, a factory in Toledo, Ohio, twice every day. Both the State of Ohio and the federal government are responsible for regulating the business actions of Larry's Trucking Company.

False

T/F: Socially responsible actions benefit employees and the community while costing the company nothing

False

T/F: Top management has little impact on the ethical conduct of a business

False

What is intellectual property? Give 3 examples of intellectual property.

Intellectual property is an intangible product; patents, copyright, and trademarks

Business dealings involving companies in more than one state is _______________ commerce

Interstate

What is the difference between interstate and intrastate commerce?

Interstate commerce is doing business in more than one state. Intrastate is doing business in one state.

A(n) ____________ exists when a business has control of the market for a product or service

Monopoly

In the United States, work safety standards are regulated and enforced by the ______________ Safety and Health Administration

Occupational

When the by-products of human actions taint the environment, ______________ occurs

Pollution

A tax that is based on the value of land and buildings is called ______________ tax

Property

Government income is called ____________

Revenue

What is social responsibility? Name at least two broad categories of social responsibility.

Social responsibility is the duty of a business to contribute to the well-being of a community. Broad categories include protection of the environment and employee wellness.

Name at least 3 sources of government revenue

Taxes, Borrowing, Fines, Fees and Licenses

A word, letter, or symbol linked with a specific company or product is a(n) _______________

Trademark

T/F: Government is the single largest employer in the U.S. economy

True

T/F: Government plays a role in all economic systems

True

T/F: If you write an original song, your work can be protected with a copyright

True

T/F: Information the government collects in a census can help a business decide where most of its potential customers live.

True

T/F: The major challenge facing businesses today involves learning how to manage a workforce made up of the diverse cultures in society

True

A public ____________ is an organization that supplies a service or product vital to all people

Utility