Business principles mid term

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The Global Entrepreneurship Monitor (GEM) shows that people living in high-income countries tend to be much more willing to start their own businesses than people living low-income countries.

False

The amount of input divided by the amount of output equals productivity.

False

The difference between a firm's revenue and its cost of goods sold is its accounts receivable.

False

The most common type of corporation is an S corporation.

False

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

False

In economics, the _____________ illustrates a theoretical relationship between rates of taxation and the resulting levels of the government's tax revenue.

Laffer Curve

Expenses such as insurance and advertising that have been cleared before they are due are known as prepaid expenses.

True

In the context of consumerism, smart businesses view customer complaints as an opportunity to create better products and stronger relationships.

True

In the context of franchises, the term accounts receivable refers to money owed to a parent company by franchisees who bought its goods on credit.

True

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

True

In the context of small businesses and the economy of a country, entrepreneurship rates are significantly lower in countries where it is hard to get fired.

True

In the context of the U.S. economy, small firms tend to be effective innovators because of the presence of revolutionary new ideas.

True

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

True

One of the disadvantages of general partnerships is the lack of continuity.

True

Small businesses often have an advantage in foreign markets where customers want to deal directly with a company's top management.

True

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.

True

Sustainable development means weaving environmentalism throughout the business decision-making process.

True

The central banking system of the United States is the Federal Reserve.

True

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

The most basic form of a partnership is known as a general partnership.

True

In the accounting equation, assets are equal to liabilities minus the owners' equity.

False

In the context of competitive advantage, the value of the first-best choice represents the opportunity cost of producing a second product.

False

In the context of global trade, the exchange rate can directly measure global commerce.

False

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

False

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

False

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.

False

In the context of social responsibility, a corporation that does not have profits as a first priority is referred to as a D-Corp.

False

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

Speed-to-market is the rate at which a company's competitors copy its product innovations.

False

Ted's new company is experiencing a steady decline in profit. He needs external financing to prevent his company's profits from declining further. Considering the fact that he wants to exercise sole ownership and control over the firm for as long as possible, Ted is likely to find angel investors who are interested in helping him meet his financial needs.

False

Common stock is a key owners' equity account for corporations.

True

Digital natives only spend when a business offers them value.

True

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

False

A social audit is a systematic evaluation of the positive and negative views of the public about a business firm.

False

An ethical dilemma involves clear misconduct at the workplace.

False

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

False

Contingent expenses are costs that a firm incurs in the regular functioning of its business.

False

Corporate philanthropy includes all business donations to nonprofit groups except employee time.

False

Despite the growth rates in many high-population countries being weak, most of these nations remain ahead of the United States in terms of development and prosperity.

False

Economists declare an official recession when gross domestic product decreases for six consecutive quarters.

False

Ideally, the opening of your business presentation will summarize your key points.

False

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.

False

Which of the following statements is true of organizational barriers to communication?

They are hard to change

A benefit of using active voice in business communication is accountability.

True

A corporation can be a partner in a partnership.

True

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

True

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

Fabotels is a hotel aggregator that buys budget hotels that succumb to financial losses and then refurbishes them under the company's brand name. Fabotels recently purchased Ravine Comforts, a small lodge that was running into huge debts. The business deal between Fabotels and Ravine Comforts exemplifies a(n) _____.

acquisition

The Federal Trade Commission:

actively promotes fair competitive practices

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.

audience involvement


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