BUS 100 test 1
Joe, a brand-new employee at a company, wants to know more about his company's core focus. Which of the following documents would give Joe the information he wants? A. The company's mission statement B. The company's code of ethics C. The employee handbook D. Local laws and regulations that govern the industry in which the business operates E. The company's profit and loss statement from the previous quarter
A
happens when a person has no awareness of right and wrong and no interest in morals
Amoral behavior
Which of the following is true about e-commerce? E-commerce does not require the use of technology. B. E-commerce can encompass business-to-consumer (B2C), business-to-business (B2B), and consumer-to-consumer (C2C) trades. C. E-commerce is a dying business model. D. E-commerce is only for business-to business and business-to-consumer trade. E. E-commerce means that a company can only sell products or services over the Internet.
B
Sweden does a lot of business with the rest of the world. What is Sweden's summary of transactions with the rest of the world, including payments, financial aid, and gifts, called?
Balance of payments
Which of the following statements about currency appreciation is true? A. It decreases the value of the home country's currency. B. It reduces the demand for imports due to higher prices for consumers. C. It makes the prices of imported goods and services lower for domestic consumers. D. It makes it more expensive to import products from other countries. E. It increases the demand for exports to countries where the currency is undervalued.
C
In which type of economic system is the focus on efficiency and profitability?
Capitalism
All of the following statements regarding mission statements are true EXCEPT: A. Mission statements explain why the company is in business (the company's purpose. B. Mission statements explain who the company's customer is. C. Mission statements help define the company's values. D. Mission statements lay out a framework for a company's code of ethics. E. Mission statements list some of the company's goals.
D
Which of the following is NOT a stage of the business cycle? A. Peak B. Expansion or recovery C. Recession D. Stagnation E. Trough
D
Which of the following is true about a company's code of ethics? A. It is a written commitment to laws of the state in which the company is headquartered. B. It guarantees that the company and all its employees will behave ethically. C. It is the same as the company's vision statement. D. It is a written statement of the firm's commitment to ethical behavior. E. It is the same as the company's mission statement.
D
Which of the following statements is true of a mixed economy? A. The economy is completely unplanned and is focused on maximum profitability in a mixed economy. B. Social programs are nonexistent in a mixed economy. C. The government has a very low degree of control in a mixed economy. D. The government supplies some goods and services in a mixed economy. E. The government is in complete control of all goods and services in a mixed economy.
D
is when the rate of inflation decreases
Disinflation
All of the following statements about licensing are true EXCEPT: A. The licensee pays the owner a fee for the right to use the property. B. The licensor holds ownership over the item being licensed. C. A risk of licensing is the creation of potential competitors. D. An advantage of licensing is the speed with which property can be spread around the globe. E. The licensee becomes the owner of the licensor's intangible property upon payment of the royalty fee.
E
Miguel, a textile factory owner in Panama, is experiencing increased demand for his manufacturing services from firms in the United States. Which of the following is MOST LIKELY happening to the exchange rate in his country? A. The exchange rate is equal to firms in the United States. B. The exchange rate is increasing. C. The exchange rate is favorable for the importing of products from the United States. D. His country's exchange rate is increasing due to the banning of exports. E. His country is experiencing a currency depreciation.
E
Which of the following companies would be considered a national business? A. Coca-Cola B. Apple Inc. C. Anheuser-Busch D. McDonald's E. K-Mart
E
allows companies to employ people from around the globe
Telecommuting
All of the following statements about unethical behavior are true EXCEPT A. Unethical behavior is the same as amoral behavior. B. Unethical behavior is unprofessional. C. Unethical behavior can be legal even if it is unethical. D. Unethical behavior is usually bad for business. E. Unethical behavior is considered to be undesirable by most societal standards.
a
Amar, a recently retired billionaire investment banker, has established a foundation to help build schools in Southeast Asia. This foundation is engaging in __________.
corporate philanthropy
It occurs when a business owner cannot gain access to adequate business funding.
undercapitalization
Which of the following is NOT one of the major groups of products and services used by the U.S. Bureau of Labor Statistics in determining the consumer price index (CPI)? A. Recreation B. Medical care C. Transportation D. Food and beverages E. Income taxes
E
Which of the following is a disadvantage of a turnkey project? A. Speed of entry B. High transportation costs C. Decreased profits for high-tech firms D. Lack of quality control E. The loss of technical know-how to potential competitors
E
Edward, an American, believes that American culture is superior to all others. What belief is Edward demonstrating?
Ethnocentrism
are the resources a business uses to create goods and services
Factors of production
A set of values shared between Jewish and Christian religions that encourages respect of others and property and being kind to one another.
Judeo-Christian ethics
A clothing manufacturer grants a company in India the exclusive rights to produce and sell its clothing under the manufacturer's brand name in the Indian market. In exchange, the Indian company pays a royalty fee to the clothing manufacturer. What business strategy does this example reflect?
Licensing
focuses on studying the economy as a whole
Macroeconomics
is the perspective that there is no universal moral truth but only a person's individual beliefs, perspectives, and values.
Moral relativism
makes it impossible for any single seller to set the price for their products
Perfect competition
are the doctrines that direct the decisions you make in your life.
Personal ethics
is important to the successful operation of a business
Revenue
consist of the sequences of processes involved in the production and distribution of a product from the supplier to the final consumer.
Supply chains
All of the following statements are true about socialism EXCEPT: A. The majority of economic systems in the world are purely socialist economies. B. The government usually runs social services such as education, health care, retirement and utilities. C. Countries characterized by socialism tend to have high tax rates. D. Socialism tends to disincentivize labor. E. The government is in control of production of many basic businesses and distributes the profits from those businesses evenly among the people.
a
All of the following statements regarding personal ethics are true EXCEPT: A. Ethics can be violated. B. People never violate their personal codes of ethics. C. Ethics can be inconsistent, or situational. D. Ethics are the principles that guide the decisions you make in life. E. Ethics can be clearly defined.
b
All of the following statements about dumping are true EXCEPT: A. Dumping is a deliberate attempt to artificially lower the value of a good or service. B. Dumping is designed to run firms in other countries out of business. C. Dumping involves selling a product to another country at a price higher than that charged by competitors. D. Dumping decreases trade wars between countries. E. Dumping is difficult to stop.
c
All of the following statements regarding ethics are true EXCEPT? A. Ethical behavior is good for both the company and the community. B. Customers appreciate ethical behavior. C. Ethical behavior is good, but should not interfere with maximizing business profits. D. Living ethically is beneficial for your health. E. Personal ethics and business ethics have many similarities.
c
The social environment __________. A. is not important to the operation of a business B. does not include the "green economy" C. includes an aging population D. is at a standstill E. means a company should stay the same, even if customers want the company to change to meet their shifting preferences
c
Which of the following terms best describes legal regulations? A. Laws that are only designed to protect the consumer from unethical business behavior B. Laws that specifically govern the ability of a company to operate in an area that is environmentally sustainable C. Laws that govern the products or processes of an industry D. A code of ethics that provides guidance for company behavior E. Laws which mandate moral behavior in the workplace
c
An economic system where individuals and businesses are responsible for producing and selling goods and services based on customer needs and wants
capitalism
the United States has seen a significant percentage of its steel production move to nations that can produce the product for a cheaper price. The means that the United States has lost its _________ in the steel industry.
competitive advantage
All of the following are goods EXCEPT? tortilla chips B. automobiles C. televisions D. smartphones E. computer repairs
computer repairs
Nike has designed a new shoe, and subcontracts the production to another firm. This practice is known as __________.
contract manufacturing
Which of the following is true about Intellectual property? It is publicly owned. B. It does not include trademarks and patents. C. It encourages competition. D. It is an important business asset. E. It only includes physical products.
d
is usually associated with falling prices (deflation)
depression
The intentional adjustment of the value of a country's currency by its government is known as _______.
devaluing
is the interest rate charged to banks when they borrow emergency funds from the Federal Reserve.
discount rate
have great influence over the pricing and the availability of the products and services they sell.
duopolies
Which of the following statements about financial capital is true? Financial capital includes the physical facilities of a company. B. Financial capital is not used to operate a company. C. Financial capital is not important. D. Financial capital is something an entrepreneur does not have to worry about. E. Financial capital is used to facilitate a business enterprise and can come from both investors and savings.
e
occurs when supply equals demand for a good or service
equilibrium price
Human rights and employment standards; ethical sourcing and procurement; marketing and consumer issues; environmental, health, and safety concerns; and community and good-neighbor policies.
five major areas CSR
Microsoft invests $100 million into the economy of India by purchasing one of its largest information technology firms. This is an example of __________.
foreign direct investment
Lin, an entrepreneur in Shanghai, wants to open up a KFC restaurant there. The best business model for him to use for this purpose is a(n) __________.
franchise
Two countries are able to exchange goods and services with one another without government intervention or other impediments. This is an example of _______.
free trade
the unemployment which exists in any economy due to people being in the process of moving from one job to another. its temporary
frictional unemployment
It involves companies doing business in multiple countries.
globalization
Suppliers will provide more of a good when its price is high.
law of supply
By definition, a company that takes __________ seriously does everything within its power to conform to the laws and regulations of its industry.
legal compliance
A sporting goods company wants to open new stores in several countries and tailor its products to the needs of individuals in the different countries. Which type of strategy does this company use?
multidomestic strategy
exists to service the community, not to earn profit for the owners of the organization
not-for-profit organization
It is usually done in order to save money.
offshoring
Nancy owns a gas station in a small town. Her friend Chuck owns the only other station in the community. One day, Nancy and Chuck get together and decide to drastically raise their prices. This is an example of _______.
price fixing
is a decline in the gross domestic product (GDP) for two or more consecutive quarters
recession
They serve a bigger business area than local businesses.
regional businesses
would be used to assess how well a company is meeting its social responsibilities?
social audit
They are used for both promotion and communication.
social networking sites
An oil company performs an internal study on how well it is meeting the corporate social responsibility goals it has established.
social audit
A home builder in Arizona makes a conscious effort to use as many recycled materials as possible during construction. This builder has a focus on __________ as a business model.
sustainability
Goods __________.
tangible
Stan is the owner of a small auto repair store. For the last 10 years, he's been selling foreign tires at the same price as domestically produced tires. Due to a new __________, Stan is now forced to either sell the foreign tires at a higher price or take a loss on their sale.
tariff
The value of its imports exceeds the value of its exports.
trade deficit