Bus 101 Quiz 2

A company that has a global vision:

Recognizes and reacts to International business opportunities

Of all forms of business ownership, corporations account for the largest share of both:

Sales and Profits

The _____ is defined as the difference in value of a country's exports and imports over a period of time.

The balance of trade.

For partnerships to be legal, they must be established in writing.

False

Having a global vision simply means having a willingness to sell outside one's national borders if, and when, the opportunity arises.

False

Botswana produces diamonds, copper, nickel, soda ash, meat, and textiles, which it sells to the members of the European Union. To Botswana, the diamonds, copper, nickel, soda ash, meat, and textiles it produces are examples of:

Exports

_____ are goods and services that are made in one country and sold to other countries.

Exports

According to the principle of absolute advantage, each country should specialize in the products that it can produce most readily and cheaply and trade those products for products that foreign countries can produce most readily and cheaply.

False

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

False

Articles of incorporation usually specify the life of a corporation as a certain number of predetermined years.

False

Dissolving a partnership is easier than dissolving a sole proprietorship.

False

If the sole proprietorship acquires a legal business name, the owner then has limited liability.

False

Registration procedures for incorporation are uniform from state to state across the U.S.

False

Telecommunications equipment manufacturers in the United States sell their products to people who live in Canada. To Canadians, the telecommunications equipment is an export.

False

The exchange rate is the interest rate that foreign banks receive when borrowing money from the United States.

False

The sole proprietorship is considered a legal entity; therefore, it is taxed separately from the owner.

False

When Linda McAnem began Stirya, a New York-based computer services company, she ran it as a sole proprietorship. As a sole proprietor, McAnem:

Found the business easy and inexpensive to form.

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

Freedom From Government Regulation

Paul Hyatt owns and operates DeepClean, a Florida-based company that cleans up mold and mildew in homes and businesses. As the sole proprietor of the business, he has unlimited liability, which means:

He is fully liable for all business debts.

The U.S. has one of the very few areas in the world where kaolin can be mined. Kaolin is a necessary ingredient in many products ranging from stomach medication to paper. The U.S.-produced kaolin is sold all over the world. Kaolin is a(n) _____ for the countries that purchase it.

Import

The United States buys copper from Chile's Escondido copper mine. The copper is used to make wiring for the U.S. telecommunications industry and for many other purposes. For the U.S., the copper is an example of a(n):

Import

Jules Sylvester had always loved reptiles. When he was asked by a movie producer if he could locate some anaconda snakes for a movie, a business was born. Sylvester is the proud owner and operator of Reptile Rentals. The California-based business, which he started with no financial help from anyone, is often called on to provide "creepy, crawly" moments in the movies. Jules Sylvester is an example of a:

Sole Propietorship

The form of business ownership that has the most difficulty in raising capital is the:

Sole Proprietorship

The form of business ownership that is easiest to dissolve is the:

Sole Proprietorship

Which type of business organization experiences the least governmental regulation?

Sole Proprietorship

The most common form of business organization is the:

Sole proprietorship

A disadvantage of a partnership is that any partner may have to pay all of the debts of the company regardless of who incurred the debts.

True

International trade-dependent jobs have grown at a rate three times the growth of U.S.-dependent jobs.

True

One of the disadvantages of the sole proprietorship is that the owner has unlimited liability.

True

The corporation's board of directors elects the corporate officers.

True

The difference in value between a country's imports and exports is called its balance of trade.

True

The opposite of free trade is protectionism.

True

The tax that the United States imposes on imported carbon steel products is called a tariff.

True

Canadian logging companies sell timber in the United States. To the U.S., the timber is a(n)_____, and for Canadians, the timber is a(n) _____.

Import; Export

The Blue Bird Bus Company in Georgia sells buses to the South African government. To South Africa, these buses are an example of:

Imports

Mines in Colombia produce emeralds and sell them to jewelers in the United States. To Colombia miners, emeralds are an export.

True

What type of business organization generates the most total sales?

Corporation

_____ are products that are bought from one country for use in another just as the U.S. buys wood pulp and timber from Canada.

Imports

In a limited partnership, all of the partners have limited liability.

false