Intro to Business - Fall Final Exam Questions

Who among the following people is most likely to become a necessity entrepreneur?

A person who experiences discrimination in the standard workplace

Grettzee, a musical instruments manufacturing company, imports high-quality maple wood from Resumbro, a South Asian country where maple is found in abundance. Which of the following is most likely to have influenced Grettzee's decision to import raw materials from Resumbro?

Access to factors of production

Which of the following statements is true of ethics?

Actions that are completely legal can still be unethical.

In the context of key economic considerations when entering a foreign market, which of the following is an example of the transportation infrastructure in a country?

Airports

In the context of international trade, which of the following companies is facing the barrier of legal differences?

An Asian company that can only import a limited amount of crude oil from an Arab country because of international trade restrictions

Which of the following countries most likely has a comparative advantage?

An Asian country that produces quality automobiles with little opportunity cost compared to other countries

Which of the following countries is involved in countertrade?

An Asian country that provides sugarcane to an African country in exchange for jute

In the context of the various strategies that can help a small business owner succeed, a _____ provides an invaluable way to keep an entrepreneur and his or her team focused on success; it is also absolutely crucial for obtaining outside funding.

Business Plan

One of the ways by which companies can show their responsibility toward the environment is by reducing their _____.

Carbon Footprint

Jenna left her job as an analyst in a reputed company to start her own event management company at a time when event management was not in vogue. She was bold enough to take this step despite knowing the amount of risk involved. Which entrepreneurial characteristic is highlighted in the given scenario?

Confidence

A _____ is a form of business ownership in which the business is considered a legal entity that is separate and distinct from its owners.

Corporation

_____ is the process of funding ventures by raising money from a large number of investors via the Internet.

Crowdfunding

Which of the following is an issue associated with general partnerships?

Difficulty faced by a partner when withdrawing from the company

In September 2008, during the fiscal crisis in the United States, the stock market lost more than a third of its value, and 11.1 million Americans were out of work. Neither businesses nor individuals could borrow funds to meet their needs. Which of the following dimensions of the business environment does this illustrate?

Economic Environment

In the context of international trade restrictions, a(n) ______ is a total ban on the international trade of a certain item.

Embargo

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 Rates

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

Expressing legitimate complaints easily

In the context of your career choice, your own business skills cannot influence the level of your personal financial success.

False

Sam quits his nine-to-five job at a multinational company and starts his own event management company. In his new company, he does not practice a nine-to-five work regime. Instead, he organizes meetings with clients by making appointments that favor his schedule. Which of the following advantages of entrepreneurship is highlighted in the given scenario?

Flexibility

John and Lena sign a contract with the owner of Little Fairy, a well-known preschool chain, to start a preschool in their city. They take permission from the owner to use the name and products of Little Fairy. They also furnish their preschool in Little Fairy's trademark style. In this scenario, John and Lena are starting a _____.

Franchise

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

Free Trade

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

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

Richard, an employee in an investment firm, was dissatisfied with the way his superiors handled business dealings. For that reason, he quit his job and started his own business so that he is able to make all management decisions without interference from anyone. Which advantage of entrepreneurship is highlighted in the given scenario?

Independence

Which of the following is a difference between inflation and deflation?

Inflation is a period of rising average prices across an economy, whereas deflation is a period of falling average prices across the economy.

Which of the following categories of people is most likely to step into entrepreneurship?

People who have trouble being subordinates because of their personalities

Which of the following is an example of a natural monopoly?

Public Utilities

In a business cycle, the _____ is the transition period between contraction and expansion.

Recovery

Which of the following statements is true of buying an established business?

Relationships with customers are already established.

Which of the following is an advantage of a C corporation?

Shareholders have limited liability in the firm.

With an increasing number of workers facing challenges such as raising kids and caring for elderly parents, responsible companies are stepping in with programs such as on-site day care, company-sponsored day camp, and referral services for elder care. These actions show that these companies are fulfilling their ____

Social Responsibility

Lily, a salesperson at a clothing store, observes the department head misbehaving with a customer. She brings the issue to the notice of the store manager, and the offender is immediately dismissed from his job. In this scenario, Lily is a _____

Whistle-blower

A sole proprietorship is a form of business ownership in which:

a single owner actively manages the company.

In the context of monitoring ethics and social responsibility, when firms monitor themselves, the process is referred to as ____.

a social audit

A group of countries that have eliminated tariffs and harmonized trading rules to facilitate the free flow of goods among the member nations

common market

In Fidaro, a North American country, punctuality is considered a sign of integrity. On the other hand, in Gwary, an African country, punctuality is considered a sign of anxiety and is given less importance. This exemplifies

sociocultural differences

In the context of barriers to international trade, ______ include differences among countries in language, attitudes, and values.

sociocultural differences

CappaStreet is a company that produces gourmet coffee. The company's employees, the coffee bean growers who supply raw materials to the company, the people who purchase its coffee, and the people who live in the community where the company has its production unit are CappaStreet's

stakeholders

Economics is

study of the choices made by people, companies, and governments to allocate society's resources

In the context of factors of production, the things that a business needs to produce goods or services are referred to as

synthetic resources

Leading-edge companies have focused on customer satisfaction, with a goal to develop long-term, mutually beneficial relationships with customers. Which of the following dimensions of a business environment does this illustrate?

the competitive environment

The central banking system in the country of Darmos issues a notice to all its commercial banks stating that they must hold funds that are equal to 48% of the deposits held by their customers. In the given scenario, the central banking system's notice exemplifies _____.

the reserve requirement

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

Prost was the first automobile company in the world to introduce child safety locks in its vehicles. This feature soon became a major selling point for consumers all over the world. As a result, other automobile companies began providing a similar feature in their vehicles. In this scenario, which of the following is most likely to have influenced other companies to install child safety locks?

Inflow of innovation

"I am in charge of what happens to me and the things I accomplish." This statement would be said by someone with

Internal Locus of Control

In the context of mixed economies, which of the following statements is true of the U.S. federal government?

It is part owner in a number of financial institutions.

Identify a true statement about the Federal Reserve.

It manages the monetary policy of the United States.

Which is the part of economics concerned with single factors and the effects of individual decisions

Microeconomics

Tornio, a steel company, imports iron ore from Marquette iron range in Michigan. In this scenario, the iron ore obtained by Tornio can be classified as

Natural resources

Gregory was a typist at a corporate firm. When the company adopted a special voice recognition software for the purpose of documentation, Gregory's job became redundant. Therefore, he was laid off. The increased use of technology in most companies has made Gregory's skills inessential, and he remained unemployed for a long time. In the given scenario, Gregory is facing _____.

Structural Unemployment

Felix lost his job at an investment firm because of downsizing during a period of recession. To keep himself financially stable, he opened a food truck that became a huge success. Which of the following advantages of entrepreneurship initially motivated Felix to start the food truck?

Survival

Which of the following is a key dimension of the business environment?

The Technological Environment

In the context of the U.S. economy, which of the following statements is true of small businesses?

They often display a refreshing lack of bureaucracy.

Which of the following statements is true of sole proprietors?

They often must perform tasks in areas where they lack expertise.

In the context of small business opportunities, which of the following statements is true of market niches?

They tend to be quite attractive to small firms.

Which of the following is a characteristic of successful entrepreneurs?

Tolerance of Uncertainty

Brian had started a new business venture using majority of his savings. However, his divorce affected him monetarily because of which he had to shut down his business. Which of the following threats is highlighted in the given scenario?

Too little money

When the total value of a nation's exports is higher than the total value of its imports, that country has a(n)

Trade Surplus

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

True

Value is the relationship between the price of a good or a service and the benefits that it offers its customers.

True

Fabotels is a hotel aggregator that buys budget hotels that succumb to financial losses and then refurbishes them under the company's brand name. Fabotels recently purchased Ravine Comforts, a small lodge that was running into huge debts. The business deal between Fabotels and Ravine Comforts exemplifies a(n) _____.

acquisition

In the context of business ethics, _____ refers to a decision that involves a conflict of values

an ethical dilemma

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

balance of payments surplus

A textile corporation has two hundred odd stockholders. As it is inconvenient for so many stockholders to manage the company, the stockholders elect a group of individuals to oversee the company's operation and to represent their interests. In this scenario, the stockholders elect a _____.

board of directors

Conall is appointed by a nine-member board of directors of a real estate company to manage the company on a daily basis. The board ensures that Conall acts in a manner that is consistent with the interests of the stockholders. Given this information, Conall is most likely a _____.

chief executive officer

The most socially responsible companies establish _____ for their vendors, setting clear policies for human rights, wages, safety, and environmental impact.

codes of conduct

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

collaborate with other medical clinics to guarantee low prices in low-income counties.

In a sole proprietorship, any debts the company incurs are:

considered to be the owner's personal liabilities.

Companies typically engage in _____ to meet the needs of customers that don't have access to hard currency or credit

countertrade

People with an external locus of control

feel that they have complete control over their lives.

Rubicon Inc., an American guitar manufacturing company, signed a contract with a supplier in Umreia, an Asian country, to manufacture guitars. Rubicon then imported these products and sold them in its markets under its own brand name. Rubicon did this because of the availability of cheap labor in Umreia that substantially cut down Rubicon's cost of production. In this scenario, Rubicon is most likely involved in

foreign outsourcing

In the context of codes of ethics, the purpose of a written code is to:

give employees the information they need to make ethical decisions across a range of situations.

Similar to a corporation, all owners of a limited liability company (LLC):

have restricted debts.

James employs an apprentice in his guitar store who gets firsthand knowledge of craftsmanship and the process involved in becoming a professional luthier. This allows James to have a reliable hand who can assist him in his work without requiring him to hire a professional luthier. It also enables him to use his financial resources on procuring high-quality materials to make the guitars. The opportunity of _____ is highlighted in the given scenario.

having lower overhead costs

Unlike a sole proprietorship, a corporation:

is considered to be a legal entity that is separate and distinct from its owners.

Mark is very passionate about music and opens a recording studio of his own. However, he does not know much about running a business and within a short period, starts running into losses. Therefore, he shuts down the business. Which of the following threats is highlighted in the given scenario?

lack of knowledge

To achieve its basic mission of promoting international economic cooperation and stable growth, the International Monetary Fund (IMF)

lends money to member nations.

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

In the context of the history of American business, during the _____, businesses began to develop distinctive identities and strategies to help customers understand the differences among various products.

marketing era

Happta is a corporation with tax-exempt status. It has members but cannot have stockholders. Given this information, Happta is most likely a(n):

not-for-profit corporation.

In the context of small business opportunities, because of their size, many small firms can:

offer personal customer service.

A(n) _____ is a voluntary agreement under which two or more people act as co-owners of a business for profit.

partnership

Peter, the CEO of a multinational company, has a deep understanding of other people's needs and behaviors. He easily relates to another's situation, feelings, and motives—all qualities that strongly predict a high level of ethical leadership. Given this information, Peter most likely possesses _____.

personal empathy

Herbert gained most of the capital for his new start-up project by posting a small demonstration of his product on a website that he created especially for the project. Many people showed genuine interest in his product and donated money to help him launch it. In the given scenario, Herbert:

received money for his venture through crowdfunding.

Universal ethical standards can solve the problem of too many people viewing ethics as _____.

relative

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 deposits.

reserve requirement

Ethics refer to:

sets of beliefs about right and wrong

Andrew, an employee in a corporate company, is asked to conduct a systematic evaluation of how well the company is meeting its ethics and corporate responsibility goals. In the given scenario, Andrew is most likely asked to do a _____

social audit

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

social responsibility

Priscilla is a trader of silver and diamond jewelry. Due to a recessionary trend in the industry, her business has not been making any profits for a few months. As the end of this economic trend cannot be easily ascertained, she decides to get her house mortgaged so that she can add a new line of business of trading in semi-precious stones. This financial risk appetite of Priscilla illustrates her _____ as an entrepreneur.

tolerance of uncertainty

An advantage of franchising is the:

training and support provided by the franchisor.

When Rotomate, a technology solutions company, started producing portable GPS tracking devices in the early 1980s, it faced severe losses because of the lack of a market for its product. Given this information, it can be concluded that Rotomate:

was a cutting-edge firm