MGMT 1010

In 2015, the fictional country Globopolus had $2.5 billion in imports and $2.7 billion in exports. Its balance of trade is:

$200 million surplus

Which group(s) outside of the business is/are affected in some way by the decisions of the business?

Suppliers and Customers

the four elements of a negligence case

That the defendant (the manufacturer) owed you a duty of care That the defendant breached this duty of care That the defendant's breach of duty of care caused injury to you or your property That the defendant's action did in fact cause the injury in question

In the U.S. Constitution power is derived from:

The People

A company decides to relocate its operations to another state in order to take advantage of some new business investment credits. When the company closes its current location, other than the employees which of the following groups will be impacted?

The local taxing authority. AND The company's insurance agent.

Limited Jurisdiction Courts

The lowest level is that of the limited jurisdiction courts. These are usually county or municipal courts with original jurisdiction to hear minor criminal cases

intellectual property.

The major forms of intellectual property are patents, copyrights, and trademarks. Unlike tangible personal property (machines, inventory) or real property (land, office buildings), intellectual property is formless.

Negligent failure to warn.

The manufacturer may be liable if the company knew (or should have known) that, without a warning, the ladder would be dangerous in ordinary use or in any reasonably foreseeable use.

Negligence per se

The manufacturer may be liable if the ladder fails to meet legal standards.

The economic term "scarcity" describes which of the following conditions?

The number of doses of the flu vaccine is not as great as the population. Global oil reserves are limited.

The federal government tracks the amount of money that is in the system at any given time using which of the following measurements?

The total amount of cash held in people's bank accounts throughout the year.

Kinds of Torts

There are three kinds of torts: intentional torts, negligent torts, and strict liability torts. Intentional torts arise from intentional acts, whereas unintentional torts often result from carelessness (e.g., when a surgical team fails to remove a clamp from a patient's abdomen when the operation is finished). Both intentional torts and negligent torts imply some fault on the part of the defendant. In strict liability torts, by contrast, there may be no fault at all, but tort law will sometimes require a defendant to make up for the victim's losses even where the defendant was not careless and did not intend to do harm.

General Jurisdiction Courts

These go by a variety of names: superior, circuit, district, or common pleas court (New York calls its general trial court the supreme court). These are the courts in which people seek redress for incidents such as automobile accidents and injuries, or breaches of contract.

depository institutions

Those that accept deposits from customers include commercial banks, savings banks, and credit unions;

rule of law

U.S. legal tradition rests on the principle of the rule of law—the principle by which government legitimately exercises its authority only in accordance with publicly declared laws that are adopted and enforced according to established procedure. Under the rule of law, the legal system adopts and enforces laws in a reasonably predictable manner. The principle of predictability, however, doesn't in itself guarantee that a legal system is fair. A legal system can achieve a reasonable degree of fairness only if it also guarantees equal treatment of all members of society.

Which of the following is/are an example(s) of a non-profit organization?

United Way

Rule Of Law

_______________ is a system of laws under which the people and the government are bound, which allows predictability and restraint of government action.

reserves

A bank holds onto only a fraction of the money that it takes in

What Is a Contract?

A contract is a promise or a set of promises for the breach of which the law gives a remedy, or the performance of which the law in some way recognizes as a duty. A short-hand definition is: "A contract is a legally enforceable promise."

Crimes

A crime may be a felony—a serious or "inherently evil" crime punishable by imprisonment—or a misdemeanor—a crime that's not "inherently evil" but that is nevertheless prohibited by society.

Tort Law

A judge will instruct a jury that a tort is usually defined as a wrong for which the law will provide a remedy, most often in the form of money damages.

Which of the following events will increase supply in the market for natural gas?

A new technique for inexpensively accessing new reserves is discovered.

A contract, however, can be enforced only if it meets the following four requirements:

Agreement. The parties must have reached a mutual agreement. The offerer must have made an offer, and the offeree must have replied with an acceptance. Consideration. Each promise must be made in return for the performance of a legally sufficient act or promise. If one party isn't required to exchange something of legal value (e.g., money, property, a service), an agreement lacks sufficient consideration. Contractual capacity. Both parties must possess the full legal capacity to assume contractual duties. Limitations to full capacity include mental illness and such diminished states as intoxication. Lawful object. The purpose of the contract must be legal. A contract to commit an unlawful act or to violate public policy is void (without legal force).

punitive damages

Another form of monetary award,intended to punish, to deter similar injurious conduct in the future, or to set an example.

A(n) ____________ is any activity that provides goods or services to consumers for the purpose of making a profit.

Business

Common Law

Common law consists of decisions by courts (judicial decisions) that do not involve interpretation of statutes, regulations, treaties, or the Constitution.

One Saturday morning, a group of neighbors got together to hold a yard sale in a nearby church parking lot. They paid nothing to use the lot, and in fact the church pastor and other leaders were unaware that the lot was being used for this purpose. A woman attending the yard sale injured herself when she tripped on a concrete stop in the parking lot, and she decided to sue the church for damages. However, the church was not liable because this situation fails to meet which requirements of a contract?

Consideration and Agreement

A young author writes a novel that is based on the story of Harry Potter, including Harry and several of the other characters in his new story. This is an example of a:

Copyright Infringement

"Individual shall pay agent 2% of the sales price of the item." This is an example of a:

Covenant

Criminal Law

Criminal law prohibits and punishes wrongful conduct, such as assault and battery, murder, robbery, extortion, and fraud

A couple purchased a used Mercedes S320 with 135,945 miles. The used car dealer was also the original owner of the car. After purchasing the car the new owners found that the air conditioning worked intermittently and created a strong odor after 30 minutes of use. In order to create a compelling case of implied warranty, which of the following questions apply

Did the dealer tell the couple that the air conditioning had issues? Did the dealer market the car as being particularly well matched for warm conditions?

Marty goes to a concert with his friends and wants to buy a t-shirt as a souvenir of the event. He pays the vendor with a $50 bill and gets change back. Later his friend Doc wants to buy a hot pretzel but is 50 cents short. Marty gives him 2 quarters. On the way home Marty stops and puts gas in his car and pays with his Visa. In which of these transactions did Marty actually use money?

Doc's purchase of a pretzel T-shirt purchase

You are selling an autographed Steve Nash rookie basketball card online for $170. A potential buyer contacts you and offers to pay you $170 Canadian dollars. You quickly check and find the exchange rate is $1 U.S. to $1.25 Canadian. If you take this deal, you will have returned Steve to his homeland and:

Earned less than if you accept $170 U.S.

One way an ____________________ is created is when a seller describes a product, implying that the product will meet the description.

Express Warranty

Which function is responsible for raising the funds required for the business to grow

Finance

Guilt

Guilt in criminal cases must be established by proof beyond a reasonable doubt—doubt based on reason and common sense after careful, deliberate consideration of all the pertinent evidence.

Intellectual property law governs the protection of:

Ideas

In a criminal law case, the defendant can be a(n):

Individual, organization, and/or business

For money to be used in this way, it must possess a few crucial properties:

It must be divisible—easily divided into usable quantities or fractions. A $5 bill, for example, is equal to five $1 bills. If something costs $3, you don't have to rip up a $5 bill; you can pay with three $1 bills. It must be portable—easy to carry; it can't be too heavy or bulky. It must be durable. It must be strong enough to resist tearing and the print can't wash off if it winds up in the washing machine. It must be difficult to counterfeit; it won't have much value if people can make their own.

U.S. law serves several primary functions, as follows:

Keeping the peace Shaping moral standards Promoting social justice Maintaining the status quo Facilitating orderly change Facilitating planning Providing a basis for compromise Maximizing individual freedom

Liability

Liability in civil cases may be established by a preponderance of the evidence—the weight of evidence necessary for a judge or jury to decide in favor of the plaintiff (or the defendant).

Petite Palate is a gourmet baby food company founded in 2006. Petite Palate's founders believe that frozen baby food is healthier than baby food in jars or pouches, but the company struggled to get its product into the freezer section in grocery stores. The consumer was not accustomed to looking in the freezer for baby food. Which function was responsible for understanding consumer behavior and aligning product to consumer preferences?

Marketing

Marketing is best defined as the activities, organizations, and processes for ______.

Marketing is best defined as the activities, organizations, and processes for ______.

Money serves three basic functions:

Medium of exchange: because you can use it to buy the goods and services you want, everyone's willing to trade things for money. Measure of value: it simplifies the exchange process because it's a means of indicating how much something costs. Store of value: people are willing to hold onto it because they're confident that it will keep its value over time.

Federal Reserve System

Most large banks are members of the central banking system called the Federal Reserve System (commonly known as "the Fed").

Bonds and stocks in the U.S. are traded on these exchanges:

NYSE

NASDAQ stands for:

National Association of Securities Dealers Automated Quotations

A hotel provides both goods and services. Which of the following is an example of a good provided by a hotel?

Offering a bathrobe that you can purchase to take home with you.

When products and services are produced or provided, which function is responsible for ensuring that those products and services meet high quality standards?

Operations and Management

____________________ is the value of choices not selected.

Opportunity cost

Two countries, Shoeland and Podtopia, are participating in trade. Both countries are capable of making both athletic shoes and digital music playing devices, but they are not equally effective at both. The table below shows what each country is capable of producing if all labor is focused on a single product. Which statement(s) below are correct? Product Shoeland Podtopia Pair of Shoes 100 150 Digital Music Devices 5 30

Podtopia has an comparative advantage in both products

warranty

a guarantee that a product meets certain standards of performance—is grounds for recovering in a product-liability case.

A business that provides goods or services to consumers but whose primary goal is not profit is _____________.

a non-profit business

Bonds are

a way to raise capital through borrowing, used by corporations and governments; an investment for the bondholder that creates return through regular, fixed or floating interest payments on the debt and the repayment of principal at maturity; traded on bond exchanges through brokers.

Stocks are

a way to raise capital through selling ownership or equity; an investment for shareholders that creates return through the distribution of corporate profits as dividends or through gains (losses) in corporate value; traded on stock exchanges through member brokers.

If an organization can produce more of a product with fewer resources than anyone else it has a(n) ___________________________.

absolute advantage

In the video "Chinese Manufacturing for American Products," what benefits does Mike Tomberlin cite for manufacturing cars in China?

access to existing manufacturing infrastructure an ability to focus on the brand and channel/work flow

Strict Liability

acknowledges that some products are inherently dangerous

A global economy is one where companies actively compete with businesses located:

all around the world

A contract is

an agreement that is enforceable by law.

Mutual funds

are portfolios of investments designed to achieve maximum diversification with minimal cost through economies of scale.

implied warranty

arises automatically out of a transaction and takes one of two forms: (1) an implied warranty of merchantability (which states that the product is reasonably fit for ordinary use) and (2) an implied warranty of fitness for a particular purpose (which states that the product is fit for some specific use).

Law

body of enforceable rules and principles of conduct. When we entrust the responsibility for adopting and enforcing legal rules and principles to government, we approve the formation of a legal system—the institutions and processes that actually enforce our laws. That system works because its key elements are stable and interact in reliable ways.

Which of the following are functions of marketing?

building awareness of new products providing customer service

open market operations

buying or selling government securities on the open market.

During a product strategy meeting at a sports drink company, the leadership team agrees to pursue a new, "natural" line of sports drinks targeting women. The CEO wants to use the last 15 minutes of the meeting to brainstorm potential brand names for the new product line. What important steps should the team take before diving into name selection?

clearly define what makes this brand different and distinct from the competition create a plan for how this brand will support company strategy and objectives

The most common financial institutions in the United States, representing over 85% of the total assets held by banks are:

commercial banks

Anita lives in a country where the government makes all decisions about what goods and services are produced, how to produce them, and what prices can be charged for them. The government also determines how much to pay workers. What type of economic system is this?

communism

A mutual fund is an investment portfolio that:

consists of diverse investments with minimal transaction costs

Consider the following text: "In 2008, credit markets froze up and banks stopped making loans. Lawmakers tried to get money flowing again by passing a $700 billion Wall Street bailout, yet businesses and individuals were still denied access to needed credit. Without money or credit, consumer confidence in the economy dropped and consumers cut back their spending." Which of the following is an example of an external CONSUMER TREND that influenced businesses 2008?

consumer confidence and spending dropped

The medium of exchange, or money used in a country, is its ____________________.

currency

discount rate

discount rate

A hotel staff might be comprised of front desk clerks, housekeeping staff, concierges who provide directions and assistance with activities, and valets who help with luggage and parking. In economic terms, the staff of a hotel is/are an example(s) of:

division of labor

Skimming works on the assumption that:

early adopters are willing to pay more for a premium product

Global business ethics have been heavily influenced by principles of equality and individual rights. This results in ethical standards that support:

employees benefiting financially and socially from their work individuals having equal opportunities

money multiplier

ensures that the cycle expands the money supply.

A business cycle reflects changes in economic activity, particularly real GDP. The phases of a business cycle, in order, are:

expansion, peak, contraction and trough.

Hometown Bank has made a significant number of loans to their customers, some of which have been very large. An audit of the bank's records shows that as a result of this increased lending activity that the bank is now below the Federal Reserve's minimum reserve requirement. A member bank, City Bank, has excess reserves, which Hometown Bank borrows. The rate of interest that Hometown Bank will pay to City Bank for the loan is the ________________ rate.

federal funds

In economics, "ceteris paribus" refers to an assumption that:

for simplicity, we assume all external variables except one to be held constant.

Petite Palate was a gourmet baby food company founded in 2006 and was growing until the fall of 2008 when potential investors in the company pulled out because they were concerned about the weakening economy and chose to make fewer outside investments. Based on the information provided about the company, what type of organization was Petite Palate?

for-profit

In the United States, the federal government took action to ban advertising of tobacco products on television and radio in 1970. Since then, the industry has faced a growing number of restrictions around promotional activity such as a ban on sponsoring sporting and entertainment events, prohibiting free samples, and limits on package sizes to eliminate lower-cost "kiddie packs." These are all examples of which factor(s) in the external marketing environment?

government and regulatory environment

A university professor is planning for her retirement and is concerned about her investments providing her with income after she retires. If one of her primary goals is income production, which of the following investments will best suit her needs?

government bonds with a stated coupon rate

patent

grant from government that gives an inventor the exclusive right to make, use, and sell an invention for a period of twenty years from the date of filing the application for a patent

Both capital and natural resources can be used to produce other goods and services, but only capital resources:

have been produced.

The primary goal(s) of consumer research include:

helping a company understand their target buyers serving as the voice of the consumer

Social media marketing is helping to drive significant changes in:

how companies attract and recruit new employees how marketers use data to monitor consumer attitudes and behaviors

An ____________________ assures that a product is fit for a specific use that is stated by the manufacturer, wholesaler or reseller.

implied warranty of fitness

Representations

include the things that are known at a specific date that are relevant to the contract (e.g., property condition)

M-2

includes everything in M-1 plus near-cash items, such as savings accounts and time deposits below $100,000.

M-1

includes the most liquid forms of money, such as cash and checking-account funds.

A university professor's retirement portfolio is invested in a variety of mutual funds through a brokerage firm. The Standard & Poor's (S&P) 500 index has been climbing at a steady pace and she would like a way to mimic that index and grow her retirement account. She decides to invest money in a(n):

index fund.

The percentage change in the weighted average price of consumer goods and services from one time period to the next is the _____________.

inflation rate

M&Ms are a popular candy snack people can buy almost anywhere in the U.S. M&Ms' degree of placement is _________.

intensive

In order to best navigate cultural differences in business, you should:

invest in learning about the cultures in which you will do business treat each person as an individual

Strict liability torts

involve actions that are inherently dangerous and for which a party may be liable no matter how carefully he or she performs them.

Product liability

is a claim of injury suffered because of a defective product. In such cases, there are three grounds for pursuing a claim and seeking damages (that is, three "theories of recovery"): negligence, strict liability, and breach of warranty. Most plaintiffs use as many of these three grounds as possible.

express warranty

is created when a seller affirms that a product meets certain standards of quality, description, performance, or condition.

copyright

is the right to exclude others from using or marketing forms of expression.

trademark

is the right to prevent others from using a company's product name, slogan, or identifying design.

If a country has a relatively low annual income per citizen:

it is never an attractive place to do business because there is little opportunity to generate revenue from its people

Civil Law

law governing disputes between private parties (again, individuals or organizations). In civil cases, the plaintiff sues the defendant to obtain compensation for some wrong that the defendant has allegedly done the plaintiff.

compensatory damages

legal system provides for monetary awards

Which of the following is/are internal stakeholders in a business?

managers

Which type of economy is most likely to have fewer regulations and interference from the government?

market economy

Which type of strategy focuses on increasing sales of an existing product to existing customers?

market penetration strategy

You purchase stock in United Sure Thing because it has shown positive growth in a stable industry for the past 20 years. You have a great deal of confidence in the leadership of the company to make sound decisions that will protect the value of the company. Despite these positive signs, what potential sources of risk are still associated with your investment?

market risk asset class risk economic risk

The field of economics that focuses on the actions of individual agents within the economy, like households, workers, and businesses is:

microeconomics

Mobile payment is also known as:

mobile wallet mobile money transfer

Commodities are

natural or cultivated resources; traded to hedge revenue or production needs or to speculate on resources' prices; traded on commodities exchanges through brokers.

An individual driving under the influence of alcohol crashes into another car killing the driver, a father, and injuring his wife and child. Compensatory damages may include:

payment for depriving the child of her father and payment for lost income of the husband.

Which of the following activities are part of formulating a marketing research design?

plan of data analysis questionnaire design methods of collecting data

An individual walks to a local sandwich shop and uses a $10 bill to pay for a $6 sandwich, receiving $4 as change for this transaction. This illustrates that as a medium of exchange this $10 bill is:

portable and divisible

The Federal Reserve uses a variety of monetary policy tools to achieve which of the following goal(s)?

price stability sustainable economic growth full employment

The "four Ps," also known as the marketing mix, consist of __________.

product, promotion, place, price

Warranties

provide assurance that specific facts or conditions are true or will happen

Strategies that promote a product to wholesalers and retailers, who in turn promote that product to consumers, are known as:

push strategies

The promotion mix is a set of activities and media channels marketers use to:

raise consumers awareness of a product or brand communicate about and promote a product

monetary policy

regulate the money supply and the level of interest rates

The law of torts developed almost entirely in the common-law courts, meaning:

rules are created through rulings in other court cases and he nuances of contracts willingly created by parties can be considered

Agency

s a legal relationship between two parties in which one party acts on behalf of, and under the control of, another.

Sasha was exceptional at organizing educational events in her community. As friends and professional contacts were asking for more of her time and expertise she decided to start a business with the mission of improving the performance of students in grades K-12 in her community. After significant analysis of her options, Sasha decided to create a NON-PROFIT BUSINESS because:

she can use the revenue to further the mission of her business.

Tax rates are usually higher than "average" in __________ economies, to pay for the cost of generous social services provided by the government such as education, child care, health care, unemployment benefits, and pensions.

socialist

Alicia is the owner of an established hair salon. Recently she expanded to start offering spa services. Which of the following activities would be considered part of Promotion (one of the four Ps)?

sponsoring a local dance team advertising on Facebook and in the local paper

Statutory Law

statutes apply to and regulate individual or private action. A statute is a written (and published) law that can be enacted in one of two ways. Most statutes are written and voted into law by the legislative branch of government.

As the price increases:

suppliers will produce more. buyers will purchase less of the good.

Technology is affecting the traditional definition of "money." Technologies currently challenging this definition are:

tap to pay virtual wallets Bitcoin

In 1947, twenty-three countries agreed to a series of rules concerning trade that became:

the General Agreement on Tariffs and Trade.

Which of the following seeks to ensure the health of the economies of member nations:

the International Monetary Fund the World Bank

If Guatemala is seeking funding to invest in expanding production and exports that will grow its economy then it would turn to:

the World Bank.

Conditions

the conditions under which the promises must be kept

Which of the following are branding elements?

the distinctive shape of a Coca-Cola bottle Mickey Mouse ears

When a market is experiencing a shortage, or "excess supply":

the equilibrium price is higher than the current market price. the quantity supplied is less than the quantity demanded.

Returns are created when:

the investment gains (or loses) value the investment creates income

In cases of strict liability:

the law provides some form of constant protection to consumers.

reserve requirements

the percentage of its funds that banks must set aside and can't lend out;

The unemployment rate is:

the percentage of the labor force that is unemployed and actively seeking work.

Covenants

the promise made in the contract

A severe freeze has once damaged the Florida orange crop. As a result orange juice producers will pay more for oranges and ultimately consumers will have to pay more for orange juice at the grocery store. The impact on the market for orange juice will cause which of the following to shift to the left?

the supply curve

The law of demand says that, all else remaining constant:

there is an inverse relationship between price and quantity demanded.

Natural resources have the following key characteristics:

they are found in nature and can be used for the production of goods and services.

Negligent design

this principle applies to defectively designed products. In law, a product is defective if, despite any warnings, the risk of harm outweighs its usefulness in doing what it's designed to do.

Costs of production are lower in developing countries because:

wages are lower. workers do not have government and company benefits similar to those in industrialized countries.

nondepository institutions

—include finance companies, insurance companies, and brokerage firms.