BA 101 Midterm 3

unlimited liability

any debts or damages incurred by the business are your debts and you must pay them, even if it means selling your home, your car, or whatever else you own

Becoming a(n) ______________ is one of the best ways to learn about how to run a business

apprentice / intern

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

balance of trade

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

billion; 12

list of entrepreneurial attributes to look for in yourself include:

- self-directed - self-nurturing - action-oriented - highly energetic - tolerant of uncertainty

All of the following are part of the Financial Feasibility Analysis except - Capital Requirements - Return on Investment - Estimated Earnings - Acid Test Ratio

Acid Test Ratio

Which businesses need to write business plans?

All businesses should write business plans in order to create a framework for success.

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

Concerns for product safety Increased competition Loss of jobs in manufacturing

______ is at the heart of all the management functions because it requires managers to choose among two or more alternatives.

Decision making

_________________ is a side effect or consequence of an industrial or commercial activity that affects other parties without it being reflected in the cost of the goods or services involved.

Externality

All of the following are examples of companies who used deceiving marketing tactics that we learned about, EXCEPT Dove Vitamin Water POM Fasel

Fasel

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

Goals; Objectives

venture capitalists:

may finance your project -- for a price. Venture capitalists may ask for a heavy stake in your company (as much as 60%) in exchange for the cash to start your business

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

partnership / partner

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

partnership/partner

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

personal

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

skill, experience

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

social media

ethics:

society's accepted standards of moral behavior; that is, behaviors accepted by society as right rather than wrong

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

sole proprietorship

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

strategic

Why did Ben & Jerry go public?

to raise capital in order to expand

partnership

when two ore more people legally agree to become co-owners of a business

_________________ are insiders who report illegal or unethical behavior.

whistleblowers

In which two situations is autocratic leadership effective?

working with new, unskilled workers emergencies

if a venture capitalist takes too large a stake, ________________-

you could lose control of the business

Being self-directed, self-nurturing, action-oriented, and tolerant of uncertainty are all considered characteristics of 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

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

general partnership

Leaders in traditional organizations who direct employees are likely to:

give specific assignments explain routines provide performance feedback

An organization that sets its vision hopes to achieve what two objectives?

giving the organization a sense of purpose giving the organization a set of values

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

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

planning

free trade:

the movement of goods and services among nations without political or economic barriers; has become a hotly debated concept

outsourcing:

the process whereby one firm contracts with other companies, often in other countries, to do some or all of its functions

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

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

balance of trade:

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

trade protectionism:

the use of government regulations to limit the import of goods and services

exchange rate:

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

Corporate social responsibility is a business's concern for:

the welfare of society

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

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

which of the following is NOT correct about common stockholders? - In case of bankruptcy, they have residual claims to assets - They have voting rights - They have first claim on income

they have first claim on income

When creating a business plan, you want to include _______ financial forecasts.

three

why did Ben & Jerry only offer their stocks in-state?

to make the community the owners of the business for their future benefit if the business prospered

[true or false] Sole Proprietorship is simple, quick and affordable to start.

true

[true or false] corporations are heavily regulated by the government in comparison to other forms of businesses

true

[true or false] horizontal acquisition involves a company buying another company from within the same industry

true

[true or false] mutual agency means that a partner can make decisions on behalf of other partners

true

[true or false] vertical acquisition involves a company buying another company in its supply chain

true

[true or false] you can sell just about any good or service used in the United States to other countries

true

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

insider trading:

uses private company information to further insiders' own fortunes or those of their family and friends

A ______ gives the organization a sense of purpose and a set of values that unite workers in a common destiny.

vision

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

vision

what can stockholders do?

vote for members of the Board of Directors

incubators:

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

acquisition:

one company's purchase of the property and obligations of another company

why are so many small business having difficulty getting started in global business?

(1) financing is often difficult to find (2) would-be exporters don't know how to get started and do not understand the cultural differences between markets (3) the bureaucratic paperwork can threaten to bury a small business

comparative theory:

(suggested in the early 19th century by English economist David Ricardo) was the guiding principle that supported the idea of free economic exchange

What are the three main factors addressed in a business plan?

-

Select the characteristics of an intrapreneur. - He or she generates profits by leveraging a firm's human financial and physical resources. - A person who assumes the risk of starting a business. - Someone who uses company's resources to launch new products - A creative person who works within a corporation

- He or she generates profits by leveraging a firm's human financial and physical resources. - Someone who uses company's resources to launch new products - A creative person who works within a corporation

Which of the following are good ways to learn how to run your own business? - Talk to other business owners - Start the business immediately to speed up the learning process - Run a small business during your off hours - Work for a successful entrepreneur

- Talk to other business owners - Run a small business during your off hours - Work for a successful entrepreneur

Which of the following are true regarding the process of forming a corporation? (select all that apply) - The articles of incorporation are usually filed in the state in which the company will be incorporated - The filing process for the articles of incorporation are very consistent from state to state - The process is very inexpensive in all states - The bylaws of the corporation describe how the firm is to be operated

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

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

- bureaucratic paperwork - difficulty finding financing - understanding cultural differences

What are some of the disadvantages of a corporation?

- cost of forming a corporation - double taxation

What is something that an entrepreneur seeks to do?

- have control of their lives and provide the optimal situation for their families - have the opportunity to be creative - direct their drive to something for their benefit

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

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

articles of incorporation include:

- the corporation's name - the names of the people who incorporated it - its purposes - its duration (usually perpetual) - the number of shares that can be issued, their voting rights, and any other rights the shareholders have - the corporation's minimum capital - the address of the corporation's legal service - the names and addresses of the first directors - any other public information the incorporators wish to include

Because of the difficulty in ending a partnership, decisions regarding which two areas should be spelled out in a partnership agreement?

- when a partner can retire - how to distribute assets

For every 3,000 new product ideas, how many actually become a success in the market?

1

6 Advantages of Sole Proprietorship

1. ease of starting and ending the business 2. ability to be your own boss 3. pride of ownership 4. leaving a legacy 5. retention of company profits 6. no special taxes

In terms of operating flexibility, what are three things that LLCs are not required to do?

1. file written resolutions 2. hold annual meetings 3. keep minutes

7 disadvantaged of corporations

1. initial cost 2. extensive paperwork 3. double taxation 4. two tax returns 5. size 6. difficulty of termination 7. possible conflict with stockholders and board of directors

6 disadvantages of franchises

1. large start-up costs 2. shared profit 3. management profit 4. coattail effects 5. restrictions on selling 6. fraudulent franchisors

5 advantages of franchises

1. management and marketing assistance 2. personal ownership 3. nationally recognized name 4. financial advice and assistance 5. lower failure rate

7 disadvantages of sole proprietorship

1. unlimited liability 2. limited financial resources 3. management difficulties 4. overwhelming time commitment 5. few fringe benefits 6. limited growth 7. limited life span

According to the Global Entrepreneurship Monitor (GEM), what percent of the U.S population is actively involved in trying to start a new business?

10%

Less than ________ percent of non-franchise businesses are minority owned

19

today more than ____________ percent of franchises are owned by African Americans, Latinos, Asians, and Native Americans

30

on average, what percent of a company's sales do new products account for?

40%

______% of the nation's new jobs are in small businesses

65

although corporations make up only 20 percent of the total number of businesses, they earn _______ percent of the total receipts

81%

according to a recent study conducted by the International Business Innovation Association (InBIA) _______ percent of incubator graduates remain in business

87%

What is the best definition of entrepreneurship?

Accepting the risk of starting and running a business

_____________ has the best parts of corporations and partnerships

An LLC

_____________ is a billionaire who donated $2.5 billion to philanthropy.

Bill Gates

What three positions are considered as top management in an organization?

Chief Financial Officer Chief Executive Officer Chief Operating Officer

This can be defined as being a good corporate citizen who goes beyond the profit motivation of business

Corporate Social Responsibility

CAFTA includes

Costa Rica, the Dominican Republic, El Salvador, Guatemala, Nicaragua, and Honduras

To make sure that ethical issues are considered in business decisions, managers should do all of the following, EXCEPT - Use ethics officers - Put strong corporate governance processes in place - Hire and promote people with a well-grounded sense of personal ethics - Disregard key stakeholders

Disregard key stakeholders

All of the following are included in the three levels of ethical standards, EXCEPT - Organizational policies and procedures - It is not about the law - Doing unto others as you would want done - unto you - The moral stance employees take when faced with decisions not governed by formal rules

Doing unto others as you would want done unto you

Which of the following are functions of export assistance centers (EACs)? Scheduling assistance Packaging assistance Hands-on exporting assistance Trade-finance support

Hands-on exporting assistance Trade-finance support

All of the following are effects of the Dodd-Frank Wall Street Reform and Consumer Protection Act, EXCEPT - Comprehensive regulation of financial markets - Tightened regulation of Credit Rating Agencies - Consumer protection reforms - Higher taxes on all Fortune 500 corporations

Higher taxes on all Fortune 500 corporations

The ________________ acts as an "inside entrepreneur" who focuses on innovation and creativity while operating within the goals and environment of an organization.

Intrapreneur

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

Knowledge management

Match the characteristics to whether they describe a leader or a manager. Leaders Managers Carries out the vision of the company Strive to produce order and stability Establishes corporate values and ethics Embrace and manage change

L: Embrace and manage change, Establishes corporate values and ethics M: Choice Strive to produce order and stability, Carries out the vision of the company

operating flexibility

LLCs have to submit articles of organization, which are similar to articles of incorporation, but they are not required to keep minutes, file written resolutions, or hold annual meetings

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

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

Licensing

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

Which three tasks are associated with the management function known as organizing?

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

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

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

The process of analyzing an organization's strengths, weaknesses, opportunities, and threats is a(n) ___________ analysis

SWOT

As a manger, you shape the organization and the world your employees inhabit through all of the following, EXCEPT - Structure of the job (task) - Interpersonal interaction - Employment agreement - Stock options and bonuses

Stock options and bonuses

which of the following companies previously had someone as part of both top management and the board of directors?

Tesla

According to _______________________________ as long as the business increases profits and stays within the law, it is acting socially responsible.

The Friedman Doctrine

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

The World Trade Organization (WTO)

What is NOT true about partnerships? - It is difficult to raise capital - The business can last as long as it earns profits (has an unlimited life) - The owners have unlimited liability - It requires voluntary association from the owners

The business can last as long as it earns profits (has an unlimited life)

What are two characteristics that define goals?

They are broad. They are long-term.

Organizational ethics begin at the _______ of the organization.

Top

Who performs strategic planning?

Top management

[true or false] A business plan serves two essential functions, attracting lenders and investors, and guiding the company by charting its future course and defining its strategy.

True

[true or false] Many successful innovations exploit change.

True

sole proprietorship

a business owned, and usually managed, by one person

joint venture:

a partnership in which two or more companies (often from different countries) join to undertake a major project

conventional (C) corporation

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

social audit:

a systematic evaluation of an organization's progress toward implementing socially responsible and responsive programs

world trade organization (WTO):

a trade organization that replaced the old General Agreement on Tariffs and Trade (GATT)

S corporation

a unique government creation that looks like a corporation but is taxed like sole proprietorships and partnerships

entrepeneurship

accepting the risk of starting and running a business

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

A(n) ______ is where one company purchases the property and obligations of another.

acquisition

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

franchise

business name and right to sell a product or service

micropreneurs:

business owners who are interested in maintaining a balanced lifestyle while doing the kind of work they want to do

Corporate social responsibility is based on a

concern for the welfare of society

market:

consists of consumers with unsatisfied wants and needs who have both resources and willingness to buy

micropreneurs include _______________

consultants, video producers, architects, and bookkeepers

The many small choices we make daily about working or goofing off, using company phones and computers responsibly, and following safety rules, make it clear that _______ decisions start with each individual

ethical / moral / ethics

The section of the business plan that is designed to initially captivate and energize a potential financial investor would be the ________________

executive summary.

[true or false] Conditions in Bangladesh manufacturing facilities have significantly improved.

false

[true or false] all entrepreneurs are born as great leaders

false

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

global / international

What term defines 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

The motives of those involved in unethical behavior that caused the financial crisis in the real estate, banking, and mortgage industries included:

greed the wish to inflate their own earnings

what are the different types of acquisition?

horizontal, vertical, conglomerate

corporate responsibility:

includes essentially everything that has to do with acting responsibly within society

With the support of the US Department of Commerce, US small-business exporting has _______________ significantly in the past decade, but not quite to the level many would like

increased

In a general partnership, all partners share the responsibility for operating the business and assume ___________________ for the business's debts

liability

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

key business strategies include __________

licensing, exporting, franchising, contract manufacturing, international joint ventures and strategic alliances, foreign subsidiaries, and foreign direct investment

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

micopreneurs

___________________ make(s) hiring decisions on supervisory positions

middle management

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

foreign subsidiary:

most common form of FDI; a company owned in a foreign country by another country, called the parent company

A common market, also called a trading bloc, is a regional group of countries with:

no internal tariffs a common external tariff

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

objective

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

objectives

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

organizing

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

outsourcing to foreign countries

a cooperative (co-op):

owned and controlled by the people who use it -- producers, consumers, or workers with similar needs who pool their resources for mutual gain

Although there are many functions that are important in both the start-up and management phases of the business, what two functions are considered to be primary concerns?

planning and financing

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

Sarbanes-Oxley Act:

protects whistleblowers by requiring all public corporations to allow employee concerns about accounting and auditing to be submitted confidentially and anonymously

corporate policy:

refers to the position a firm takes on social and political issues

home-based businesses offer many obvious advantages, including ____________________________

relief from the stress of commuting, extra time for family activities, and low overhead expenses

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

responsible management of human resources

Functions included in staffing an organization are

retaining recruiting hiring

Ben Cohen and Jerry Greenfield decided to enter a partnership because it allowed them to combine ____________ and _____________ , opening up more opportunities than if each operated separate businesses as single proprietors.

talent; resources

a team may be better than an individual entrepreneur because ______________________

team members can combine creative skills with production and marketing skills right from the start; having a team also can ensure more cooperation and coordination later among functions in the business

What are two reasons a firm would use a SWOT analysis?

to evaluate the strengths and weaknesses of a company's resources to evaluate a company's ability to pursue market opportunities and defend against threats

Global trade with 7.7 billion potential customers is attractive, but the threats to trading globally include which of the following? (Check all that apply) free trade capitalism terrorism income inequality rogue states

terrorism income inequality rogue states

foreign direct investment (FDI):

the buying of permanent property and business in foreign nations

corporate social responsibility (CSR):

the concern businesses have for the welfare of society, not just for their owners; is based on a commitment to integrity, fairness, and respect

one disadvantage of home-based franchises:

the feeling of isolation

Which section of the business plan details and outlines the authority structure that exists inside the company?

the management plan

merger:

the result of two firms joining to form one company

What level of management consists of the president and other key company executives who develop strategic plans?

top management

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

true

[true or false] About 20% of small businesses fail within their first year of operation.

true

[true or false] Personal ethics codes will have a profound influence on behavior as a businessperson.

true

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? - Technology has not advanced enough to aid in overseas marketing. - There are too few customers in global markets. - Financing is often difficult to find. - Would-be exporters do not know how to get started.

- Financing is often difficult to find. - Would-be exporters do not know how to get started.

Which of following are true about the advantages and disadvantages of being a franchise owner (select all that apply) - Having a nationally recognized name for your business in a franchise can help with marketing and awareness - Financing for franchises are easier because they charge either a start up fee or a royalty fee - Once you are a franchise owner, you have complete control over the competition within your marketing area - 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 - While the upfront costs of a franchise may be steep, a franchise has a better chance of succeeding than starting a business from scratch

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

corporation bylaws include:

- how, when, and where shareholders' and directors' meetings are held, and how long directors are to serve - directors' authority - duties and responsibilities of officers, and the length of their service - how stock is issued - other matters, including employment contracts

The attributes of a conventional corporation include that:

- it is a legal entity - it is state chartered - corporate liability is separate from owners

reasons why people are willing to take the entrepreneurial risk:

- opportunity - profit - challenge

steps to a functioning small business are _______________

- planning your business - financing your business - knowing your customers (marketing) - managing your employees (human resource development) - keeping records (accounting) - looking for help

Which of the following are elements of the fraud triangle - Opportunity - All of the above - Rationalization - Pressure

All of the above

Select the characteristics of an entrepreneurial team that will be developing and marketing a new product. Members compete with each other in order to receive individual credit for outputs Each from different areas of business Members have complementary skills and are creative A group of experienced people

Each from different areas of business Members have complementary skills and are creative A group of experienced people

_________ represents the standards of moral behavior. Behaviors that are accepted by society as right versus wrong.

Ethics

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

small business:

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

franchising:

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

business plan:

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)

difficulty of termination

a disadvantage of partnership; once you have committed yourself to a partnership, it is not easy to get out of it.

trade surplus:

a favorable balance of trade; occurs when the value of a country's exports exceeds that of its imports

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

contract manufacturing:

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

entrepreneurial team:

a group of experienced people from different areas of business who join to form a managerial team with the skills to develop, make, and market a new product

corporation

a legal entity with authority to act and have liability apart from its owners

In a franchise, having management support from the franchisor is a(n) ________________ whereas the coattail effect is considered a _______________

advantage/benefit ; disadvantage/drawback

_________ corporations are organized in one country and operate in another

alien

general partnership

all owners share in operating the business and in assuming liability for the business's debts

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

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

separation of ownership from management

an advantage of corporations; corporations are able to raise money from many different owners/stockholders without getting them involved in management

longer survival

an advantage of partnership; partnerships are more likely to succeed than sole proprietorship because being watched by a partner can help a businessperson become more disciplined

franchise agreement:

an arrangement whereby a franchisor sells the franchise to the franchisees in a given territory

ethnocentricity:

an attitude that your own culture is superior to other companies

trade deficit:

an unfavorable balance of trade; occurs when the value of a country's exports is less

Entrepreneurs ____________ paralyzed by the prospect of failure.

are not

An advantage of the separation of ownership from management in corporations is that the company can raise money from investors but the investors ______________________

are not involved in daily operations

A corporation is formally formed with _______________

articles of incorporation and bylaws

Arthur Andersen accounting firm was both the ___________ and ____________ for Enron causing a conflict of interest.

auditors ; consultant

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

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

coattail effect

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

Written ethics codes can be categorized as

compliance-based integrity-based

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

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

contract manufacturing

The ______ function of management measures performance relative to the planned objectives and standards, rewards people for work well done, and takes corrective action when needed.

control

Management is the process used to accomplish organizational goals by the use of which four functions?

controlling leading organizing planning

what makes franchising successful in the US and global markets?

convenience and a predictable level of service and quality

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

cooperative

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

The dimension of social responsibility, which includes certain aspects such as producing low-emission vehicles, is called:

corporate responsibility

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

corporate social responsibility

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

A ______________ requires a board of directors and a corporate structure.

corporation

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

corporation

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

North American Free Trade Agreement (NAFTA):

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

intrapreneurs:

creative people who work as entrepreneurs within corporations

foreign corrupt practices act:

criminalized the act of paying foreign businesses or government leaders in order to get business

A mission statement should address an organization's

customer needs self-concept

Which term defines having to choose among two or more alternatives?

decision making

integrity-based ethics codes:

define the organization's guiding values, create an environment that supports ethically sound behavior, and stress shared accountability

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

double / dual

compliance-based ethics codes:

emphasize preventing unlawful behavior by increasing control and penalizing wrongdoers

[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] entrepreneurship has nothing to do with problem solving

false

small companies are better off ________________

finding an angel investor or using crowdfunding

One of the most important advantages of the sole proprietor form of ownership is that a business owner:

finds it easier to start and end the business

A contractual agreement in which someone with a good idea for a business sells others the rights to use a business name and sell a product or service in a given territory in a specified manner is a(n)

franchise

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

in addition to the three basic forms of business ownership, there are two special forms: _____________ and ______________

franchises and corporations

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

Compliance-based ethics codes focus on:

increasing control penalizing wrong-doers

whistleblowers:

insiders who report illegal or unethical behavior

an _____________ _____________ ethics code creates an environment which supports ethically sound behavior by stating an organization's guiding values, shared responsibilities, and accountability.

integrity based

Successful entrepreneurs learn to fail ______________

intelligently

______ are creative people who work as entrepreneurs within corporations.

intrapeneurs

common market:

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

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. Because of this,

it is important to conduct business globally

why are good employee relations important for small-business management?

it is not easy to find good help when you offer less money, skimpier benefits, and less room for advancement than larger firms do

Those who oppose corporate social responsibility believe that

it is using investors' money in ways they did not intend

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

joint venture

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

while other entrepreneurs are committed to the quest for growth, micropreneurs _____________________

know they can be happy even if their companies never appear on a list of top-ranked businesses

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

laws and regulations vary greatly between countries

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

opportunities

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

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

franchisor:

someone with a good idea