Introduction To Business

Which of the following countries exemplifies the concept of opportunity cost?

An Asian country that increases its production of sugar by decreasing its production of cocoa.

Which of the following countries has a trade surplus?

An Asian country whose total value of exports exceeds its total value of imports.

Which of the following statements is true when a person makes a career choice based on what he or she loves doing?

Chances of personal success are boosted.

In the context of a business cycle, which of the following statements is true of the period of economic contraction?

Consumers shift their buying patterns to more basic products.

A firm that expands through foreign franchising is called a franchisee.

False

Stakeholders refer to groups of people who have a malicious intent toward an organization and who often resort to harmful actions.

False

In the context of making a career choice, following one's passion guarantees a fat paycheck.

False.

____ is an international economic and political movement designed to help goods and services flow more conveniently across international boundaries.

Free trade

Which of the following was a result of the bold steps taken by the General Agreement on Tariffs and Trade (GATT) to reduce trade restrictions worldwide?

Goods moved more freely than ever across international boundaries.

Which of the following is an example of a nonprofit organization?

Hollorg, a community museum that is funded by a trust and is free for public use.

The basic mission of the ____ is to promote global economic cooperation and stable growth.

International Monetary Fund

In the context of the technological environment, which of the following statements is true of business technology?

It includes any tools that companies can use to become more efficient and effective.

In a business, which of the following statements best describes profit?

It is the money that a business earns in sales, minus expenses.

In the context of a business environment, which of the following is a key element of the U.S economic environment?

Legislation that supports enforceable contracts.

Lewis Gretsz, the owner of a small railroad company in the 1860's, started gaining more influence and money as his business started to flourish to a point where he began controlling the entire northern half of railroad services. He followed a ruthless and cunning business strategy that involved exploiting workers and decimating the environment. In the context of the history of American business, Lewis Gretsz most likely belonged to the_

Production era

Chargon Flasks, a restaurant specializing in Asian cuisine, focuses solely on customer satisfaction. It allows partons to customize the quantity of their meals and only charges them half the price if their meal is unsatisfactory. The restaurant also has a voluntary service charge policy. In this context, which dimension of the business environment is affected the most?

The competitive environment

Which of the following is a key dimension of the business environment?

The economic environment

Which of the following statements is true of successful firms?

They deliver unsurpassed value to their customers.

In the context of the competitive environment, which of the statements is true of bleeding-edge firms?

They launch products that fail because they are too far ahead of the market.

Which of the following is true of millenials?

They shaped the internet.

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

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

Balance of trade incorporates trade with all foreign nations.

True

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

True

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

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

True

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

True

In the context of factors of production, which of the following is a natural resource?

Wind

Crayon, a well-established beauty products company, partnered with the Lenora Birdstone Foundation, a nonprofit organization, to raise awareness about breast cancer and collect funds for setting up a cancer unit at a local hospital. The company accumulated a sum of $5 million by selling organic creams to more than 2,000 people. In this scenario, Crayon was most likely involved in ___.

a cause-related marketing

Western Transit Bank has 150 automated teller machines (ATMs) across the country. Customers can use these machines to withdraw money, deposit money in their bank accounts. These machines enable Western Transit Bank to carry out some of its operations smoothly. In the given scenario, the ATMs of Western Transit Bank can be classified as ____.

capital

In the context of factors of production that businesses and nonprofits rely on,____ cannot be considered a natural resource.

cereal crops

Russia and China are both rich in natural resources and human resources, and both countries have a solid level of capital. Yet, neither country is wealthy. The missing ingredient seems to be____.

entrepreneurship

During the ___, the government of the United States stepped into the business realm to pass laws to regulate business and protect consumers and workers.

entrepreneurship era

Socially responsible firms support consumer choice by:

following laws that prevent anticompetitive behavior such as collusion.

Anoush used to work for an investment firm. Although she liked her job, she had resign because it took her a lot of time to commute to work. After resigning, she searched for a job, and within a month, she found a better job that was closer to her home. In the given scenario, the duration of Anoush's unemployment exemplifies ____.

frictional unemployment

In the context of the legal and ethical dimensions of business conduct, rewarding integrity is an example of ____.

legal and ethical behavior

Pride of Peers is a bakery chain that specializes in preparing homemade confectionaries. The company donates most of its earnings to rehabilitation centers for war victims and keeps just enough to buy raw materials. The primary goal of the company is to contribute to the rehabilitation for war victims. In this scenario, Pride of Peers would most likely to be classified as a ____.

nonprofit organization

Clark and Nestor start a catering business together. They sign a legal contract that states that the business is owned by them. The agreement also states that they will have an equal share in the profits of the business and will be equally liable for any losses incurred by the business. This scenario exemplifies ____.

partnership

Trade restrictions were created to:

protect domestic industry.

In a business cycle, the ___ is the transition period between contraction and expansion.

recovery

Monclaire, a chain of luxury hotels, uses social media for promotional purposes. It maintains a dedicated interactive Web page where customers write detailed reviews and discuss their experiences. In the context of the history of American business, Monclaire most likely belongs to the ___.

relationship era

Universal ethical standards can solve the problem of too many people viewing ethics as ____.

relative

In the context of the competitive environment of a business, the best measure of value is the:

size of the gap between product benefits and price.

The quality and quantity of goods and services available to a population is referred to as the ____.

standard of living

In the context of international trade restrictions, ____ are taxes levied against imports.

tariffs

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.

trade deficit

Yanmei, an employee at a news agency, learns that the reason her colleague was asked not to pursue a news story further was because the editor of the newspaper was bribed by the concerned party to suppress the matter. Yanmei reveals this information to the chief editor and her colleagues and also reports it to the media. In this scenario, Yanmei is a ____.

whistle-blower