BUSN test 1 part 3

Fred Pittman has invested $10,000 in his son's motorcycle repair shop, but he takes no part in its management. Pittman is a(n):

limited partner

Singapore has granted a ______ on the importation of beer and stout made in the Philippines. This means that beer and stout made in the Philippines can sell for less in Singapore than beer and stout made by New Zealand or the US

preferential tariff

the quantity of a product or service that businesses will make available at various prices is called:

supply

how does the current boom in mergers and acquisitions differ from ones in earlier years?

There is a greater number of US and foreign companies making cross-border acquisitions.

The _____ is an agreement that dramatically lowered trade barriers worldwide and created the new World Trade Organization (WTO).

Uruguay Round

a "mixed economy" is an economic system that:

combines private and gov. ownership of the factors of production.

Rebecca Siddoway owns and operates Country Candies. Siddoway specializes in making rich, creamy toffees that she packages in attractive gift boxes and sells through the mail. what would be the advantage to Siddoway if she decides to incorporate her business?

corporations have an enhanced ability to attract financing.

a ______ occurs if a country's total expenditures are higher than the revenues received from the taxes it gathers.

federal budget deficit

as the sole proprietor of the business, he has unlimited liability, which means:

he is fully liable for all business debts

the franchisor generally doesn't provide the franchisee with:

help in employee selection

an enterprise in which two or more firms or investors share ownership of a business and its property rights is called a(n):

joint venture

Why do many people fear trade and globalization?

many fear it will lead to massive job losses

The combination of two companies that join to form one company is called a:

merger

The most common form of business organization is the:

sole proprietorship

fiscal policy is concerned with:

taxation and spending

The most fundamental reason for growth in world trade is probably due to:

the need for businesses to expand their markets

why do most large companies have outside directors on their boards?

to bring a fresh view to all of the corporation's activities

corporations account for the largest share of both:

sales and profit

what are the benefits associated with free trade and globalization?

an open economy that spurs innovation

the quantity of a good or service that people are willing to buy at various prices.

demand

when the gov. raises taxes on consumers and businesses, it is dealing with _____ policy

fiscal

The first step into incorporating a company is to:

select the company's name

which of the following provides the legal and managerial guidelines for operating the firm?

bylaws

An economic system based on competition in the marketplace and private ownership of the factors of production is known as:

capitalism

when a single firm accounts for 100% of industry sales, it is an example of:

a pure monopoly

exchange controls

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.

cooperatives

are organizations formed by individuals or businesses with similar interests to achieve greater economies of scale and economic power through collective ownership.

Clarence Danvers is buying a Cinnabon franchise at the airport in Tulsa. Danvers knows that he will get all of the following EXCEPT:

assistance in personal income tax preparation

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.

countertrade

when the economy is in recession, many companies must lay off workers, which causes _______ unemployment

cyclical

The japanese automobile manufacturer Mazda produces the Premacy SUV in Haikou, China at a plant it built in the Chinese province. Mazda is using _____ to engage in global trading.

direct foreign investment

the two types of cooperatives are:

buyer and seller

before selling stock to the public, a corporation must register with the:

Securities and Exchange Commission

why would a company choose to engage in a conglomerate merger instead of a vertical or horizontal merger?

a conglomerate merger is done to reduce risk.

articles of incorporation do not include:

a list of all stockholder's names

IBM purchased MRO software Inc. for $740 million. MRO was a niche provider of software and services to help customers including nuclear power plants and oil companies. IBM. plans to fold MRO into its software unit. This is an example of an

acquisition

the unemployment rate is the percentage of the total work force that is not working but is:

actively looking for work

restricting operating freedom in franchising means that the franchisee must conform to:

all of the above

labor as a factor of production refers to

all workers in business

double taxation in a corporation means:

earnings of the corporation and dividends of the shareholders both are taxed.

an industry in which few firms produce most or all of the output of a product and in which large amounts of capital are needed

oligopoly

in a(n) ______, a few sellers can exert substantial control over prices.

oligopoly

the fact that a corporation has limited liability means:

owners' liabilities are limited to the amount invested

ease of formation, flexibility, and diversity of management are advantages of the ____ form of business ownership.

partnership

An S corporation is generally set up to:

reduce tax burdens

In 1997, Russia and Ukraine exported carbon steel plate into the US at a price much lower than the countries were found guilty of charging identical steel in their home markets. Russia and Ukraine were engaged in:

dumping

as a sole proprietorship, McAnem:

found the business to be easy and inexpensive to form

The ____ is the total amount of money that flows in and out of a country.

balance of payments

The Department of Natural Resources spent money to promote the use of national parks as perfect sites for summer vacation causing motels, campgrounds and other tourist attractions in the private sector to become less attractive to consumers. consequently consumers spent more money on trips to the national parks and less money in the private sectors for their vacations resulting in:

crowding out

Think about the restaurants near you. you have noted some new ones appearing and others closing bc of lack of business. what type of competition is this?

monopolistic competition