Chapter 2 and 3 study guide bruh

The United States is now considered a service-oriented economy, with the service industry accounting for an estimated _____________________ percent of the total U.S. economy.

80

Approximately _____________________ percent of Fortune 500 companies have a written environmental policy.

83

Which of the following is not a product?

Business Profit

Businesses have the right to keep and use their profits as they choose, without limitations.

False

Direct investment is the least risky and least expensive way to participate in foreign trade.

False

Managers consider social responsibility on an annual basis.

False

Maquiladoras are possible under the Asia-Pacific Economic Cooperation.

False

The WTO agreements are the optional ground rules for international commerce.

False

The concept of social responsibility is universally accepted.

False

_____________________ can be harmful if individuals' incomes do not increase at the same pace as rising prices because it reduces their buying power.

Inflation

Which of the following statements about business ethics is false?

It concerns the impact of a business's activities on society.

An understanding of which of the following realities is not required for businesspeople to plan in a global economy?

Personal

_____________________ exists when there are many small businesses selling one standardized product.

Pure competition

Licensing is a way of entering the international marketplace without spending large amounts of money abroad.

True

Which of the following should help reduce the incidence of unethical behavior in an organization?

Understanding that individual moral standards, the influence of managers and coworkers, and opportunity influence ethical behavior

Philanthropic contributions made by a business to a charitable organization represent which dimension of social responsibility?

Voluntary

The fact that the American company 3M owns a film-manufacturing facility in Italy is an example of

a direct investment.

Even when products are standardized, _____ often has to be modified internationally.

advertising

Making claims about dietary supplements or the health benefits of certain unproven ingredients is an issue related to:

communications.

When Nike has its athletic shoes produced by companies in Asia, the Nike name still appears on the shoes. This illustrates

contract manufacturing.

What is considered ethical may differ depending on the _____________________ in which a business operates.

culture

Increased unemployment can reduce consumer demand for goods and services, leading to

deflation.

Unethical behavior in business can be reduced if management does all of the following except

depend totally on employees' personal ethics.

Many businesses, recognizing that employees lack many basic work skills, are becoming more concerned about the quality of _____________________ in the United States.

education

The function concerned with obtaining and managing money and using it effectively is called

finance.

The Sarbanes-Oxley Act was passed to

help restore confidence in Corporate America.

Obeying the law is a business' _____________________.

legal responsibility

When Lever Brothers changes the formula of its bar soap to match different countries' water conditions and washing habits, this is an example of a

multinational strategy.

According to the text, ethical decisions in an organization are influenced by (1) individual moral standards, (2) the influence of managers and co-workers, and (3)

opportunity codes and compliance requirements.

The _____________________ gives consumers the freedom to review complete information about the products they are buying.

right to be informed

The primary problem with a trade deficit is

that more cash is leaving the country than is entering.