BUS 100 Financing a Business

A countertrade in international terms pertains to the sale of retail goods that are usually sold "over the counter."

A countertrade is a form of international trade in which part or all of the payment for products is in the form of other products.

_____ is the reduction of a currency's value relative to another currency.

Devaluation

To avoid double taxation, a new entrepreneur may elect to organize as a(n):

S corporation

_____ are all the individuals or groups to whom a business has a responsibility.

Stakeholders

The situation in which the average of all prices of products is rising is called inflation.

True

Ease of formation, flexibility, and diversity of management are advantages of the _____ form of business ownership.

partnership

When the government decides to cut military spending, it is implementing a(n) _____ policy.

fiscal

A policy of permitting the people of a country to buy and sell where they please, without restrictions, is called:

free trade

Which of the following countries has a high standard of living?

the United States

The C Corporation is another term for:

the conventional form of corporation

The philosophy of utilitarianism is used to explain why restaurants, theaters, and hotels should make themselves handicapped accessible.

Utilitarianism is a philosophy that focuses on the consequences of an action to determine whether it's right or wrong; it seeks the best for the majority.

Partnership agreements generally specify all of following EXCEPT:

methods of taxation of each partner

Social responsibility should extend beyond the shareholders to include:

suppliers consumers community employees

Armenia had a favorable balance of trade in 2018 when it exported $800 million in goods and services and imported $1.5 billion.

A balance of trade is the difference between the value of a country's exports and the value of its imports during a certain time. Armenia experienced a trade deficit in 2018.

Which of the following statements about ethics training is true?

Fewer than half of all American companies have some type of ethics training programs. Ethics training is formal training to develop an awareness of questionable business behavior and to practice appropriate responses. Ethical training does not have to be boring. The most effective ethics training begin with the techniques for solving ethical dilemmas.

Which of the following is an advantage of sole proprietor ownership?

Freedom from government regulation

Corporate philanthropy excludes any noncash donations.

Gifts-in-kind can be donated as a part of corporate philanthropy.

_____ are limitations on the quantity of certain types of goods that can be imported over a period of time.

Import quotas

The _____ is an agreement that dramatically lowered trade barriers worldwide and created the new World Trade Organization (WTO).

Uruguay Round

_____ are workers who create, distribute, and apply knowledge.

Knowledge workers

How has terrorism affected global trade?

Terrorism has curtailed the liberal inflows of skilled and blue-collar workers.

Which of the following factors would most likely result in a shift in the supply curve?

an increase in the price of raw materials used in the production process

Clarence Danvers is buying a Cinnabon franchise at the airport in Tulsa. Danvers knows that he will get all of the following benefits EXCEPT:

assistance in personal income tax preparation

A company has achieved the level of _____ responsibilities when it has met its ethical, legal, and economic responsibilities.

philanthropic

The highest level of the corporate social responsibility pyramid is:

philanthropic responsibilities

Which of the following is a disadvantage of sole proprietor ownership?

Unlimited liability

An S corporation is generally set up to:

reduce tax burdens

To be a useful code of ethics, the code should offer broad policies and procedures rather than detailed rules.

Codes of ethics can be effective in either format.

The Chubb Group, an insurance company, regularly supplies funds for programming on the public television network. Its donations are an example of:

Corporate philanthropy is the practice of charitable giving by corporations.

Which of the following statements about dumping is true?

The U.S has passed laws to make dumping illegal.

The Uruguay Round of trade negotiation is an agreement that only affects trade among Latin American countries.

The Uruguay Round has been signed by 148 nations.

When the Federal Reserve implements a(n) ______, it increases the growth of the money supply.

expansionary policy

When the government raises taxes on consumers and businesses, it is dealing with _____ policy.

fiscal

The quality of life is:

the general level of human happiness based on such things as life expectancy, educational standards, health, sanitation, and leisure time