BUS 100 test 1

​Joe, a​ brand-new employee at a​ company, wants to know more about his​ company's core focus. Which of the following documents would give Joe the information he​ wants? A. The​ company's mission statement B. The​ company's code of ethics C. The employee handbook D. Local laws and regulations that govern the industry in which the business operates E. The​ company's profit and loss statement from the previous quarter

A

happens when a person has no awareness of right and wrong and no interest in morals

Amoral behavior​

Which of the following is true about​ e-commerce? ​E-commerce does not require the use of technology. B. ​E-commerce can encompass​ business-to-consumer (B2C),​ business-to-business (B2B), and​ consumer-to-consumer (C2C) trades. C. ​E-commerce is a dying business model. D. ​E-commerce is only for​ business-to business and​ business-to-consumer trade. E. ​E-commerce means that a company can only sell products or services over the Internet.

B

Sweden does a lot of business with the rest of the world. What is​ Sweden's summary of transactions with the rest of the​ world, including​ payments, financial​ aid, and​ gifts, called?

Balance of payments

Which of the following statements about currency appreciation is​ true? A. It decreases the value of the home​ country's currency. B. It reduces the demand for imports due to higher prices for consumers. C. It makes the prices of imported goods and services lower for domestic consumers. D. It makes it more expensive to import products from other countries. E. It increases the demand for exports to countries where the currency is undervalued.

C

In which type of economic system is the focus on efficiency and​ profitability?

Capitalism

All of the following statements regarding mission statements are true​ EXCEPT: A. Mission statements explain why the company is in business​ (the company's purpose. B. Mission statements explain who the​ company's customer is. C. Mission statements help define the​ company's values. D. Mission statements lay out a framework for a​ company's code of ethics. E. Mission statements list some of the​ company's goals.

D

Which of the following is NOT a stage of the business​ cycle? A. Peak B. Expansion or recovery C. Recession D. Stagnation E. Trough

D

Which of the following is true about a​ company's code of​ ethics? A. It is a written commitment to laws of the state in which the company is headquartered. B. It guarantees that the company and all its employees will behave ethically. C. It is the same as the​ company's vision statement. D. It is a written statement of the​ firm's commitment to ethical behavior. E. It is the same as the​ company's mission statement.

D

Which of the following statements is true of a mixed​ economy? A. The economy is completely unplanned and is focused on maximum profitability in a mixed economy. B. Social programs are nonexistent in a mixed economy. C. The government has a very low degree of control in a mixed economy. D. The government supplies some goods and services in a mixed economy. E. The government is in complete control of all goods and services in a mixed economy.

D

is when the rate of inflation decreases

Disinflation​

All of the following statements about licensing are true​ EXCEPT: A. The licensee pays the owner a fee for the right to use the property. B. The licensor holds ownership over the item being licensed. C. A risk of licensing is the creation of potential competitors. D. An advantage of licensing is the speed with which property can be spread around the globe. E. The licensee becomes the owner of the​ licensor's intangible property upon payment of the royalty fee.

E

Miguel, a textile factory owner in​ Panama, is experiencing increased demand for his manufacturing services from firms in the United States. Which of the following is MOST LIKELY happening to the exchange rate in his​ country? A. The exchange rate is equal to firms in the United States. B. The exchange rate is increasing. C. The exchange rate is favorable for the importing of products from the United States. D. His​ country's exchange rate is increasing due to the banning of exports. E. His country is experiencing a currency depreciation.

E

Which of the following companies would be considered a national​ business? A. ​Coca-Cola B. Apple Inc. C. ​Anheuser-Busch D. ​McDonald's E. ​K-Mart

E

allows companies to employ people from around the globe

Telecommuting​

All of the following statements about unethical behavior are true​ EXCEPT A. Unethical behavior is the same as amoral behavior. B. Unethical behavior is unprofessional. C. Unethical behavior can be legal even if it is unethical. D. Unethical behavior is usually bad for business. E. Unethical behavior is considered to be undesirable by most societal standards.

a

Amar, a recently retired billionaire investment​ banker, has established a foundation to help build schools in Southeast Asia. This foundation is engaging in​ __________.

corporate philanthropy

It occurs when a business owner cannot gain access to adequate business funding.

undercapitalization

Which of the following is NOT one of the major groups of products and services used by the U.S. Bureau of Labor Statistics in determining the consumer price index​ (CPI)? A. Recreation B. Medical care C. Transportation D. Food and beverages E. Income taxes

E

Which of the following is a disadvantage of a turnkey​ project? A. Speed of entry B. High transportation costs C. Decreased profits for​ high-tech firms D. Lack of quality control E. The loss of technical​ know-how to potential competitors

E

Edward, an​ American, believes that American culture is superior to all others. What belief is Edward​ demonstrating?

Ethnocentrism

are the resources a business uses to create goods and services

Factors of production​

A set of values shared between Jewish and Christian religions that encourages respect of others and property and being kind to one another.

Judeo-Christian ethics

A clothing manufacturer grants a company in India the exclusive rights to produce and sell its clothing under the​ manufacturer's brand name in the Indian market. In​ exchange, the Indian company pays a royalty fee to the clothing manufacturer. What business strategy does this example​ reflect?

Licensing

focuses on studying the economy as a whole

Macroeconomics​

is the perspective that there is no universal moral truth but only a​ person's individual​ beliefs, perspectives, and values.

Moral relativism

makes it impossible for any single seller to set the price for their products

Perfect competition​

are the doctrines that direct the decisions you make in your life.

Personal ethics

is important to the successful operation of a business

Revenue​

consist of the sequences of processes involved in the production and distribution of a product from the supplier to the final consumer.

Supply chains

All of the following statements are true about socialism​ EXCEPT: A. The majority of economic systems in the world are purely socialist economies. B. The government usually runs social services such as​ education, health​ care, retirement and utilities. C. Countries characterized by socialism tend to have high tax rates. D. Socialism tends to disincentivize labor. E. The government is in control of production of many basic businesses and distributes the profits from those businesses evenly among the people.

a

All of the following statements regarding personal ethics are true​ EXCEPT: A. Ethics can be violated. B. People never violate their personal codes of ethics. C. Ethics can be​ inconsistent, or situational. D. Ethics are the principles that guide the decisions you make in life. E. Ethics can be clearly defined.

b

All of the following statements about dumping are true​ EXCEPT: A. Dumping is a deliberate attempt to artificially lower the value of a good or service. B. Dumping is designed to run firms in other countries out of business. C. Dumping involves selling a product to another country at a price higher than that charged by competitors. D. Dumping decreases trade wars between countries. E. Dumping is difficult to stop.

c

All of the following statements regarding ethics are true​ EXCEPT? A. Ethical behavior is good for both the company and the community. B. Customers appreciate ethical behavior. C. Ethical behavior is​ good, but should not interfere with maximizing business profits. D. Living ethically is beneficial for your health. E. Personal ethics and business ethics have many similarities.

c

The social environment​ __________. A. is not important to the operation of a business B. does not include the​ "green economy" C. includes an aging population D. is at a standstill E. means a company should stay the​ same, even if customers want the company to change to meet their shifting preferences

c

Which of the following terms best describes legal​ regulations? A. Laws that are only designed to protect the consumer from unethical business behavior B. Laws that specifically govern the ability of a company to operate in an area that is environmentally sustainable C. Laws that govern the products or processes of an industry D. A code of ethics that provides guidance for company behavior E. Laws which mandate moral behavior in the workplace

c

An economic system where individuals and businesses are responsible for producing and selling goods and services based on customer needs and wants

capitalism

the United States has seen a significant percentage of its steel production move to nations that can produce the product for a cheaper price. The means that the United States has lost its​ _________ in the steel industry.

competitive advantage

All of the following are goods​ EXCEPT? tortilla chips B. automobiles C. televisions D. smartphones E. computer repairs

computer repairs

Nike has designed a new​ shoe, and subcontracts the production to another firm. This practice is known as​ __________.

contract manufacturing

Which of the following is true about Intellectual​ property? It is publicly owned. B. It does not include trademarks and patents. C. It encourages competition. D. It is an important business asset. E. It only includes physical products.

d

is usually associated with falling prices​ (deflation)

depression

The intentional adjustment of the value of a​ country's currency by its government is known as​ _______.

devaluing

is the interest rate charged to banks when they borrow emergency funds from the Federal Reserve.

discount​ rate

have great influence over the pricing and the availability of the products and services they sell.

duopolies

Which of the following statements about financial capital is​ true? Financial capital includes the physical facilities of a company. B. Financial capital is not used to operate a company. C. Financial capital is not important. D. Financial capital is something an entrepreneur does not have to worry about. E. Financial capital is used to facilitate a business enterprise and can come from both investors and savings.

e

occurs when supply equals demand for a good or service

equilibrium price​

Human rights and employment​ standards; ethical sourcing and​ procurement; marketing and consumer​ issues; environmental,​ health, and safety​ concerns; and community and​ good-neighbor policies.

five major areas CSR

Microsoft invests​ $100 million into the economy of India by purchasing one of its largest information technology firms. This is an example of​ __________.

foreign direct investment

​Lin, an entrepreneur in​ Shanghai, wants to open up a KFC restaurant there. The best business model for him to use for this purpose is​ a(n) __________.

franchise

Two countries are able to exchange goods and services with one another without government intervention or other impediments. This is an example of​ _______.

free trade

the unemployment which exists in any economy due to people being in the process of moving from one job to another. its temporary

frictional unemployment

It involves companies doing business in multiple countries.

globalization

Suppliers will provide more of a good when its price is high.

law of​ supply

By​ definition, a company that takes​ __________ seriously does everything within its power to conform to the laws and regulations of its industry.

legal compliance

A sporting goods company wants to open new stores in several countries and tailor its products to the needs of individuals in the different countries. Which type of strategy does this company​ use?

multidomestic strategy

exists to service the​ community, not to earn profit for the owners of the organization

not-for-profit organization​

It is usually done in order to save money.

offshoring

Nancy owns a gas station in a small town. Her friend Chuck owns the only other station in the community. One​ day, Nancy and Chuck get together and decide to drastically raise their prices. This is an example of​ _______.

price fixing

is a decline in the gross domestic product​ (GDP) for two or more consecutive quarters

recession​

They serve a bigger business area than local businesses.

regional​ businesses

would be used to assess how well a company is meeting its social​ responsibilities?

social audit

They are used for both promotion and communication.

social networking​ sites

An oil company performs an internal study on how well it is meeting the corporate social responsibility goals it has established.

social​ audit

A home builder in Arizona makes a conscious effort to use as many recycled materials as possible during construction. This builder has a focus on​ __________ as a business model.

sustainability

Goods​ __________.

tangible

Stan is the owner of a small auto repair store. For the last 10​ years, he's been selling foreign tires at the same price as domestically produced tires. Due to a new​ __________, Stan is now forced to either sell the foreign tires at a higher price or take a loss on their sale.

tariff

The value of its imports exceeds the value of its exports.

trade deficit