Business Exam #1 Old Exam

A

Promoting high-calorie/low-nutrient foods with inadequate information about the risks is a(n) ___ practice. a. legal but unethical b. illegal and unethical c. legal and ethical d. illegal but ethical

A

Pyoiunalek's, a restaurant chain, markets and endorses its businesses in other countries by offering buyers the rights to launch and operate the restaurant in that country. It lends financial and marketing assistance to the buyers. In this scenario, Pyoiunalek's is employing the strategy of ___ to reach global markets. a. foreign franchisinng b. exporting c. direct investment d. importing

B

The controversial $700 billion economic bailout plan passed by Congress in early Oct. 2008 was called the... a. American Recovery and Reinvestment Act b. Troubled Assets Relief Program c. Clayton Antitrust Act d. NCUA Corporate Stabilization Program

A

The economic system of the United States is called ___ a. capitalism b. communism c. socialism d. mercantilism

C

The term ___ refers to the shortfall that occurs when the total value of a nation's imports is higher than the total value of its exports. a. exchange rate b. balance of payments surplus c. trade deficit d. positive balance

A

Adhering to a new act passed in 2002, the CEO of Pearsil and Pearsil, a real estate company, now personally certifies the validity of the company's financial statements. Given this information, the CEO most likely follows the ___. a. Sarbanes-Oxley Act b. Blaine Act c. Landrum-Griffin Act d. Dawes Act

D

Ethics refers to: a. the obligation of a business to contribute to society b. legal codes written in the constitution c. social movements that focus on key consumer rights d. sets of beliefs about right and wrong

A

In Sept. 2008, during the first fiscal crisis in the U.S., the stock market lost more than 1/3 of its value, and 11.1 million Americans were out of work. Neither businesses nor individuals could borrow funds to meet their needs. Which of the following dimensions of the business environment does this illustrate? a. economic environment b. competitive environment c. technological environment d. social environment

B

In the context of factors of production, which of the following is a natural resource? a. an equipment b. land c. an investment d. information

D

In the context of history of American business, which of the following statements it true of the marketing era? a. Skilled artisian workshops were replaced by huge factories. b. Major businesses focused on refining the production process and creating greater efficiencies. c. Large-scale entrepreneurs dominated the market and raised the standard of living across the country. d. The balance of power shifted away from producers and towards customers.

D

In the context of social responsibility, ___ includes employees and investors who have a personal interest in the performance and actions of an organization. a. focus groups b. philanthropists c. prosumers d. stakeholders

B

In the context of the history of American businesses, during the ____ era, jobs became more specialized, increasing productivity and lowering costs and prices. a. entrepreneurship era b. production era c. marketing era d. relationship era

D

Lily, a salesperson at a clothing store, observes the department head misbehaving with a customer. She brings the issue to the notice of the store manager, and the offender is immediately dismissed from his job. In this scenario, Lily is a ___. a social auditor b. corporate philanthropist c. grandstander d. whistle-blower

A

Monclaire, a chain of luxury hotels, uses social media for promotional purposes. It also maintains a dedicated interactive Web page where customers write detailed reviews and discuss their experiences. In the context of the history of American business, Monclaire most likely belongs to the ___ era. a. relationship era b. entrepreneurship era c. production era d. industrial revolution era

B

Spacein, a hard drive manufacturer, is accused of deliberately creating flaws in its product design. News reports hint that the company has been doing this for years to reduce the time between consumer repurchases. In the context of social responsibility, Spacein has been accused of ___. a. project mismanagement b. planned obsolesce c. crash simulation d. modular function deployment

D

The obligation of a business to contribute to society is referred to as ... a. planned obsolescence b. growthism c. societal consumerism d. social responsibility

D

Vertiaplume, a drug manufacturing company, exports its products to more than 15 countries around the world. Regardless of reduced sales in one of these countries, Vertiaplume is able to maintain its overall profits. In the given scenario, which of the following is a reason behind vertiaplume's ability to maintain its overall profits? a. access the factors of production b. ease of storage of goods c. inflow of innovation d. reduced risk

B

When a business brings in less money than it needs to cover expenses, it incurs a ___. a. deferral b. loss c. depreciation d. bondage

B

When a country produces more of one good, it must produce less of another good (assuming that resources are finite). The value of the second-best choice-the value of the production that a country gives up in order to produce the first product-represents the ___ of producing the first product. a. money cost b. opportunity cost c. sunk cost d. differential cost

C

Which of the following countries is involved in countertrade? a. An Asian country that imports cotton from an African country and resells it to other countries b. A North American country that experiences more cash outflow than inflow c. An Asian country that provides sugarcane to an African country in exchange for jute d. a European country whose total value of exports its higher than its imports.

C

Which of the following countries most likely has a comparative advantage? a. A South American country that produces more coffee compared to an Asian country despite having equal resources. b. An Asian country that manufactures more textile products than most countries by decreasing its production of tea. c. An Asian country that produces quality automobiles with little opportunity cost compared to other countries d. A North American country that expands its trade relations to a neighboring country to share resources

B

Which of the following is an example of a nonprofit organization? a. Costicon, a regional retail store that sells goods at a discounted price. b. Hollorg, a community museum that is funded by a trust and is free for public use. c. Tempim, a local newspaper house that sells newspaper at prices lower than its competitors. d. Modashows, a fashion publication house that issues free subscriptions of its weekly magazines to consumers who are yearly subscribers

D

Which of the following is one core purposes of the Fed? a. regulating taxes b. providing short term jobs c. investing in critical public assets d. influencing the size of the money supply

B

Which of the following statements is true of international trade? a. It increases dependence on its domestic economy b. it offers companies an invaluable source of new ideas c. it increases the economic risk for multinational companies d. it reduces the firm's opportunity to tap into growing new markets

B

___ is a market structure with just a single producer completely dominating the industry. a. oligopoly b. monopoly c. monopolistic competition d. pure competition