BUS 101 Final

Profits are and indicator of which of the following?. A business' success b. The amount of capital investment c. The owner's commitment d. The level of competition

A business' success

1. ABC Company in the US has given exclusive rights to XYZ Company in Switzerland to manufacture its products. What is this an example of? a. a foreign direct investment b. a licensing agreement c. a branch office set up d. a strategic alliance

A licensing agreement

Which of the following best describes an entrepreneur? a. A business owner b. A person who embraces risks and opportunities c. The owner of a profitable business d. A person who lacks vision

A person who embraces risks and opportunities

What is social audit? a. an examination of a company's financial records to determine their conformance with GAAP b. a program to promote consumer activism c. a check on consumer rights d. an analysis of a firm's success in using funds earmarked for meeting its social responsibility goals

An analysis of a firms success in using funds embarked for meeting its social responsibility goals

If the cost of materials increases, which of the following should the business consider as a result? a. Meet with competitors and encourage them to raise prices to reflect the increased cost of materials. b. Immediately raise the price of the product to reflect increased costs. c. Analyze all costs and determine whether there is a way to reduce other production costs and offset the increase in materials. d. Determine what the competitor is doing and adjust your price accordingly

Analyze all costs and determine whether there is a way to reduce other production costs and offset the increase in materials

15. Which of the following is illegal in the United States? a. dumping, but not cartels b. cartels, but not dumping c. only certain kinds of dumping and cartels d. neither dumping nor cartels e. both dumping and cartels

Both dumping and cartels

. What is the name of the document in which an entrepreneur summarizes his or her business strategy for a proposed new venture? a. success chart b. director's guideline c. financial blueprint d. business plan e. balance sheet

Business Plan

Which of the following does a global marketplace present? a. Few competitive risks. b. A safe haven for financiers. c. Business opportunities d. Tax loopholes to be exploited.

Business opportunities

16. In some South American countries, it is sometimes legal to bribe other businesses and government officials, while this practice is illegal in the United States. Which of the following refers to this type of policy? a. protectionism b. business practice laws c. free trade agreements d. fair trade agreements e. local content laws

Business practice laws

An entrepreneur, Christina Rossini, is planning to open a small chain of 4 to 6 pizza store under the brand name "redenda pizza". The name comes from combining the first names of the entrepreneurs grandparents. Christina wants to have a competitive advantage by offering innovative and distinct specialty pizzas and by offering innovative and distinct specialty pizzas and by offering the freshest ingredients. However, she is concerned that without proper planning, her venture will not be successful. Answers to which of the following questions would be Least relevant to determining whether Christina has located a good opportunity in starting Redenda pizza? a. Are there other pizza restaurants in the immediate vicinity of the planned location? b. Is the business of other pizza restaurants in the city growing? c. Does the planned location of the restaurant have competitive rent? d. Will redenda pizza offer unique ingredient in its food offerings? e. Would Christina bring unique talents and ideas to a restaurant business?

C

Which of the following is a factor of production? a. Competitive environment b. Capital c. Trade Agreements d. Exchange rates

Capital

Which of the following should be the first step in assessing ethical behavior in a certain situation? a. Seek the advice of managers. b. Make a judgment based on the outcome of the activity. c. Collect facts related to the situation. d. Gather a range of opinions on the effectiveness of the policy.

Collect facts related to the situation

What is the term for an activity that may benefit the individual to the detriment of his or her employer? a. agency dispute b. proactive stance c. conflict of interest d. ethical standard

Conflict of interest

What must every corporation do in maintaining and reporting its financial status? a. purchase stocks on margin b. use creative accounting practices c. aim to maximize predicted profit margins d. conform to generally accepted accounting principles

Conform to generally accepted accounting principles

Why are lenders most willing to loan to corporations? a. Continuity and legal status are assured. b. Links with owners and founders are established. c. Professional management teams can be changed. d. Commitment to expansion is readily available. e. Brand and marketing strategies can be diversified.

Continuity and legal status are assured

19. What is the main reason why women start new businesses? a. need to earn more money b. preference for working alone c. opportunities for family members d. control in organizing their time e. desire to employ other women

Control in organizing their time

18. Kohler makes and markets familiar kitchen and bathroom fixtures. But Kohler also offers a breadth of other products and services, including furniture, tile and stone, and even small engines and backup power systems. It also owns resorts and spas. Kohler ties this diverse product portfolio together under the mission of "contributing to a higher level of gracious living for those who are touched by our products and services." Kohler's overall objective is to build profitable customer relationships by developing efficient yet beautiful products that embrace the "essence of gracious living." If Kohler became known as a provider of products and services that embrace the "essence of gracious living," which of the following would be the MOST likely result? a. Kohler would feel pressure to expand its business to include a wider range of products and services. b. Customers who had a positive experience with some of Kohler's products would be more interested in trying other Kohler products. c. Kohler's divisions would be more likely to create their own individual mission statements. d. Sales of higher-priced goods and services would increase less than sales of lower-priced goods and services. e. Kohler's customers would be more likely to focus on price and less likely to focus on customer service.

Customers who had a positive experience with some of Kohler's products would be more interested in trying other Kohler products.

16. Which of the following BEST describes a mission? a. an objective that a business hopes and plans to achieve b. a broad set of organizational plans for implementing decisions made for achieving organizational goals c. the shared experiences, stories, beliefs, and norms that characterize an organization d. an organization's statement of how it will achieve its purpose in the environment in which it conducts business e. an organization's competitive standing in the marketplace

D

Which of the following denotes the international organization strategy of finding a partner in the country in which a company would like to conduct business? a. opening a branch office b. developing a strategic alliance c. forming an independent agency d. outsourcing e. investing directly in a foreign venture

Developing a strategic alliance

13. Which of the following denotes a government order forbidding exportation and/or importation of a particular product from a particular country? a. tariff b. embargo c. subsidy d. local content law e. business practice law

Embargo

If the GDP in the United States increases, which of the following will probably result? a. Employment levels will increase. b. Employment levels will remain flat. c. Unemployment rates will increase. d. Wages will increase.

Employment levels will increase

What are the beliefs about what is right and wrong or good and bad called? a. Motivators b. Rules c. Laws d. ethics

Ethics

What are products that are created domestically and transported for sale abroad? a. dumped goods b. exports c. imports d. buy backs e. domestic goods

Exports

What are specific locations of Ramada, McDonald's, and Subway examples of? a. government entities b. university sponsored businesses c. franchises d. networking businesses e. cooperatives

Franchises

Which of the following is a partner who actively manages a firm and has unlimited liability for its debts? a. limited partner b. general partner c. stockholding partner d. public partner

General Partner

The main purpose of business is to provide.. a. goods and services b. community service c. educational assistance programs d. a healthy work environment

Goods and Services

Each of the following is an element of private enterprise, Except which one? a. Government regulations b. Private property rights c. Competition d. Profits

Government Regulations

20. What are products that are created abroad and then transported and sold domestically? a. dumped goods b. exports c. imports d. buy backs e. domestic goods

Imports

Which of the following occurs when someone used confidential info to gain from the purchase or sale of stocks? a. insider trading b. identity theft c. a margin purchase d. a guarantee

Insider trading

17. Which of the following is TRUE about corporate culture? a. It can direct employees' efforts toward goals. b. It is usually determined by outside forces. c. It cannot be changed. d. It is easy to change. e. It rarely affects newcomers in an organization.

It can direct employees effort toward goals

Jordan is a recent college graduate with a degree in computer programming. He has just begun his first full time job and is excited to apply the skills that he worked so hard to acquire. though he excelled as a student, Jordan is anxious about how successful he will be as an employee. When an opportunity unexpectedly presents itself to take credit for a brilliant software program that someone else wrote, Jordan does not resist and claims the program as his own, Which of the following statements must be true about Jordans decisions? a. It does not reveal anything about his beliefs or character. b. It raises questions about his personal ethics. c. It will strengthen his professional skills. d. It was made with careful thought

It raises questions about his personal ethics

9. Which country dominates the Pacific Asia region economically? a. South Korea b. China c. Indonesia d. Japan e. Taiwan

Japan

Which of the following countries is the world's third largest economy, behind that of the United States and European Union? a. China b. India c. Brazil d. Japan e. Russia

Japan

4. What is the process of dealing with employees who are represented by a union? a. labor relations b. human resource management c. negotiation d. arbitration e. contingency recruitment

Labor relations

6. National competitive advantage derives from four conditions, one of which is factor conditions. What do factor conditions include? a. customers, suppliers and labor b. product quality, productivity, and profits c. labor, capital, entrepreneurs, and physical resources d. strategies, structures, and rivalries

Labor, capital entrepreuners and physical resources

Decisions about what to buy and what to sell in the united states are determined by primarily which of the following? a. Laws of supply and demand b. Projected business profit c. Market price d. Demand curve.

Laws of supply and demand

11. Which of the following goals is a primary purpose of tariffs on imports? a. maintain domestic competitiveness b. decrease exports c. increase imports d. subsidize domestic industry e. promote free trade

Maintain domestic competiveness

20. Which business constituents analyze their competitive environments and plan, organize, direct, and control the operations of their organizations? a. Stockholders b. Managers c. Regulators d. Agents e. customers

Managers

12. Which of the following occurs when two firms combine to create a new company? a. acquisition b. takeover c. venture d. divestiture e. merger

Merger

Which of the following defines the US economic system? a. Planned economy b. Socialism economy c. Mixed market economy d. Market economy

Mixed Market Economy

19. What is a difference between an international firm and a multinational firm? a. Multinational firms design, produce, and market products in many nations, whereas international firms are based primarily in one nation. b. International firms design, produce, and market products in many nations, whereas multinational firms are based primarily in one nation. c. International and multinational firms are the same thing. d. Multinational firms are concerned primarily with foreign markets, whereas international firms are concerned primarily with the domestic market. e. International firms are concerned primarily with foreign markets, whereas multinational firms are concerned primarily with the domestic market.

Multinational firms design, produce, and market products in many nations, whereas international firms are based primarily in one nation

8. Which of these is one of the "big five" personality traits? a. Openness b. Logic c. Creativity d. Organization e. musical talent

Musical talent

8. Under which of the following treaties are Canada, the United States, and Mexico gradually eliminating tariffs and all other trade barriers? a. the EURO Agreement b. the Pan-American Agreement c. the North American Free Trade Agreement d. the General Agreement on Tariffs and Trade e. the G-3 Free Trade Agreement

NATO

7. Which would an employee who is productive but refuses to help others or the organization be lacking in? a. organizational citizenship b. workplace aggression c. performance behavior d. personal productivity e. self-esteem

Organizational citizenship

What is the term given to the groups, individuals, and organizations that are directly affected by the practices of an organization? a. primary agents of interest b. social auditors c. organizational stakeholders d. senior managers

Organizational stakeholders

14. What type of business has two or more owners who share in the operation of the firm and are financially responsible for its debts? a. corporation b. partnership c. cooperative d. conglomerate e. nonprofit

Partnership

6. What does turnover refer to? a. people quitting their jobs b. managers reprimanding staff c. employers cutting down costs d. employees calling in sick e. benefits being improved

People quitting their jobs

9. What is the term for behavior that is related to doing a certain job? a. performance behavior b. interpersonal behavior c. disruptive behavior d. potential behavior e. assertive behavior

Performance behavior

Which of the following economic systems has the greatest government control? a. Planned economy b. Privatization c. Mixed market economy d. Market economy

Planned economy

Which of the following is the determining factor of a countrys economic system? a. Members of the G-10 b. The International Monetary Fund (IMF) c. Political leaders d. Popular vote

Political Leaders

If a business wants to maintain growth in a maturing industry, which of the following should be considered? a. Moving operations offshore b. Reducing the workforce c. Product diversification d. Purchasing new equipment

Product diversification

What type of company has stock that is widely held and available for sale to the general public? a. private corporation b. public corporation c. general partnership d. limited liability corporation e. professional corporation

Public corporation

1. Plants Galore is a business selling a range of indoor plants. In the past there has been a problem with plants being stolen by staff. Which of the following represents the biggest limitation in reference checks as a reliable way of assessing the value of prospective employees? a. Reference checks are illegal in a number of states. b. Reference checks obtained from previous employers are out of date. c. Some previous employers may no longer be in business. d. Some reference checks can be time consuming. e. Reference checks tend to only tap positive recommendations.

Reference checks tend to only tap positive recommendations.

In a pure monopoly, price of a product is determined by which of the following? a. Consumer Price Index (CPI) b. Regulatory body c. Referendum to the voters d. Alternative product pricing strategy

Regulatory Body

Which of the following helps entrepreneurs gain skills that are essential for running a business? a. ESOP b. SBICs c. SEC d. LLC e. SBA

SBA

What act was passed in 2002 as a response to a number of highly publicized accounting scandals? a. Sarbanes-Oxley Act b. McCain-Feingold Act c. Dodd-Frank Act d. Securities and Exchange Act

Sarbanes-Oxley Act

In which of the following ways does a service provider differ from a goods producer? a. services are produced and consumed simultaneously. b. Services do not have customers. c. Services don't need to be branded. d. Services are easier to produce.

Services are produced and consumed simultaneously

17. What is the major drawback of accepting venture capital? a. sharing company control b. having to pay high interest rates c. limiting expansion d. facing a short repayment period e. having to write a proposal

Sharing company control

What term refers to the way in which a business tries to balance its commitments to group and individuals in its social environment? a. business ethics b. social responsibility c. stakeholder consciousness d. corporatization

Social Responsibility

Which of the following refers to the total quantity and quality goods and services that can be purchased with the currency used in a country's economic system? a. Standard of living b. Purchasing power c. GDP per capita d. Gross National Product (GNP)

Standard of living

As gasoline price increase, which of the following will happen? a. Demand will increase. b. Supply will be reduced. c. Supply will increase. d. Demand will drop significantly.

Supply will increase.

10. Which country is the world's largest marketplace and most stable economy? a. the United States b. Canada c. Germany d. Japan e. China

The US

Why has climate change become a major issue for both business and government? a. The body of scientific evidence is inconclusive. b. The solutions to the problems are unanimous. c. The effects are confined to national boundaries. d. The change in climate patters affects the entire planet.

The change in climate patterns affects the entire Planet

7. Which of the following BEST describes a positive trade balance? a. the economic condition in which a country's exports exceed its imports b. the economic condition in which a country's imports exceed its exports c. the economic condition in which a country's inflow of money exceeds its outflow d. the economic condition in which a country's outflow of money exceeds its inflow e. the economic condition in which a country's natural resources exceed its human resources

The economic condition in which a countrys exports exceed its import

20. An entrepreneur, Christina Rossini, is planning to open a small chain of 4 to 6 pizza stores under the brand name "Redenda Pizza." The name comes from combining the first names of the entrepreneur's grandparents. Christina wants to have a competitive advantage by offering innovative and distinct specialty pizzas and by offering the freshest ingredients. However, she is concerned that without proper planning, her venture will not be successful. Which of the following, if true, would strengthen the case that Christina has a good opportunity in opening a new pizza restaurant? a. There are many existing pizza restaurants in Christina's city. b. The pizza business in Christina's city has remained largely unchanged for many years. c. Restaurant consumers in Christina's city most frequent Mexican restaurants. d. Pizza restaurants require several experienced employees to be successful. e. Pizza restaurants can be found in almost any town in the United States.

The pizza business in christinas city has remained largely unchanged for many years

Which of the following best defines the term "economic system"? a. How a country determines currency b. The system for determining interest rates c. The system for allocating resources d. A system for creating trade agreements

The system for allocating resources

14. Which organization created the classification of countries based on per capita income? a. the World Bank b. the World Trade Organization c. he International Monetary Fund d. the European Union e. the North American Free Trade Agreement

The world bank

Which of the following BEST describes the effects of leadership neutralizers in an organization? a. They tend to make leader behavior ineffective. b. They tend to make leaders more charismatic. c. They tend to outweigh the need for leader behavior. d. They tend to make managers become effective leaders. e. They tend to make leaders more neutral toward employees

They tend to make leader behavior ineffective

10. Entrepreneurs often have more than one goal for starting a business and becoming self-employed. Which of the following reasons is the LEAST common goal of entrepreneurs? a. to seek independence and be their own boss b. to earn a comfortable living for a period of time c. to grow and expand a current business d. to meet community or social obligations e. to provide for their financial needs

To meet community or social obligations

2. Which of the following refers to the situation when a country's imports exceeds its exports? a. balance of payments b. balance of trade c. trade deficits d. trade surplus

Trade deficits

What is the term for an employee who detects and tries to put an end to a companys unethical, illegal and/or socially irresponsible actions by publicizing them? a. whistle-blower b. corporate lookout c. fast-track manager d. government inspector

Whistle blower

8. What is the MOST effective way for an entrepreneur to become a competent manager? a. working alone b. relying on luck c. getting a college degree d. being open to opportunities e. working for a successful company first

Working for a successful company first

3. Ford, an American car company, purchased Volvo, which is based in Sweden. What is this an example of? a. a multinational firm b. a licensing agreement c. a foreign direct investment d. a strategic investment

a foreign direct investment

A husband and wife have just opened a gymnastics center, with the hope of training future Olympians. They desire to run their center in a socially responsible way. Which of the following should they certainly avoid? a. Purchase of substandard gym equipment b. Advertising methods intended to profit the center c. doubling of enrollment fees for the program d provision of attractive salaries for employees

a. Purchase of substandard gym equipment

Which statement about codes of ethics is FALSE? a. fewer and fewer companies are adopting codes of ethics b. codes of ethics are determined by company managers c. some ethical responses can be learned through experience d. social responsibility involves providing quality products and pricing products fairly

a. fewer and fewer companies are adopting codes of ethics

5. Which of the following exists when a country can produce something more cheaply and/or of higher quality than any other country can? a. monopolistic advantage b. resource advantage c. absolute advantage d. national advantage

absolute advantage

Which of the following has not been identified as a basic consumer right a. a right to safe products b. a right to low prices c. a right to be heard d. a right to choose what they buy

b. a right to low prices

5. Which plan refers to compensation other than wages and salaries and other incentive pay offered by a firm to its workers? a. profit-sharing b. gainsharing c. benefits d. pay-for-knowledge e. variable

benefits

Which of the following would not be included among the primary agents of interest with regard to a companys ethical behavior? a. stockholders b. unions c. bloggers d. customers

bloggers

Each of the following is a benefit of business Except which one? a. Business enhances the income of owners b. business creates jobs c. Businesses produce goods and services d. Business improves the quality of education

d. Business improves the quality of education

What is likely the single most effective that that a company can take to set ethical standards a. offer large cash awards for whistle blowing b. Suggest that employees take ethics training c. Post Ethical rules on bulletin boards d. Demonstrate support from top management

d. Demonstrate support from top management

The omega groups mission statement conveys a primary commitment to compassionately improving the lives of elderly citizens. What is least likely to be true of the companys ethical code? a. The company values the well-being of others. b. The company believes that all people have worth. c. The company prohibits age discrimination when hiring employees. d. The company expects and requires elderly citizens to contribute to society

d. the company expects and requires elderly citizens to contribute to society

14. Which of the following is the name for choosing one alternative from among several options? a. decision making b. assessment c. evaluation d. discernment e. arbitration

decision making

19. What type of skills requires defining problems and selecting the best course of action to take? a. human relations skills b. production skills c. conceptual skills d. decision-making skills e. technical skills

decision making skills

11. Which of the following statements is the MOST accurate? a. Effective managers lead for stability, whereas visionary leaders lead for change. b. Effective leaders lead for stability, whereas visionary managers lead for change. c. Visionary managers lead for stability, whereas effective leaders lead for change. d. Strategic leaders lead for stability, whereas transforming leaders lead for change. e. Strategic managers lead for stability, whereas transforming managers lead for change

effective managers lead for stability, whereas visionary leaders lead to for change

9. Which of the following is the MOST significant recent trend in small-business start-ups? a. entrepreneurs who cross over from big business b. increased opportunities for minorities c. increased opportunities for women d. emergence of e-commerce e. global economic downturn

emergence of e-commerce

15. Recent corporate scandals at firms like Enron have brought increased attention to what area of leadership? a. virtual leadership b. ethical leadership c. strategic leadership d. employee-focused leadership e. charismatic leadership

ethical leadership

13. Managers at Adidas had a hunch that their sponsorship deal with the Yankees would be a good one. Their feelings were based on what concept? a. escalation of commitment b. risk propensity c. intuition d. perception e. rational decision making

intution

Which of the following factors MOST contributes to small business failure? a. managerial incompetence or inexperience b. bad product design c. legal problems d. time spent raising capital e. personnel issues

managerial incompetence or inexperience

2. Fletcher is meeting with each of his subordinates to discuss their performance over the past year. What process is he involved in? a. job description b. labor negotiations c. vestibule assessment d. performance appraisal e. financial remuneration

performance appraisal

3. Which of the following is considered the starting point of effective human resource management? a. external staffing b. recruitment c. planning d. financing e. compensation

planning

If a company believes the business sector is saturated with competitors, which of the following should it consider? a. Product differentiation b. A buy-out or acquisition of some of the competition c. Create a price war with the competition d. Relocation of the business

product differentiation

Which of the following is not an element of green marketing? a. profitability b. sustainability c. production processes d. package reduction

profitability

4. Which of the following is a government payment to help a domestic business compete with foreign firms? a. revenue tariff b. import buy-back c. export rebate d. subsidy

subsidy

Carlas collegiate exchange, a popular bookseller among university students, has just drafted its mission statement. the company seeks to sell books on a sliding scale based on a students available income. What does this most likely reveal about the companys ethical code? a. The company believes financially challenged students should not be hindered from succeeding educationally. b. The company is most motivated by a desire for greater profits. c. The company is not concerned with fostering the success of others. d. The company believes that poor individuals should be given a greater chance at success that wealthy individuals.

the company believes financially challenged students should not be hindered from succeeding educationally.

10. What is the Hawthorne effect? a. the belief that employees are motivated by money alone b. the conclusion that workers are more productive if management pays attention to them c. the determination that the level of lighting in a workplace has no effect on productivity d. the theory that workers are more productive if their jobs are analyzed closely

the conclusion that workers are more productive if management pays attention to them

According to SBA estimates, what percent of all new businesses can expect to survive for at least four years? a. 14 percent b. 24 percent c. 44 percent d. 64 percent e. 84 percent

44 percent

The U.S. Department of Commerce considers a business "small" if it has fewer than how many employees? a. 10 b. 50 c. 100 d. 500 e. 1,500

500

15. Today, what percent of all businesses in the United States are registered as sole proprietors? a. 94 percent b. 74 percent c. 54 percent d. 28 percent e. 10 percent

74 percent

13. Approximately what percent of all U.S. businesses employ 20 or fewer people? a. 89 percent b. 69 percent c. 49 percent d. 29 percent e. 19 percent

89 percent