Business Principle Mid-Term

D

In a sole proprietorship, any debts the company incurs are: A. treated as the owner's personal income. B. used to purchase preferred stocks of the company. C. taxed only if the owner has not taken a loan. D. considered to be the owner's personal liabilities.

True

T/F: A benefit of using active voice in business communication is accountability.

False

T/F: A business email should have as many attachments as possible to communicate a message.

True

T/F: A limited liability company (LLC) can elect to be taxed as a corporation.

False

T/F: An advantage of Google Presentations software is that it is invulnerable to hackers.

False

T/F: As globalization gains speed, intercultural communication will become less important to business success.

True

T/F: Balance of payments includes financial flows such as foreign investments.

False

T/F: Ideally the opening of your business presentation will summarize your key points.

False

T/F: In the context of monetary policy, when the economy contracts, the Fed typically decreases the money supply.

False

T/F: The most common type of corporation is an S corporation.

B

What is the origin of the name America? A. Christopher Columbus B. Amerigo Vespucci C. Arch Duke Ferdinand D. Ferdinand Magellen

C

Socially responsible firms support consumer choice by: A. being involved in competitive practices such as predatory pricing. B. using strategies such as planned obsolescence for the organization's growth. C. following laws that prevent anti-competitive behavior such as collusion. D. involving consumers when accounting for traditional financial indicators, such as earnings.

A

The government of Lebitz, a European country, learns that low-priced textile imports from Pruneia, an Asian country, are affecting the sales of domestic textile companies. The Lebitzian government decides to levy a 6% tax on all textile goods imported from other countries. In this scenario, which of the following trade restrictions does the Lebitzian government impose? A. A tariff B. An embargo C. A voluntary export restraint D. A quota

False

T/F: In the context of limited partnerships, the general partners of a company assume limited personal liability for any of the company's debts.

False

T/F: In the context of monetary policy, when the Fed reduces the discount rate, banks will have to obtain funds at a higher cost.

True

T/F: In the context of nonverbal communication, leaning forward during a conversation is considered a sign of interest.

False

T/F: In the context of self-reliance, when things go well, people with an internal locus of control feel that the actions of other people have led to their success.

True

T/F: In the context of the barriers to international trade, per capita income is a key factor that determines the economic differences between two countries.

True

T/F: In the context of the barriers to international trade, the infrastructural differences between two countries fall into the category of economic differences.

True

T/F: In the context of the three types of emissions tracked by corporations, Scope 1 emissions refer to direct emissions produced by corporate operations.

True

T/F: In-person presentation is a communication channel with high channel richness.

False

T/F: It is possible to establish a corporation by a simple verbal agreement.

False

T/F: One of the advantages of a C corporation is ease of formation.

True

T/F: One of the disadvantages of general partnerships is the lack of continuity.

True

T/F: One of the limitations of a not-for-profit corporation is that it cannot have stockholders.

True

T/F: Planned obsolescence represents a clear violation of social responsibility.

False

T/F: Reserve requirement is a rule of the Fed which requires that all of its member banks hold funds which are more than the stated percentage of the deposits held by their customers.

False

T/F: Rudy owns a small metal fabrication business that employs 23 workers. As the owner of a small business, one of the major advantages that Rudy enjoys while competing with larger firms is reduced burden of complying with government regulations.

False

T/F: Small businesses generate 50% of total employment in American inner cities.

False

T/F: Speed-to-market is the rate at which a company's competitors copy its product innovations.

True

T/F: Studies cited in The Wall Street Journal's Career Journal suggest that during face-to-face communication, 38% of meaning comes from tone of voice.

False

T/F: Texting is an example of a communication channel with high channel richness.

True

T/F: The Internal Revenue Service classifies each limited liability company (LLC) based on the tax treatment the company selects.

False

T/F: The amount of input divided by the amount of output equals productivity.

True

T/F: The central banking system of the United States is the Federal Reserve.

True

T/F: The consumer market basket of goods and services, in which the consumer price index (CPI) measures the change in weighted-average price over time, is created by the U.S. Bureau of Labor Statistics.

True

T/F: The earnings of not-for-profit corporations are exempt from federal and state income taxes.

True

T/F: The most basic form of a partnership is known as a general partnership.

True

T/F: The personal needs, the culture, and the family of an individual influence his or her ethical choices.

False

T/F: The value of all natural resources tends to rise with low demand, high supply, or both.

True

T/F: There is no limit on the number of partners who can participate in a general partnership.

True

T/F: Voice mail is an example of a communication channel with low channel richness.

False

T/F: When drafting an email using block paragraphs, you should use single spacing between paragraphs.

True

T/F: When entrepreneurs develop new products that we didn't even know we needed until we had them, they are showing the entrepreneurial characteristic of vision.

actively promotes fair competitive practices.

The Federal Trade Commission...

D

Which of the following statements is true of organizational barriers to communication? A. They stem from the use of jargon. B. They develop because of poor ergonomics at the workplace. C. They are not related to organizational structure. D. They are hard to change

A

A Japanese company encourages its employees to participate in charitable activities. The company gives annual paid leave of ten days to its employees to volunteer at nonprofits or take part in activities that support environmental causes. Given this information, the company's initiative is an example of _____. A. corporate philanthropy B. green marketing C. integralism D. consumerism

D

A _____ is a form of business ownership in which the business is considered a legal entity that is separate and distinct from its owners. A. partnership B. cooperative C. sole proprietorship D. corporation

A

A clothing company, Clendtine Fashions, pledges five percent of its annual revenue to environmental causes around the world. Being one of the top international companies, the founders of the company have an obligation to contribute toward the betterment of the world. This scenario is an example of Clendtine Fashions' participation in _____. A. social responsibility B. relativism C. greenwashing D. moral absolutism

A

A large film production company merges with a popular sound processing studio, resulting in the formation of a new company out of the two previously independent firms. This is most likely an example of a _____. A. vertical merger B. market extension merger C. horizontal merger D. conglomerate merger

C

According to the U.S. Small Business Administration (SBA), to officially count as "small," _____. A. a business should have at least 500 employees, excluding the self-employed B. the number of employees of a business should range from fewer than 50 to 100 C. the average revenue of a business should range from $0.75 million to $28.5 million D. the average revenue of a business should be between $30 million and $40 million

D

Albert is the owner of a car service center. As a sole proprietor, any profit that he earns is: A. not subjected to any form of taxation. B. taxable only when he acquires shareholders. C. subjected to double taxation. D. treated as Albert's personal income.

A

Boson Corp., an American software development company, wants to expand its business in international markets. Therefore, it buys property in Greitch, a South Asian country, and sets up a production facility despite the high costs involved. In this scenario, Boson Corp. is most likely involved in _____. A. Direct Investment B. Exporting C. Foreign Franchising D. Countertrade

B

Diana has to give a presentation on air pollution and its effects at a conference. She begins the presentation by asking the conference participants to imagine themselves carpooling to work instead of using their individual vehicles. This small exercise helps the participants to relate to the topic at hand. In the given scenario, Diana uses _____ to open her presentation. A. engaging questions B. audience involvement C. a statistic D. similes

C

In the context of international trade restrictions, _____ are limitations on the amount of specific products that may be imported from certain countries during a given time period. A. Tariffs B. Voluntary Export Restraints C. Quotas D. Embargoes

B

In the context of limited partnerships, which of the following statements is true of limited partners? A. They are not only liable for their own mistakes but also for that of their partners. B. Their personal wealth is not at risk as long as they do not actively participate in managing the company. C. Their ultimate authority in the business often compels them to perform tasks or make decisions in areas where they lack expertise. D. They assume unlimited personal liability for debts incurred by the company.

C

In the context of the barriers to international trade, establishing standards on how certain products are produced is most likely a(n) _____. A. quota B. trading bloc C. nontariff barrier D. embargo

A

In the context of the legal and ethical dimensions of business conduct, it is illegal but ethical to: A. collaborate with other medical clinics to guarantee low prices in low-income counties. B. encourage fraudulent accounting. C. produce products that you know will break before their time. D. reward integrity and lead by example.

D

In the context of the legal and ethical dimensions of business conduct, rewarding integrity is an example of _____. A. illegal and unethical behavior B. legal but unethical behavior C. illegal but ethical behavior D. legal and ethical behavior

C

In the context of the stakeholder approach to business, the federal government is a key stakeholder in: A. web design firms. B. apparel companies. C. pharmaceutical companies. D. local art studios.

B

In the context of the various roles employees take up in an organization, who among the following are least likely to spend most of their time listening? A. Managers B. Hourly Employees C. Senior executives D. Salespeople

B

Openi, an island nation, is able to increase its textile production without having to compromise on the production of other materials. This is in contrast to other nations that need to lower the production of other materials to increase their textile production. In this scenario, Openi has a _____ in textile production. A. Positive Balance B. Comparative Advantage C. Trade Surplus D. Balance of Payment Surplus

C

Paulina, the CEO of a steel company, invites Joseph, the representative of a potential partner firm, to visit her company. She is careful not to stress on Joseph's religious background as a means to start off a conversation. Instead, she maintains a strictly professional conversation with Joseph and stays neutral to his religious background. Which of the following biases does Paulina avoid in the given scenario? A. gender bias B. age bias C. ethnicity bias D. disability bias

B

Priscilla is a trader of silver and diamond jewelry. Due to a recessionary trend in the industry, her business has not been making any profits for a few months. As the end of this economic trend cannot be easily ascertained, she decides to get her house mortgaged so that she can add a new line of business of trading in semi-precious stones. This financial risk appetite of Priscilla illustrates her _____ as an entrepreneur. A. high energy levels B. tolerance of uncertainty C. tolerance of failure D. deep visionary sense

D

Regency Placade, a renowned European electronics company, wants to set up a subsidiary in Finim, an Asian country. After conducting a survey, the company finds that Finim lacks the resources required for production. Therefore, Regency Placade decides to abandon the idea. In this scenario, which of the following most likely affected Regency Placade's plan? A. Economic Dependence in the International Market B. Lack of Innovative Ideas C. Absence of plentiful capital D. Limited access to factors of production

A

Resorto, a European country, exported sugar worth $600 million between 2015 and 2016 and imported tea worth $750 million during the same period. In this scenario, Resorto most likely had a _____ between 2015 and 2016. A. trade deficit B. balance of payments surplus C. trade surplus D. balance of payments deficit

C

Rubicon Inc., an American guitar manufacturing company, signed a contract with a supplier in Umreia, an Asian country, to manufacture guitars. Rubicon then imported these products and sold them in its markets under its own brand name. Rubicon did this because of the availability of cheap labor in Umreia that substantially cut down Rubicon's cost of production. In this scenario, Rubicon is most likely involved in _____. A. foreign direct investment B. foreign franchising C. foreign outsourcing D. foreign licensing

True

T/F: A corporation can be a partner in a partnership.

True

T/F: A corporation is a business entity created by filing a form, which is known in most states as the "articles of incorporation".

False

T/F: A corporation is a voluntary agreement under which two people act as co-owners of a business for profit.

False

T/F: A corporation offers more flexibility than a limited liability company (LLC) in terms of tax treatment.

True

T/F: A country has an absolute advantage when it can produce more of a good than other nations, using the same amount of resources.

False

T/F: A disadvantage of an S corporation is that it can have no more than 50 stockholders.

False

T/F: A limited partnership is an agreement between two or more individuals to operate a business as co-owners for a limited period of time.

True

T/F: According to research from the Ethics Resource Center (ERC), organizational culture is most influential in shaping the ethical conduct of individual employees.

True

T/F: Although a trade deficit signals the wealth of an economy that can afford to buy huge amounts of foreign products, a large deficit can be destabilizing.

True

T/F: American culture associates youth with creativity and independence.

False

T/F: Based on statistics from the U.S. Small Business Administration (SBA), small businesses account for 78% of all private sector employees.

False

T/F: Communication must be static and one-way rather than dynamic and two-way.

True

T/F: Digital natives only spend when a business offers them value.

False

T/F: Dominic feels that an incredible string of bad luck has affected his personal life. He also feels that his boss is subjecting him to unfair treatment at work for no fault of his. Dominic's perceptions suggest that he has an internal locus of control.

False

T/F: Economists declare an official recession when gross domestic product decreases for six consecutive quarters.

True

T/F: Effective communication happens when one transmits relevant meaning to one's audience.

True

T/F: Franchising is used by companies to move into foreign markets.

True

T/F: Globalization has made ethics and social responsibility complicated for workers at every level.

True

T/F: If an email is intended for a recipient who is likely to feel negative about it, you should end the email on a positive note.

True

T/F: In American culture, older people tend to experience negative age bias more often than younger people.

False

T/F: In face-to-face communication, the verbal content of a message conveys much more meaning to the listener than the tone of voice and body language.

True

T/F: In foreign licensing, licensors run the risk that unethical licensees may become their competitors, using information that they gained from the licensing agreement.

True

T/F: In the context of business ethics, in an ethical dilemma, every potential course of action has some significant negative consequences.

True

T/F: In the context of creating and maintaining an ethical organization, when employees perceive more management commitment, they tend to be more fully engaged.

True

T/F: In the context of ethical behavior, encouraging fraudulent accounting is illegal and unethical.

True

T/F: In the context of international trade, often countries with the highest trade barriers have the least competition.

D

Who among the following individuals uses nonverbal communication? A. Rudolf, who communicates with his employees through his secretary B. Brian, who has difficulty expressing his ideas because of language differences C. Winston, who uses technical jargon that is often difficult for his colleagues to understand D. Herbert, who maintains eye contact with his employees while talking to them

D

Who among the following people is most likely to become a necessity entrepreneur? A. A person who has recently graduated from college and has no work experience B. A person who has recently been promoted to a managerial position C. A person who avoids challenges and financial risks D. A person who experiences discrimination in the standard workplace

D

With an increasing number of workers facing challenges such as raising kids and caring for elderly parents, responsible companies are stepping in with programs such as on-site day care, company-sponsored day camp, and referral services for elder care. These actions show that these companies are fulfilling their _____. A. legal obligation B. fiduciary duty C. stakeholder criterion D. social responsibility

A

_____ has high channel richness, and especially with state-of-the-art equipment, it conveys much of the richness of actually being there. A. Videoconferencing B. Blogging C. Emailing D. Texting