BA 101

As the business grows and required additional staff, an entrepreneur may want to consider:

hiring good leaders to take on leadership responsibilities.

In addition to the rule of law, governments perform all of the following EXCEPT for: Taxing consumers Selling goods to consumers Monetary policy Government spending

Selling goods to consumers

What is NOT true about partnerships? The owners have unlimited liability It requires voluntary association from the owners It is difficult to raise capital The business can last as long as it earns profits (has an unlimited life)

The business can last as long as it earns profits (has an unlimited life)

How much money did McDonald's eventually get fined for burning people with their coffee?

2.7 million

Which of the following is TRUE about corporate governance? Top management cannot be part of the board of directors It includes stockholders, board of directors, top management and middle management Middle management makes hiring decisions on entry-level positions Top management makes hiring decisions on middle management positions

Top management makes hiring decisions on middle management positions

True or False: A U.S. corporation is bound by law to generate profits for its stockholders.

True

True or False: A business plan is like a "road map" for a venture.

True

True or False: Acquisitions can be used as a growth strategy.

True

True or False: Alternative forms of resolution are attractive because they can often be more affordable and more timely.

True

True or False: As a separate legal entity, a business is considered as a legal person.

True

True or False: Common Stockholder are able to vote for the Board of Directors, while Preferred Stockholders are not.

True

True or False: Entrepreneurs are not paralyzed by the prospect of failure.

True

True or False: Ethical behavior is largely determined by the actions, not the words, of the top leaders of the organization.

True

True or False: Many successful innovations "exploit" change.

True

True or False: Mutual agency means that a partner can make decisions on behalf of other partners.

True

True or False: One reason for government intervention in business is to correct market failures and ethical lapses.

True

True or False: Owners of a sole proprietorship have full control of the business with minimal administration. These are significant advantages of this entity.

True

True or False: Recruiting, training and developing employees falls under the "organizing" function of management.

True

True or False: Regardless of the ethical position, the moral minimum is simply obeying the law.

True

True or False: The goal of government regulations are to protect individuals, society and the economy from "bad actors" that may be motivated by greed or other self-serving goals to cause harm.

True

True or False: The number of B Corporations, such as Patagonia, are growing.

True

True or False: The primary purpose of a business is to create wealth for its owners. This "conflict" between internal and external stakeholders can lead to unethical behavior.

True

From the list below, a key to Guerrilla Marketing is to: let your marketing decisions be driven by what your competitors are doing. bring in new customers regularly. retain customers. weed customers out on a regular basis.

retain customers.

Ben Cohen and Jerry Greenfield decided to enter a partnership because it allowed them to combine their ____________ and ___________ to open up more opportunities than if each operated separate businesses as single proprietors.

talents; resources

The difference between money coming into a country (from exports for example) and the money leaving the country (from imports) plus other money flows is referred as:

Balance of Payments

Seeking out cheap labor costs can motivate companies to outsource their production of goods to other countries, such as clothing. Due to a structural failure, one of the most horrific factory accidents in history occurred in:

Bangladesh

The primary purpose of this law is to give an honest debtor a "fresh start" in life by relieving the debtor of most debts. This is referred to as:

Bankruptcy

________________ can be defined as a violation of a valid contract where the injured party goes to court to enforce the contract and (sometimes) collect damages.

Breach of Contract

Which of the following is correct about management skills required at each level? Human relation is the most important skill for first-line managers Human relation is less important as you move up up the management levels Conceptual skills are more important as you move up the management levels Technical skills are highly important for top management

Conceptual skills are more important as you move up the management levels

________________ is the part of the contract that defines what will be given for accomplishing what was described in the agreement, often in the form of money.

Consideration

Which of the following is NOT correct about subsidies? Subsidies allows domestic producers to gain export markets Consumers pay less with subsidies No answers are correct Subsidies allows domestic producers to compete against low-cost foreign import

Consumers pay less with subsidies

_________________ is the belief that ethics are culturally determined and that firms should adopt the ethics of the cultures in which they operate.

Cultural relativism

What is the correct process of the rational decision-making model?

Define the situation, collect information, develop alternatives, decide the best alternatives, execute as indicated, and evaluate outcomes and follow up

All of the following are included in the three levels of ethical standards EXCEPT for: The moral stance employees take when faced with decisions not governed by formal rules It is not about the law Doing unto others as you would want done unto you Organizational policies and procedures

Doing unto others as you would want done unto you

What are the ethical issues that international business may face in developing countries?

Employment practices Human rights Environmental regulations Corruption

Companies use contract manufacturing to:

Experiment in a new market Temporarily meet an unexpected increase in orders Avoid heavy start-up costs

_______________ is a side effect or consequence of an industrial or commercial activity that affects other parties without it being reflected in the cost of the goods or services involved.

Externality

True or False: All companies should always patent all of their products.

False

True or False: Ben & Jerry's focus on sharing a percent of business profits with charitable organizations proved to be their downfall, just as some predicted.

False

True or False: Entrepreneurs are "Las Vegas-style" gamblers.

False

True or False: Entrepreneurship has nothing to do with problem solving.

False

True or False: Setting organizational goals and objectives and engaging employees to "rally" around them is an important function of management and leadership.

False

True or False: The United States Supreme Court is the second highest Appellate Court in the country.

False

True or False: The legal system is incredibly efficient and there is currently no back log in the court system.

False

True or False: The management role today is to evaluate employee performance using universal metrics.

False

True or False: Foreign Direct Investment (FDI) requires the least amount of commitment and has the lowest risk out of all the types of entry.

False FDI is the most expensive and riskiest form of entering a new country's economy.

True or False: In today's environment, fair pay is enough to attract great talent.

False People expect more fulfilling attributes to work -- fair pay is not enough for many.

This cross-industry agency investigates false and deceptive advertising and promotion.

Federal Trade Commission

_______________ describes the investment of resources, in business activities, such as setting up a production facility, outside the home country.

Foreign Direct Investment (FDI)

________________ refers to the movement of goods and services among nations without any political or economic barriers.

Free Trade

A business's concern for the welfare of society is called

corporate social responsibility.

True or False: Globalization involves the convergence of consumer tastes and preferences across different nations throughout the world.

True

True or False: Governments intervene in trade to protect the interests of certain groups and boost the overall wealth of a nation.

True

True or False: Listing the "pros and cons" of options is similar to the PMI approach that lists the pluses in one column and the minuses in another and it also includes a third column with the implications.

True

If one owner of a partnership makes a bad decision that ends up in the business being sued, then

all partners face unlimited liability.

Kennedy's Basic Rights of Consumers includes the right to:

be informed. choose. safety. be heard.

Acquiring multiple businesses in multiple industries allows a business to become a:

conglomerate

A business that has a philanthropy program engages in this activity because

it wants to in order to give back.

Business Law is the ____________ and ____________ environment that businesses operate within.

legal; regulatory

The real value in preparing a plan is not as much in the plan itself as it is in the ____________ of creating it and the insight that comes from that experience.

process

A business plan can be like a _________ for a new venture.

road map

If a corporation is formed, then the owners are known as

shareholders.

The "P" symbol is used for:

sound recording copyright

B Corporations allow an organization to make decisions based on the needs of their:

stakeholders

If a sole proprietor is found negligent of an action, then that person could face

unlimited liability.

Tactical planning provides statements about __________ is to be done, __________ is to do it, and __________ it is to be completed.

what; who; how

Entrepreneurs are determined by ___________ they are, not by ___________ they are.

who; what

One of the top ten reasons a business will fail is:

A declining market

From the choices below, the best example of a vertical acquisition is: A manufacturer buying one of its suppliers. A manufacturer building additional plants. A manufacturer launching a website. A manufacturer acquiring another manufacturer

A manufacturer buying one of its suppliers.

Which of the following is a disadvantage of patents? Your patent application may disclose technical information. All the responses presented represent disadvantages of patents Applying for patents can be a lengthy and time-consuming process. Defending a patent may be uncertain and expensive.

All the responses presented represent disadvantages of patents

Which of the following are elements of the fraud triangle? All three of these are elements of the fraud triangle Pressure Rationalization Opportunity

All three of these are elements of the fraud triangle

What is something that an entrepreneur seeks to do?

Have control of their lives and provide the optimal situation for their families. Have the opportunity to be creative Direct their drive to something for their benefit

Entrepreneurs use a tool which enables them to they exploit change as an opportunity to form a new business or service. That tool is

Innovation

Successful entrepreneurs learn how to fail:

Intelligently

One of the biggest "gifts" that entrepreneurs have been given and is referred to as the "Great Equalizer" is the:

Internet.

The _____________ acts as an "inside entrepreneur" who focuses on innovation and creativity while operating within the goals and environment of an established and often large organization.

Intrapreneur

What question does the Product Feasibility study ask?

Is this product attractive and viable? Are customers willing to purchase our goods or services? Can we provide the products or services to customers at a profit?

What are the four functions of management?

Organizing, Controlling, Planning, Leading

A process by which a firm contracts with other companies to do so of all of its functions in known as:

Outsources

Under the Foreign Corrupt Practices Act, it is illegal to:

Pay bribes to foreign government official in order to gain business

What might motivate managers to behaving unethically?

Their own personal code of ethics Ignorance about ethical standards and expectations Unrealistic performance goals Unethical leadership at the top of the organization

Average American companies lose an estimated _________ percent of their customers each year.

30+

Which of the following is NOT the reason behind the "dumping" strategy? All answers are correct Achieve higher profit margin Unload excess production Drive out competition

Achieve higher profit margin

______________ corporations are organized in one country and operate in another.

Alien

Criminal and Civil Law are derived from which source? All answers are correct Administrative Law Statutory Law Precedent

All answers are correct

Which of the following is an advantage of an LLC? Limited liability All answers are correct Control over business decisions Single taxation

All answers are correct

Which of the following is INCORRECT about dumping? It uses profit from home markets to subsidize loss in foreign markets. No answers are correct. It is legal in the U.S. It is defined as selling goods in a foreign market below their cost of production or "fair market value."

It is legal in the U.S.

________________ is the process of influencing and inspiring others to work to achieve a common goal and then giving them the power and the freedom to achieve it.

Leadership

______________ is when one firm provides the rights and permissions to another company to manufacture and sell its products and use its trademark.

Licensing

To empower others in the workplace, you need to

Listen to others and show respect Give timely and constructive feedback Acknowledge the actions of others Lead by examples

Which of the following is NOT a(n) advantage of free trade? Lower competition Higher productivity A larger market for businesses Lower prices

Lower competition

Which of the following differentiates a partnership from a corporation? Owners of partnerships have more control over their businesses than corporations do Partnership are more regulated than corporations Partnerships last forever Owners of a corporation have more control over their businesses than partnerships do

Owners of partnerships have more control over their businesses than corporations do

The benefit(s) of globalization include:

Reducing costs Accessing to critical know-how Accessing scarce resources Expanding revenue Avoiding foreign sanctions

Which statement best describes why alternative dispute resolution, arbitration and mediation, exist? The court's decision is binding but the alternatives are non-binding . The alternative such as mediation involve current judges and attorneys . Resolving disputes through a court can be expensive and time consuming. All forms of arbitration will end up in court regardless.

Resolving disputes through a court can be expensive and time consuming.

Which type of law is enacted by a federal or state legislature?

Statutory Law

How can companies retain and motivate employees?

Stress accountability and responsibility Promote corporate ethics Embrace change Communicate the company's vision

The ______________ make(s) hiring decisions on top management positions.

The Board of Directors

Ethnocentricity means that you believe your culture is superior to others. In general, this perspective is _________________ to those seeking to expand their business on a global basis.

disadvantage

If a business is following all the laws and regulations, it still might not be acting

ethically.

An _______________ warranty is specifically defined by the seller.

express