intro 2 biz

A market economy includes which following characteristic?

Economic decision-making happens through markets

When a business makes decisions, which group outside of the business is affected in some way?

customers

Copyright grants the right to exclude others from using or marketing

forms of expression

The Federal Reserve uses a variety of monetary policy tools to achieve which of the following goal(s)?

full employment, price stability and sustainable economic growth

Both capital and natural resources can be used to produce other goods and services, but only capital ________.

has been produced

The Uniform Commercial Code provides that the warranty of merchantability and warranty of fitness are:

implied

When the price in some market is above its equilibrium price:

in the typical warehouse for that item, inventory is unintentionally rising.

When a business does not generate enough revenue to cover salaries, rent, and other expenses, it incurs a ________.

loss

Foreign Direct Investment is the ________ approach that a business can reach the global market.

most intensive

One of the ways the Federal Reserve System seeks to stabilize prices is by:

regulation of interest rates

Exports are an important source of what for many countries?

revenue

If you were given the task of totalling all the M2 money in circulation in the US, which of the following would you include in your calculations?

saving accounts

import quotas

set limits on the quantity or value of imports

When businesses collect demographic information on where people live, what they buy, and how they spend their time, they are responding to the ________.

social environment

All of GATT's agreements were absorbed by:

the WTO

Periods of increasing and decreasing real Gross Domestic Product (GDP) describes

the business cycle

Statutory law is

written and available online

If you were given the task of totaling all the M1 money in circulation in the US, which of the following would you include in your calculations?

Demand deposits and other checking accounts

When a seller describes a product, implying that the product will meet the description it is referred to:

Express warranty

The following condition describes the economic term "scarcity":

Global oil reserves are limited

· Which of the following are accurate statements about corruption in the global business environment?

In the United States companies must abide by the Foreign Corrupt Practices Act.

Which function is responsible for understanding customer needs and aligning products and services to those needs?

Marketing

Antitrust legislation concerns the review and approval of:

Mergers and acquisitions

A Trade Surplus is characterized by:

More goods exported than imported.

What is a reason someone might consider trying Bitcoin?

One would not have to pay high transaction costs associated with transferring funds through a bank.

Which of the following events can shift the level of demand (demand is the relationship between price and quantity demanded)?

Population grows in particular market area

Which statement accurately describes a trade deficit?

The U.S. has a trade surplus with Australia, however our net balance of trade is a deficit

What is the biggest advantage of borrowing money, such as a loan or a bond, instead of issuing stock in order to raise capital?

The current business owner retains complete ownership of the business

Rule of Law refers tov

The influence and authority of laws within a society

Part of the benefits of being a franchisee is that you have access to:

The knowledge, process, and trademarks of the franchisor

Absolute advantage describes

a condition where an entity can produce the same good using fewer resources.

Which function is responsible for creating financial reports that can be used to evaluate the financial performance of the business?

accounting

When economists talk about supply, they are referring to a relationship between the price in a market and the:

amount that producers collectively make available for sale.

A contract is:

an agreement that is enforceable by law

A large publically traded company will receive a major financial benefit from the sell of its stock ______.

at the initial public offering

Economies of scale and specialization are characteristics of:

comparative and absolute advantage

bartering is a common form of:

countertrade

What is an example of an external stakeholders in a business?

creditors

A macroeconomic example may include(s):

decrease in GDP

Trade tariffs and quotas are designed to protect:

domestic producers

Using their comparative and absolute advantages allows countries to:

enter global trading markets.

Real Gross Domestic Product (GDP) can be influenced by a business cycle. The phases of a business cycle, in order, are:

expansion, peak, contraction and trough.

a tort:

often is remedied through payment of monetary damages

In an economy such as ours, banks help us exchange goods and services for money or other financial assets. Because of this, they are considered a critical intermediary in what system?

payment

examples of compensatory damages include

payment for mental anguish

According to the Clayton Act companies must notify the government in advance to:

plan large merger or acquisitions

embargo

prohibits trade or commercial activity with another country.

One of the main responsibilities of the World Trade Organization is to:

provide a forum for negotiations, agreements and settling disputes among nations.

Licensing and franchise agreements are tools that businesses use to get their products and services into

the global markets

A microeconomic example may include

the price that a local automobile repair shop will charge for its services

In antitrust legislation, this act deals greatly with "monopolization"

the sherman act

tort law is different from criminal law in that:

tort lawsuits have a lower burden of proof

Which of the following has as its primary purpose promoting economic and social progress in developing countries:

the world bank