Intro to Business Exam 1

Which of the following countries has a trade deficit?

A European country that has a higher total value of imports than exports

Which of the following is an example of a nonprofit organization?

A community museum that is funded by a trust and is free for public use

During an especially difficult year of weakening financial conditions, the government of Geriva, a European nation, borrows money to meet its financial obligations. However, once the borrowed amount reaches a certain limit, the government is not allowed to borrow more money. If this was to happen in the United States, it could be said that this is because the government has hit the _____.

A debt ceiling

The Federal Trade Commission:

Actively promotes fair competitive practices

Which of the following statements is true of ethics?

Actions that are completely legal can still be unethical.

A _____ refers to the overage that occurs when more money flows into a nation than out of that nation.

Balance of payments surplus

________ __________ includes any tools that business can use to become more effecient and effective.

Business Technology

In the context of the technological environment of business, which of the following statements is true of e-commerce?

Business-to-business selling comprises the vast majority of total e-commerce sales.

The economic system of the Untied States, also called the free market system, is know as __________.

Capitalism

Socially responsible companies establish what for their vendors and suppliers?

Codes of conduct

A widely accepted social movement that supports a buyer's right to be informed, to be safe, to choose, and to be heard

Consumerism

In the context of ethics and social responsibility, which of the following has become a core issue in the marketplace?

Doing business today without harming the ability of future generations to meet their needs

A(n) _____ is a structure for allocating limited resources.

Economic system

A(n) _____ is a total ban on the international trade of a certain item.

Embargo

In the context of the legal and ethical dimensions of business conduct, it is illegal and unethical to:

Engage in sexual harassment.

The price at which quantity demanded equals quantity supplied is know as the __________ _____.

Equilibrium price

In the context of creating and maintaining an ethical organization, Robert Lane, former CEO of Deere, a highly performing, highly ethical corporation, declares that to establish an ethical culture, _____.

Ethical words must be backed up with documented practices, procedures, all understood around the glob

In the context of global trade, the _____ is a measurement of the value of one nation's currency relative to the currency of other nations.

Exchange rate

In a business cycle, the _____ is a period of robust economic growth and high employment.

Expansion

Consumerism is a widely accepted social movement. Which of the following can be considered a consumer's right?

Expressing legitimate complaints easily.

A firm that expands through foreign franchising is called a franchisee.

False

Authority granted by one company to another to use trademark or patent rights in a defined geographical areas is

Foreign licensing

_____ refers to the unrestricted movement of goods and services across international borders.

Free trade.

In the context of the legal and ethical dimensions of business conduct, embezzling money is:

Illegal and unethical.

Microeconomics focuses on:

Individual businesses.

In the context of fiscal policy, which of the following actions by the government helps boost the economy in the long term?

Investing in public assets, such as a national renewable energy grid

Which of the following statements is true of international trade?

It offers companies an invaluable source of new ideas.

Which of the following statements is true of the technological environment of business?

It represents a rich source of competitive advantages for fast-moving firms.

Two or more companies share resources, risks, and profits without actually merging, to pursue specific opportunities

Joint venture

________ ____ firms offer products just as the market becomes ready to embrace them.

Leading Edge

Promoting high-calorie/low-nutrient foods with inadequate information about the risks is a(n) _____ practice.

Legal and unethical

Promoting high-calorie/low-nutrient foods with inadequate information about the risks is a(n) _____ practice.

Legal but unethical

When a business brings in less money than it needs to cover expenses, it incurs a _____.

Loss

_____ refers to Federal Reserve decisions that shape the economy by influencing interest rates and the supply of cash.

Monetary Policy

The relationship between the goods and services that an economy generates and the resources needed to generate them is

Productivity

In the context of monetary policy, the _____ is a rule set by the Fed, which specifies the minimum amount of funds a bank must hold, expressed as a percentage of the bank's

Reserve requiremnet

Ethics refer to:

Set of beliefs about right and wrong.

The obligation of a business to contribute to society is referred to as _____.

Social responsibility

Differences in language, attitudes, values, gifts, etc. are known as _____________ differences.

Sociocultural.

Chargon Flasks, a restaurant specializing in Asian cuisine, focuses solely on customer satisfaction. It allows patrons to customize the quantity of their meals and only charges them half the price if their meal is unsatisfactory. The restaurant also has a voluntary service charge policy. In this context, which dimension of the business environment is affected the most?

The competitive envirnoment.

During a period of grave financial crisis in the United States, Congress is pressurized to raise the limit on the maximum amount of money the government can borrow. Congress increases the limit on the condition that it will implement sharp tax hikes and across-the-board spending cuts to compensate for the raise and to ensure that the overall budget deficit decreases. In this scenario, the measures implemented by Congress will most likely create:

The fiscal cliff

Buba Joe's Pizzeria, a fast food chain, wants to expand its customer base. It introduced a new range of vegan pizzas to cater specifically to the vegan market. It also introduced new flavors to cater especially to Hispanic Americans. In this context, which dimension of the business environment is affected the most?

The social environment.

In the context of factors of production, which of the following statements is true of natural resources?

The value of all natural resources tends to rise with high demand.

In American business, which of the following statements is true of the industrial revolution?

There was a loss of individual ownership in the production process.

Which of the following statements is true of successful firms

They deliver unsurpassed value to their customers.

The shortfall that occurs when the total value of a nation's imports is higher than the total value of its exports is a

Trade deficit

Social security taxes are a source of revenue for the U.S. federal government.

True

Unless they face major trade barriers, the industries in any country tend to produce products for which they have a _____, which means that they tend to turn out those goods that have the lowest opportunity cost compared to other countries.

comparative advantage

When a country produces more of one good, it must produce less of another good (assuming that resources are finite). The value of the second-best choice—the value of the production that a country gives up in order to produce the first product—represents the _____ of producing the first product.

opportunity cost

_____ is a widely accepted social movement that supports a buyer's right to be informed, to be safe, to choose, and to be heard.

Consumerism

In the context of federal debt, if spending is lower than revenue, the government incurs a budget deficit.

False

People can create natural resources by growing and harvesting agricultural products.

False

_____ means buying products domestically that have been produced or grown in foreign nations.

Importing

Prior to formulating its annual budget, the government of the Asian country of Florenesia employs a number of individuals to look into the overall productivity of the country. These individuals are also responsible for studying and revising some of the taxation policies and gauging the employment rate. Given this information, these individuals are studying _____.

Macroeconomics

When a manufacturer essentially designs a product to fail in order for a customer to repurchase more frequently, this is called _______ ____________.

Planned obsolescence

A ___________ is anyone with a personal interest in a company's activities or performance.

Stakeholders

A tax on the import on certain kinds of goods is called a ______.

Tariffs.

Capital, one of the factors of production, includes machines, tools, buildings, information, and technology.

True