1201

Due to the forces of competition, providing products and services that meet the needs of customers is essential for a business to survive in a(n) _________ economy

capitalistic

A (an) ________________ arises when a businessperson takes advantage of a situation for his or her own personal interest rather than for the employer's interest.

conflict of interest

The major forces in consumerism are individual consumer advocates and organizations, consumer education programs, and

consumer laws

There are many reasons for imposing trade restrictions, however ___________ is not one of them.

decreasing job availability within a nation

The purpose of the Environmental Protection Agency (EPA), a federal agency, is to ______________ the laws designed to protect the environment.

enforce

Recent court cases involving ____________ have helped to make business ethics a matter of public concern.

ethical behavior

According to the authors, franchises may become unsuccessful because the franchisor

expanded too rapidly

Licensing is perhaps the easiest method of entering into international trade. Another method of entering international trade, which can be relatively low risk, is __________ which opens several levels of involvement to company.

exporting

During the Great Depression, factory production fell by almost half and about 25 percent of the nation's workforce was unemployed. Because of these conditions, President Franklin D. Roosevelt instituted programs to restore the economy and improve social conditions. Laws were passed to correct abuses by big business and to provide social services for individuals. As ______________ awareness of social responsibility has increased.

government involvement increased

A franchise arrangement includes a franchisor and a franchisee with the franchisor ____________ to the franchisee.

granting a franchise

Most firms begin the process of reducing their impact on the environment by _________

identifying and eliminating inefficiencies in production and operations

Since World War II international trade has __________

increased almost steadily

Three of the primary factors influencing the standards of behavior in an organization include ______________ social factors, and opportunities.

individual factors

As trade has expanded internationally, many __________________ have also become international in scope and have established branches in major cities around the world. This gives them the ability to provide their financial services where and when they are needed

large banks

When a business cycle enters a trough of a recession or depression, the federal government can use __________ and __________ to offset its effects.

monetary, fiscal policies

Statistics show that most small business failures are related to

poor management

Sears, Roebuck & Co., and General Motors rely heavily on ___________ to provide merchandise, parts, supplies, and other goods and services. Companies like these buy parts and assemblies for these businesses because it is less expensive than manufacturing them in their own factories.

small business firms

Studies show that the incidence of innovation among _________ -business workers is significantly higher than among workers in ___________ businesses

small, large

The economies of __________ and ______________ are the most dynamic, efficient, and most integrated in the world.

the United States, Canada

Small businesses enjoy several unique benefits that larger firms may not have such as __________

the ability to adapt to change and simplified record keeping

The primary function of international economic organizations such as the World Trade Organization (WTO) is

to remove barriers to trade on a worldwide basis

According to the authors, many individuals, business leaders, and politicians ____________ that the future of the nation's economy

worry, could lead to a bumpy road and another recession

Which of the following best describes the relationship between productivity and economic growth?

. An increase in productivity results in economic growth because a larger number of goods and services are produced by a given labor force.

What percentage of home-based businesses have no employees?

90%

Franchising agreements fall into three general categories, which of the following is not one of those categories?

A distributor franchises the channels of distribution to franchisees.

Which of the following is a definition of "franchise"?

A franchise is a license to operate an individually owned business as if it were part of a chain of outlets or stores.

Which of the following is an accurate statement about business profitability?

According to the SBA, the most profitable companies in the United States are small firms that have been in business for more than ten years and employ fewer than 20 people.

Programs to reduce sexual harassment and abusive behavior in the workplace have been on the rise in recent years. Which of the following is true of workplace bullying?

Bullying in the workplace is repeated work sabotage; verbal abuse; and/or abusive conduct that is threatening, humiliating, or intimidating.

____________ is the organized effort of individuals to produce and sell, for a profit, the goods and services that satisfy society's needs.

Business

Ethics is the study of right and wrong and of morality of the choices individuals make. Which of the following most correctly explains the definition of "business ethics"?

Business ethics is the application of moral standards to business situations.

The Small Business Administration (SBA) defines a small business as "one which is independently owned and operated for profit and is not dominant in its field." How small must a firm be to not dominate its field?

By the SBA's definition, the factors that determine the size of a business depend on the particular industry it is in.

The United States has the largest economy. Which nation has the second largest economy and represents the largest annual bilateral trade relationship with the United States?

China

The notion of _______________ is one that encourages adopting a strategic approach to fulfilling economic, ethical, environmental, and social responsibilities.

Corporate citizenship

Check My Work There are several methods for entering international trade. Which of the following is not a method for entering international trade?

Creation of a business that is organized outside of any nation and operates on a multinational level "at home" in most countries of the world

Which of the following is NOT an individual factor affecting ethics?

Cultural norms

Which of the following statements is most correct regarding ethical issues concerning satisfying stakeholders' interests in a business?

Customers expect a firm's products to be safe, reliable, and reasonably priced.

Nations may impose barriers to trade. Which of the following is not a barrier to trade?

Dumping

Caveat emptor is a Latin phrase that means "let the buyer beware." It was used to express the doctrine used by businesses during the 1900s that meant "what you see is what you get." Which of the following statements about this doctrine and its application is false?

During the 1900s government became involved in day-to-day business activities regularly to limit the free-market system.

_____________ is the study of how wealth is created and distributed.

Economics

The _________ also known as the Common Market, is now an economic force to be recognized by even the most advanced economies such as of the United States and Japan.

European Union

Which of the following most closely explains the purpose of economics as used by experts?

Experts use economics to explain the choices we make and how these choices change as we cope with the demands of everyday life.

While the ________ owns the business, the ___________ controls it

Franchisee, franchisor

Which of the following is not a management resource provided by the Small Business Administration?

Free assistance in closing failed small businesses

____________ is the total dollar value of all goods and services produced by all people within the boundaries of a country during a specified time period - usually a one-year period.

Gross Domestic Product GDP

Which of the following is true about monopolistic competition?

In monopolistic competition there are many buyers along with a relatively large number of sellers.

The _____________ a federal agency, helps U.S. firms develop export promotion programs and gives assistance in competing in foreign markets by coordinating trade missions in foreign countries.

International Trade Administration

What is the name of one of the United States federal agencies created to assist U.S. firms in developing export-promotion programs?

International Trade Administration

Ethical problems can have an extremely detrimental effect on relationships among co-workers. Which of the following would NOT be an ethical problem created by employee relationships?

Investors expecting a return on their investment regardless of the cost.

A business plan is essential for starting a new business because it ___________

Is a guide for the person starting a business

Which of the following is incorrect about the General Agreement on Tariffs and Trade (GATT)?

It is an international organization of 164 nations dedicated to creating and maintaining tariffs and other barriers to world trade.

According to the International Monetary Fund (IMF) __________exports are growing annually. This region is home to 11 Free Trade Area countries

Latin America

The United States is a party to many trade agreements and international trade organizations. Which of the following trade organizations does not have the United States as a member?

MFN

Every business must keep records of sales, profits and losses, fixed assets, contacts, tax returns, customers, and a variety of other information that affects the growth and operability of the business. Which of the following is true about small business?

Many small firms need only a simple set of records.

are affected by anything that affects supply and demand.

Market prices

Which of the following resources must a business combine in order to be successfully organized?

Materials, human, financial, and informational

Pollution has become a significant environmental issue for governments, society, and business; which of the following is NOT true about pollution.

One of the driving forces behind the production of waste is unreasonable expectations by consumers that all products, including fruits and vegetables, must be perfect to be consumed.

During the economic periods of ___________ the economy is at its highest point and unemployment is low, in addition, total income is high and consumers are willing to buy products and services.

Prosperity

Which of the following is not a factor of production?

Services

Which of the following best represents the three types of business organizations today?

Services, marketing intermediaries, and manufacturing

businesses are important to the U.S. economy because, among other things, they employ about half of all private sector employees, pay 42 percent of total U.S. private payroll, and hire 37 percent of high-tech workers (scientists, engineers, computer programmers, and others).

Small

Jeffrey Inc. is a large business that produces off-road vehicle parts. In addition to this market stream, Jeffrey produces auto parts, boat parts, and parts for machinery and equipment. Inventions, LLC is a small business that focuses only on the off-road vehicle market and has created lighter weight, stronger, and more efficient parts for off-road vehicles. Its primary market is off-road racing which it believes will serve the dual purpose of showcasing its product and filling the needs of its customers. Inventions has significantly increased its market share in the off-road vehicle parts market over the years causing Jeffrey to revamp its marketing techniques and reanalyze its customer's needs. Which of the following is true about the relationship of small businesses to large businesses?

Small businesses challenge larger, established firms in many ways, causing them to become more efficient and more responsive to consumer needs.

The growth of women and minorities in franchising is attributable to which of the following activities?

Special outreach programs designed to encourage franchisee diversity

Which of the following best explains the use of gross domestic product (GDP) in world economic analysis?

The GDP figure facilitates comparisons between the United States and other countries because it is the standard used in international guidelines for economic accounting.

While international trade is as logical as interstate trade, some nations restrict imports of certain goods for a variety of reasons. The United States recently restricted the import of fresh tomatoes from Mexico. Why did the United States restrict the imports of tomatoes?

The Mexican fresh tomatoes were undercutting price levels of domestic fresh tomatoes.

Modern businesses must compete in a challenging technological environment. Which of the following most closely explains the technological challenges facing businesses?

The current technological environment is undergoing constant change in manufacturing equipment, distribution of products, and communication with customers.

Which of the following are significant steps necessary for a business to implement a program of social responsibility?

The firm must develop and implement a program to reach its goal.

Which of the following statements is true regarding encouraging ethical behavior?

The government can encourage ethical behavior in business by enacting more stringent regulations such as the Sarbanes-Oxley Act of 2002.

The exporting trade in the United States has had a significant impact on the U.S. economy. In 2016, exports accounted for 11 million jobs—an increase of 3.3 million jobs since the 2009 recession. Which of the following is true about the impact of U.S. exports on the global economy?

The increase in trade volume over the past 65 years has been one of the most important factors in the rise of the living standards around the world.

Consumerism has been defined as "all activities undertaken to protect the rights of consumers." Which of the following are rights protected as basic consumer rights?

The right to safety, to be informed, and to choose

Having a business plan causes a new business owner to think through all of the aspects of business ownership, costs, capital needed for start-up, and can be used to review company goals and benchmark when they are met. Which of the following is true about the company and industry portion of the business plan?

This section of the business plan gives the background of the company, explains the legal business form it will take, provides information about the products or services to be offered, reviews potential customers, current competitors, and the business's future.

Which of the following statements is true about whistle-blowing?

Those who "blow whistles" may face retaliation and sometimes even lose their jobs

What is meant by dual-branded franchises?

Two franchisors offer their products together

Which government agency could possibly provide a loan of up to $5 million to a small U.S. business that needed a short-term loan to start an export business?

U.S. Small Business Administration

Temporary trade restrictions may be used to give a new business

a chance to grow and become self-sufficient

Our economic system provides freedom that allows businesses to

adapt

Several factors contribute to the entrepreneurial spirit in the United States, but the most important is the personal characteristics of the individuals who start businesses. Studies have shown that personal factors in small-business success include family background, willingness to accept a challenge,

and a desire to determine one's own destiny