Business Exam 1

When Sony Corporation of Japan purchased Columbia Pictures Entertainment, Inc. of the United States, Sony made a(n)

direct investment in the United States.

Households provide all of the following resources to businesses except

dividends.

The organized effort of individuals to produce and sell, for a profit, the products and services that satisfy society's needs through the Internet is known as

e-business.

The Saudi Arabian government does not allow the consumption of alcoholic beverages within its country. The Saudi Arabian government is imposing a(n)

embargo.

Fei Alix is an ethics officer at a large financial institution. She likely performs all of the following duties except

encouraging all employees to be whistle-blowers.

Arguments for imposing trade restrictions include

equalizing a nation's balance of payments

The United States wants to limit the amount of dollars that another country can obtain. The best way to accomplish this is to

establish a foreign-exchange control.

Refer to Landfall Service. The Landfall Service does mostly

exporting.

Selling and shipping raw materials or products to other nations is called

exporting.

The United States sells industrial supplies and materials to many nations around the world. The United States thus engages in

exporting.

The payments portion of the balance of payments--that is, payments made by the United States--does not include

exports.

The economic term used to describe the government's influence on savings and changing the levels of government spending is

fiscal policy.

When an Indian importing firm wants to import U.S.-made products, it must first secure permission and dollars from the Reserve Bank of India. This type of restriction is known as a

foreign-exchange control.

Legislation requires that all non-salaried employees who work more than 40 hours a week be paid over-time for the week. This legislation is an example of

government's role in encouraging ethics.

All of the following would typically be considered consumer products except a

high-powered drill press.

Stephanie would like to study abroad for a year before graduating from college. She would like to live someplace that is close to her native country of Ireland in terms of development because she will need to use the Internet for many of her classes. She can choose from programs in three countries. What could she use to measure the economic performance of the three countries?

Gross Domestic Product.

In the early 1980s, Craig Anderson, a corporate finance manager, was faced with which of the following problems?

High inflation rates

Which bank includes main goals of promoting exchange rate stability and assisting in establishing a multilateral system of payments?

The International Monetary Fund

Apple is an example of a company that makes products using international resources. This company is an example of international

interconnectedness and independence.

The consumer price index (CPI)

is a monthly index that tracks the prices paid by consumers.

The rivalry among businesses for sales to potential customers

is referred to as competition.

Refer to Thomas Bernerd, Inc. Which agency should the managers at Thomas Bernerd, Inc. seek assistance from?

U.S. Export Assistance Centers

Because Saudi Arabia and Australia have ____, Saudi Arabia can specialize in the production of crude oil and petroleum products, and Australia can specialize in the production of wool.

an absolute advantage

Bill had a problem with a coffee maker he purchased recently. He has been trying for days to speak with the company by calling its toll-free number, but it rings forever or sends him through a long menu with no opportunity to speak to an individual or to leave a message. Steve feels his basic consumer right to ____ has been violated.

be heard

Citizens have a right to demonstrate against unfair rate increases and safety violations as well as other issues. In doing so, they exercise their right to

be heard.

Fluctuations in a nation's economy are referred to as its

business cycle

Proponents of the socioeconomic model of social responsibility make all of the following arguments to support their position except

by being social responsible the company will make more money.

Henry Spring, a chef at a major restaurant in San Francisco, wants to start his own restaurant. He surveys the market, finds a suitable location, and calculates how much money he will need to lease the building and purchase the necessary equipment and supplies. Henry visits his banker and requests a loan. The money Henry will receive from the loan and the resources he will purchase with it are known as

capital

A system where the basic economic questions are determined, at least to some degree, through centralized government planning is referred to as a ____ economy.

command

In the first three decades of the twentieth century, working conditions were horrible and dangerous, and abuses were common. Most people of the time believed these abuses would be rectified by

competition and interaction in the marketplace.

When a business has plants located in several foreign countries without ties to any specific nation or region, it is called a(n)

multinational enterprise

When people in an industrialized society contaminate the environment, the action is called

pollution

The socioeconomic model of social responsibility places primary emphasis on

quality of life

When the United States levies a tax on coffee from Colombia, this type of tax is a(n)

tariff.

Productivity can best be described as

the average level of output per worker per hour

Cultural diversity represents

the differences among people in a workforce

One of Samuel Slater's contributions to the development of American business was the use of

the factory system.

All of the following are reasons against having trade restrictions except

the protection of the health of citizens

HGR Chemical Company believes the environmental regulations for its industry are much more stringent than necessary, which likely means

they are too expensive to comply with.

The Organization of Petroleum Exporting Countries (OPEC)

was conceived as a collective-bargaining unit.

While the global economy continued to grow robustly until 2007, economic performance ______.

was sluggish then stopped in 2009.

The governments of the United States and Canada have recently signed an agreement to cooperate in eliminating acid rain. Their efforts are primarily an attempt to reduce

water pollution

Hermes is an immigrant from a country in which it is a normal business practice to give a gratuity to a government employee responsible for recording documents. When he goes to the county recorder to record a tract map for his employer, he offers a gratuity to the agent who is handling the transaction. The agent declines the gift and tells Hermes that what he has done is unethical and he has just committed a crime. Hermes is confused since he wasn't asking the agent to do anything special for him—he was just recording the tract map. Which of the following statements is the best advice you could give Hermes in light of this situation.

"Hermes, you have fallen victim to social factors that affect ethical behavior. In your country, it was the cultural norm to offer a gratuity to a recording agent; in this country, that is not the case."

____ is the study of how wealth is created and distributed.

Finance

When did the U.S. government become more deeply involved in business than it had been previously?

After the Korean War

Which of the following is uncharacteristic of a socialist economy?

All capital and capital goods are privately owned.

Kai promised to repair Krystal's car on Thursday. After picking up the necessary part at a junkyard, he discovered he could not do the job after all and that the junkyard would not buy back the part. Krystal does not know about these developments. However, she thinks Kai will be finished with her car sometime today. What should Kai do?

Call Krystal to inform her of the problem, and recommend a reputable repair shop.

What specific gas is internationally considered a top concern for air pollution?

Carbon Dioxide

Eleven republics of the former Soviet Union are members of the

Commonwealth of Independent States.

____ is the ability to produce a specific product more efficiently than any other product.

Comparative advantage

Of the following, which is not considered a basic management function necessary to be an effective manager?

Selling

In 1915, Gracie Phillips, mother of seven, lost her husband in a horrible industrial accident that could have easily been prevented. Soon after, Gracie decided to take legal action against the company. What obstacle did she likely encounter?

She will find out that court is very expensive, and her chances of winning are extremely slim.

Through a combination of direct generation and credits, the City of Las Vegas is powering streetlights and more than 140 municipal buildings and facilities with renewable sources. In addition to the city government's efforts, the casinos in Las Vegas donate food waste from the restaurants to a local pig farm. Which of the following is the most accurate description of the environmental efforts taken by the City of Las Vegas and the casinos there?

The city government of Las Vegas is engaged in using alternate energy resources to power municipal buildings and street lights while the casinos are engaged in recycling food waste

Lauren is the assistant manager of a midsized logistics firm. She believes her manager, Roger, has become carried away with supporting nonprofit organizations and encouraging employees to do community service. What argument would Lauren most likely use to turn Roger to her point of view?

The company's time and money should be spent maximizing the owner's wealth, not solving society's problems

In 2001, Deborah Williams was fired from her sales clerk's job at the Walgreens store in North Mall after refusing to work on Sundays. The Christian Reformed Church, of which she was a member, prohibited working on Sunday. Therefore, she did not go to work on those days even though she was scheduled to do so. Ms. Williams filed a lawsuit against the company because she felt her rights had been violated. Which rights were violated?

The rights to equal treatment in the workplace

You have been asked to complete this year's social responsibility report for the insurance industry. Which of the following statements would you include as a valid indication of socially responsible activities in this industry?

This year, more than 300,000 volunteer hours were contributed by companies through loaned executives and release-time (time off) arrangements.

You are the executive vice president for Netherland Tires. You have the responsibility to locate land for a new distribution center in Mississippi, and you own over 1,000 acres of land near one site in Tupelo. This could create for you

a conflict of interest.

Kroger grocery stores would most likely be classified as

a marketing intermediary.

Although all casual clothing ultimately provides the same purpose, companies such as The Gap strive to make their brand seem unique from the many other brands available on the market. The market for casual clothing can best be characterized as

monopolistic competition

As far as business is concerned, six of the most important federal laws passed between 1887 and 1914 supported

more competition