Business Unit 1
A system of exchange in which goods or services are exchanged without using money is called
a barter system
a guide to acceptable and ethical behavior is known as
a code of ethics
a firm that operates on a worldwide scale is called
a multinational enterprise
a plan designed to increase the number of minority employees at all levels within an organization is called
an affirmative action program
a type of trade restriction that limits the amount of a particular good that may be imported into a country during a given period of time is
an import quota
an organization of nations formed to promote the free movement of resources and products among its members and to create common economic policies is
an international economic organization
Funding for a program of social responsibility can come from
corporations that absorb the costs as a business expense
which of the following arranges the sale of products to foreign intermediaries for a commission or fee?
export/import agent
the selling and shipping of raw materials or products to other nations is called
exporting
T or F? the business cycle consists of two or more consecutive three-month periods of decline in a country's GDP
false Business Cycle: the recurrence of period of growth
T or F? whistle-blowing is an attempt by business to stop employees from exposing their unethical business behavior
false Whistle-blowing: Informing the press or government officials about unethical practices within one's organization
T or F? the economic model of social responsibility places emphasis not only on profits but also on the impact of business decisions of society
false- Business should be concerned with the impact of its decisions of society
T or F? the ability to produce a specific product more efficiently is than any other nation is called comparative advantage
false- absolute advantage
T or F? less than 50% of small businesses fail within the first five years
false- more than 70% of businesses fail within the first 10 years
A general rise in the level of prices is called
inflation
One factor that influences ethical decision making because of the amount of freedom given to employees is the
opportunity factor
a market situation in which there are many buyers and sellers of a product and no single buyer or seller can control the price is
pure competition
the separation of a manufacturing process into distinct tasks is referred to as
specialization
Initiating a social responsibility program takes
the commitment of top executives
A method of manufacturing in which all material, machinery, and workers are assembled in one place is called
the factory system
T or F? Adam Smith argued that the creation of wealth is properly the concern of private individuals, not the government
true
T or F? Business is the organized effort of individuals to produce and sell, for a profit, the products and services that satisfy society's needs
true
T or F? Free Enterprise is a system of business in which individuals decide what to produce and how to produce it
true
T or F? an argument for trade restriction is that is protects national security
true
T or F? consumerism consists of all those activities that are undertaken to protect the rights of consumers in their dealings with business
true
T or F? international business consists of all business activities that involve exchanges across national boundaries
true
T or F? six basic rights of consumers are the right to safety, the right to be informed, the right to choose, the right to be heard, the right to consumer education, and the right to service
true
T or F? social responsibility is the recognition that business activities have an impact on society and the considerations of that impact in business decisions
true
T or F? the balance of trade is the total value of a country's exports less the total value of its imports over some period of time
true
T or F? the general agreement on tariffs and trade is an international organization whose goal is to reduce or eliminate tariffs and other barriers to world trade
true
