Exam 1 Review

In some countries, it is customary to pay government officials to secure necessary business contracts and permits. American businesses must follow US law and cannot make these payments according to the?

Foreign Corrupt Practices Act

When a country has a monopoly on producing a product or is able to produce it at a cost well below that of all other countries, it has a(n)?

absolute advantage

An evaluation of franchising would conclude that this type of arrangement:

appeals to people who want to own a business, but are not comfortable starting a company from scratch

All else being equal, socially responsible firms:

are viewed more favorably by consumers

An entity that seeks to earn a profit by providing a good or service is known as a(n)?

business

A nation has a ___________ in the production of a good or service if it can produce that good or service more effectively or efficiently than it can produce other goods.

comparative advantage

A firm's corporate social responsibility describes its:

concern for the welfare of society

We describe charitable donations by corporations to nonprofit organizations as _________.

corporate philanthropy

If a business fails to meet its responsibilities to its employees, which of the following is likely to occur?

employees doing the minimum needed to get by

A(n) _____ is a person who assumes the risk of starting a business.

entrepreneur

Ernesto recently started selling his invention: a robotic lawn mower that mows the lawn by itself. Even though the venture is risky, he feels that his product will be successful. Ernesto is a(n):

entrepreneur

_____ refers to society's standards of moral behavior

ethics

_____ is the selling of products to another country

exporting

A(n) ______ is an agreement whereby someone with a proven idea for a business sells the rights to use the business model, to sell a product or service to others in a given territory

franchise agreement

_____ is buying products from another country

importing

When it comes to corporate social responsibility, some people feel that "before you can do good, you must do well". This reflects a firm's primary responsibility to its:

investors

Which item is considered to be a factor of production?

knowledge

studies have found a strong relationship between academic dishonesty and:

later dishonesty at work

The ____ is the most common form of business ownership

sole proprietorship

Which statement about the factors of production is the most accurate?

the 5 factors of production are land, labor, capital, entrepreneurship, and knowledge

The largest importing nation in the global market today is?

the United States

To many businesspeople, one of the major attractions of a sole proprietorship is:

the chance to be their own boss

Why does it make sense to trade with other nations?

A nation will produce what it can produce most efficiently and effectively and buy from other nations what they can produce most efficiently and effectively and efficiently

Which statement best summarizes the experience of US-based franchisors in foreign countries?

Both large and small franchises have found success in foreign countries by providing convenience and a predictable level of service and quality

What is an advantage of offshore outsourcing?

Companies can create efficiencies by hiring low-wage employees.

Compliance-based ethics codes typically:

rely on laws and regulations outside the firm for guidance.

What is the most popular type of business for franchising?

restaurants

The total amount of money that businesses take in by selling goods and services is called

revenue

What is the result of utilizing technology in business?

Technology makes business processes more productive

A business incurs a ___________ if its costs and expenses exceed its revenues.

loss

Following an ethics-based approach to decision making will normally lead to:

lower employee turnover

The theory of comparative advantage exists because?

no nation can produce all the products its people want and need

When U.S. firms choose to hire skilled and unskilled workers in other countries to produce goods and services, rather than producing them in the United States, we refer to this as?

offshore outsourcing

_______ is the amount a business earns after deducting what if spends for salaries and other expenses.

profit

Last year, Belter Manufacturing reported revenues of $44 million while its total expenses were $20 million. Based on this information, Belter reported: (profit or loss? How much?)

profits of $24 million

Which statement regarding ethical dilemmas is true?

they often force us to choose between equally unsatisfactory alternatives

One of the major disadvantages of a sole proprietorship is the:

unlimited liability the owner has for the debts of the firm

What term describes someone who reports illegal or unethical behavior?

whistleblower