BUS 100 Quizzes

A society where economic power is concentrated in the hands of government officials and political authorities is called:

A central state control system.

Which of the following is not an instance of "insider trading"?

A marketing executive briefing stock analysts on the company's sales performance

A firm that has global operations has:

B. Some or all of their manufacturing or service operations abroad

Microfinance refers to:

Banks lending money to low-income businesses.

Investors may receive an economic benefit from the ownership of stock by receiving:

Both B and C, but not A. Interest. Dividends. Capital gains. Both B and C, but not A.

An individual who is a supporter of globalization would argue that it helps the developing world by:

D. All of the above.

Representation on the World Bank's board of directors is based on:

D. The size of the member nation's economy.

Globalization is accepted worldwide and creates little controversy.

False

Which of the following arguments supports the concept of high executive compensation?

High salaries provide an incentive for innovation and risk-taking.

Social investors seek to eliminate from their investment portfolios companies that:

Make dangerous products like tobacco or weapons. Pollute the environment. Discriminate against employees. All of the above.***

The "agency problem" arises when:

Managers act in their own interest, rather than in the interest of shareholders.

The theory of comparative advantage states that:

Productivity rises more quickly when countries produce goods and services for which they have a natural talent.

The mission of the Securities and Exchange Commission (SEC) is to:

Protect shareholders' rights by making sure that stock markets are run fairly.

The three strategies of globalization can be summarized using what three words?:

Sell, make, and buy

How are directors (members of corporate boards) selected?

Shareholders elect the directors from a list of candidates.

Which of the following statements is not true about shareholders?

They own equal shares of company assets.

Which of the following is not a legal right of shareholders?

To vote on who will become chief executive officer (CEO).

Assets that a person accumulates and owns at a certain point in time are called:

Wealth

The board committee that administers and approves salaries and benefits of high-level managers in a company is called the:

compensation committee