HRM Exam

To qualify as a small business, a manufacturing plant can employ no more than ____ people.

500

What does double taxation mean?

Companies must pay taxes on their earnings, and then stockholders pay taxes on their dividends.

What is the significance of the name preferred stock?

Its claims on dividends are paid before those of common stock.

____ is a market situation (or industry) in which there are few sellers.

Oligopoly

Fluctuations in the nation's economy are referred to as its ________________________.

business cycle

Mars, Inc., maker of M&Ms and other candy, is 100 percent owned by the Mars family and is therefore referred to as a(n) _____.

closed corporation

The form of business organization that accounts for almost 82 percent of all sales revenues in the United States is the _____.

corporation

Which of the following is not a reason for starting a small business?

desire for a guaranteed financial return

You have decided to open a pet store and have engaged in a contract with Dog N' Cat Centers, Inc. You and the company have drawn up an agreement that allows you to use the company's name and its proven method of doing business, to receive training, and to use its advertising materials. In this agreement, Dog N' Cat is the ____ and you are the ____.

franchisor; franchisee

A merger between two firms that make and sell similar products in similar markets is known as a _____.

horizontal merger

The consumer price index (CPI)

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

What are the three sets of factors that influence the standards of behavior in an organization?

opportunity, individual factors, and social factors

The recognition that business activities affect society and the consideration of that impact when making business decisions is referred to as _____.

social responsibility

The fact that insulin and power steering both originated with individual inventors and small companies is testimony to the power of small businesses as providers of _____.

technical innovation

An individual's desire to create a new business is referred to as:

the entrepreneural spirit

The total dollar value of all goods and services produced by all people within the boundaries of a country is called _____.

the gross domestic product

____ resources include the funds needed to pay wages, purchase raw materials, and operate a business.

Financial

You stop at a SUBWAY to get a sandwich for lunch and you notice that they now have TCBY yogurt. This is an example of a _____.

dual-branded franchise

__________________________ are beliefs about what is right and wrong or good or bad.

ethics

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

fiscal policy

The franchisee supplies

labor and capital, and owns and operates the outlet.

The partner who can lose only what he or she has invested in a business is the _____.

limited partner

An economic system in which individuals and businesses make decisions about what to produce and what to buy, and the market determines how much is sold and at what prices, is called a ____ economy.

market

The price at which the demanded quantity is equal to the produced quantity of that product is called the ____ price.

market

Raw materials, buildings, and machinery are ____ resources.

material

When a firm's sales revenue is greater than its expenses, the firm has a _____.

profit

Economists define a ____ as two consecutive three-month periods of decline in a country's gross domestic product.

recession

The reconversion of waste materials into useful products is referred to as __________________.

recycling

Unlimited liability means

the owner is responsible for all business debts.

PepsiCo acquired Pizza Hut. What type of merger was this?

vertical