Midterm #3 Study Guide

A patent gives inventors exclusive rights to their inventions for ___ years.

20

_________ law is a written law.

Statutory

______ leadership is a leadership style that involves making managerial decisions without consulting others.

autocratic

The actions of a fellow franchisee will affect your franchise. This is known as the ____________ __________.

coattail effect or effects

A willful act that results in injury is called a(n):

intentional tort

A company that has socially responsible human resources man...

likely to perform better financially

Ethical problems such as influence peddling and bribery:

occur in many countries

By having a separate legal entity, a business is considered as a person.

true

Corporations are required by law to place the financial interest of their owners above competing interests and even the public good.

true

Owners of a sole proprietorship have full control of the business with minimal administration.

true

Sole Proprietorship is simple, quick and affordable to start.

true

Those managers considered as top management in an organization would include the

-Chief Executive Officer -Chief Financial Officer -Chief Operating Officer

__________-__________ ethics codes emphasize preventing unlawful behavior by increasing control and penalizing wrongdoers. __________-__________ ethics codes define an organization's guiding values, create an environment that supports ethically sound behavior, and stresses shared accountability.

-Compliance-based -Integrity-based

___________ behavior can add to the bottom line while __________ behavior can ruin companies financially.

-Ethical -unethical

__________ are long-term accomplishments an organization wishes to attain. __________ are short-term statements detailing how to achieve the organization's goals.

-Goals -Objectives

Which of the following is correct about an intentional tort?

-Intentional torts include acts that harm other persons. -The required intent for intentional torts is the desire to cause harm. -Intentional torts include acts that harm property.

Which of the following countries are members of the Central American Free Trade Agreement (CAFTA)?

-Nicaragua -Honduras -Costa Rica -Guatemala

To allow whistleblowers to come forward with information organizations should

-allow for complete anonymity -protect them from retaliation

Howard Schultz started Starbucks for which two reasons?

-because he liked the ambience of Italian coffee houses -because he enjoyed the sense of community of the Italian coffee bars

In 2019, online retail sales reached over $365 __________, or approximately ___________ percent of all retail sales.

-billion -12

Which of the following behaviors are illegal in the United States, but potentially put our companies at a disadvantage in overseas markets?

-bribery -influence peddling

All organizations require the following:

-capital -information management -planning

A person can legally protect their ideas by obtaining a(n)

-copyright -trademark -patent

The concern businesses have for the welfare of society, not just for their owners is:

-corporate social responsibility -based on a commitment to integrity and respect

The management function known as organizing

-creates an organization chart showing lines of responsibility and authority -places employees and resources where they will be effective in achieving the organization's goals -designs the structure of the organization

Among the hurdles small businesses must overcome in starting to operate globally are:

-difficulty finding financing -understanding cultural differences -bureaucratic paperwork

Which of the following is a possible remedy if one party fails to follow the terms of a contract?

-discharge of obligations -the party who violated the contract may be required to live up to the agreement if money damages would not be adequate. -payment of damages

Many brick and mortar franchisees are using ______ to expand their businesses online to lower costs and better meet the needs of their customers.

-e-commerce -websites -technology

Leaders in traditional organizations who direct employees are likely to:

-explain routines -provide performance feedback -give specific assignments

Which are considered disadvantages of incorporating?

-extensive paperwork -initial cost -double taxation

Key responsibilities of legislators in a free market system is to pass laws that promote __________ business practices and __________.

-fair -competition

The tasks of knowledge managers include

-finding the right information -keeping information in a readily accessible place -making information known to everyone in the organization

Managing a small business became relatively easy with the advent of inexpensive personal computers. Inexpensive computer systems and off-the-shelf or even free, open-source software make it easy for the small business manager to:

-follow the daily sales and expenses -manage customer records

Students attending colleges and universities abroad often notice products that are unavailable in their home countries and

-have to develop financing and work long hours to import the products to their home countries -develop start up financing to become importers of that product while still students -work with native producers to import the products to their home countries

LLCs do have to submit articles of organization and an operating agreement, but do not have to:

-hold annual meetings -file written resolutions -keep minutes

Ending a partnership can be difficult because of problems deciding:

-how to distribute assets -the worth of a retiring partner's share -when a partner can retire

Written ethics codes can be categorized as

-integrity-based -compliance-based

An S corporation has the liability protections of a corporation but is taxed:

-like a partnership or sole proprietorship

In what way will globalization impact U.S. businesses?

-loss of jobs in manufacturing -concerns for product safety -increased competition

Entrepreneurs must recognize that they need competent and motivated employees. Since they can't compete with larger firms' pay and benefits, they need to:

-maintain good employee relations -provide more challenging opportunities to learn -be respectful of employees' opinions

In organizations, __________ strive to produce order and stability, whereas __________ embrace and manage change.

-managers -leaders

The control function of management (select all that apply):

-measures performance relative to the planned objectives and standards -takes corrective action when necessary -rewards people for work well done

A mission statement outlines the organization's fundamental purposes. It should address which of the following?

-nature of the product or service -organization's self concept -customer needs

Some common causes of small business failure include:

-no experience in that business or industry -starting with too little capital -underpricing or overpricing goods or services

Advantages of starting an online franchise are:

-no upfront fee may be required -franchisees pay only a set monthly fee -online franchisees can compete in world markets

A small business is defined as:

-one that is not dominant in its field -one that meets certain standards of size in terms of employees or receipts -one that is independently owned and operated

People can legally protect their ideas through ___________ (gives inventors exclusive rights to their inventions), __________ (protects a creator's rights to materials such as books), and ___________ (protects name, symbol, or design).

-patents -copyrights -trademarks

Compliance-based ethics codes focus on:

-penalizing wrong-doers -increasing control

What are two elements of an integrity-based ethics code?

-promotes shared accountability -defines guiding values

Companies that try to act in a socially responsible way are likely to focus on such activities as

-providing safety equipment and training for their workers -using recyclable packaging -increasing the diversity of their workforce

Many corporate executives reported that they use social media to communicate their socially responsible activities to customers because it:

-reaches broad and diverse groups -allows them to connect directly with customers -allows them to reach specific groups more directly

Home-based franchises have many advantages, such as:

-relief from the stress of commuting -low overhead expenses

Functions included in staffing an organization are

-retaining -hiring -recruiting

Threats to global trade include

-rogue states -terrorism -income inequality

Top management sets the vision for the organization and may work with others to establish a mission statement that outlines its

-self-concept -product or service offering

An organization's vision gives it a:

-sense of purpose -set of values

Learning from others is a useful way to avoid pitfalls when starting a small business. Some things you may be told would include:

-starting with enough money -that finding and retaining good workers is hard -to hire a good lawyer and accountant

Which of the following are part of a situation analysis (SWOT)?

-strengths -weaknesses -opportunities

An entrepreneurial __________ is a group of experienced people from different areas of business who join together to form a __________ team with the skills needed to develop, make, and market a new product.

-team -managerial or management

Which of the following are true regarding the process of forming a corporation.

-the bylaws of the corporation describe how the firm is to be operated -the articles of incorporation must be filed in the state in which the company will be incorporated

A business plan is a detailed written statement that describes:

-the target market -the resources and qualifications of its owner(s)

Benefits of exporting goods such as snowplows and sand to the Middle East include:

-there is likely to be less competition -the product may be used differently than in the U.S.

What are two characteristics of businesses that practice corporate social responsibility?

-they care about being fair and honest with their stakeholders -they care for the welfare of society as a whole

Franchises are attractive to minority populations because:

-they provide personal ownership of a business -some offer financial support to aspiring business owners

An inexpensive marketing research study may help you determine which of the following?

-what is an effective strategy for reaching your target market -whom to select as your target market -where to locate

Which of following are true about the advantages and disadvantages of being a franchise owner:

-while the upfront costs of a franchise may be steep, a franchise has a better chance of succeeding than starting a business from scratch -having a nationally recognized name for your business in a franchise can help with marketing and awareness

Which of the following are good ways to learn how to run your own business?

-work for a successful entrepreneur -run a small business during your off hours -talk to other business owners

An agreement that gives a business the right to use a business's name and sell a product or service in a given area is a(n):

franchise

The part of the management function of organizing that includes hiring, motivating, and retaining the best people is __________.

staffing

Balance of __________ is the total value of a nations exports compared to its imports measured over a particular period.

trade

The use of government regulations to limit the import of goods and services is called:

trade protectionism

There are a few hurdles that prevent many small businesses from engaging in the global market. Which of the following are examples of such problems?

-would-be exporters do not know how to get started -financing is often difficult to find

Rank the order in which members of a corporation are chosen in order to separate ownership from management. Start at the top of the managerial hierarchy.

1.owners/stockholders elect board of directorsBoard of 2.directors hire officers of the corporation 3.Officers hire managers of the corporation 4.Managers hire employees

A patent is protected for ___________ years.

20 or twenty

Kendra is considering opening a new business. while writing the business plan, she is answering the following questions: What external success factors effect the industry? How does her business measure up to competition? What can my bakery do to survive and prosper during a recession? What was Kendra performing?

A SWOT analysis

What is a copyright?

A document that protects a creator's rights to materials such as books, articles, photos, paintings, and cartoons

What is a warranty?

A promise made by a seller about the quality or performance of goods for sale

__________ leadership is a leadership style that involves making managerial decisions without consulting others.

Autocratic or authoritarian

The acronym for the U.S. free trade agreement with Costa Rica, the Dominican Republic, El Salvador, Guatemala, Nicaragua, and Honduras is __________.

CAFTA

___________ __________ __________ is a business's concern for the welfare of society.

Corporate social responsibility

______ refers to accepting the risk of starting and running a business.

Entrepreneurship

What is deregulation?

Government withdrawal of certain laws and regulations that seem to hinder competition

What is product liability?

Holds businesses liable for harm that results from the production, design, or inadequate warnings of products they market

__________ are creative people who work as entrepreneurs within corporations.

Intrapreneur

A company in another country that is owned by a U.S. company would be an example of a:

foreign subsidiary

Which of the following are true regarding ethical behavior?

It does not subtract from the bottom line; it adds to it.

______ ______ is finding the right information, keeping information in a readily accessible place, and making the information known to everyone in the firm.

Knowledge management

__________ is a form of partnerships in which some partners may be subjected to limited liability.

Limited partnership

______ is the process used to accomplish organizational goals through planning, organizing, leading, and controlling people and other organizational resources.

Management

__________ is the process used to accomplish organizational goals through planning, organizing, leading, and controlling people and other organizational resources.

Management or managing

Distribution in many developing countries is difficult because of the lack of reliable transportation infrastructure due to natural disasters. This is an example of what type of forces affecting global trade?

Physical and environmental forces

__________ is a management function that includes anticipating trends and determining the best strategies and tactics to achieve organizational goals and objectives.

Planning

______ want to maintain a balanced life style while doing the kind of work they want to do.

Micropreneurs

___________ make(s) hiring decisions on supervisory positions.

Middle Management

__________ ___________ are forms of commercial paper that are transferable among businesses and individuals and represent a promise to pay a specified amount.

Negotiable instruments

A widely debated issue of the early 1990s was the ratification of the __ __ __ __ Agreement, which created a free-trade area among the United States, Mexico, and Canada.

North American Free Trade

What agreement created a free-trade area among the United States, Canada, and Mexico?

North American Free Trade Agreement (NAFTA)

A unique government creation that looks like a corporation but is taxed like a sole proprietorship or partnership is called a(n) __________ corporation.

S

Which website would you file with to start a business?

Secretary of State

Congress passed the __________ __________ Act in 1890 to stop large organizations from stifling competition.

Sherman Antitrust

The act that makes it illegal to create a monopoly or stifle competition is the:

Sherman Antitrust Act of 1890

__________ are the most common way federal, state, and local governments raise money.

Taxes

Mediating trade disputes among nations and overseeing cross-border trade issues and global business practices are functions of:

The World Trade Organization (WTO)

What was the purpose of the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005?

To reduce the total number of bankruptcy filings and to eliminate the perceived ease of filing.

Examples of how ethical standards differ among countries and cultures include

U.S. executives who complain that their businesses are at a competitive disadvantage when bidding against non-U.S. companies, since foreign companies don't abide by bribery laws

A comprehensive commercial law that covers sales laws and other commercial laws is called the:

Uniform Commercial Code

__________ __________ are individuals or companies that invest in new businesses in exchange for partial ownership of those businesses.

Venture capitalists

______ is a broad explanation of why the organization exists and where it is trying to go.

Vision

An independent entity whose purpose it is to oversee cross-border trade issues and global business practices is called the __________ _________ _________.

World Trade Organization

A regional group of countries with a common external tariff, no internal tariffs, and coordinated laws to facilitate exchange among members is the definition of:

a common market

What occurs in contract manufacturing?

a foreign company produces private-label goods to which a domestic company then attaches its own brand name or trademark

All consumers with unsatisfied wants and needs who have both resources and the willingness to buy are:

a market

A systematic evaluation of an organization's progress toward implementing socially responsible and responsive programs is called:

a social audit

Job seekers should recognize that small businesses in the U.S.

account for about 1/3 of the total U.S. exports

To keep track of daily sales, expenses, profits, inventory control, customer records, and payroll a small business needs a good

accounting system

One company's purchase of the property and obligations of another is called a(n):

acquisition

One company's purchase of the property and obligations of another company is a(n) __________.

acquisition or buyout

What are federal or state institutions and other government organizations created by Congress or state legislatures with delegated power to create rules and regulations within their mandated area of authority?

administrative agencies

A partnership __________ can spell out the requirements of terminating a partnership.

agreement

A partnership ___________ can spell out the requirements of terminating a partnership.

agreement

Understanding where to locate your business, who your target market is, and how to reach them, can be accomplished through

an inexpensive market research study

A(n) __________ is hired to assist the owner of a small business while gaining experience.

apprentice or trainee

David opened his own bicycle shop 30 years ago, and although he enjoyed his work, he needed more free time. When Josie requested to work as an apprentice, David was very willing. Before long Josie was able to run the store without any help. This is an example of how:

apprenticeships can benefit both the business owner and the apprentice

A corporation is formally formed with:

articles of incorporation and bylaws

Jim claims that Tom breached a contract. What can a judge do?

award damages, cancel a contract, or direct a party to do or not to do an act

The total value of a nation's exports compared to its imports measured over a particular period is the definition of:

balance of trade

The legal process by which a person, business, or government entity, unable to meet financial obligations, is relieved of those debts by a court is called ___________.

bankruptcy

What is the legal process by which a person, business, or government entity, unable to meet financial obligations, is relieved of those debts by a court?

bankruptcy

Many people do not like working for someone, so being your own __________ is an advantage of sole proprietorships.

boss, employer, or manager

Top officials in countries like Japan, South Korea, and China have faced legal charges of influence peddling ___________ and which serve as examples of the unethical behavior that U.S. companies face in overseas markets.

bribery

Many businesses believe that they should have an influential and important role in:

building communities

Which of these are centers that offer new businesses in the critical stage of early development low-cost offices with basic services such as accounting, legal advice, and secretarial help?

business incubators

(n) ______ is a detailed written statement that describes the nature of the business, the target market, the advantages the business will have over competition, and the resources and qualifications of the owner(s).

business plan

Mark recently started a small consulting firm. He is drafting a detailed written statement that describes the nature of the business, the target market, the advantages the business will have over competition, and the resources and qualifications of the owner(s). Mark is writing a(n) __________ __________.

business plan

A market consists of consumers with unsatisfied wants and needs who have both resources and the willingness to:

buy

In addition to the articles of incorporation, a corporation has __________, which describe how the firm is to be operated from both legal and managerial points of view.

bylaws

Small and medium-sized firms are often better prepared to leap into global markets because they:

can react quickly to opportunities

Negotiable instruments are forms of ___________ __________ that are transferable among businesses and individuals and represent a promise to pay a specified amount.

commercial paper

A(n) __________ ___________, or trading bloc, is a regional group of countries with a common external tariff, no internal tariffs, and coordinated laws to facilitate exchange among members.

common market

The guiding principle of free economic exchange is _________ __________ theory.

comparative advantage

The guiding principle of free economic exchange is:

comparative advantage theory

A key responsibility of legislators is to pass laws that ensure a __________ free-market system.

competitive

Which set of ethics codes emphasizes preventing unlawful behavior by increasing control and penalizing wrongdoers?

compliance-based ethics codes

Corporate social responsibility is based on a

concern for the welfare of society

A social movement that seeks to increase and strengthen the rights and powers of buyers in relation to sellers is called ___________.

consumerism

A legally enforceable agreement between two or more parties is called a(n):

contract

A(n) __________ is a legally enforceable agreement between two or more parties.

contract

A foreign country's production of private-label goods to which a domestic company then attaches its brand name or trade mark is called:

contract manufacturing

When producers, consumers, or workers with similar needs pool their resources for mutual gain, they start a(n):

cooperative

A(n) __________ protects a creator's rights to materials such as books, articles, photos, paintings, and cartoons.

copyright

The dimension of social responsibility known as ___________ social responsibility includes everything from hiring minority workers to making safe products, minimizing pollution, using energy wisely, and providing a safe work environment.

corporate

The statement by Patagonia that "A love of wild and beautiful places demands participation in the fight to save them, and to help reverse the steep decline in the overall environmental health of our planet" is an example of:

corporate policy

A state-chartered legal entity with authority to act and have liability separate from its owners is a:

corporation

Why do corporations choose to incorporate in Delaware?

corporations do not have to pay taxes for activities conducted outside of the state

The judiciary is the branch of government chosen to oversee the legal system through a system of __________.

courts

More personal __________ service and the ability to respond quickly is an advantage for small businesses.

customer

Global trade offers opportunities because there are so many potential _________.

customers, markets, consumers, or buyers

The Smith's new roof, installed by John's company, leaked in several places during the next rain. A ceiling and wall had to be replaced and they had to pay a different company to tear off the roof. They were now suing for __________ to pay the new roofer and for the repairs to the interior.

damages

The definition of ______ states: choosing among two or more alternatives

decision making

Choosing between buying more inventory for her bike shop or hiring another employee requires Gail to make a(n) __________.

decision or choice

When the government withdraws certain laws and regulations that seem to hinder competition, it is called:

deregulation

Export Assistance Centers work with small and medium-sized businesses who wish to get involved in

direct exporting.

A major disadvantage of the corporate form deals with the tax situation called __________ taxation.

double or dual

A corporation is a legal __________ with authority to act and have liability separate from its owners.

entity

Local community college classes are a good place to start to learn about business and ___________.

entrepenuership

A(n) __________ assumes risk when deciding to start and run a business.

entrepreneur

Being self-directed, self-nurturing, action-oriented, and tolerant of uncertainty are all considered characteristics of a(n):

entrepreneur

Opportunity, profit, independence, and challenge are some reasons people are willing to take the risks of being a(n) __________.

entrepreneur

A(n) ______ team is a group of experienced people from different areas of business who join together to form a managerial team with the skills needed to develop, make, and market a new product.

entrepreneurial

Individuals who possess such attributes as being self-directed, action-oriented, and tolerant of uncertainty can make excellent __________ like Bill Gates and Steve Jobs.

entrepreneurs

Many _________ use their time, money, and energy to turn their passions into sustainable businesses. They are comfortable being their own bosses and are not afraid of failure.

entrepreneurs or micropreneurs

People learn their organizational _________ from observing the standards, values, and behaviors of leaders and other employees.

ethics, standards, or values

U.S. businesspeople are often accused of , an attitude that your own culture is superior to other cultures.

ethnocentricity or ethnocentrism

The __________ __________ is the value of one nation's currency relative to the currencies of other countries.

exchange rate

The value of one nation's currency relative to currencies of other countries is the:

exchange rate

Becoming an apprentice, talking to other business owners, and working for a successful entrepreneur are all examples of effective ways to obtain __________ for running your own business.

experience, information, knowledge, skills, training, or expertise

Goods or services from the U.S. can be __________ to many countries for different uses, such as snowplows to clear sand from driveways in Saudi Arabia.

exported, exports, or marketed

______ customers include dealers, who buy products to sell to others, and ultimate customers (or end users), who buy products for their own personal use.

external

Ben & Jerry's focus on the community was their downfall.

false

True or false: Bribery is a business practice unanimously held as an ethical violation across the globe.

false

True or false: Consumerism is a social movement that seeks to increase and strengthen the rights of buyers in relation to sellers. True false question.

false

True or false: Devaluation is the value of one nation's currency relative to the currencies of other countries.

false

True or false: If producers, consumers, or workers with similar needs pool their resources for mutual gain, they have created a franchise.

false

True or false: Licensing is a contractual agreement whereby someone with a good idea for a business sells others the rights to use the business name to sell a product or service in a given territory in a specified manner.

false

True or false: Partnerships are less likely to survive than sole proprietorships.

false

True or false: Social responsibility and ethical problems exist primarily in the U.S. because we have more laws about those problems.

false

The control process provides __________ that lets managers and workers adjust to deviations from plans and changes in the environment.

feedback

Planning, adequate , keeping good business records, knowing your customers, and managing employees are what it takes to start and run a small business.

financing, finances, capital, funding, or finance

Ed has decided to purchase and follow a business format by becoming a franchisee. The ________ ________ he will sign gives him the right to use the business name and sell the products of the firm.

franchise or franchising agreement or contract

Franchisors often use technology to meet the needs of both their __________ customers and their because technology makes communication faster and more widespread.

franchisees, employees, suppliers, investors, stakeholders, or franchisee

The definition of Blank______ states: a contractual agreement whereby someone with a good idea for a business sells others the rights to use the business name and sell a product or service in a given territory in a specified manner.

franchising

The definition of ______ ______ states: the movement of goods and services among nations without economic or political barriers.

free trade

Mark, Cal and Aidan have decided to form a business where all owners will share in operating the business and in assuming liability for the business debts. They are most likely forming a(n) __________ partnership.

general

A partnership where all owners share in operating the business and in assuming unlimited liability for the business's debts is a:

general partnership

Gaining financing, knowing how to get started in exporting, and navigating bureaucratic paperwork are major hurdles to consider when getting started in __________ business.

global or international

_Although the United States has a market of over 300 million people, there are over 7.7 billion potential customers in the __________ market.

global, world, or international

David's manager told him the company wants to achieve a 50 percent market share within 5 years. David's manager was relaying a company:

goal

The definition of _____ states: the broad, long-term accomplishments an organization wishes to attain.

goals

The definition of _________ states: the broad, long-term accomplishments an organization wishes to attain.

goals

The mortgage bankers and real estate companies who helped create the financial crisis of 2008 were driven by __________.

greed

What motivated the unethical behavior of real estate agents, lenders, and borrowers that led to the financial crisis of 2008?

greed

Relief from the stress of commuting, extra time for family activities, and low overhead expenses are all advantages of __________-_________ franchises.

home-based

The expansion and development of the Internet has sprouted a world of small web-based businesses. This, among other reasons, may explain why online sales are rapidly:

increasing

According to a recent study, offering low-cost offices with basic services to new businesses in the early stages of development results in an 87% success rate of __________ graduates.

incubator

Corporate __________ is the dimension of social responsibility that refers to a position a firm takes or statement it makes on social and political issues.

policy

Responsible business behavior depends on the responsible behavior of each ______ in the business world.

individual

Which set of ethics codes defines an organization's guiding values, creates an environment that supports ethically sound behavior, and stresses shared accountability?

integrity-based ethics codes

There are more than 7 billion potential customers in 195 countries around the globe. Each country possesses unique materials and skills, and as technology advances, communication barriers are being brought down. Therefore:

it is important to conduct business globally

The definition of __ __ states: a partnership in which two or more companies, often from different countries, join to undertake a major project.

joint venture

The definition of __________ __________ states: a partnership in which two or more companies, often from different countries, join to undertake a major project.

joint venture

What is the branch of government chosen to oversee the legal system through the court system?

judiciary

LLC's are considered to have operational flexibility because while they must submit articles of organization, they are not required to:

keep minutes or hold annual meetings

Legal and regulatory forces can create problems in the global market because:

laws and regulations vary greatly between countries

______ is creating a vision for others to follow, establishing corporate values and ethics, and transforming the way an organization does business in order to improve its effectiveness and efficiency.

leadership

If you start and manage a landscaping business on your own, you have likely started a:

sole proprietorship

Problems created by differences between countries' antitrust rules, labor laws, patents, copyrights, taxes, product liability, and child labor laws relate to which forces in the global business environment?

legal and regulatory forces

Administrative agencies are federal or state institutions and other government organizations that are created by __________.

legislatures, legislation, or Congress

Of all the strategies for reaching global markets, _________ offers the least amount of commitment, control, risk, and profit potential.

licensing

What entry strategy gives a firm the right to manufacture another firm's product or use its trademark for a royalty fee?

licensing

What is the global strategy in which a firm allows a foreign company to produce its product in exchange for a fee?

licensing

When it comes to getting involved in international business what are the three strategies that require the least amount of commitment and effort?

licensing, exporting, franchising

Employees who get things done using an organization's financial resources, equipment, and information are

managers

Employees who get things done using an organization's financial resources, information, equipment, and workers are:

managers

The best way to define a(n) __________ is all consumers with unsatisfied wants and needs who have both resources and the willingness to buy.

market

Franchises are expanding internationally to access additional ___________ that have new customers and to increase their profit potential.

markets

The result of two firms joining to form one is called a(n):

merger

When two firms join together to form one new company, it is called a(n) __________.

merger

Entrepreneurs start a business with the desire to grow the business and generate wealth while __________ start a business that will stay small, allowing them to have a balanced lifestyle and the ability to do the kind of work they want to do.

micropenuers

About 30 percent of franchises are owned by African Americans, Latinos, Asians, and Native Americans. Franchisors are becoming more focused on recruiting ___________ franchisees.

minority or diverse

A ______ ______ is an outline of the fundamental purpose and basic philosophy of an organization.

mission statement

The __________ __________ should address the organization's self-concept, its philosophy, long-term survival needs, customer needs, social responsibility, and the nature of the product or service.

mission statement

Economist Milton Friedman believed that a business's only social responsibility was to make __________ for its owners and that anything else was socialism.

money, profits, or profit

The definition of ______ states: specific, short-term statements detailing how to achieve the organization's goals.

objectives

The definition of __________ states: specific, short-term statements detailing how to achieve the organization's goals.

objectives

Two advantages small firms have over large firms include more personal customer service and the ability to respond quickly to:

opportunities

The __________ function of management designs the structures and systems in which everyone works together to achieve the organization's goals and objectives.

organizing

The function of management that designs the structures and systems in which everyone works together to achieve the organization's goals and objectives is:

organizing

U.S. workers will see increased competition from other countries in the future due to:

outsourcing to foreign countries

A key advantage of a home-based franchise is low __________ costs, which can be ongoing. These are the costs associated with rent, utilities, and other fixed costs.

overhead or operating

As a small business grows, it is difficult to __________ every detail, so entrepreneurs must hire, train and motivate good employees.

oversee, monitor, track, or manage

Which of the following differentiates a partnership from a corporation?

owners of partnerships have more control over their businesses than corporations do

An LLC submits a written operating agreement, similar to a(n) __________ agreement, describing how the company is to be operated.

partnership

A document that gives inventors exclusive rights to their inventions for 20 years is called a(n):

patent

What are the three legal protections individuals can use to protect their ideas?

patents, copyrights, and trademarks

Technical skills are the ability to

perform tasks such as filing tax forms or assembling a keyboard

Unlimited liability as it relates to sole proprietorships is the risk of loss of __________ assets beyond the assets of the business.

personal

Primitive transportation and storage systems that make local distribution ineffective if not impossible, the lack of clean water, and the lack of effective sewer systems are all examples of what type of barrier?

physical and environmental

A SWOT Analysis is a(n) Blank______ tool used to analyze an organization's strengths, weaknesses, opportunities, and threats.

planning

SWOT Analysis is a __________ tool used to analyze an organization's strengths, weaknesses, opportunities, and threats.

planning

The management function that anticipates trends, then determines strategies and tactics to achieve them is __________

planning

The part of tort law that holds businesses liable for harm that results from the production, design, or use of products they market is called:

product liability

Trade __________ is the use of government regulations to limit the import of goods and services such as import tariffs and quotas.

protectionism

The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 was passed to _________ the total number of bankruptcy filings and to decrease the perceived ease of filing.

reduce, lower, or decrease

Studies have shown that what most influences a company's effectiveness and financial performance is:

responsible management of human resources

Stockholders are __________ from the managers and employees of the firm because they are not actively involved in the operations of the firm.

separate, independent, or separated

If the statement "ethics is caught more than it is taught" is true, then management facilitates this by:

setting a good example

Directive leaders are often needed in organizations with workers who lack __________ and __________ needed to do the job.

skills and experience

Job seekers who want to work in global business should recognize that __________ businesses account for about 1/3 of the U.S. exports.

small

__________ businesses are businesses that are independently owned and operated, are not dominant in their field of operation, and meet certain standards of size in terms of employees or annual receipts.

small

Export Assistance Centers provide hands-on exporting assistance and trade-finance support for __________ and __________-sized businesses.

small and medium

The firms often better prepared to leap into global markets and react quickly to opportunities are:

small and medium businesses

A business that is independently owned and operated, is not dominant in its field of operation, and meets certain standards of size in terms of employees or annual receipts is a(n):

small business

Managerial incompetence and inadequate financial planning are two common reasons for __________-__________ failure.

small-business

A systematic evaluation of a company's progress toward implementing socially responsible programs is known as a(n) __________ _________.

social audit

Many companies believe they have a role in promoting __________ __________, so they donate to local food banks, promote literacy, and provide computer lessons for inner city children.

social justice

A communication tool many companies use to inform diverse groups of their social responsibility efforts at little cost is

social media

U.S. economist Milton Friedman believed that the only social responsibility of the corporation was to its stockholders. He also believed anything other than that would be considered:

socialism

Who sets the standards of right and wrong as defined by ethics?

society

When it comes to ethics, __________ sets the standards for moral behavior, that is behavior defined as right or wrong.

society or culture

The hurdles to success are higher and more complex in global markets than in domestic markets. Such hurdles include __________ forces, economic and financial forces, (political) legal and regulatory forces, and physical and environmental forces.

sociocultural

Which of the following are considered to be a major hurdle to successful global trade?

sociocultural differences

A business that is owned and managed by one person is a(n) __________ __________.

sole proprietorship

The type of planning done mostly by top management is ______ planning.

strategic

A company situated in a foreign country that is owned by a parent company located in a different country, is a foreign ___________.

subsidiary

An advantage of partnerships is a longer __________ rate than sole proprietorships, because they become more disciplined and the business's life is based on all the partners.

survival

A way for the federal, state, and local governments to raise money is to impose:

taxes

The definition of ______ ______ states: skills that involve the ability to perform tasks in a specific discipline or department.

technical skills

The definition of __________ __________ states: skills that involve the ability to perform tasks in a specific discipline or department.

technical skills

Because of the poor publicity at a fellow franchise location, you notice that sales at your location have decreased. The impact of the poor publicity on your company is referred to as

the coattail effect

Corporate social responsibility is a business's concern for:

the welfare of society

Many franchises are expanding internationally because:

there are large new markets available

One of the most notable advantages of an online franchise is

there is no brick-and-mortar real estate cost.

Why are corporations subjected to strict government regulations?

they are separate legal entities which means no single individual is legally responsible for their misbehaviors

Which of the following is NOT correct about common stockholders?

they have first claim on income

What are some key responsibilities of legislators to maintain the free-market system?

to pass laws that ensure a competitive atmosphere and promote fair business practices

Why did Ben & Jerry go public?

to raise capital in order to expand

What is the purpose of the Uniform Commercial Code (UCC)?

to standardize commercial law and facilitate commercial transactions

The definition of ______ ______ states: highest level of management, consisting of the president and other key company executives who develop strategic plans.

top management

Strategic planning is done by __________ level management.

top or upper

The death of a partner, voluntary withdrawal from the partnership, and a preplanned agreement are all characteristics limiting the life of a partnership.

true

True or false: A patent is protected for 20 years.

true

True or false: Individuals have social responsibilities regarding their ethical behavior in the business world.

true

True or false: Most entrepreneurs do not get their ideas from a flash of inspiration; they come more from their passions or looking at problems.

true

True or false: The main advantage of a sole proprietorship is ease of start up.

true

True or false: The principles of management are similar for a small neighborhood business and a giant global firm.

true

While your are still your own boss as a franchise owner, your territory or selling boundaries may be regulated by the franchisor.

true

Whistleblowers are often concerned about retaliation.

true

Daniel wanted to start his own small business. After spending his own money on marketing research, Daniel asked his friend Chase to be his accountant. They spent a few months writing a business plan, which then they presented to a bank. Daniel:

understands the steps needed to start a small business

If your company's debts or damages are solely your responsibility you could be experiencing the disadvantage associated with owning a sole proprietorship called __________ _________.

unlimited liability

In a sole proprietorship, any debts or damages incurred by the business are your personal debts and you must pay them. This disadvantage is known as: Multiple choice question.

unlimited liability

Phil invests in new businesses in exchange for partial ownership in those businesses. Phil is a(n) __________ ___________.

venture capitalist

A __________ gives an organization a sense of purpose and a set of values that unite workers.

vision

A company's __________ is a broad explanation of why the organization exists and where it is trying to go.

vision

A guarantee that the product sold will be acceptable for the purpose for which the buyer intends to use it is called a

warranty

An employee who reported her boss to the SEC for insider trading would be considered a(n) __________ protected by law.

whistleblower

Insiders, such as employees, who report concerns about a company's accounting or auditing practices are called:

whistleblowers

After working for a large auto manufacturing company for over 20 years, Silvia decided to start her own auto accessory store. While facing new challenges every day, Silvia enjoys being free to manage her company as she desires. This example illustrates:

why people take the risks of entrepreneurship

Free trade is the movement of goods and services among nations:

without political or economic barriers

Statutory law is also referred to as:

written law

U.S. business people are often accused of ethnocentricity which is a belief that:

your own culture is superior to other cultures