Intro to Business

Which of the following is not true about small businesses in the United States?

Half of all businesses are considered small businesses.

Which of the following is not a characteristic of a good brand name?

Has double meaning

The ________ environment consists of factors that influence consumer buying power and marketing strategies.

economic

Kai works as a portfolio manager for high-net worth clients. He purchases stock in companies that he thinks have a strong potential for long-term growth. He believes that these choices will result in long-term ___________ because the companies themselves are dedicated to sustained growth versus short-term profits.

capital gains

Each country develops a system that helps determine how resources are allocated: who can start a business, how those business owners should hire and pay workers, and what assistance the government will provide for those who cannot work. These are just a few examples of the decisions that contribute to a country's ________.

economy

Publicity is beneficial because __________.

it is generated by the media, which consumers consider to be more credible than advertisements

Which of the following is not a suggestion for setting the right tone in your message?

Use proper names instead of personal pronouns

_____ are paid advertisements that mimic the look, feel, and function of the media format in which they appear.

Native ads

_______ is usually conducted by middle managers and defines how activities specified in the strategic plan will be implemented.

Tactical planning

Individuals who invest money in exchange for ownership in the company are called _______.

angel investors

The United States is a ________.

mixed economy

As a factor of production, entrepreneurs are ________.

people who risk their time, money, and other resources to start and manage a business

Shobha was contracted to perform an audit for a company that builds and manages senior living care facilities. She has reviewed the company's financial statements and delivered a qualified opinion in her report to shareholders, despite objections from management. What kind of document did Shobha present to shareholders?

An independent auditor's report

The starting point for a social audit is to _________.

establish goals

The trade agreement formally known as the North American Free Trade Agreement (NAFTA) and now known as the USMCA is an agreement between ________.

the United States, Canada, and Mexico

Research shows that the audience will best retain the information you present if you ________.

use visual and oral elements in your presentation

Siti is the CEO of a tech company in California. She is planning a new product launch, and she will need to hire a few new developers and engineers to get the product ready. She raised money for her company by issuing common stock on the New York Stock Exchange (NYSE). What kind of business is Siti running?

A C corporation

Which of the following is the definition for an ethical dilemma?

A decision that involves a conflict of values

C.J. works in the product engineering department of a popular appliance manufacturer. His manager has pressured him to use cheaper components in future refrigerator designs so that they will break sooner, thus prompting consumers to purchase refrigerators more often. What is C.J.'s manager proposing?

A type of planned obsolescence

Which of the following correctly represents the accounting equation?

Assets=Liabilities + Owners' Equity

Which of the following is true of limited liability companies (LLCs)?

Certain types of businesses may not be able to form LLCs.

_______ plans for unexpected events.

Contingency planning

Which of the following is not a question that businesses must consider regarding bribes?

Will our bribe lead to the outcome we are expecting?

Which of the following statements about written communication is not true?

You should use indents for the first sentence in each paragraph.

All of the following would be included under the Assets portion of the balance sheet except _______.

accounts payable

Germany attracts more investment than it extends into the rest of the world. This means that Germany enjoys a _______.

balance of payments surplus

Scenario 8.2. Madina is a management accountant for a tech startup in San Francisco. Her company recently went public, so her colleagues are anxious to stay on top of the company's performance. Refer to Scenario 8.2. Madina's boss has asked her to confirm the total claims that owners have against the company. To find this information, Madina looks at the company's ________.

balance sheet

A ______ offers a wide variety of merchandise and a high level of service.

department store

Infrastructure is a(n) _______ difference.

economic

Leandra is in charge of sending out a monthly memo that includes information on company-sponsored events. This month, she includes the following information about a coding workshop: "Know a budding young coder? Send him to our upcoming Coding for Kids workshop!" After she distributes the memo, a few of her coworkers email her to say that her wording demonstrates a(n) ___________.

gender bias

All of the following are ways that companies are responsible to communities except _____.

green marketing

An acquisition in which the target firm is being purchased unwillingly is called a _______.

hostile takeover

The most appropriate communication channel for a message that is uncontroversial but is lengthy or detailed is a _______.

memo or report

Which of the following is a disadvantage or limitation of limited liability companies (LLCs)?

not Earnings are taxed as personal income of the owners. or They have limited ability to attract and maintain talent.

In a(n) ______ of an initial public offering, an investment bank purchases all of the shares at a price negotiated with the company, which guarantees the firm receives a specific amount of new funds.

not underwriting syndicate arrangement

The World Trade Organization (WTO) does all of the following except _______.

offer low interest loans

Scenario 6.1. Jasmine works at the Small Business Development Center in Phoenix, Arizona. One of the first questions many potential business owners ask is about the ideal form of business ownership for their new business. Jasmine has been working with Val, an SBDC client who would like to start his own business. Refer to Scenario 6.1. Val mentions to Jasmine that he has a friend who may join him in starting the pierogi truck. His friend has experience with marketing and operations, whereas Val is more experienced in restaurant management. They would plan to divide tasks a certain way to make sure that the work is divided fairly. Jasmine explains that the business ownership option he is describing is a(n) ____________.

partnership

Annabelle is working on a cover letter to include with her job application for a position at Google. She knows that jobs at Google are incredibly competitive, so she needs to put her best foot forward. In her closing paragraph, she writes: "Google is such an incredible company, and I am hoping to one day be hired by them so that I can help contribute to their mission 'to organize the world's information and make it universally accessible and useful.'" This sentence can be improved because it includes __________.

passive voice

Examples of the universal ethical standard of ______ are being considerate and tolerant of differences.

respect

Existing data that marketers gather or purchase for a research project is called ______.

secondary data

Particular items that offer unique characteristics and for which consumers are very reluctant to accept substitutes are called ______.

specialty products

A ______ sells a wide selection of merchandise within a narrow category.

specialty retailer

Defining goals in clear numerical terms that everyone understands means that the goal is ______.

specific and measurable

If the U.S. government were to take control of all enterprises that affect the social welfare of its citizens, a likely outcome would be an increase in _______.

taxes

The interest rate that the Fed charges on its loans to commercial banks is called ________.

the discount rate

Stockholders have an interest in the financial statements of companies because _______.

they need to understand the financial health of companies they invest in

In job enrichment, task identity means that _____.

workers complete tasks with clear beginnings and endings

In a ______ divestiture, the parent company sells some or all of the shares in a unit or division to the public through an initial public offering or IPO.

"carve-out"

Which of the following products is more likely to be diffused quickly?

A product that is easy to try on a limited basis

Which of the following is true about a monopoly?

A supplier in a monopoly cannot set any price they want.

Which of the following statements is not true about equity theory?

A worker that believes they are not receiving fair rewards for effort will work harder.

One owner in a partnership may be the creative force behind the business's product, while another is excellent at managing the finances of the business. This is an example of which advantage of general partnerships?

Ability to share responsibilities and capitalize on complementary skills

Which of the following is not a way to segment business markets?

Behavioral

________ offer limited liability to owners.

Corporations and limited liability companies (LLCs)

Individual companies can influence the working conditions and pay of workers in foreign countries in which of the following ways?

Creating a code of conduct for foreign vendors

Which of the following is not one of the dimensions of the marketing environment?

Customer

_______ is the ongoing process of acquiring, maintaining, and growing profitable customer relationships by delivering unmatched value.

Customer relationship management (CRM)

_______ require a moderate level of consumer learning in exchange for significant benefits.

Dynamically continuous innovations

Which of the following is true about taxes for partnerships?

Earnings pass through the business and are taxed as the owners' personal income.

Which of the following is an advantage for the franchisor?

Expanding the business

______ is a distribution strategy aimed at maximum market coverage by selling in every outlet where potential customers might want to buy.

Intensive distribution

_________ is communication among people with differing cultural backgrounds.

Intercultural communication

Which of the following is true about C corporations?

Owners have limited liability.

Owners of small businesses often get to know their customers on a personal level. This illustrates which advantage of small businesses?

Personal customer service

______ involves the availability of goods and services at locations convenient to customers.

Place utility

Which of the following statements is true about accrual-basis accounting?

Revenues are recorded when they are earned.

In regard to fiscal policy, which of the following is true?

The government currently has a budget deficit.

The owner of a sole proprietorship is personally responsible for any debt the company incurs refers to which disadvantage of sole proprietorships?

Unlimited liability

Which of the following is not an advantage to buying an established business over a franchise?

Usually investing in a well-known brand and proven process

After government-mandated shutdowns in March 2020 due to COVID-19, many workers began working from home. Which communication channel became the primary way for workers to communicate with colleagues?

Videoconferencing

Compatibility means ______.

a product that is consistent with existing values and experiences

Product differentiation ______.

are the attributes that make a good or service different from other products that compete to meet the same or similar customer needs

The ________ set the mission and broad objectives for a corporation and appoint a CEO.

board of directors

Belinda just started her freshman year of college, but she hasn't yet chosen a major. She likes the idea of working in the hotel industry, but she worries about disruptions similar to what happened during the COVID-19 pandemic. She believes that with the increase in the number of U.S. adults 65 years and older, a job in the healthcare industry would be more stable. Belinda is considering her future career within the context of _________.

business trends

Owners of ______ can vote in stockholders' meetings.

common stock

Canada espouses many free market principles while also offering some vital social services, like free healthcare, to its citizens. The Canadian government's decision to allocate healthcare in this way is an example of how they structure their _______.

economy

Loan payments, insurance payments, and rent are examples of ______.

fixed costs

The Clean Dream is a company that manufactures and sells eco-friendly paper products, like toilet paper and paper towels, made out of recycled materials. It believes that many consumers are becoming more conscious of their environmental impact and would be willing to switch from traditional brands to Clean Dream's brand. This is an example of __________.

green marketing

Susana has been very purposeful in how she manages the current assets for her clothing company. She doesn't feel comfortable having her assets held by an outside entity, so she keeps most of it in the form of finished goods that she knows she can sell quickly if needed. Susana is holding her current assets ______________.

in inventories

The _______ summarizes the financial results of a firm's operations over a given period of time, while the _______ shows the firm's assets, liabilities, and owners' equity at a specific point in time.

income statement; balance sheet

On a balance sheet, patents, copyrights, trademarks, and goodwill would be considered _______.

intangible assets

Maintenance, repair, and operating (MRO) products are _______.

items that help production but do not become part of the final product

Countries with _______ per capita income are more likely to have higher entrepreneurship rates, while countries that have a _______ level of employment protection and unemployment insurance have lower entrepreneurship rates.

low; high

Wilhelm is the project manager for a software company. He has been asked to track all costs that are related to the company's newest product release, including the salaries of anyone working on that specific product. Wilhelm is tracking the _______________.

not fixed costs

Benji has been asked to work with her colleagues in finance to determine the NPV of a proposed capital project. She knows how much of an investment the project requires and how much the company expects for the project to pay out. She needs her team in finance to help determine the discount rate—without this information, she won't be able to demonstrate the appropriate ___________ over the course of the project.

not future cash flows

Although limited liability companies (LLCs) have tax pass-through advantages, they are required to pay _______.

not taxes on company profits or liability tax

Scenario 10.1. Daphne works for the U.S. Treasury and has a lot of knowledge about the bond market. She decides to purchase 30-year treasury bonds to gift to her children. Refer to Scenario 10.1. Daphne purchases the bonds for $950. When the bonds mature, they will be worth $1,000, which is also known as the ___________.

par value

Most financing for small businesses comes from _______.

personal resources

A salesperson gathering information about who they are contacting in a company and what their needs and objectives are involved in ______.

preparing

A(n) _______ is a market in which an investor purchases newly issued financial securities, usually through an investment bank directly from the issuer of the securities.

primary securities market

Harmony Harvest Co. has decided to extend ownership rights to its company to raise money. The company worries that its stock will be undervalued among casual investors, so it decides to pursue a smaller, accredited group of investors. Harmony Harvest Co. is issuing its stock through a(n) ____________.

private placement

If the auditor finds minor concerns but believes the company's statements remain a fair and accurate representation of the company's financial position, the report will offer a(n) _______.

qualified opinion

Theo is an app developer, and they have recently launched a new product that allows people to advertise their freelance work. Theo would like to launch their app in Mexico, but they worry that they don't understand the language or work culture well enough to customize the app for that market. Theo is concerned about __________.

sociocultural differences

Retained earnings are _______.

the accumulated earnings reinvested in the company rather than paid to stockholders

Scenario 2.1. Nevin manages a McDonald's franchise in the middle of Manhattan. He recently oversaw the installation of self-checkout kiosks, which promises to make the ordering process 30% more efficient and 50% faster. This new technology also means that each franchise could operate with fewer cashiers. Refer to Scenario 2.1. If all fast food franchises in the United States were able to use the same technology, it would contribute to a(n) ______ in unemployment for the country.

increase

Which of the following is not true about M1 and M2?

The term "money supply" often refers to M1.

A comparative advantage means that ________.

a country has the ability to produce a product more efficiently than any other product

RxBar was the brainchild of Peter Rahal and Jared Smith, who made the first batch of the product, which includes egg whites, dried fruit, nuts, and dates, in Peter's parents' basement. After a few years of solid growth, Peter and Jared sold their company, the Chicago Bar Co., to The Kellogg Company. Kellogg's ________ of the Chicago Bar Co. allowed the company to use its expertise in brand-building to accelerate RxBar's growth among health-conscious consumers around the United States.

acquisition

The positioning statement is _______.

a brief statement that articulates how the marketer would like the target market to envision a product relative to the competition

Search engine optimization (SEO) _____.

is improving a company's website to increase its visibility when consumers search for words or products related to the company's business

It can be advantageous for small firms to concentrate on _______, small segments of the whole market.

market niches

Scenario 10.2. Velma is an accredited investor who works for an investment bank. She does a lot of research and due diligence on companies that want to sell stock but that are not prepared to file a registration statement with the SEC. Refer to Scenario 10.2. Velma is working on a deal with Cheers, Inc. Management at Cheers is more concerned about selling a higher volume of stock than commanding a high price per share. Velma can arrange for her company to purchase all of Cheers' shares for a negotiated price. Velma is willing to make this arrangement because she believes that she will be able to resell those shares for a higher price at a later date. This arrangement is called ____________.

not a private placement

Kasia works in R&D at a packaged foods company. Her team has just released a new yogurt product that is marketed toward children who are sensitive to dairy. The product had been on shelves for just over a week when Kasia discovered a discrepancy on the label: although it says that it is manufactured in a nut-free facility, one of the individual ingredients is manufactured in a facility that does use nuts in some products, so the potential for cross-contamination is high. Kasia reported this to her boss, but her boss asked her to not tell anyone else and promised they would fix the label on the next run. If Kasia reports this to anyone else, the company will have to pull the product from shelves and issue a recall. This could cost the company millions of dollars in lost sales and potential lawsuits, which could result in layoffs. Whether Kasia decides to report the issue to higher authorities or not, she knows that someone will suffer. Which of the following describes Kasia's situation?

An ethical dilemma

Agnes owns a contracting company that specializes in high-end kitchen remodels. She has always been proactive in her career: when working for others, she was quick to volunteer for more work and advocate for herself when it came to promotions. Now that she owns her own company, she knows that every job reflects her ability to lead. She even takes personal responsibility for any mistakes her team may make while they are on the job. She rationalizes this because she ultimately signs off on all kitchen designs and plans before the jobs begin. Which entrepreneurial trait is Agnes demonstrating?

An internal locus of control

Geraldine is preparing a proposal for a new memory-care facility that would represent a significant expansion to the current continuing care retirement community where she works. The proposal is long and includes a lot of information about the current demand for memory care, relevant demographic trends, a cost analysis, and a proposed timeline. Geraldine wants to make sure that the document is organized and easy to read. What formatting element should she consider using?

Block paragraphs

Which of the following is not true of a communist society?

Communist societies usually have higher taxes, which allows the government to distribute wealth more evenly among its citizens.

Which of the following is not an advantage of primary data?

Less expensive

______ means purchasing the right to use another company's brand name or symbol.

Licensing

_______ are a form of business that offers both limited liability to its owners and flexible tax treatment.

Limited liability companies (LLCs)

Scenario 1.2. The wool industry depends on many inputs for successful operations: the farmers who raise and sheer the sheep each year, the machines that process the wool into yarn that can be used to make different textiles, and the business owners who use those textiles in their products. Sheep, in turn, need plenty of uncultivated land on which to roam and graze. Refer to Scenario 1.2. This land is an example of which factor of production?

Natural resources

For a franchisee, which of the following is a disadvantage of owning a franchise?

Negative actions of other franchisees could impact the business

________ cannot distribute dividends.

Nonprofit corporations

_______ is the overall sense of well-being experienced by either an individual or a group.

Quality of life

______ is a distribution strategy that utilizes only a relatively small portion of possible retailers in each area.

Selective distribution

Oleksii bought stock in GameStop in early 2021. Ever since, he has been closely following industry reports about the company to make sure that they are investing in long-term growth. Oleksii is just one of many investors who hold stock in the company and who care about the company's performance. Why should GameStop consider the interests of these investors?

The investors are stakeholders in the company.

Which of the following is not true in a purely competitive market?

There are high costs on firms entering the industry.

Kelly works at a company that has a published code of ethics. She has observed some troubling behavior in the purchasing department: one purchasing agent is buying paper products exclusively from her husband's company, which appears to be a conflict of interest. Kelly thinks she should tell someone, but she isn't sure who. Kelly's company lacks ________.

a reporting structure

Carlito works in operations for a poultry processing plant. He has proposed that his company build a new manufacturing facility so that they no longer need to outsource the packaging process. He researched costs and used sales projections to come up with the net present value (NPV) of the project, which was $2. Based on this information, his company should ____________ the proposal.

accept

Considering the laws of supply and demand, if prices for a product decrease, we would expect _______.

buyers to demand more of the product offered

Lazlo is a management trainee at GSK. He recently sat in on a meeting where leadership discussed the company's long-term plans for investment. They heard presentations from different departments that proposed capital-intensive projects, and management approved projects that were expected to be profitable. Lazlo was observing a ______________ meeting.

capital budgeting

A large clothing retailer, King's Style, wants to introduce an entirely new line of children's clothing, but they don't have enough cash to pay for all of the new items up front. Their supplier has offered them __________, a kind of unofficial, short-term loan that King's Style has agreed to repay with interest in a few months.

commercial paper

Scenario 6.2. The J.M. Smucker Company is widely known for selling jams and jellies, but over the past few decades, the company has experimented with other product offerings, such as coffee, baking products, natural foods and juices, and, finally, pet food and treats. Refer to Scenario 6.2. Around the same time that The J.M. Smucker Company sold the Pillsbury brand, the company decided to purchase a firm, Big Heart Pet, which operated in a completely different industry: pet food and treats. This ____________ allowed The J.M. Smucker Company to diversify its product offerings even further.

conglomerate merger

All of the following are examples of survey research except _____.

counting the number of cars passing by a potential site for a restaurant

The _____ is the interest earned on a bond, expressed as a percentage of the bond's current market price rather than its par value.

current yield

Scenario 9.3. Musa is the chief financial officer (CFO) of a retail farm supply company. He has been asked to consider different financing options for a new distribution center, which will involve a significant investment that will be used over a number of years. Refer to Scenario 9.3. Musa wants to help reduce the tax burden on the company, but he's worried about potential restrictions that lenders may place on the way the company spends its money in the interim. Despite these concerns, he believes that ____________ is the best option for the company.

debt financing

Green marketing is _____.

developing and promoting environmentally sound products and practices to gain a competitive edge

Jamila understands that certain industries, like luxury goods retailing, thrive during strong economic periods. That's why she decided to open a designer boutique in the mid-90s. Her boutique struggled during the Great Recession, but she was able to pivot her operations to focus on lower-cost designer accessories, which allowed her to keep her business afloat. Jamila shows an understanding of how to operate in different ________ environments.

economic

Expectancy theory is based on the relationship of three components. Which of the following is the correct depiction of that relationship?

effort, performance, reward

Fernanda grew up baking pastries with her grandmother. After working as a pastry chef for a few years, she decided to open her own bakery using the recipes she learned as a child. Fernanda spent her free time outside of work developing the business plan and used her personal savings and credit cards to purchase supplies and rent space for her venture. Fernanda is an example of a(n) ________.

entrepreneur

Scenario 8.1. Melissa is examining the major financial statements of a company that she has invested in. Although the company's stock has been increasing in value, she believes they may be having issues with liquidity. Refer to Scenario 8.1. Melissa is concerned that the company has too many immediate costs related to their core operations. Melissa is thinking about the company's ___________.

expenses

Zahra manages accounts receivable for a medical billing company. Many of their customers struggle to pay their bills on time, which often leaves the company strapped for cash. When the company needs to generate quick cash to pay short-term debts, they rely on ________. Zahra and her team have fewer receivables to manage when the company uses this kind of financing.

factors

Scenario 1.2. The wool industry depends on many inputs for successful operations: the farmers who raise and sheer the sheep each year, the machines that process the wool into yarn that can be used to make different textiles, and the business owners who use those textiles in their products. Sheep, in turn, need plenty of uncultivated land on which to roam and graze. Refer to Scenario 1.2. These inputs are collectively known as _______. technological resources operational inputs natural resources factors of production

factors of production

Anong has always wanted to open his own restaurant in his hometown, Bangkok, but he has worried about the time and investment needed to build a brand and menu from scratch. He decided to pursue ownership of a Kentucky Fried Chicken. Anong entered a contract with Yum! Brands, Inc., which is headquartered in Louisville, Kentucky. Per the contract, Anong must adhere to corporate rules about branding, menu, sourcing, employee uniforms, etc. The relationship between Anong and Yum! Brands is an example of _______.

foreign franchising

When a company grants a person in another country the right to market its product, using its name, logo, methods of operating, and other elements associated with the company, it is participating in _______.

foreign franchising

Van's boss asked him to provide an analysis of future opportunities for their custom printing business, which has locations across Maryland. Van believes that his company has a really smart business model that could be leveraged across markets beyond Maryland. One of Van's long-term goals is to help his company launch in Asia because of the massive opportunity for _______ based on its developing economy.

growth

The stage of the product life cycle where industry profits peak and then start to decline is the _______.

growth stage

Entrepreneurs are self-reliant and as a result, usually have a(n) ________ locus of control.

internal

The stage of the product life cycle where sales increase slowly and profits are often negative is the _______.

introductory stage

Scenario 6.1. Jasmine works at the Small Business Development Center in Phoenix, Arizona. One of the first questions many potential business owners ask is about the ideal form of business ownership for their new business. Jasmine has been working with Val, an SBDC client who would like to start his own business. Refer to Scenario 6.1. Jasmine is speaking to Val about his proposal for a pierogi food truck. Val's number one goal when forming his business is to protect his personal assets. He just bought a home and has a car that he shares with his spouse. Jasmine explains to him that he is describing _____________.

limited liability

The rising popularity of cryptocurrencies like Bitcoin, Etherium, and even Dogecoin has forced many consumers to rethink their definition of money. Now that many businesses are willing to use cryptos as their _______, consumers are also becoming more comfortable using it.

medium of exchange

Mutual funds are desirable for all of the following reasons except _____.

not there are a variety of funds to fit investors' varying goals and philosophies

In the early 1900s, Martín's family grew grapes on their land in California. Over time, grocery stores, their biggest customers, began to import grapes from countries like China. Martín's family started shifting their focus to growing almonds instead of grapes so that they could avoid being underpriced by international markets. In this situation, growing grapes is the second-best choice for Martín's family. So, the value from growing and selling grapes represents the ________ for Martín's family.

opportunity cost

Camilla just started working at a large, multinational law firm. Her previous job was in a small firm where coworkers were close-knit and collegial. At her new firm, she has noticed that older, more experienced associates keep their office doors closed and don't often make eye contact in the hallways. Camilla is worried that these associates are not open to speaking with her. Camilla's workplace may have a(n) ______ barrier to communication.

organizational

A(n) _______ is a network of dealers who buy and sell the stocks of corporations that are not listed on a securities exchange.

over-the-counter (OTC) market

The specific characteristics of a product are called ______.

product features

Ashok has been following the stock market for a while. Specifically, he's been tracking the performance of Google's stock. He has also read through Google's annual reports and feels confident that the company is moving in a positive direction. Based on his extensive research, Ashok has decided to purchase shares of Google's stock. Since Google has not announced that it will issue new stock, Ashok will have to purchase his shares through a(n) ___________________.

secondary securities market

In monopolistic competition, _______ set the prices in the market.

sellers

The main difference between pure competition and monopolistic competition is that _______.

sellers produce differentiated products in monopolistically competitive markets

Werner moved to the United States from a country where entrepreneurship was rare: social safety nets ensured that anyone who could work would be able to find and retain steady employment. Now that he lives in the United States, Werner has noticed a much higher incentive to start his own business, specifically, the lack of employment opportunities for someone with his specific skillset: clock-making and repair. Now he is considering opening his own clock repair shop. Werner's experience demonstrates the importance of ______ in determining an individual's motivation for becoming an entrepreneur.

the potential for new job creation

Which of the following statements is not true regarding audits?

External audits are required for any firm creating financial statements.

Angela owns and operates an independent gas station. She continually evaluates how her business leverages debt versus equity to achieve the long-term plans she has set out for the business, like an eventual expansion of the grab-and-go food section and a bathroom remodel. This approach to evaluation illustrates how Angela manages her business's ____________.

finances

The large population of older adults in America will drive an increase in demand for certain services, like healthcare, senior-living facilities, and accessible entertainment. This means that there will likely be ________ opportunities for workers in these fields.

more

A _____ involves creating demand from the final consumers, while a _____ involves motivating distributors to encourage the final consumers to purchase the product.

pull strategy; push strategy

As many workers were forced to stay home during the COVID-19 pandemic, the demand for home-improvement supplies increased. Homeowners scrambled to secure contractors who would help with remodels and additions, many of which called for the use of lumber. As a result, the price of lumber skyrocketed. The United States could see an increase in the _______ as a result of shortages and supply-chain disruptions throughout the world.

producer price index (PPI)

When companies pay to have their products appear in movies, television shows, and other media, they are using ______.

product placement

Paul's great-grandmother, Betty, worked at a small local textile factory prior to the World War I, where she was tasked with running an industrial sewing machine. There were many other specialized jobs at the factory, but she remained part of the sewing team throughout her career, becoming an expert at using those specific machines. Betty's job was typical of the ______ era.

production

Allison works at a company with a published code of ethics and a commitment to a positive corporate culture that includes respect and kindness. Her manager, Jill, uses a lot of harsh and sometimes explicit language in front of her employees. Jill's behavior makes Allison feel uncomfortable, but even worse, it seems to encourage other employees to act in a similar manner. Allison spoke to a few of these employees to let them know how their behavior was making her feel, and they in turn confided that they felt pressured by Jill to act that way. When it comes to modeling ethical behavior, Allison's manager is demonstrating a(n) ________ commitment to organizational values.

weak

The dairy industry is comprised of many producers who offer nearly identical products, such as whole milk and skim milk, offered at nearly identical prices. Despite this, a large beverage company called Hearts Cola chose to enter the dairy market with YumMilk, its line of premium, ultra-filtered milk products that boast lower sugar and higher protein contents. What kind of competitive market did Hearts Cola enter?

Pure competition

_______ provide individual counseling and practical training to owners of small businesses.

Small Business Development Centers (SBDCs)

______ is/are the obligation of a business to contribute to society, while _____ is/are a set of beliefs about right and wrong, good and bad.

Social responsibility; ethics

If a company chooses to divide the market based on consumer attitudes, interests, values, and lifestyles, they are using ______ segmentation.

psychographic

The creative contribution of an employee in an organization would be considered which factor of production?

Human resources

_______ is a companywide consumer orientation with the objective of achieving long-term success.

The marketing concept

In the 1980s, the U.S. government worried that Japanese car manufacturers would crush the U.S. car industry. At the time, Japanese cars were more fuel efficient and cheaper to buy. Rather than wait for the United States to impose import taxes, Japan decided to preemptively restrict the number of cars they would sell in the United States. This is an example of a(n) _______.

VER (voluntary export restraint)

Amit is preparing a job advertisement for a new tech developer for his company. He is looking for someone with a lot of energy, so he included this wording in the ad: "Must be under 30 and proficient in emerging technology." Amit shared the job ad with a colleague for proofreading, and his colleague pointed out that Amit was demonstrating ________.

age bias

Cullen works in finance at a large for-profit hospital called Riverside. The hospital needs to raise funds for a new capital project, but they do not want to dilute the current ownership shares. Cullen recommends that the hospital sell _________ to help fund the project.

bonds

Amazon warehouses increasingly rely on complex machinery and robotics to quickly organize, pick, pack, and ship orders. These large pieces of equipment are an example of the _______ needed for Amazon's operations.

capital

Fatima is the director of human resources for a public relations firm. Recent controversies among some of her company's clients have prompted leadership to ask her to create a set of standards of conduct for their employees. The leadership team hopes that a published _______ will help prevent a scandal in their own workplace by encouraging "good" behavior.

code of ethics

Maslow's ______ need means that people have a need for self-respect and respect from others—recognition and status.

esteem

Many entrepreneurs are influenced by ______, or the idea of setting your own work schedule.

flexibility

When managers make a budget based on a range of possible sales levels, it is said to be a(n) ______ budget.

flexible

In the analysis stage, _______.

ideas are evaluated by potential market size, growth rate, and likely competitive strengths

Cecilia started her own business offering accounting services to small businesses. She filed articles of incorporation to her state's corporation commission and named her company Grow Smart, LLC. Cecilia didn't mind having to put together the paperwork and pay a fee to incorporate her business; she was happy to do so to ensure she had __________ and the flexibility to add more owners and investors as her business grows.

limited liability

In a _______, some partners do not participate in managing the business and in return receive limited liability.

limited partnership

The type of nonstore selling that involves customers shopping via a mobile device such as a phone or tablet is called ______.

m-commerce

The promotional tool that marketers usually cannot control is ______.

publicity

Basic natural materials that become part of a product, such as mineral ore, lumber, wheat, and corn, would be categorized as ______.

raw materials

The United States currently has a(n) _______.

trade deficit

Chantal is a financial analyst for a large investment firm. She is responsible for analyzing companies in the financial technology industry, which includes both small and large companies, some of which are relatively unknown. Which source of stock information would be most helpful in Chantal's research?

A stock index

When U.S. President Donald Trump imposed tariffs on imported steel, Charmaine was working as a project manager for a U.S.-based construction company. Charmaine's company had to pay more for the steel they imported from China, which decreased the overall profit on some of their biggest builds. After a few months, her company decided to raise the price of materials for all future builds to offset those extra costs. In this case, who ended up paying for the tariffs?

American consumers

Jennifer is a supply manager at a shipping company. She also runs a small business selling her artwork on the side. Sometimes Jennifer takes home offices supplies from her day job to use in her personal business: things like sticky notes, pens, shipping labels, and printer paper. She is always sure to order enough of these items for the company so that there are plenty available for her coworkers. Although she would never take money from the company, Jennifer does not believe she is doing anything wrong because "no one will miss those items." Which of the following is Jennifer not applying in her behavior at work?

Business ethics

Huy is putting together the financial statements for his company's upcoming annual meeting. The sales numbers over the last year were below expectations, but the company is planning to protect profits by cutting costs. Since the company has signed long-term contracts with the companies from whom they buy raw materials, they have to find other ways to cut costs. Which key users of accounting information are most likely to be concerned by this information?

Employees

Which of the following statements is incorrect regarding studies about employees feeling pressure to break rules at work?

Employees who self-identified as individual contributors felt more pressure than employees who self-identified as top managers to break the rules.

Hiro has been working closely with the engineering team at his company on a new, highly technical project. The company has invested a lot of money in this project, but Hiro is worried that the prototype won't be finished by the expected deadline. His engineering counterpart seems stressed out by the project, and Hiro suspects that he may be falling behind on his work. Hiro wants to have a candid conversation to figure out where the project stands and devise a way to keep things on track. Which communication channel should Hiro consider for this conversation?

Face-to-face meeting

When Jerome started his computer repair service, he was the only owner. As his business picked up, he soon realized he would need to expand his operations. Luckily, he was able to bring on additional owners who were willing to invest in the company and help him create a long-term growth strategy. Which benefit of forming a limited liability company (LLC) does this describe?

Flexible ownership

______ is the difference between revenue and the cost of goods sold.

Gross profit

During an expansionary open market operation, which of the following would you expect?

Interest rates will decrease

_______ is/are often a political necessity because of government restrictions on foreign ownership.

Joint ventures

Edith decided that she wanted to finance her mobile veterinary clinic in a way that would allow her to retain 100% ownership in her company. She was also realistic about the total market potential for her business given that she would operate in a small geographic area. Given these two factors, she decided to work with a community credit union to raise money. As part of her application, she had to submit a thorough business plan and a list of collateral. Which resource did Edith use to fund her business?

Loans

Small businesses tend to have fewer specialized employees, and the owner often takes on several roles. This illustrates which advantage of small businesses?

Lower overhead costs

Which of the following statements is not true about customer loyalty?

Loyal customers require more service.

Which of the following statements is not true about integrated marketing communication?

Only key members of the organization's marketing department need access to information on the customer, the product, and the competition.

Alain's friends and family have always known him to be ambitious, so they were not surprised to hear that he was quitting his job with the federal government to open his own accounting firm. Alain told them that he needed a modest amount of money to rent office space and get the word out about his new firm. While most of his network didn't have the ability to help fund his business, Alain was able to raise $10,000 thanks to a generous aunt and a few small gifts from friends, which was more than enough to get started. Which resource did Alain use to fund his business?

Personal resources

The Financial Accounting Standards Board (FASB) ensures that companies provide financial statements containing information that helps the user understand the company's financial performance and condition. This is related to which benchmark of financial statements?

Relevant

________ is a measure of inflation that evaluates the change in the weighted-average price of goods and services that the average consumer buys each month.

The consumer price index (CPI)

Which of the following would not be an example of a physical barrier?

The speaker's regional accent

_______ is more detailed than the statement of retained earnings and shows other changes in stockholders' equity, such as the issuance of additional shares of stock.

The stockholders' equity statement

Ernesto has been working with a company that is interested in investing in his medical startup. In exchange for a share of ownership in Ernesto's company, the investors will provide him with funding that will help him move through his first product launch. The investors will also be involved in business operations to help ensure that their investment pays out. Which resource is Ernesto using to fund his business?

Venture capital

The ______ method of budgeting can be advantageous because middle and supervisory managers have a good understanding of the needs and challenges of their departments and the resources needed to address them.

bottom-up

A(n) ______ is a mutual fund in which the sponsoring investment company sells shares only when the fund is originally organized.

closed-end fund

The basic rules that govern a corporation are called _______.

corporate bylaws

One _________ is that the initial purchase price is steep and can also include royalties based on percent-of-sales.

disadvantage of buying a franchise

AMC Theatres went viral in 2021 after its stock prices jumped from below $2 to a five-year high of over $62. The company responded by announcing plans to issue 500 million new shares to raise funds, but these plans were eventually scrapped. This new stock issuance would have constituted ______________.

equity financing

One of the contributing factors to the Great Recession was a lack of ______, which is what allowed banks to issue subprime mortgages without maintaining sufficient cash reserves.

government regulation

Darla's boss has asked her to review the IT department's financial statements. Her boss is concerned that the chief information officer is engaging in wasteful spending practices, and she's hoping that Darla can help her confirm or refute her suspicions by combing through these statements. Darla is most likely a(n) _________.

internal auditor

Clio uses her accounting knowledge to help her colleagues understand the company's financial position and budgeting process. She even acts as an internal consultant, making recommendations about the best way to proceed based on the numbers she reports. Clio is acting as a __________.

managerial accountant

A country whose value of exports is higher than the value of imports is said to have a ________.

trade surplus

Anwar opened a small barber shop that offers quick haircuts and styling, straight-razor shaving, and what he calls "no nonsense" nail care. Anwar differentiates his business from other barber shops by targeting busy professionals who need to come in for a quick refresh before work or important meetings, so he opens his shop at 6:00 a.m.—much earlier than the competition. His shop is located in a busy financial district, and he only operates during the work week. As a small business, what advantage does Anwar have over larger chains like Hair Cuttery and Sports Clips?

A market niche

_______ are a form of business in which the business is considered a legal entity that is separate and distinct from its owners.

Corporations

Rosemary works in HR at a start-up in Silicon Valley. She has just been asked to fire a developer who has been with the company since it started. Rosemary knows that this is a delicate situation that requires some forethought. She wants to make sure that she uses the correct ___________ for delivering the bad news; her experience tells her that a face-to-face conversation is the most appropriate.

communication channel

A _____ can be exchanged, at the owner's option, for a specified number of shares of the corporation's common stock.

convertible security

New products that radically change how people live are called _____.

discontinuous innovations

In a _______, the franchisor makes a product and grants distributors a license to sell the product.

distributorship

When Angel's company went public, she worked extensively with an investment bank to file a registration with the SEC, a requirement established by the ______________, and help create buzz around the stock.

not Securities Exchange Act of 1934

Differences in language, attitudes, and values would be considered _______ differences.

sociocultural

If you expect a negative reaction to your message, you should _______.

start with your justification and reasoning and then state your request

It might be appropriate to use slang or jargon based on _______.

the audience's profession

When the government spends more than it earns in revenues _______

the government incurs a budget deficit

In a SWOT analysis, _______ are external to the firm and could limit the company's success or prevent it from reaching its objectives.

threats

The ideal number of points in the body of your presentation is _______.

three

Apple sells its popular products, including the iPhone and Apple Watch, around the globe. Currently, most iPhones are assembled in Shenzhen, China. When Apple purchases these finished iPhones from the Chinese factories, which country can count those revenues toward their gross domestic product (GDP)?

China

Raul is undeterred in his pursuit to develop the largest suite of online learning programs for budding musicians. He started his company, Music For All, LLC, in 2018 because he believed then, as he does now, that he has the skills, motivation, and business-savvy to achieve his goals. He has never questioned his ability to be successful in his pursuits. Which entrepreneurial trait is Raul demonstrating?

Confidence

Which of the following is not a requirement that target markets must meet in order to be effective?

Consistent with the firm's marketing capabilities

______ is the marketing of sports, cultural, and charitable activities to selected target markets.

Event marketing

Arthur is a snack-foods distributor. He wants to purchase a new cold-storage facility so that he can start selling refrigerated snacks, like popsicles and yogurt. He worked with his financial manager to evaluate the potential revenues he could earn by adding refrigerated snacks to his sales catalogue. Based on the sum of the expected future cash flows, he calculates the net present value (NPV) of the facility to be −$1. Based on the information provided, how should Arthur proceed?

He should not proceed with his plan to purchase a cold-storage facility.

______ seek to increase size and market power within the industry and improve efficiency by eliminating duplication of facilities and personnel.

Horizontal mergers

________ is the study of a country's overall economic dynamics, such as the employment rate, the gross domestic product, and taxation policies.

Macroeconomics

Which advertising media type offers selective targeting and long life but has long lead times and high cost?

Magazines

The Trans-Pacific Strategic Economic Partnership Agreement is an agreement between four countries (Brunei, Chile, Singapore, and New Zealand) that calls for a reduction in 90% of the tariffs between each country. This ________ is meant to promote positive trade relations between the countries involved.

Not General Agreement on Tariffs and Trade (GATT)

Blake's manager is out of the office today to take her kids to an amusement park, but he needs a quick answer on something that is relatively important. He knows that his boss will have her phone with her, and that the amusement park, which is a few hours away, will be noisy. Which communication channel should Blake consider in this situation?

Text

Amelie works as an economist for a company that exports many of its products to Japan. Her boss has requested that she provide a quarterly report on the health of the Japanese economy. Which stock index should she refer to when compiling her report?

The Nikkei 225

Which of the following statements is not true about comparative financial statements?

The SEC requires comparative statements for all companies.

Which of the following is true of nonprofits?

Their fundamental goal is to contribute to the community.

Xin is a recent college graduate who is interning with a hedge fund. He is excited to be working in finance and is willing to work long hours to impress his coworkers in the hopes that they will hire him as a full-time employee. One of his colleagues asks Xin if he can make copies of a document. While he is making the copies, Xin notices that the document includes material nonpublic information from another company. He knows from his studies that it would be illegal to make investment decisions based on this information. Xin is not sure how to handle this situation, so he references the company handbook, which includes standards of conduct, also known as ___________.

a code of ethics

Jodie works in the graphic design department at a financial services firm. She loves the part of her job that allows her to be creative, but she struggles when it comes to understanding all the different products the company offers. She knows that she should have a deep understanding of their product offerings, but she has trouble with _______ during meetings where they discuss the specifics. She sometimes finds herself doodling on her notepad or daydreaming instead of paying attention.

active listening

With regards to the core goals of the Financial Accounting Standards Board (FASB), ensuring that a company's financial statements are "comparable" means that _______.

companies should present accounting statements in a reasonably standardized way, which allows users to track the company's financial performance over time and compare results with other companies

Xiomara and her family immigrated from Cuba when she was a small child. She has always dreamed of selling popular Cuban products in her chain of small grocery stores in Florida to help her family and others in the Cuban diaspora to feel more connected to their heritage. Unfortunately, the United States only recently lifted some restrictions on doing business in Cuba. Xiomara is unable to import certain products from Cuba because of a(n) _______.

embargo

Carmen has been asked to make recommendations on how her company can reduce costs associated with her company's office building, which is separate from their manufacturing facilities. She has considered making a recommendation on how the company heats and cools the building. This would be considered a(n) __________.

indirect cost

Justin manufactures custom amplifiers and sells them to audiophiles across the United States and Canada. He recently attended an international conference where he met with a number of audio engineers who expressed an interest in buying his products. Most of the demand would come from Singapore, so he has decided to start exporting his products to retailers in that market. This is an example of a business expanding internationally to _________.

reduce their risk

During the 2008 financial crisis, Paolo lost his job at a large bank. He spent some time applying for similar jobs at other banks, but the banking industry had been hit hard by the crisis, and most banks were not in a position to hire. After a few months, Paolo realized that he was facing difficult odds in the banking industry considering the challenging business environment, and that he would quickly run out of money if he didn't find something soon. Paolo decided to start his own financial advising business so that he would be able to continue to pay his bills. Paolo was most likely motivated by the need for _______ when he decided to open his own business.

survival

Troy works in finance for a company that manufactures aerosol disinfectant sprays in the United States. His company, like many other companies in the United States, imports aluminum from overseas. He noticed in 2017 that the price of aluminum had increased, and that as a result, his company's overall profit had decreased. This increase in aluminum prices was a direct result of an increase in ______.

tariffs

The gross domestic product (GDP) is _______.

the sum of all final goods and services produced within a nation in a year

Bethany is a customer service agent at an insurance company. During her most recent performance review, her manager mentioned that she sometimes comes across as angry or bored during customer calls because she does not regulate the intensity of her voice: sometimes she is too intense, which can translate to anger, and other times she is not energetic, which can translate to boredom. Bethany's manager requested that she practice her __________ to improve her communication skills.

tone of voice

Many items that are in high demand among U.S. consumers are no longer manufactured in the United States. One such item is mobile phones. Most of the mobile phones that are purchased in the United States are imported from China. This is one product that contributes to the _______ that the United States has with China.

trade deficit

Ahmad is a sole proprietor. When he decided to start selling his handmade greeting cards, he set up a website and started advertising his business, Daily Smiles, through social media. He did not have to file any special paperwork with the government or pay special fees to make Daily Smiles an official business. Which benefit of sole proprietorship does this describe?

Ease of formation

Dev works at a corporation called First Tee, whose mission is to "introduce the game of golf and its inherent values to kids and teens." Although Dev's company is a corporation, there are no stockholders, and their earnings are tax-exempt. Dev's company is a(n) ___________.

nonprofit corporation

Small businesses are vital to urban areas. They comprise more than _______ of inner-city business establishments.

99%

Mark set out to open a coffee shop that would double as a small music venue. He quit his job and used his savings to start renovating a small building that he had rented. During the renovation, Mark realized that he would have to completely reconfigure the space to pass inspection as a commercial kitchen. His original plan was to finish the renovation and open the coffee shop within three months so that he could rely on sales revenues to sustain the business and himself. Unfortunately, the new renovations would push out his opening date by another six months. As a small business owner, what prevented Mark from achieving his goals?

A high risk of failure

Annmarie started making earrings as a hobby, and she would give them to friends and family as gifts. Some of her friends started requesting more jewelry and even offered to pay Annmarie for her work. This prompted her to set up a website where she could sell her jewelry to a wider audience. Although she is just getting started, Annmarie believes that she can grow the business by investing more of her time into marketing her products and coming up with new designs. Annmarie has not filed any articles of incorporation. What kind of business has Annmarie formed?

A sole proprietorship

Which of the following statements is not true about activity-based costing (ABC)?

ABC divides costs equally among different products.

Therese is an independent auditor who was hired to write an auditor's report for the shareholders of an entertainment-focused holding company. During her review, she found major discrepancies in how the company reported earnings versus what she could confirm by interviewing employees and reviewing transactions. What kind of opinion should Therese issue?

An adverse opinion

Eeva is preparing a company-wide email that includes a list of action items that each employee must complete before the end of the year. She wants to make sure that employees can easily see that she is presenting a list. What formatting element should Eeva consider for her list?

Bulleted lists

Which of the following is not a section on the statement of cash flows?

Cash flows from marketing activities

Which of the following is the most common method for conducting primary research outside the United States?

Face-to-face interviews

Shelbey started an online book club focusing on books written by authors from underrepresented communities. This proved to be a popular concept, and Shelbey soon had a substantial online following. She decided to leverage the support of her online community to help fund a brick-and-mortar bookstore, which she had been dreaming of opening for years. In exchange for their support, Shelbey promised her online backers that they would receive discounts on her merchandise. Which resource did Shelbey use to fund her business?

Crowdfunding

Jon works at National Bank of the United States. He is working on obtaining a loan for the bank so that they can start a new mortgage lending program. The _______ created the entity that provides these types of loans to banks.

Federal Reserve Act of 1913

_______ occurs when one firm employs another business—often in another country—to manufacture its products or product components to the domestic firm's specifications.

Foreign outsourcing

______ as an advertising media type offers geographic selectivity and frequent repetition, but it only allows for short messages and seldom attracts the reader's attention.

Outdoor

_______ is the most flexible of the marketing mix variables because it is the easiest and quickest component to change.

Price

Which of the following is not true about an oligopoly?

Product differentiation does not matter in an oligopoly.

Adrian's Bed & Breakfast (B&B) has had better occupancy rates than a nearby chain hotel. In fact, Adrian's B&B is often fully booked six months in advance, often with repeat customers. One reason travelers prefer to stay at Adrian's B&B over the chain hotel is that Adrian takes the time to get to know his customers so that he can customize their experience: he can offer special menus that accommodate their dietary preferences, create itineraries based on their interests, and even stock their favorite brand of toiletries with enough notice. As a small business, what advantage does Adrian have over the larger hotel chain?

The ability to provide personal customer service

One of Andre's coworkers just retired. Andre missed the coworker's retirement party but still wants to say a quick goodbye. Unfortunately, he is not able to connect with his coworker before he leaves the office on his last day of work. Andre doesn't know this coworker outside of work, but he still wants to wish him well. What is the best method for Andre to communicate this message to his newly retired coworker?

Voice mail

Which of the following is not a question that may appear on an ethical decision-making framework?

What would our competitor do?

Amer and Denton work together at a publishing company where a high-level executive was recently fired for misappropriating company funds. Although Amer and Denton were raised in different countries and with different spiritual beliefs, they both agree that stealing from their employer, like the executive did, is wrong. This kind of shared belief across cultures and experiences is part of __________.

a universal ethical standard

Armen works for an exporter and has learned that in some countries, bribery of government officials is not only common, it's not considered unethical. Armen understands that to get business done in these countries, he must do things differently than he would in Canada, where his company is located. In this case, bribery is an example of something that would not be included in ___________.

a universal ethical standard

Joshua works for a company that manufactures electronic parts for cars. He has been asked to report the various costs involved in his company's operations. He spends a lot of his time calculating the amount of money it takes to produce each electronic control module (ECM). The amount changes depending on how much volume the company does each year. For this reason, Joshua reports ECMs as a(n) _____________.

variable cost

Daria has a savings account that contains $10K. She trusts that her money will be safe thanks to the _________, which protects her money up to $250K.

Banking Act of 1933

_______ are goods and services that consumers want to purchase frequently, immediately, and with minimal effort.

Convenience products

_____ includes all business donations to nonprofit groups, including money, products, and employee time, while _____ focuses on the actions of the company rather than donations of money and time.

Corporate philanthropy; corporate responsibility

Answering customer concerns describes which step in the sales process?

Handling objections

Businesses like Uber rely on smartphone applications to connect their services to consumers. Without the _______ factor of production, Uber would not have been able to change the way consumers interacted with taxi services.

capital

Cash from dividends and interest received would be included in the ________ section of the statement of cash flows.

cash flows from operating activities

Abel is preparing his firm's accounting statements for the year, and he notices that someone has changed some of the terminology. Although some terms are interchangeable, like "sales" and "revenues," he is concerned that these changes may be a violation of the generally accepted accounting principles (GAAP) requirement that financial statements be ____________.

consistent

Manoj agreed to make his auto repair services company a _________ for the Goodyear Tire & Rubber Company. As part of this agreement, he will only sell tires made by Goodyear to his customers, and in return, he will have the right to use official Goodyear marketing materials to help advertise his business.

distributor

Many small steel manufacturing businesses were either integrated or made redundant by Andrew Carnegie's innovations in the steel industry in the late nineteenth century. Eventually, Carnegie would come to control the largest steel operation owned by an individual in the United States. His success is a hallmark of the ________ era.

entrepreneurship

The government created the first antimonopoly laws during the _______

entrepreneurship era

A(n) ______ is a fund that generally invests in the stocks or other securities contained in a specific stock or securities index.

exchange-traded fund (ETF)

Scenario 4.1. A popular chain restaurant called Sunday Roasters decided to build a new location and had two options for construction sites, one more expensive than the other. The cheaper site abutted a waterway, which the company knew would likely become contaminated during construction. The restaurant also learned that the vibrations and noise from the machinery could disturb the wildlife, potentially affecting the fragile ecosystem for years to come. The more expensive construction site posed no threat to the local wildlife or waterways. Refer to Scenario 4.1. Julia lives in the town where Sunday Roasters has just built their new location near a fragile waterway. Julia and some of her neighbors are upset by this decision and have called for their fellow citizens to boycott the restaurant. Why should the company take their opinions into consideration?

Julia and her neighbors are stakeholders of the company

During expansion _______

unemployment is low and total income is high

The ________ has provided financing and technical assistance to countries like Rwanda. These efforts are meant to increase agricultural productivity and food security among developing nations.

World Bank

A balance of payments is different from a balance of trade in that _______.

a balance of payments includes investments, money spent by foreign tourists, and other factors

An absolute advantage means that _______

a country has the ability to produce a product more efficiently than any other nation

The machines and buildings that a company uses to produce its products would be considered which factor of production?

Capital

Which of the following are types of financial budgets?

Cash budget and capital expenditure budget

The Financial Accounting Standards Board (FASB) ensures that companies provide financial statements based on the same core assumptions and procedures over time. This is related to which benchmark of financial statements?

Consistent

When Yao first opened his checking and savings account in the 1980s, his bank was prohibited from using deposits to engage in investment banking. But thanks to the ____________, Yao's bank started offering those services to companies seeking to go public.

Financial Services Modernization Act of 1999

______ are budgets that communicate an organization's sales and production goals and the resources needed to achieve those goals.

Operating budgets

Safety equipment, healthcare plans, life insurance, retirement plans, job security, and gym membership are workplace examples of which of Maslow's needs?

Safety

______ reduce the risk of purchasing something new by allowing consumers to try a product before spending money.

Samples

________ provides loans to developing countries to provide safe drinking water, build schools, improve health care and access to water and sanitation, and other efforts.

The World Bank

If a country engages in international trade to gain access to natural resources, they _______.

are seeking access to factors of production

Scenario 8.1. Melissa is examining the major financial statements of a company that she has invested in. Although the company's stock has been increasing in value, she believes they may be having issues with liquidity. Refer to Scenario 8.1. After evaluating the company's immediate costs, Melissa has decided to examine the company's ability to sell off property to help generate quick cash. To find this information, Melissa should look at the company's ________.

assets

The U.S. government earns revenues from taxes and fees paid by both citizens and businesses. When the government is able to spend less than it earns through these revenues, there is a _______.

budget surplus

Car manufacturers have begun designing more electric vehicles because consumers are increasingly conscious of their __________. These consumers do not want to feel like they are contributing to climate change, and they have changed their buying behaviors to reflect that desire.

carbon footprint

In 2021, hackers launched a successful cyberattack against the Colonial Pipeline, effectively halting operations for a week. The attack led to a shortage of gasoline for drivers in the United States, which drove the price for a gallon of gas to its highest rate in six years. Since a gallon of gas is included in the basket of goods used to calculate the ______, we can assume that this higher price would contribute to an increase in that measure for 2021.

consumer price index (CPI)

When the U.S. government decreases taxes and increases spending, as it did by passing stimulus packages in the wake of the COVID-19 pandemic, it may need to borrow money to cover its expenses. Members of Congress may bring attention to this growing federal debt as a political bargaining chip, especially as the amount the government has borrowed nears the _______.

debt ceiling

The type of nonstore selling that involves selling products through catalogs, telemarketing, and infomercials is called _____.

direct-response retailing

Sustainable development means ______.

doing business to meet the needs of the current generation, without harming the ability of future generations to meet their needs

Amanda works as an HR manager in a multinational corporation. Although her parents taught her that certain common practices in American society, like divorce, are "bad," she knows she must set aside her personal beliefs when interviewing job candidates. Amanda's belief in certain practices as "good" or "bad" according to her upbringing represents her personal ______.

ethics

The conversion of inputs into a finished form describes ______.

form utility

Two long-time friends, Ben Cohen and Jerry Greenfield, decided that they wanted to go into business together. They took a correspondence course in ice cream making and then both put in an equal amount of money to fund their new business in a converted gas station in Vermont. Both Ben and Jerry were active in managing the business, and both accepted equal liability for any risks associated with it. Ben and Jerry likely started their business as ___________.

general partners

Massimo comes from a culture where it's considered incredibly rude to point, regardless of whether a person is pointing at a person or a location. During a recent meeting with some of his U.S.-based colleagues, he was shocked when he saw a few of people pointing directly at each other during a casual conversation. Massimo is observing how __________ can communicate different things in different cultures.

gestures and posture

After ideas have been generated, the next step in the product development process is _______.

idea screening

Scenario 2.1. Nevin manages a McDonald's franchise in the middle of Manhattan. He recently oversaw the installation of self-checkout kiosks, which promises to make the ordering process 30% more efficient and 50% faster. Refer to Scenario 2.1. If all fast food franchises in the United States were able to use the same technology, it would contribute to a(n) ______ in productivity for the country.

increase

Vado works in finance at a large bank. Before the Great Recession, his company relied heavily on debt financing to maximize their tax savings on the resulting interested payments. The Dodd-Frank Act, along with subsequent corporate tax laws that were passed in response to the financial crisis of 2008-2009, ________ the tax benefit from debt financing.

limited

For its first few years as a public company, Amazon spent more money than it was able to earn, resulting in a financial _______.

loss

During the most recent economic crisis caused by the COVID-19 pandemic, Emma and many other workers in the restaurant industry lost their jobs. This job loss increased the unemployment rate. As the economy recovered, some of those workers, including Emma, were able to get their jobs back, which decreased the unemployment rate. The rise and fall of unemployment is one element in the study of _______.

macroeconomics

Scenario 10.2. Velma is an accredited investor who works for an investment bank. She does a lot of research and due diligence on companies that want to sell stock but that are not prepared to file a registration statement with the SEC. Refer to Scenario 10.2. When Velma identifies a company that she believes has strong potential for growth, she'll attempt to broker a deal to purchase shares from that company. Because she is purchasing unlisted stocks, she is working through a(n) ____________________.

over-the-counter (OTC) market

A ______ is a company's total number of product lines and individual items sold.

product mix

The _______ means that consumers should have access to and the ability to review all information about a product before buying.

right to be informed

The most common form of business in the United States is a ______.

sole proprietorship

During the global COVID-19 pandemic, governments and health officials encouraged consumers to stay home whenever possible. As a result, many restaurants pivoted their operations to take-out and delivery only, leveraging the services provided by smartphone apps like Grubhub, DoorDash, and Uber Eats. Despite poor economic conditions, these restaurants were able to take advantage of the _______ environment to stay afloat.

technological

Lanelle is a portfolio manager who specializes in international stock portfolios. One of her portfolios contains a large proportion of stocks from British companies like Tesco, a large grocery chain, and Barclays, a large bank. Although she tracks the performance of the specific stocks in the portfolio, she often refers to ____________ to see how the UK market is tracking overall.

the FTSE 100

If you do not know the gender of your audience, it is best to use _______.

they/them

Japan has one of the largest national economies in the world and enjoys robust trade relations with the United States and China. One of its main exports is automobiles and auto parts. In fact, Japanese cars are so popular around the world that when considering total trade, they have one of the highest _______ in the world.

trade surpluses

Patricia and Yon started a coffee shop together. Patricia is in charge of managing food prep and marketing while Yon manages coffee roasting and hiring. They try to split up all other tasks evenly. Patricia and Yon have most likely formed what kind of business?

A general partnership

Jonas quit his job as a marketer to pursue his dream of owning a professional photography studio. Although Jonas was an excellent photographer and was able to leverage his experience as a marketer to attract new customers, he struggled with tasks like inventory management, bookkeeping, and accounting. He even forgot to pay his taxes a few times. Jonas realized that running his own business was much more stressful than he had anticipated because of all of the additional responsibilities he had. As a small business owner, what caused Jonas the most stress?

A lack of knowledge and experience

Evan is the manager of a Walmart store in Idaho. On a recent Sunday—their busiest day of the week—the Walmart lost power for four hours. The relatively short power outage cost Evan's store roughly $3 million in lost revenues and spoilage. The only way to recover financially in the short term would be to lay off half of the store's employees. Evan knows that there are a number of college students who are high performers. He assumes these employees still live at home with their parents, but he can't be sure. He also knows that there are some employees who live paycheck-to-paycheck and rely on their employment at Walmart to feed their families. Evan is torn between laying off employees based on their perceived financial need versus their performance. Which of the following represents Evan's decision?

An ethical dilemma

Darya is launching a financial technology company that she believes will compete with the likes of Venmo and Zelle. She expects that the company will be worth hundreds of millions of dollars within the first five years, so she needs substantial investment to get things started. She was accepted into a start-up "incubator" program that introduced her to high net-worth individuals who are interested in helping her fund her idea in exchange for an ownership stake in the company. What kind of funding is Darya seeking?

Angel investment

_______ is when customers perceive that a good or service delivers value above and beyond their expectations.

Customer satisfaction

To form a sole proprietorship, owners are not required to fill out any special forms or pay any fees. This refers to which of the advantages of sole proprietorships?

Ease of formation

Being able to easily sell stock of publicly traded corporations illustrates which advantage of C corporations?

Ease of transfer of ownership

When a country suspends trade of a particular product or with a particular country, they are using which type of trade restriction?

Embargo

Walgreens stores in warmer, sunnier parts of the country might dedicate more shelf space to sunscreen, while stores in colder areas might dedicate space to gloves and hats. This is based on which consumer segmentation variable?

Geographic

Sara Blakely founded Spanx, a shapewear manufacturing company, when she was only 27 years old. She worked tirelessly to develop her concept of comfortable and flattering shapewear and was able to secure a patent for her design using the help of a patent lawyer. She eventually partnered with a mill to produce her designs. Which factor of production did the lawyer fulfill in the creation of the business?

Human resources

_______ provide tax preparation, external auditing, and management consulting services to clients on a fee basis.

Public accountants

As the owner of an independent bookstore, Geoff is responsible for a number of tasks on any given day: marketing, bookkeeping, human resource management, and more. He may start the day off posting to the store's social media accounts, move on to cleaning the bathrooms, work a full shift at the cash register, and finish by calling a publisher to discuss the store's wholesale relationship. Although he does have a few employees, the majority of the store's operations are his responsibility, which he generally enjoys. Which entrepreneurial trait is Geoff demonstrating?

Self-reliance

Services cannot be stockpiled for future use. In other words _______.

services are perishable

Which of the following statements is not true regarding technology and its impact on marketing?

Technology prevents companies from gathering detailed personal information about customers.

Which of the following communication channels is most appropriate for a message that is potentially controversial?

Telephone conversations

Customers of a service provider will each have a slightly different experience. In other words ______.

services are variable

Aaliyah manages international contracts for a national retailer that sells housewares and décor. She recently had to cancel one of their largest manufacturing contracts because of alleged human rights violations at a foreign facility. To help prevent future violations and ensure that all of the manufacturers they do business with hold themselves to socially responsible standards, what kind of document should Aaliyah include in all of her contracts?

The company's code of conduct

Which of the following is not true of a Theory Y manager?

They assume that people like to be directed, avoiding responsibility and seeking security.

Maya opened a café when she was in her mid-20s. Although she had worked in restaurants throughout high school and college, she quickly learned that she struggled with certain aspects of running a business: namely, cost control. She had to close that business after a few years because she wasn't able to consistently turn a profit. Yet she persisted in her dream to own a business, and using the lessons she learned from her café, she opened a food truck that was much more successful. Which entrepreneurial trait is Maya demonstrating?

Tolerance of failure

Carlos is working on his start-up pitch. He is going to present his business plan to potential investors, and he believes that showing them a prototype of his product will be more impactful than just telling them about it. Which presentation element does the prototype represent?

Visual aids

A company's financial statements are important to _______, who may have concerns about getting paid on time for products and services they provide.

suppliers

Which of the following statements is true?

When using active voice, the subject performs the action expressed by the verb.

Ravi opened a boutique real estate firm specializing in investment properties that can be used for both primary residences and short-term rentals through services like Airbnb. The town where he lives has been very supportive of short-term rentals, but a new city council member is asking for a review of the current policy. There is a chance that new taxes and regulations will be introduced that make this kind of property less attractive to buyers. Ravi must demonstrate __________ in the face of potential changes that could affect his business's ability to succeed.

a high tolerance of uncertainty

Shawnika owns a successful interior design business in New York. She is looking to expand into Europe by opening an office in Barcelona. She has weighed different options for expansion and has decided to work with her friend James, who owns a contracting business in New York and who is also exploring international expansion. Shawnika and James will lease office space together in an historic building in Barcelona. They will create a joint marketing budget, advertise their services in tandem, and also share administrative staff. This is an example of ___________.

a joint venture

Lionel uses his yearly work bonus to buy individual stocks. Because he doesn't have time to watch the markets closely, he works with a stockbroker who can buy the stocks for him at the best available price. Lionel's request to purchase stocks through his broker is known as ____________.

a market order

Jerica is the chief financial officer (CFO) of a tech startup that is ready to sell stock in their company for the first time. Before they can sell anything, Jerica has to provide documentation to the SEC. This document, known as ____________, is complex and will take Jerica months to prepare.

a registration statement

Although the U.S. government does control certain enterprises, such as Medicare and Social Security, private enterprises largely rely on the principles of _______.

supply and demand

Peter has always been shy, but he's trying to practice his presentation skills so that he can advance at work. Peter attends a class on effective communication skills, and the facilitator points out that Peter often crosses his arms in front of his chest when he speaks, which can make him appear "closed off" or defensive. The facilitator is pointing out a potential _________ barrier to communication that Peter should be careful to avoid.

body language

Scenario 9.2. Jesse is the chief financial officer (CFO) for an office supply distribution company that recently lost one of its biggest customers to a new online-only distributor. Refer to Scenario 9.2. Another tool that Jesse can use to help the company understand how the loss of revenues will affect their bottom line is the _____________, which shows the relationship between the company's budgeted sales and net income. Jesse will show how the net income from the original projections will differ now that projected revenues are down.

budgeted income statement

Cerise works in marketing at a kitchenware company that does not have a published code of conduct. She recently overheard a coworker talking about a way to improve their click-through rates on digital ads. Cerise mentioned the idea to her boss, who then recommended the idea to the company's chief marketing office. At the company's end-of-year banquet, the chief marketing office awarded Cerise with the coveted "marketer of the year" award for her "big idea." Although Cerise believes that it's wrong to take credit for someone else's idea, she feels justified in winning the award because the idea helped earn the company more money. Cerise has failed in maintaining _________.

business ethics

Scenario 9.3. Musa is the chief financial officer (CFO) of a retail farm supply company. He has been asked to consider different financing options for a new distribution center, which will involve a significant investment that will be used over a number of years. Refer to Scenario 9.3. Musa spends some time discussing different financing options with the company's CEO. They both agree that the company should strive for a more balanced approach in their ongoing fundraising efforts, including selling an ownership stake in the company, since they can only deduct interest expenses up to 30% of their earnings before interest, taxes, depreciation, and amortization (EBITDA). Musa and the company's CEO are discussing the firm's ____________.

capital structure

Outside of his job as an IT associate at a telecommunications company, Samuel volunteers for Big Brothers Big Sisters (BBBS). Samuel knows that his company sometimes donates to nonprofits in the community, so he puts together a proposal suggesting that the company partner with BBBS to provide free or reduced-cost internet access to participants. In his proposal, Samuel mentions that the company could use this partnership with BBBS to garner goodwill within the community. What Samuel is proposing is a type of ___________.

cause-related marketing

Ramón studied business and accounting as an undergraduate and then went on to work for an accounting firm for three years. He recently left his job to attend a one-year master's program in accounting, and he wants to earn a professional license to assure his future employer and clients that he takes the profession seriously. Ramón is most likely pursuing a career as a(n) _________.

certified public accountant (CPA)

Mel has worked for a midsize educational research company for more than ten years. When she first started, leadership appeared to have a strong commitment to corporate values and the company's longstanding code of ethics. As the years passed, many of those leaders left the organization and a new CEO was eventually hired. The new CEO decided to restructure the company and create a revised set of values and a new code of ethics. During this time, the corporate culture became more toxic, and a number of scandals came to light, including an entire department that was misusing corporate funds. Research shows that significant ________ can drive misconduct in organizations.

change

Lana works at a large investment brokerage firm. Many employees, including Lana, have corporate credit cards for business travel and for entertaining clients. When employees travel, they must adhere to a per diem for each meal. When they entertain clients, the amount they can spend is more generous. Lately, Lana has been noticing that some of her coworkers use their corporate cards to buy expensive meals that exceed the per diem while traveling. They will claim that a customer was present in order to get the expense approved. Lana has suggested to the HR department that they create a document that specifically states that this kind of behavior is unacceptable. Lana is asking HR to create a(n) ________.

code of ethics

Soon after Samsung released the Galaxy Note 7, the company announced that the battery on some units could overheat and explode. It initially offered replacements, but those devices also presented a potential overheating hazard. When consumers continued to complain, Samsung bowed to pressure to issue an expensive U.S.-wide recall of the device and to issue software updates to prevent users in other countries from using the devices. Samsung responded to this controversy in a way that demonstrates a commitment to __________.

consumerism

Aleksey purchased preferred stock in Microsoft after he graduated from graduate school. At the time, he had no interest in voicing his opinions to the company. Now that he has years of experience as an executive, he wants to help ensure that Microsoft continues to operate successfully. One way he can share his opinion with the company is to trade in his current preferred stock for common stock, which will give him voting rights. Aleksey can make this trade because he owns _____________.

convertible securities

Scenario 6.1. Jasmine works at the Small Business Development Center in Phoenix, Arizona. One of the first questions many potential business owners ask is about the ideal form of business ownership for their new business. Jasmine has been working with Val, an SBDC client who would like to start his own business. Refer to Scenario 6.1. Val's long-term plan is to expand his pierogi truck into a brick-and-mortar restaurant. Eventually, he would like to open numerous locations of his restaurant in cities around the United States. Once he grows to that level, Val would like to file articles of incorporation that establish his business as a separate entity, where all of his business assets are separate from any of his personal assets. Jasmine explains that he is describing a ____________.

corporation

In the 1990s, most trade between the United States and the former Soviet Union was restricted by an embargo. That meant that most U.S. companies could not legally sell their products in the Soviet Union. Pepsi Co. found a way around the embargo by implementing a(n) _________ deal: they exchanged Pepsi Cola for vodka instead of currency.

countertrade

Scenario 10.1. Daphne works for the U.S. Treasury and has a lot of knowledge about the bond market. She decides to purchase 30-year treasury bonds to gift to her children. Refer to Scenario 10.1. Daphne is teaching her children, who are in their teens, about saving and investing. She encourages them to use the earning from the bonds' ___________, which they receive yearly, to build up their personal savings or consider other low-risk investments, like mutual funds.

coupon rate

The Ohio River Bank offers various financing options to small businesses across different industries. To reduce the risk involved in working with small businesses, the Ohio River Bank imposes ___________, which usually involve collateral and restrictions on bonuses.

covenants

Clara opened a nail salon last year. She originally started with four employees, but now she anticipates that she will need ten full-time employees and two part-time employees. Her business is next to a small café that recently opened with ten employees. Clara's nail salon and the adjoining café are examples of how small businesses __________.

create new jobs

Marwa works as an accountant for a mortgage company. Her company is planning to add another wing onto their building, so Marwa anticipates that she will soon be asked to provide the company's latest financial statements to __________, who will evaluate the company's ability to repay a loan.

creditors

Entrepreneurs who share descriptions of their business online and invite people to contribute are looking to raise money through _______.

crowdfunding

Flavia manages accounts receivables for her family's catering company. When she started this job, she created a policy where all accounts that were 30 days past due would incur a late fee. The late fee would increase every 30 days, but once the account was 120 days past due, she would automatically send the bill to a collection agency. Flavia was proactive in _____________ for her family's business, which has helped incentivize customers to pay on time.

deciding on an appropriate collection policy

Scenario 6.2. The J.M. Smucker Company is widely known for selling jams and jellies, but over the past few decades, the company has experimented with other product offerings, such as coffee, baking products, natural foods and juices, and, finally, pet food and treats. Refer to Scenario 6.2. The J.M. Smucker Company acquired the Pillsbury brand of baking products in 2004. In 2018, the company decided to sell the brand to a private equity firm. As part of the sale, known as a(n) ________, The J.M. Smucker Company handed over all of the operations of the brand to the new firm.

divestiture

Devon signed up for a speech contest that his company hosts each year. Not only is this a chance for him to win a cash prize, he will also have the chance to show off his skills in front of the CEO. Devon feels well-practiced, especially in how he can control his pacing and the tone of his voice. As an enthusiastic and engaging speaker, he is counting on his _________ to help him win first place.

dynamic delivery

An organization's responsibility to _______ may include complying with laws and offering additional benefits, such as on-site childcare.

employees

When Sean visited his grandparents in Edinburgh, Scotland, over the summer, he noticed that things he would normally buy at home in Alabama were much more expensive there. One morning, he used his credit card to purchase Starbucks coffee, which would normally cost $4 at home, but it showed on his credit card as $6.25 when converted back to U.S. dollars. Sean is experiencing a difference in the ________ between the United States and Scotland.

exchange rate

Miriam just moved to the United States. In her home culture, looking down is sometimes a sign of respect, but in her new job, she has noticed that her coworkers will ask her if she is feeling well if she looks down too much. They seem to think that she is either unwell or upset. Miriam may be struggling with the concept of _________ as a positive communication tool in the United States.

eye contact

Of the various communication channels available in the modern business environment, _______ have the highest channel richness.

face-to-face meetings

When Daniella is concentrating, it sometimes appears that she is frowning. She has noticed that sometimes when she is in meetings, her boss will suddenly interrupt and ask, "Daniella, is there something wrong?" Even though she is not upset, Daniella's _________ makes it seem like she is.

facial expression

Being open-minded is an example of the universal ethical standard of _____.

fairness

Allegra was hired to work for a large consulting firm right out of college, and she has only been with the company for six months. She is responsible for compiling, organizing, and analyzing accounting information for the company's stockholders. She spends most of her time meeting with various business-unit managers to discuss how they should present their numbers to the public. Allegra could best be described as a ________.

financial accountant

While _______ focuses on providing information to outside stakeholders, _______ focuses on providing information to internal stakeholders.

financial accounting; managerial accounting

Scenario 9.1. Dario works in finance at a healthcare start-up that has a higher-than-average tax burden. The chief financial officer (CFO) has asked Dario to make some recommendations on how the company can reduce taxes without sacrificing their access to financial resources. Refer to Scenario 9.1. After reviewing the firm's current capital structure, Dario recommends that they increase the amount of debt they have versus the amount of assets. Dario is advocating that they increase their _____________.

financial leverage

Yong needs to renovate the workshop where he creates custom furniture, but he doesn't have enough cash to pay for renovations. In the same town, Kitty is looking for a way to invest her money so that she can earn interest rather than keeping it in a savings account. Yong and Kitty can connect as borrower and saver through ________.

financial markets

All of the following are ways to improve your active listening except _______.

finish the speaker's sentences to show that you understand what they are trying to communicate

Graham manages a manufacturing facility. He is in charge of negotiating contracts for the building's rent, ensuring that the building and equipment are properly insured, and ensuring that the company is paying the correct taxes. Graham is most concerned about _____________.

fixed costs

Halima just returned to work after completing parental leave. Although she loved her job, she felt frustrated trying to balance work and family life. After weeks of feeling overwhelmed, she went to lunch with a former coworker who shared her experience starting her own business. As they chatted, Halima learned that she could have a lot more control over her schedule if she worked for herself. She was inspired to leave her job and start her own consulting service so that she could determine her work hours and dedicate more time with her growing family. Halima was most likely motivated by the desire for _______ when she decided to open her own business.

flexibility

Andrew wants to expand his baked goods business to other countries, but he worries about how his products will taste if he bakes them in his industrial kitchen in Montreal and then ships them overseas. He believes the best way to preserve the quality of his products is to sell the rights to his recipes and brand to bakeries in other countries so that they can deliver his products fresh. This is an example of entering international markets using _________.

foreign licensing

Allie owns a clothing store in Canada and is working to develop a line of her own branded apparel called "Noon Day." Although she would like to have all of her clothing manufactured in Canada, she can't afford the high domestic production costs right now. She is exploring a(n) _______ agreement with a company in Sri Lanka as a way to cut down on the manufacturing costs.

foreign outsourcing

Chick-fil-A is known for having one of the most desirable _____________. In fact, it is harder to become the owner of a local Chick-fil-A than it is to get into Princeton University. One reason is that the contract doesn't require any upfront investment from the local owner. Another is that Chick-fil-A promises to provide top-notch support and training to ensure that each location is successful.

franchise agreements

Rory is in talks with Camp Bow Wow, a dog care services company, to establish a new location in Nashville, Tennessee. Before she signs any contracts, Rory wants to understand what kind of support the company will provide her as she opens the business. She also wants to know what will be expected of her in return. Rory should ask Camp Bow Wow for their __________.

franchise disclosure document (FDD)

A _______ is a contractual arrangement where the _______ agrees to meet the operating requirements of a ______.

franchise; franchisee; franchisor

Ricardo has always wanted to own his own business, but he doesn't want to have to build a brand from the ground up. After doing some research, he realizes that the best way to reconcile his entrepreneurial spirit with his reluctance to start from scratch is to become a ________. That way, he can leverage the power of an existing brand while still managing his own business.

franchisee

Ray Kroc bought a small fast food restaurant called McDonald's in 1961. Under his ownership, the restaurant became so popular that he needed help rapidly expanding into new locations around the United States, and eventually the world. To help with this rapid growth, McDonald's became a _______, allowing others to enter into strict contracts that allowed them to use McDonald's branding, recipes, building design, and operational procedures in exchange for a percentage of revenues.

franchisor

New Zealand and Australia have developed an agreement to make doing business between the two countries seamless. As part of their agreement, they have eliminated all tariffs and quotas, and most products that can be sold in one country can be legally sold in the other. This is a prime example of the movement towards _______.

free trade

Tomasz recently left his job as a research and development associate at a large corporation where he felt that his skillset was underutilized. He now works for a small business that specializes in the development of eco-friendly packaging. His boss has given him a lot of leeway to experiment with new materials and encourages him to fail because "you can't learn unless you fail." Tomasz is motivated to work harder than ever and even hopes to secure his first patent while at this company. This is an example of how small businesses are better at ___________ than larger corporations.

fueling innovation

Aisha started working as a cashier at The Gap, a popular clothing retailer, when she was in high school. She gradually worked her way up to the role of store manager, learning how to run a successful retail store through her on-the-job experiences and the mentorship of her bosses. Although she enjoyed the retail environment, Aisha realized after ten years that no matter how hard she worked, her pay would always be limited to a set salary and bonus structure. She believed that her effort was worth more, so she decided to use her knowledge of retail operations to open her own store. Aisha was most likely motivated by the desire for _______ when she decided to open her own business.

greater financial success

Many entrepreneurs are influenced by ______, or the idea of being your own boss and only having to answer to yourself and to the investors who participate in your business.

independence

Nadezhda spent many years managing a restaurant that was owned by a corporation. She enjoyed the job and the benefits of working for a large business, but she had many ideas of her own on how to run a successful restaurant and was often frustrated with her company's cumbersome bureaucracy. After years of planning, Nadezhda finally quit her job so that she could open her own restaurant. She was excited to finally have control of all aspects of the restaurant's operations, even if it meant taking on more personal risk. Nadezhda was most likely motivated by the desire for _______ when she decided to open her own business.

independence

Scenario 5.1. Kennedy is an event manager at a large hospital. He has been tasked with planning a large conference that will attract prominent physicians from around the world. Part of Kennedy's job is to ensure that there is as little interference as possible during meeting sessions. Refer to Scenario 5.1. Kennedy is also aware that there will be many attendees who do not speak English as their first language and who do not live in the United States, where the conference is taking place. He has put together a document for the conference speakers that outlines best practices when speaking to such a diverse audience. Kennedy is using this document in an effort to prevent _________ barriers.

intercultural communication

Scenario 9.1. Dario works in finance at a healthcare start-up that has a higher-than-average tax burden. The chief financial officer (CFO) has asked Dario to make some recommendations on how the company can reduce taxes without sacrificing their access to financial resources. Refer to Scenario 9.1. Dario points to some important key metrics that he used to arrive at his recommendation to increase the company's debt. One metric is the company's current _____________. If the company can increase this ratio, they can decrease their tax burden.

interest coverage

Silvia is a retired schoolteacher who draws a modest monthly pension, and she also receives social security payments. A few years ago, she started working with a broker who could help her purchase low-risk financial instruments, like bonds, which would provide small, consistent payouts that she could use for discretionary spending. Silvia is working with her broker to ______________.

invest for income

Jeb downloaded the Robinhood app and has been attempting to buy stocks that he believes are undervalued. He is building a portfolio of individual stocks that he plans to sell off as their prices rise to their true value. By buying low and selling high, Jeb is _______________.

investing for value

Babs would like to offer publicly traded stock as a form of ownership in her company. The process of listing her company feels daunting, so she has reached out to a(n) ___________.

investment bank

Omar and Jaqueline want to open their own law practice. Both are ready to invest in startup costs, like paying rent for an office space and putting together a website that helps advertise their new firm. The only thing that is holding them back is the fear of losing personal assets if the business does not do well, and if they are unable to repay business-associated debts with their revenues. Based on these concerns, Omar and Jaqueline should explore forming a(n) __________.

limited liability partnership (LLP)

Lara and Armando have pooled their money to open a high-end hair salon in Manhattan, New York. Lara is an experienced stylist who is responsible for the overall operations of the salon, while Armando is an investor who does not actively participate in managing any part of the business. If the business were to fail, Lara would be personally liable for the business' debts. Armando, however, would not assume any personal liability. This is because they have formed a __________.

limited partnership

A _____ occurs when a company develops and implements new sizes or styles of a product.

line extension

Scenario 9.2. Jesse is the chief financial officer (CFO) for an office supply distribution company that recently lost one of its biggest customers to a new online-only distributor. Refer to Scenario 9.2. Knowing that revenues will be significantly lower until the sales team can bring in new customers, Jesse takes a hard look at the company's ___________ to ensure that they can cover salaries, taxes, and fixed debt payments in the near-term.

liquidity ratios

Austin has a meeting with the chief marketing officer (CMO) of his company this afternoon. Austin knows that he should come to the meeting prepared to talk through the company's financial statements and what the numbers mean for the marketing department. Austin has also offered to walk the CMO through the department's budget and provide recommendations on how to optimize spending over the next year. Austin is most likely a(n) _________.

management accountant

Scenario 8.1. Melissa is examining the major financial statements of a company that she has invested in. Although the company's stock has been increasing in value, she believes they may be having issues with liquidity. Refer to Scenario 8.1. Melissa wants to understand how the company's sales performance and their operational efficiency balance each other out. She should refer to the company's _________ to understand this relationship.

net income

Scenario 5.1. Kennedy is an event manager at a large hospital. He has been tasked with planning a large conference that will attract prominent physicians from around the world. Part of Kennedy's job is to ensure that there is as little interference as possible during meeting sessions. Refer to Scenario 5.1. Kennedy plans to research optimal room layouts and temperature, check the audio equipment well in advance of the meeting, and help each speaker understand how to use the microphones and where to stand to ensure that the audience will easily see and hear them. Kennedy is working to reduce __________ at the conference.

noise

A local school district has invited a communications expert to train their teachers in __________. Understanding this subject will help the teachers better understand how students are feeling just by observing their gestures, posture, and facial expressions—even when those students aren't speaking.

nonverbal communication

Practicing speaking in front of a mirror or making a video of yourself delivering both formal and informal messages is a good way to improve _______.

nonverbal communication skills

Sunil's online distribution company sold one of its facilities last year, and Sunil has been tasked with making a recommendation on how to use the proceeds of the sale. The director of operations has indicated that they may need the money in about six months to purchase new machinery, so Sunil needs a safe way to hold onto the funds. Ideally, he would find a way to save the money while still earning a small return. How should he hold the funds?

not A money market mutual fund

Terry works as an independent auditor. He recently reviewed the financial statements for a long-haul trucking company. In his auditor's report, he indicated that there were no issues with the statements that he reviewed. What kind of opinion has Terry issued?

not A qualified opinion

Liliana's favorite part of her job is getting to work across departments to evaluate their various business needs for the coming years. She enjoys the process of planning and then compiling all of the different inputs into a central document that provides a holistic view of the company's goals and what resources they will need to achieve those goals. What document is Liliana most likely creating?

not The company's operating budget

Ji-woo works for the Korean branch of an international cosmetics company. He works with a team of market researchers in Korea, a country that leads the way in skincare trends, to learn about the most in-demand skincare products and ingredients. Twice a year, Ji-woo and his team present their findings to the company's product development teams in the United States and Europe so that they can develop new trends before the competition. This is an example of how a company can use international business to _______.

not access a growth market

Sandra is independently working on a document that provides potential revenue opportunities for her company. She has compiled a list of resources that the company will need if they do decide to pursue any of the proposed opportunities, and she plans to present this to the company's leadership for their input and direction. She hopes that leadership will recognize her initiative and ask her to lead one of the projects she is proposing. Which company process is Sandra engaging in?

not activity based costing

Jimmy works as a management accountant for an industrial landscaping business. He has been helping his colleagues determine the total amount of money they'll need to fulfill the anticipated number of contracts over the next three years. Jimmy has looked at trends in the cost of supplies and calculated the potential revenues from each anticipated contract. The final result of Jimmy's work is part of the company's _________.

not capital expenditure budget

Many U.S.-based automobile manufacturers, like Ford, have opened factories in Mexico in order to cut costs. Mexico is able to manufacture cars more cheaply because it has a(n) _______ relative to the United States when it comes to labor.

not comparative advantage

Scenario 9.1 Dario works in finance at a healthcare start-up that has a higher-than-average tax burden. The chief financial officer (CFO) has asked Dario to make some recommendations on how the company can reduce taxes without sacrificing their access to financial resources. In his recommendations, Dario was sure to call out how certain ratios will be affected by changes in the company's financial structure. He has highlighted how a decrease in the company's tax burden will also increase the company's __________, which could help assure investors that the company is doing a better job of maximizing its earnings.

not current ratio

Mo works as a landscape architect. He is the sole owner of his LLC, and he has to manage all accounts receivables. When he first started his business, he would agree to provide services for clients without doing any due diligence first. This led to some awkward situations where clients would agree to pay for services, but then they would later admit that they couldn't afford it. Mo should have spent time ________________ to help prevent this kind of situation.

not deciding on an appropriate collection policy

Patty is planning to expand her retail shop, and she needs to decide whether to borrow money or seek out investors. She spends time evaluating the pros and cons of taking out a loan from a bank versus selling an ownership stake in the business. Both options would constitute ___________ for the business.

not financial leverage

Scenario 8.2. Madina is a management accountant for a tech startup in San Francisco. Her company recently went public, so her colleagues are anxious to stay on top of the company's performance. Refer to Scenario 8.2. The chief financial officer wants a current view of the company's assets now that the company has issued stock. Madina has been asked to see how the company has structured its debt in terms of liabilities versus equity. Madina refers to the company's _________ to quickly demonstrate the debt structure.

not income statement

Merle's boss is worried about stockholders' reaction to their company's recent performance. He has asked Merle to add extraneous information in the financial statements to help disguise the bad numbers. Merle knows that this would be a violation of the generally accepted accounting principles (GAAP) requirement that financial statements be _________, so he has escalated the issue to the company's chief financial officer.

not reliable

Olive owns a small business and wants to open a checking and savings account locally. She wants to open these accounts with a nonprofit institution that is committed to providing her with low interest rates on loans and high rates on her savings. Olive should explore opening an account with a(n) ______________.

not savings and loan association

Scenario 8.2. Madina is a management accountant for a tech startup in San Francisco. Her company recently went public, so her colleagues are anxious to stay on top of the company's performance. Refer to Scenario 8.2. The director of sales has asked Madina to show her the first quarter results for the sales team. Madina needs to determine how much money the team spent on travel versus how much revenue the team brought into the company. Madina refers to the company's _________ for this information.

not statement of cash flows

Maria grew up in a rural town in Guatemala. She and her parents sold the fruit that they grew on their property at an outdoor market. They chose to operate their fruit stand because there were few employment opportunities in their small town. Many of their neighbors started similar businesses selling livestock, produce, handmade goods, and offering variety of services to their community like transportation, home and car repair, and personal care. This is an example of how a country's _______ can influence the rate of entrepreneurship among its citizens.

per capita income

Yunyun is running for a seat on the local school board. She has two children in the school district and is concerned about the lack of arts classes and programming available. She has had some private conversations with other parents and learned that some believe that adding more arts programs will mean that the school has to cut classes in other subjects. Yunyun doesn't believe that other classes should be cut, but she worries that when she speaks about increasing access to the arts, other parents will become hostile to the idea. Yunyun should prepare for potential _________ barriers to communication.

perceptual

Leonardo is hosting a meeting where he and his coworkers can practice their public speaking skills. He has reserved a meeting room at work during their typical lunch period, and when the meeting begins, he learns that another coworker has reserved the meeting room next to his to watch the World Cup with some other coworkers. The wall between the rooms is thin enough that Leonardo and his public speaking colleagues can hear the loud cheering and laughing from the other room throughout the duration of their own meeting, which is incredibly distracting. This kind of poor setup is an example of a(n) ________ barrier to communication.

physical

Many consumers believe that Apple, Inc., is engaging in _________, because whenever it launches a new iPhone model, older models appear to break down.

planned obsolescence

Personal selling is effective when all of the following are true except when ______.

products are expensive

Various U.S. presidents, including presidents Hoover, Trump, and Biden, have encouraged citizens to "Buy American" rather than buying products made abroad. This sentiment is a hallmark of _________.

protectionism

Catriona is scheduled to facilitate a new-employee training session. This is the first time the company has held an official training session like this, and Catriona is nervous that she won't have all of the information that new hires might be interested in. To prepare, Catriona has compiled a list of potential things they might ask about, along with plans on how to respond. Catriona is preparing the _________ part of her presentation.

question

With ______, consumers are offered money back for sending in proof of purchase.

rebates

All of the following are effective ways of dealing with a hostile questioner except _______.

reestablish eye contact with the questioner after you respond

Chao's electronics repair business has turned a profit for a number of years. When he decided to start offering cell phone repair, he wanted to run an extensive marketing campaign. Instead of taking on debt or diluting his ownership share, Chao chooses to use his profits, in this case known as ___________, to pay for the campaign.

retained earnings

The _______ means that consumers should have access to a variety of products at competitive prices.

right to choose

Muhamad is preparing to submit projections for his IT company's master budget. He is requesting a substantial increase in his operational budget to ensure the successful launch of a new security software product. Although there is no guarantee that this product will be profitable, Muhamad hopes that leadership understands the importance of putting forth their best effort on a product with a larger-than-average potential payoff. This way of thinking illustrates what is known as the _________ of a financial opportunity.

risk-return trade-off

Gloria manages the investment portfolio for her company. She is responsible for buying and selling securities that will help grow the company's net worth while also supporting industries that align with her company's values. Gloria can best be described as a(n) ___________.

securities dealer

A supercenter ______.

sells a complete selection of food and general merchandise at a steep discount in a single enormous location

Jordan's boss has asked her to review the company's progress toward becoming more socially responsible. Jordan is going to go through all of the activities the company has completed over the past year and weigh them against their initial goals. Jordan is conducting a _________ audit.

social

Marley works for a company that manufactures tobacco products. To help offset the negative consequences of the products her company sells, Marley is part of a task force that promotes smoking cessation education programs. These programs are a way the company promotes its ___________.

social responsibility

Scenario 4.1. A popular chain restaurant called Sunday Roasters decided to build a new location and had two options for construction sites, one more expensive than the other. The cheaper site abutted a waterway, which the company knew would likely become contaminated during construction. The restaurant also learned that the vibrations and noise from the machinery could disturb the wildlife, potentially affecting the fragile ecosystem for years to come. The more expensive construction site posed no threat to the local wildlife or waterways. Refer to Scenario 4.1. When Sunday Roasters opted for the cheaper site, it demonstrated a lack of ___________.

social responsibility

When starting her consulting business, Ekaterina was worried about having to fill out complicated paperwork and doing taxes for both her personal and business incomes. She was less concerned about losing her personal assets because her startup costs were minimal (all she needed was a laptop and some business cards). She started a _________ for its ease of formation and possible tax advantages.

sole proprietorship

A whistle-blower is _______.

someone who reports a company's illegal or unethical behavior

Mei is an engineer who was awarded a patent for a new medical device that she invented. She wants to start a company so that she can market this new device and continue to research and develop similar medical devices. The startup funds she needs are more than she can raise from family and friends, so she is in talks with some experienced investors who would like to be active in helping her manage the company. They have recommended that she form a(n) __________ so that the company will be its own legal entity, and so the investors can be intimately involved in how the company grows without having to worry that their ownership stake will be eventually diluted.

statutory close (or closed) corporation

All of the following are true about the owners of a corporation except _______.

stockholders appoint the chief executive officer (CEO) and other corporate officers

A disadvantage of a statutory close corporation is _______.

stockholders must offer their shares to existing owners before being able to sell them to the public

Brands offered by wholesalers or retailers are called _____.

store brands

On the income statement, net income is found by subtracting ______.

taxes and interest from net operating income

Rebekah wants to expand her financial consulting firm across state lines. She currently operates as an LLC, so she needs advice on the most efficient way to expand while complying with differing state laws. She knows that there are different options for small businesses seeking advice and assistance, but in the end, she decides to work with ____________, where she is matched with a former executive who previously completed a similar multistate expansion in her own business.

the Service Corps of Retired Executives (SCORE)

Trang owns a small boutique that sells locally-made pottery, jewelry, and handbags. Her business is doing well, and she is able to cover the business's costs and pay herself and one employee a modest salary. She needs advice on how to grow her operations to the point where she can afford to hire even more employees and eventually offer those employees benefits, like health insurance coverage. Trang decides to seek help from _________ so that she can learn from someone who was once in her position.

the Service Corps of Retired Executives (SCORE)

Sport Equipment, Inc., started in a garage in Idaho where two brothers decided to buy gently used baseball bats, gloves, and helmets, refurbish them, and then resell them for a profit. The two brothers quickly realized that they would like to move into a larger space, but they would need additional funding to help with the upfront moving costs. They knew that they would likely struggle to get approved for a loan because they didn't have much equity in their business. Luckily, they were able to work with __________ to create a business plan that they could use in applying for a small business loan.

the Small Business Development Center (SBDC)

Talia works in market research in the hospitality industry. She has noticed that when businesses are performing well, they tend to spend more money on their travel and entertainment budgets. She keeps tabs on the average stock price of U.S.-based businesses because she believes this is a good way to gauge whether overall spending on the products and services her company offers will increase or decrease. Because her company only operates within the United States, Talia should refer to _____________.

the Standard & Poor's 500 (S&P 500)

Hannah owns a restaurant group that incorporated as a limited liability company (LLC) in Ohio. One of her top-performing restaurants, Mrs. Newman's Pie Factory, has been invited to open a location in Pittsburgh, which is just two hours away from the original location. Even though the two locations are so close, Hannah knows that she will have to file additional paperwork and pay separate taxes and fees in order to operate her business in Pennsylvania. This additional work is driven by ___________ that Hannah must deal with as the owner of an LLC.

the company's foreign status in other states

Aoife earned a Doctor of Pharmacy degree and then opened a small drug store where she fills prescriptions and also sells toiletries, over-the-counter medications, candy, and other sundries. As a new business, many of her suppliers require that she pay all invoices up-front. Aoife hopes that as her business credit rating improves, they will begin to offer her _________ so that she has a chance to earn revenues on items before she pays invoices.

trade credits

Product attributes may include all of the following except _______.

transportation

All of the following are advantages of sole proprietorships except _______.

unlimited liability

When Jessica took out a loan to finance her coffee delivery service, she hoped that she would earn enough revenue to repay the loan and interest within the first five years of operation. Unfortunately, she had to abandon the business after just three years. Despite her business no longer being in operation, Jessica was still responsible for the remaining balance of the loan, which she had to pay back using her personal funds. This situation was the result of the ________ Jessica faced when starting a sole proprietorship.

unlimited liability

In a _______, companies at different levels of the supply chain become one.

vertical merger

The leadership team of an international office supply company wants to provide a company-wide update on the company's performance that ideally would include a way for people to ask questions at the end. They are hoping to make this a semiannual event, so they have to consider the overall cost of such a presentation. Which channel should they consider for their presentation?

videoconference

Elements of product strategy can include all of the following except _______.

where the product is sold

______ is an economic system based on the principle that the government should own and operate key enterprises that directly affect public welfare.

Socialism

A country's changing demographics can affect trends in consumer preferences. For example, the increase in the U.S. Hispanic population could increase the need for Spanish-language marketing, and in turn, the need for Spanish-speaking marketers. This is an example of how _________ can affect the job market.

business trends

Boun is a farmer in Laos, a landlocked country in Asia that has a single-party government that controls all means of production. This means that even though Laotian farmers like Boun may have a high demand for products like commercial chicken feed, the government will decide which products get made. Laos is an example of a __________ economy.

communist

Traditional wired cable TV services are waning in popularity thanks to the rise in internet-based streaming services like Netflix and Disney+. Entertainment companies that traditionally aired their content through cable have responded by launching their own streaming services, like NBC's Peacock TV. NBC's decision to launch this type of service was likely in response to the ________ environment.

competitive

Drea is the director of marketing for a company that makes mobile phone batteries. She has been asked to evaluate international business opportunities. She initially recommended that her company focus on expanding to countries in the European Union because of their high gross domestic product (GDP), but recently she learned that cell phone penetration is an indication of _______ growth, so she reworked her recommendation to include India and parts of Africa.

economic

One way the government can help boost the economy is through large-scale infrastructure projects that create jobs. One famous historical example of this was the construction of the Hoover Dam during the Great Depression under Franklin D. Roosevelt's administration. This is an example of ______.

fiscal policy

In 2008, Congress passed the Troubled Assets Relief Program (TARP) to help large financial institutions and automakers that were on the brink of bankruptcy. While this has been referred to as a "bailout", in reality, it functioned more like a _______, which many institutions have been able to repay over time.

loan

Anders and his family make economic decisions on a daily basis: things like where to shop, what prices they are willing to pay, and which brands they prefer. The study of these choices is known as ________

microeconomics

Despite the fact that the United States espouses capitalist economic policies, the government controls certain enterprises, such as Medicare and Social Security. This is an example of the trend toward _______ systems.

mixed market

Joon is a successful entrepreneur who lives in Denmark. He started his business in 2010 when the tax rates were higher. He considered moving his business to a country with more favorable tax rates, but then Denmark lowered its corporate tax rate to encourage domestic investment. Joon is encouraged by this move towards a more _______ economic system.

mixed market

Melodie runs a small day care center in her neighborhood to help serve families who can't afford the rising cost of childcare. Each month, she must cover the cost of rent, utilities, cleaning supplies, and the salaries for her five employees. To cover these costs, she hosts quarterly donation drives. She also sells T-shirts and other merchandise with designs created by the students to help cover costs. Sometimes she is able to bring in more revenue than she needs, which results in a small profit, which she uses to purchase additional supplies for the daycare center. Melodie is running a ________ business.

nonprofit

Scenario 1.1. Philomena helps run a museum dedicated to the preservation of local history in her hometown. The museum is able to cover the cost of rent, maintenance, and utilities by asking visitors to pay an entry fee and through sales in their gift shop. Refer to Scenario 1.1. Although the museum does not seek profits, it runs like any other business in terms of having to bring in enough money to cover its costs. The museum operates as a(n) ______ business.

nonprofit

Jackson has operated a small consulting business in his hometown for the past ten years. He pays local and state taxes on behalf of his business, and those taxes were used to construct a new accessible playground. This park has brought joy and contributed to the overall well-being of families with children who have disabilities. This is an example of how businesses can positively impact a community's ________.

quality of life

Leandra owns her own dental practice and pays a certain amount of taxes to the local government based on a percentage of the revenues she earns. She found out that some of this tax money was used to improve the sidewalks in a popular pedestrian area of town. This is an example of how businesses increase a society's _______.

standard of living

Scenario 1.1. Philomena helps run a museum dedicated to the preservation of local history in her hometown. The museum is able to cover the cost of rent, maintenance, and utilities by asking visitors to pay an entry fee and through sales in their gift shop. Refer to Scenario 1.1. Nonprofits like this help increase the _______ of a society.

standard of living

When Americans can purchase more goods from a foreign country for the same amount of money, the U.S. dollar would be considered _________.

strong compared to the foreign currency

Countries using ______ as a trade restriction may be trying to protect a domestic industry from competition.

tariffs

In a direct investment, a company can do which of the following except _______.

use a trading company

_______ is a period of rising prices across the economy while _______ is a period of slowing average price increases across the economy.

Inflation; disinflation

The Fed would probably lower the discount rate ________

during a recession

Julia lives in a country where she is free to open her own plumbing business. She is also able to keep any profits she earns after paying taxes. Julia most likely operates in a _______ economy.

free market

Former U.S. President Donald Trump attempted to persuade U.S. auto manufacturers to move their factories from Mexico back to the United States. Despite social and political pressure, these companies were more persuaded by the abundant, cheap labor available and chose to ignore calls to bring production back to the United States. These companies are able to seek cheap labor in other countries thanks to the global movement toward _______.

free trade

Fiscal policy is best defined as _______.

government efforts to influence the economy through taxation and spending decisions that are designed to encourage growth, boost employment, and curb inflation

The United Way is an international network of nearly 2,000 local affiliates committed to advancing the common good in their communities. Each affiliate is responsible for raising funds to cover their own administrative costs, like rent, utilities, and salaries, plus the funds they plan to disperse in their communities. Sometimes these local affiliates are able to raise more money than they planned, but they must reinvest those funds into their communities or use them to help grow their operations. These affiliates are ______.

nonprofit-seeking

Heath works for a popular Australian retailer that advertises a 24-hour helpline for customers using their online platform. While they only sell their products in Australia, hiring enough qualified customer service associates to cover all shifts around the clock in Australia would be prohibitively expensive, so Heath's company contracted with a company in India that provides this kind of customer service coverage. Why did Heath's company engage in this kind of global trade?

not To access a growth market

Starbucks developed a smartphone app that allows consumers to customize their in-store experience: They can build their order right from the app, pay ahead and skip the line, save their favorite items, and earn points for their purchases. Also, Starbucks will sometimes offer special discounts through the app based on their past purchases. This is an example of how businesses operate in the ________ era.

relationship

Brands that disregard trends in the _______ environment are often ridiculed for being insensitive and risk being "canceled" (aka boycotted) by consumers. An example of this is when PepsiCo aired a commercial showing Kendall Jenner handing a can of Pepsi to a policeman in full riot gear during a staged protest. This commercial aired briefly during the initial Black Lives Matter protests in 2017.

social

Subway is the most popular fast food chain in the world, but recent health trends in the United States, such as the demand for gluten-free, locally-sourced, and organic ingredients, have decreased its popularity in some countries. This is an example of how Subway is facing pressure from the ________ environment.

social

Jen and her partner decided to purchase a home in 2007 to take advantage of the low interest rate their bank advertised. After submitting a short application that didn't include a credit check, they were surprised that their bank chose to award them a much larger mortgage than they expected or believed they could afford. When the housing market began to decline, they found that their house was suddenly worth less than the total amount they owed the bank. Jen and her wife were likely victims of the ________.

subprime mortgage crisis

Recently, the Swedish government has had to cut back on some of the social services it provides its citizens, especially those that benefit older adults. One issue is that the aging population is much larger than the younger working population. The younger workers help fund those social services through _______.

taxes