Business Test 1 Study guide

The _____ is an agreement that dramatically lowered trade barriers worldwide and created the new World Trade Organization (WTO). Maastricht Treaty Uruguay Round Mercosur North American Free Trade Agreement International Monetary Fund

b

During a two-month period Lladro Comercial, S.A., the manufacturer of handcrafted porcelains, donated ten percent of its retail profits to the Susan G. Komen Breast Cancer Foundation. The action was legal and ethical and allowed the company to still be profitable. According to the pyramid of corporate social responsibility, it was acting at the _____ responsibilities level. ethical corporate philanthropic

philanthropic

Laws relating to the alcoholic content of beer have required many imported brands of beer to be labeled malt liquor when it is sold in the United States. In addition, all beer sold in the U.S. must contain an expiration date or a "best-buy" date. These laws have made it difficult for small foreign breweries to enter the U.S. market. These laws are an example of: Correct Answer customs regulations export laws nonfinancial tariffs national trade laws You Answered buy-national regulations

a

Corporate philanthropy: a. can be either a cash or a noncash donation b. is the practice of limiting investments to companies that behave in accordance with the investors' code of ethics c. is defined as the corporation's responsibility to satisfy the needs of its investors d. is defined by none of the above e. is not a way that many companies today express their social responsibilities

a

Laws have curtailed smoking, and as a result, the sale of cigarettes is down. Rather than fighting the law, the cigarette industry is looking for ways to take their business beyond cigarettes. Many experts believe that the cigarette producers have found a way around the law with the promotion and distribution of smokeless tobacco, which has shown consistent sales gains over the last decade. In terms of the social responsibility pyramid, at which level is the cigarette industry operating? legal You Answered economic stakeholder ethical philanthropic

a

A code of ethics: is considered by some to be public relations gimmicks can offer a lengthy and detailed set of guidelines to employees is a summary statement of the firm's goals, policies, and priorities is accurately described by all of the above provides employees with the knowledge of what their firm expects in terms of their responsibilities and behavior toward fellow employees, customers, and suppliers

c

The situation in which the average of all prices of products is rising is called:

inflation

Criticism of South Africa's post-apartheid government contends that the new government has not extended liberties to its black majority population, but has instead concentrated on proving to a white minority that a black-run administration can govern a reasonably sophisticated economy and society. The belief that the new South African government is behaving unethically is an expression of the philosophy associated with: consumerism utilitarianism distributive justice social responsibility preconventional morality

b

A country that exports more goods than it imports is said to have a(n): positive trade deficit negative trade deficit favorable balance of payment You Answered unfavorable balance of trade Correct Answer favorable balance of trade

d

Another factor influencing business ethics is _____, or what is fair according to prevailing standards of society. utilitarianism validity righteousness equity justice

d

A _____ is a form of trading arrangement in which part or all of the payment for purchased goods or services is in the form of other goods and services. counteroffer nonfinancial exchange contra-deal counteraction Correct! countertradeRATIONALE: A countertrade is a form of trading arrangement in which part or all of the payment for purchased goods or services is in the form of other goods and services

e

A homebuilder who disposes of asbestos shingles by burying them on his own property may please the home owner because it is a less expensive means of disposal but will be punished by various legal agencies if any become aware of his crime. At which stage of the social responsibility pyramid is the builder most likely operating? economic legal stakeholder ethical philanthropic

economic

Thom Nielssen owns 500 acres of woodland. His forest is an example of which factor of production? Group of answer choicesexpensecapitallabornatural resourcesentrepreneurship

natural resources

Today companies are focusing on _____, which involves building, maintaining, and enhancing interactions with customers and other parties so as to develop long-term satisfaction through mutually beneficial partnerships. Group of answer choices product satisfaction profit maximization relationship management customer maximization a developing strategic alliance

relationship management

Codes of ethics: deal only with external ethical issues and not with internal issues 20._____ is the concern of businesses for the welfare of society as a whole. Social responsibilityB. Business ethicsC. ConsumerismD. The marketing conceptE. Business morality deal only with the employees' relationships with customers and with no other group You Answered contain common ethical dilemmas and provide the appropriate resolutions to employees are typically informal information about how to recognize and deal with ethical problems

B

_____ are laws that require a company earning foreign currency from its exports to sell the foreign currency to a control agency, usually a central bank. Currency policies Favorable exchange regulations Laws of balanced exchange Exchange controls Rates of exchange

d