SOM 354 Chapter 2 Test Review

In the context of common law, which of the following terms refers to the ways in which laws are applied in specific situations? Tradition Precedent Custom Interpretation Culture

Custom

In mixed economies, governments sometimes tend to take into state ownership troubled firms whose continued operation is thought to be vital to national interests. Once a government takes into state ownership such troubled firms, they are said to be: Privatized. Decentralized. Liberalized. Nationalized. Deregulated

nationalized

A person who believes in public ownership of the means of production for the common good of society is a(n): Socialist. Capitalist. Individualist. Monarchist. Feudalist

socialist

A legal system which is based primarily on religious teachings is referred to as a: Civil law system. Theocratic law system. Common law system. Precedent law system. Public law system

theocratic law system

Which of the following nations is most likely to be unappealing as a place for doing business? A nation that has a market-based economic system A nation that has a strong legal system A nation that has a democratic political institution A nation that enforces strong property rights A nation that has a totalitarian political system

A nation that has a totalitarian political system

Which of the following is a feature of representative democracy? Restrictions on an individual's right to freedom of expression, opinion, and organization Inability of the citizens to vote out elected representatives who fail to perform their job adequately at the next election An unlimited term for elected representatives A court system that is linked to the political system A nonpolitical police force and armed service

A nonpolitical police force and armed service

Which of the following is true about the three main types of legal systems? Judges under a civil law system have more flexibility than those under a common law system. The common law system evolved in the United States over hundreds of years. Although Islamic law is primarily concerned with moral behavior, it has been extended to cover certain commercial activities. A theocratic law system is based on a detailed set of laws organized into codes. Common law cannot be altered, clarified, or amended to deal with new situations

Although Islamic law is primarily concerned with moral behavior, it has been extended to cover certain commercial activities

In the context of property rights, which of the following best exemplifies private action? Levying excessive taxes Requiring expensive licenses or state permits from private property holders Taking assets into state ownership without compensating the owners Government bureaucrats demanding bribes from businesses in return for the rights to operate in a country Business owners stealing their competitors' trade secrets and intellectual properties

Business owners stealing their competitors' trade secrets and intellectual properties

Which of the following is true about communism? Communism propagates the idea of "private profit rather than public good." By the mid-1990s communism started rising worldwide. China has moved sharply away from strict adherence to communist ideology in the economic sphere. Communists committed themselves to achieving socialism by turning their backs on violent revolution and dictatorship. Communism stresses that the interests of the individual should take precedence over the interests of the state

China has moved sharply away from strict adherence to communist ideology in the economic sphere

Which of the following is a law system based on a detailed set of laws organized into codes? Civil Theocratic Common Traditional Precedent

Civil

In the country of Normian Republic, an individual's right to own land is restricted to a large extent on the basis that it runs counter to "the common good." In this context, which of the following is most likely to be the political system adopted by Normian Republic? Individualism Democracy Collectivism Capitalism Protectionism

Collectivism

Which of the following legal systems is most likely to be based on tradition, precedent, and custom? Common law Civil law Autocracy law Monarchy law Universal law

Common law

Which of the following is a form of totalitarianism which advocates that socialism can be achieved only through a totalitarian dictatorship? Tribal totalitarianism Democratic totalitarianism Communist totalitarianism Theocratic totalitarianism Right-wing totalitarianism

Communist totalitarianism

Which of the following refers to documents that specify the conditions under which an exchange is to occur and detail the rights and obligations of the parties involved? Memoranda Manifestoes Contracts White papers Minutes

Contracts

Which of the following statements is true about the difference between contracts in common law and civil law systems? Contracts drafted under a common law system tend to be longer than those drafted under a civil law system. Contracts drafted under a civil law system tend to be more specific than those drafted under a civil law system. It is more expensive to draw up contracts in a civil law system than in a common law system. Resolving contract disputes tends to be less adversarial in common law systems than in civil law systems. Civil law systems have the advantage of greater flexibility and allow for judges to interpret a contract dispute in light of the prevailing situation but this feature is absent in common law systems

Contracts drafted under a common law system tend to be longer than those drafted under a civil law system

In which countries are we likely to find free market economies? Countries where the good of the society has precedence over private profit Countries where individual goals are given primacy over collective goals Countries where state-owned enterprises have a monopoly in certain industries Countries that have adopted communism as their political system Countries where the government plans the goods and services produced

Countries where individual goals are given primacy over collective goals

Which of the following is most likely to be advocated by individualism? Communal property is more highly productive than private property. Public good should be preferred over private profit. State-owned companies should monopolize certain industries. The welfare of society is best served by some collective body such as government. Free market ideologies should be followed for achieving better standards of living

Free market ideologies should be followed for achieving better standards of living

In the context of individualism, which of the following is inconsistent with the works of the ancient Greek philosopher Aristotle? Guaranteeing individual freedom Government dictating what is in the best interest of society Guaranteeing self-expression Committing to private ownership Treating individual diversity as desirable

Government dictating what is in the best interest of society

Which of the following is true about the three broad types of economic systems? For a pure market economy to function efficiently product supply must be restricted. In a command economy, state-owned enterprises have little incentive to control costs and be efficient. The sole role of government in a command economy is to encourage vigorous free and fair competition between private producers. Mixed economies were once uncommon throughout much of the world, although they are becoming more popular now. Production in command economies is determined by the interaction of supply and demand and signaled to producers through the price system

In a command economy, state-owned enterprises have little incentive to control costs and be efficient

In practical terms, which of the following translates into an advocacy for democratic ideals and free market economics, which in general creates the most favorable environment for international businesses to operate in? Collectivism Totalitarianism Individualism Communism Socialism

Individualism

Which of the following can be traced to the ancient Greek philosopher Aristotle? Collectivism Individualism Socialism Totalitarianism Communism

Individualism

What is the most widely practiced theocratic legal system in the modern world? Christian law Islamic law Jewish law Hindu law Buddhist law

Islamic law

Which of the following statements is most likely to be true regarding private ownership? It reduces a nation's dynamism and its investments in innovation and creativity. It is most commonly found in command economies. It eliminates competitors and reduces pressure to lower production costs. It gives entrepreneurs an incentive to search for better ways of serving consumer needs. It is based on the philosophy that "the good of society is more important than the interests of an individual."

It gives entrepreneurs an incentive to search for better ways of serving consumer needs

Which of the following statements is true about political systems? The political system of a country is independent of its economic and legal systems. The political system of a country is of no importance to international business. It is not possible to have democratic societies that emphasize a mix of collectivism and individualism. It is possible to have totalitarian societies that are not collectivist. The societal culture of a country does not influence its political system

It is possible to have totalitarian societies that are not collectivist

Which of the following systems is a part of the political economy? Religious system Value system Demographic system Legal system Technological system

Legal system

Which of the following applies to most totalitarian states? Free and fair elections are not denied to the citizens. There is free access to state information. All the basic civil liberties are granted to the citizens. The right to freedom of expression and organization is not curbed. Media are heavily censored

Media are heavily censored

In what type of economy are certain sectors of the economy left to private ownership and free market mechanisms, while in other sectors there is significant state ownership and government planning? Command Pure market Mixed Centrally planned Laissez-faire

Mixed

In the context of property rights, which of the following refers to theft, piracy, blackmail, and the like by private individuals or groups? Private consumption Private practice Privacy tort Private action Privacy violation

Private action

The bundle of legal rights over the use to which a resource is put and over the use made of any income that may be derived from that resource are called what type of rights? Civil Political Shareholder Property Public

Property

In what type of economy are all businesses state owned, the rationale being that the government can then direct them to make investments that are in the best interests of the nation as a whole rather than in the interests of private individuals? Free market Deregulated Pure command Mixed Laissez-faire

Pure command

Which of the following generally permits individual economic freedom, but restricts individual political freedom on the grounds that it would lead to the rise of communism? Pure democracy Right-wing totalitarianism Free market capitalism Representative democracy Communist totalitarianism

Right-wing totalitarianism

Which of the following is true about legal systems? All countries have the same, uniform legal environment. Unlike the economic system of a country, the legal system is independent of the country's political system. The government of a country defines the legal framework within which firms do business. The attractiveness of a country as an investment site or market is unaffected by its legal system. Collectivist-inclined totalitarian states tend to enact laws that are pro-private enterprise

The government of a country defines the legal framework within which firms do business

Which of the following is a form of government in which one person or political party exercises absolute control over all spheres of human life and prohibits opposing political parties? Capitalism Totalitarianism Pure democracy Republicanism Representative democracy

Totalitarianism

In the United States, the Foreign Corrupt Practices Act was passed during the 1970s following revelations that: U.S. companies had bribed government officials in foreign countries in an attempt to win lucrative contracts. U.S. companies were involved in bribing U.S. government officials in cases related to major corporate and accounting scandals. U.S. government bureaucrats demanded bribes from U.S. companies in return for a permit to operate in a foreign country. Several companies were selling their products at lower prices in foreign countries than in the United States. Successful business owners in the United States often had to pay "protection money" to the Mafia or face violent retribution

U.S. companies had bribed government officials in foreign countries in an attempt to win lucrative contracts

Democracy, in its purest form, is based on the belief that: Citizens should be directly involved in decision making. Political freedom of the citizens should be limited. Citizens are responsible for their own economic health and thus need no government. Individual freedom in the economic sphere should be restricted. One person should have an absolute control over all the citizens of a nation

citizens should be directly involved in decision making

The needs of society as a whole are generally viewed as being more important than individual freedoms when the emphasis is on: Democracy. Collectivism. Individualism. Capitalism. Privatization

collectivism

In the early twentieth century, the socialist ideology split into two broad camps and the people who believed that socialism could be achieved only through violent revolution and totalitarian dictatorship were referred to as: Communists. Capitalists. Democrats. Individualists. Anarchists

communists

In comparison to market economies, command economies lack: Government interference in allocation of resources. Dynamism and innovation. Concern for the interests of the nation. Commitment to communism. Any opposition to private ownership

dynamism and innovation

A common feature of many right-wing dictatorships is: Total restriction on individual economic freedom. Strong commitment to socialist or communist ideas. Governments that are made up of military officers. Politicians from a particular tribe dominating the political system. The direct involvement of the citizens in decision making

governments that are made up of military officers

The Cedian government believes that its citizens should have complete freedom in their economic and political pursuits, and the Cedian ideology is "private profit over public good." In this context, it can be said that Cedia most likely follows the philosophy of: Totalitarianism. Socialism. Individualism Communism. Marxism

individualism

Products of the mind, such as computer software, a screenplay, a music score, or the chemical formula for a new drug, constitute: Assets which receive no protection under law. Non-performing assets. Tangible assets. Intellectual property. Real property

intellectual property

The common law system enjoys a degree of flexibility not found in other systems because: It is usually found in democratic republics. It originated from Great Britain and can be found in almost all of its former colonies. It is interpreted by the law courts with regard to tradition, precedent, and custom. It is based on a detailed set of laws organized into codes. It has originated recently—just a decade ago

it is interpreted by the law courts with regard to tradition, precedent, and custom

The sale of state-owned enterprises to independent, nonpublic investors is referred to as: Privatization Nationalization Collectivism Communalism Public action

privatization

The fascist regimes that ruled Germany and Italy in the 1930s and 1940s had adopted: Right-wing totalitarianism Theocratic totalitarianism. Representative democracy. Pure democracy. Totalitarian democracy

right-wing totalitarianism

Those who attempt to achieve the same ideologies as that of the communists without violent revolution and totalitarian dictatorship are: Pure capitalists. Social democrats. Individualists. Anarchists. Aristocrats

social democrats

Collectivist-inclined totalitarian states tend to enact laws that severely restrict private enterprises, whereas the laws enacted by governments in democratic states, where individualism is the dominant political philosophy, tend to be pro-private enterprise and pro-consumer. This indicates that the: Economic system of a country is independent of its legal system. Legal system of a country is not influenced by the prevailing political system. Legal system does not affect the attractiveness of a country as an investment site or market. All countries have the same legal environments. The legal framework of a country reflects the rulers' dominant political ideology

the legal framework of a country reflects the rulers' dominant political ideology

States that limit the freedom of religious expression with laws based on religious principles most likely follow the political system of: Theocratic totalitarianism. Communist totalitarianism. Right-wing totalitarianism. Pure democracy. Representative democracy

theocratic totalitarianism