Quiz 3

A solid grasp of local values, customs, and traditions can help reduce a company's exposure to political risk.

True

A value-added tax is a tax levied on each party that adds value to a product throughout its production and distribution.

True

Corporate social responsibility is the practice of going beyond legal obligations to actively balance commitments to investors, customers, other companies, and communities.

True

In a coalition government, the strongest political parties share power by dividing government responsibilities among themselves

True

Islamic law is the most widely practiced theocratic legal system today

True

Lobbying is the policy of hiring people to represent a company's views on political matters

True

The Foreign Corrupt Practices Act forbids U.S. companies from bribing government officials or political candidates in other nations

True

The cultural relativist view says that a company's sole responsibility is to maximize profits for its owners while operating within the law.

True

Trademark protection typically lasts indefinitely, provided the word or symbol continues to be distinctive.

True

When a country's religious leaders are also its political leaders, its political system is called a theocracy

True

Totalitarian governments tend to favor private ownership of economic resources.

False

Among asset seizure approaches, expropriation is more common than confiscation and nationalization

False

Anarchism is the belief that every aspect of people's lives must be controlled in order for a nation's political system to be effective

False

Civil law can be more adversarial than common law because civil law relies more on the need to interpret laws according to tradition, precedent, and usage

False

Developing nations have the toughest product liability laws, while developed countries have more relaxed laws

False

Economic socialism won the battle over communist totalitarianism and capitalism

False

Expropriation involves the forced transfer of assets from a company to the government without compensation

False

Pluralism is a political system in which political leaders rely on military and bureaucratic power.

False

Pluralism is the belief that only individuals and private groups should control a nation's political activities

False

Pluralistic political systems include authoritarian regimes such as communism and fascism

False

Product liability laws hold only manufacturers responsible for damage, injury, or death caused by defective products.

False

Secular totalitarianism is a political system in which government leaders are elected directly by the wide participation of the people or their representatives

False

The most peaceful nations today are those that were once controlled and stabilized by colonial powers

False