All quizzes

A group of cotton growers in North Georgia and North Alabama pooled their resources to build a cotton gin and storage area for the ginned cotton. They marketed their cotton to textile mills under one label. This collective ownership organization is a:

cooperative

Kathy Elliot has decided that she will start an Internet company to sell reliable used cars to customers nationwide. She has decided to use the sole proprietorship business format. Elliot's next step is to write a formal _____ before she applies for a business loan.

business plan

A _____ regulation in the United States bans the use of foreign steel in constructing U.S. highways.

buy-national regulation

Corporate philanthropy:

can be either a cash or noncash donation

Bribery translates to kuroi kiri (black mist) in Japan, schmiergeld (grease money), and baksheesh (tip or gratuity) in the Middle East. This differing way of looking at bribes is descriptive of differences in:

culture

After graduating from college, Joseph Tantillo decided to start a retail Web site that specializes in personalized Greek apparel. To fund his Web site, he borrowed money from his parents (who expect to be repaid with interest). In other words, he used _____ financing.

debt

Jill Hansom borrowed $40,000 from a credit union to start a company that makes and sells peach salsa. Hansom used _____ financing.

debt

When Grand Metropolitan, a British company, purchased U.S.-based Pillsbury Co. in order to expand its product line and the market for its existing consumer products, it was an example of a(n):

direct foreign investment

Which of the following is an example of a natural trade barrier?

distance

The slope of the demand curve is:

downward and to the right

All of the following are characteristics unique to the capitalistic or private enterprise system EXCEPT:

economies of scale

In the chocolate market, Green & Black is acting at the _____ responsibilities level of the pyramid of corporate social responsibility when it makes a profit, does so by abiding by the laws, and helps cocoa farmers by agreeing to pay above-market prices for cocoa.

ethical

Summer Dean was walking through the mall and found a gym bag lying on the ground. The decision Dean must make as to whether to keep the gym bag and its contents for herself or turn it into the mall's lost and found department involves:

ethics

_____ is the set of moral standards for judging whether something is right or wrong.

ethics

The least costly and least risky method for selling a product on the global market is:

exporting

A(n)_____ occurs if a country's total expenditures are higher than the revenues received from the taxes it gathers.

federal budget deficit

When Linda McAnem began Stirya, a New York-based computer services company, she ran it as a sole proprietorship. As a sole proprietor, McAnem:

found the business to be easy and inexpensive to form

A preferential tariff:

gives tariff advantages to one country over others

One of the keys to ethical business behavior is:

how the company's top management conducts themselves

A recent regulation enacted by the Commission for Protective Trade Measures in Russia limits the amount of poultry meat that can be brought into the country and sold in the country each year to 1.05 billion tons. Russia is using a(n) _____ to protect its domestic poultry industry.

import quota

The _____ of Algeria includes 3,973 km of railroads, 104,000 km of roads, and 54 paved airports. It also has only five telephones for every 100 citizens and only two Internet service providers.

infrastructure

A code of ethics:

is accurately described by all of the above

The franchise agreement

is the contract that details the terms of the franchise

An enterprise in which two or more firms or investors (including governments) share ownership of a business and its property rights is called a(n):

joint venture

The development of new drugs is very expensive. For this reason Genentech, a large biotechnical company, has entered into a _____ with Swiss-owned Roche to develop a vaccine for tuberculosis. When the vaccine is developed or when the two biotechnical companies determine the vaccine cannot be developed using their current methodology, this relationship will dissolve.

joint venture

In 2018, if the country of Serbia had imports of $10.58 billion and had an unfavorable balance of trade. This means that Serbia had:

less than $10.58 billion in exports

A common use of business plans is to:

persuade lenders and investors to finance the venture

A company has achieved the level of _____ responsibilities when it has met its ethical, legal, and economic responsibilities.

philanthropic

Which of the following factors would most likely result in a shift in the demand curve?

prices of substitute products

When the price of gasoline rises by 40 percent, but your salary remains the same, it is an example of a decline in your:

purchasing power

_____ is the money a company earns from providing services or selling goods to customers.

revenue

A corporation's board of directors:

sets major corporate goals and policies

_____ is the practice of limiting investments to securities in companies that behave in accordance with the investor's beliefs about ethical and social responsibility.

social investing

Wal-Mart has announced that it will only sell fresh and frozen fish that come from environmentally sound sources and bear the label of the Marine Stewardship Council. Wal-Mart's size gives it a unique opportunity to improve the fishing industry. This concern for _____ is one of many initiatives Wal-Mart is introducing to improve our environment.

social responsibility

The form of business ownership that has the most difficulty in raising capital is the:

sole proprietorship

The most common form of business organization is the:

sole proprietorship

_____ are all the individuals or groups to whom a business has a responsibility.

stakeholders

The _____ of any country is measured by the output of goods and services people can buy with the money they have.

standard of living

Which of the following is an example of a trend in ethics and social responsibility?

strategic giving

All of the following are characteristics of an entrepreneurial personality EXCEPT:

the willingness to be a follower rather than a leader

Which of the following is an example of a disadvantage associated with a partnership?

unlimited liability

The Uruguay Round of trade negotiations:

was the most ambitious global trade agreement ever negotiated

Which of the following statements about a socialist economic system is true?

The government owns or controls the major industries

Which of the following statements about ethics training is true?

The most effective ethics training begins with the development of a personal code of ethics.

_____ contributes to an employee's self-worth, which, in turn increases productivity and reduces absenteeism.

Empowerment

Businesses close down for many reasons. Which of the following is NOT a typical reason for a business failure?

Expenses were lower than the owner expected.

The average price of construction materials increased by 8.1 percent in 2005. The head of the Home Builders Association said it was due totally to increases in lumber, metal, and labor costs. The 8.1 percent increase is probably an example of:

Inflation

The Federal Reserve System can do all of the following EXCEPT

Lower taxes

Why do many people fear trade and globalization?

Many fear trade and globalization will lead to massive job losses.

As one of the factors of production, capital includes all of the following EXCEPT:

Money

The _____ created the world's largest free-trade zone.

North American Free Trade Agreement

A type of business entity that provides liability protection but is taxed like a partnership is a:

S corporation

To avoid double taxation, a new entrepreneur may elect to organize as a(n):

S corporation

Tonya Thomas is tired of working for other people. She wants to start her own administrative services businesses and control her own work schedule. She wants to have sole responsibility for all business decisions. Thomas should form a(n):

Sole proprietorship

The _____ is an agreement that dramatically lowered trade barriers worldwide and created the new World Trade Organization (WTO).

Uruguay Round

_____ is a philosophy that focuses on the consequences of an action to determine whether it is right or wrong. This philosophy holds that an action that affects the majority adversely is morally wrong.

Utilitarianism

Which of the following statements about utilitarianism is true?

Utilitarianism is designed to create both winners and losers.

_____ are individual investors or groups of experienced investors who provide funding for start-up businesses.

angel investors

Intrapreneurs:

are accurately described by all of the above

There are over 1,100 Corner Stores that market candy. When Valero Energy Corp. purchased the chain of retail stores, it was an example of a _____ merger.

conglomerate

U.S. Lumber Company's purchase of EnviroPlastics, a manufacturer of plastic cutlery, is an example of a _____ merger.

conglomerate

When the government decides to cut military spending, it is implementing a(n) _____ policy.

fiscal

Currency markets operate under a system called _____. This means that prices of currencies vary based upon demand and supply of that currency.

floating exchange rate

The karakul is a breed of Central Asian sheep that produces curly, glossy wool. This wool is popular in some countries for the manufacturing of warm hats and coats. Since the breed can only be grown in Central Asia, this region can be said to have a(n):

absolute advantage

The unemployment rate is the percentage of the total work force that is not working but is:

actively looking for work

Andy Yocom was looking to start a small business so he could be his own boss. While golfing one day, he saw prime advertising space on the flags on the course. He has decided to call his new venture Invision Golf Group Inc. What should he include in his business plan?

all of the above

Michael Bronner made a fortune in the direct marketing business as the cofounder and CEO of Bronner Slosberg Humphrey, a wildly successful direct-marketing firm. His newest venture, Upromise Inc., enlists some of America's largest corporations to help families pay for college and is extremely successful. Entrepreneur Bonner would more than likely have which of the following characteristics?

all of the above

Social responsibility should extend beyond the shareholders to include:

all of the above

Kayla Langton is considering the purchase of a Bonus Building Care franchise. Langton is likely to get assistance from the commercial cleaning franchisor in which of the following areas?

all of these

Labor, as a factor of production, refers to:

all workers in business

Which of the following factors would most likely result in a shift in the supply curve?

an increase in the price of raw materials used in the production process

Jack Smith and four other people own Persimmon Hill Farm, an agric-entertainment farm which provides corn mazes, bonfires, hay rides, and food treats to paying visitors. All of the owners have limited financial risk. Persimmon Hill Farm is a(n):

corporation

Nations sometimes form free-trade associations and establish areas where there are few, if any, export and import duties or other regulations that would act as barriers to trade among partners. These are called:

free trade zones

Thom Georges wants to open a store where he sells nothing but antique architectural features that he can salvage from old houses being torn down to make way for progress. He has an eye for the kind of doors, windows, mantels, and so forth that decorators want, but he does not have all the funding he needs to get started. He has invited his parents to invest $40,000 in the enterprise. He has told them that if they do invest, they would have liabilities in the firm equal to but no greater than their investment. Georges is trying to get them to form a _____ with him.

limited partnership

The implementation of an expansionary policy by the Federal Reserve would result in:

lower interest rates

The purchase of savings bonds by individuals allows the U.S. government to:

make sure that the burden of the national debt is spread more equitably.

When Allison Logue found out her children were allergic to corn, she started looking for sweets and starches that were corn-free and was dismayed to find very few such products on the market. As a result, she has started her own small business to produce and market corn-free desserts. It is a small market, and Logue plans to keep her business small. Logue is an example of a(n):

micropreneur

When Suzanne Pogell wanted to learn to sail, but she could find no one to teach her because men were the ones who sailed, and women were their crew. She finally convinced someone to teach her to sail, and after mastering sailing, she started an all-woman sailing school called Womanship. Pogell started small and plans to stay small. She would be correctly called a(n):

micropreneur

In a large metropolitan market, it is relatively easy to set up a law office. The ease of entry explains why you will find hundreds of lawyers listed in the New York City phone book. Each lawyer is a close substitute for another but with slight differences. Which of the following market structures best describes the one in which lawyers operate?

monopolistic competition

The Ford Motor Company has investing $6 billion to build a "world car," the midsize Mondeo. The car was designed in the U.S., Germany, and the United Kingdom to be adaptable to any market in the world. Ford is a(n) _____ company.

mutlinational

French language purists on both sides of the Atlantic are on the warpath. Fed up with the growing prevalence of English on the Web, a French state institution founded in the 17th century to maintain the purity of the language unveiled a dictionary of newly-coined French equivalents to English Internet terms in 2000. This is symptomatic of the difficulties in doing business in France because in many situations, the business must be conducted in French. Therefore, it is easy to assume that _____ is extremely important in France.

nationalism

The World Bank's emphasis has recently shifted from helping to build the infrastructure of developing countries to:

offering loans to help to relieve their debt burden

When determining the GDP in 2006 for Chile, the economists adjusted the current market prices by 3.1 percent to correct for inflated values. This adjusted GDP is called the nation's _____ GDP.

real

As soon as any nation has experienced two consecutive quarterly declines of its gross domestic product, that nation will be in a(n):

recession

Strategic giving:

refers to the practice of tying philanthropy closely to the corporation's mission or goals

Three Sisters Specialty Foods, owned by Judith Coker, Millie Humphreys, and Jade Watson, sells eggless cake mixes for people on a restricted diet. Coker recently purchased an industrial grade mixer without conferring with her sisters who were upset when they learned that they were all three liable for the payments on the mixer. Three Sisters is an example of a:

general partnership

_____ are corporate takeovers financed by large amounts of borrowed money.

leveraged buyouts

What type of business organization generates the most total sales?

Corporation

Which of the following statements about ethics training is true?

All of the above statements about ethics training are true.

Which of the following statements about demand and supply curves is true?

All of the above statements about supply and demand curves are true.

How has diversity impacted the marketing and customization of products?

Along with their numbers, the buying power of minorities is growing

When the Federal Reserve implements a _____, it tightens the money supply by selling government securities or raising interest rates.

Contractionary policy

Michael Bronner made a killing in the direct marketing business as the cofounder and CEO of Bronner Slosberg Humphrey, a wildly successful direct-marketing firm. His newest venture, Upromise Inc., enlists some of America's largest corporations to help families pay for college and is extremely successful. The 40-year-old Bronner will more than likely start at least one more new company before he retires because Bonner is a(n):

multipreneur

Archer Daniels Midland Co. (ADM) has joined with Baron Spices and Seasonings to market spices, seasonings and herbs to the foodservice industry. ADM will provide the raw materials, and Baron will act as the distributor and use its already existing relationships with participants in the food service industry to make a success of this:

strategic alliance

Seeds of Change manufactures and markets certified organic entrees. Its mission reads, "At Seeds of Change, we're committed to making delicious foods that are healthy for you as well as the planet." In support of this mission, the company donates money to support environmental protection activities. In other words, Seeds of Change engages in:

strategic giving

In buying an existing business, the prospective buyer should ask questions about the operation of the business. Which of the following would be an inappropriate question to ask?

What are you going to do with the down payment?

Which of the following businesses provides its customers with a service?

a law office

The first step in starting your own business is:

a self-assessment

_____ are organizations formed by individuals or businesses with similar interests to achieve greater economies of scale and economic power through collective ownership.

cooperatives

Kraft Foods Inc. joined with the National Latino Children's Institute to announce Salsa, Sabor y Salud - a first-of-its-kind healthy lifestyles educational program designed by Latinos for Latinos. The program was created by NLCI in partnership with Kraft to support Hispanic families, a population particularly at risk for obesity and accompanying health problems. Kraft donated $2 million to the program's startup. This donation is an example of:

strategic giving