Bus 101 Quiz 2
A company that has a global vision:
Recognizes and reacts to International business opportunities
Of all forms of business ownership, corporations account for the largest share of both:
Sales and Profits
The _____ is defined as the difference in value of a country's exports and imports over a period of time.
The balance of trade.
For partnerships to be legal, they must be established in writing.
False
Having a global vision simply means having a willingness to sell outside one's national borders if, and when, the opportunity arises.
False
Botswana produces diamonds, copper, nickel, soda ash, meat, and textiles, which it sells to the members of the European Union. To Botswana, the diamonds, copper, nickel, soda ash, meat, and textiles it produces are examples of:
Exports
_____ are goods and services that are made in one country and sold to other countries.
Exports
According to the principle of absolute advantage, each country should specialize in the products that it can produce most readily and cheaply and trade those products for products that foreign countries can produce most readily and cheaply.
False
Armenia had a favorable balance of trade in 2018 when it exported $800 million in goods and services and imported $1.5 billion.
False
Articles of incorporation usually specify the life of a corporation as a certain number of predetermined years.
False
Dissolving a partnership is easier than dissolving a sole proprietorship.
False
If the sole proprietorship acquires a legal business name, the owner then has limited liability.
False
Registration procedures for incorporation are uniform from state to state across the U.S.
False
Telecommunications equipment manufacturers in the United States sell their products to people who live in Canada. To Canadians, the telecommunications equipment is an export.
False
The exchange rate is the interest rate that foreign banks receive when borrowing money from the United States.
False
The sole proprietorship is considered a legal entity; therefore, it is taxed separately from the owner.
False
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 easy and inexpensive to form.
Which of the following is an advantage of sole proprietor ownership?
Freedom From Government Regulation
Paul Hyatt owns and operates DeepClean, a Florida-based company that cleans up mold and mildew in homes and businesses. As the sole proprietor of the business, he has unlimited liability, which means:
He is fully liable for all business debts.
The U.S. has one of the very few areas in the world where kaolin can be mined. Kaolin is a necessary ingredient in many products ranging from stomach medication to paper. The U.S.-produced kaolin is sold all over the world. Kaolin is a(n) _____ for the countries that purchase it.
Import
The United States buys copper from Chile's Escondido copper mine. The copper is used to make wiring for the U.S. telecommunications industry and for many other purposes. For the U.S., the copper is an example of a(n):
Import
Jules Sylvester had always loved reptiles. When he was asked by a movie producer if he could locate some anaconda snakes for a movie, a business was born. Sylvester is the proud owner and operator of Reptile Rentals. The California-based business, which he started with no financial help from anyone, is often called on to provide "creepy, crawly" moments in the movies. Jules Sylvester is an example of a:
Sole Propietorship
The form of business ownership that has the most difficulty in raising capital is the:
Sole Proprietorship
The form of business ownership that is easiest to dissolve is the:
Sole Proprietorship
Which type of business organization experiences the least governmental regulation?
Sole Proprietorship
The most common form of business organization is the:
Sole proprietorship
A disadvantage of a partnership is that any partner may have to pay all of the debts of the company regardless of who incurred the debts.
True
International trade-dependent jobs have grown at a rate three times the growth of U.S.-dependent jobs.
True
One of the disadvantages of the sole proprietorship is that the owner has unlimited liability.
True
The corporation's board of directors elects the corporate officers.
True
The difference in value between a country's imports and exports is called its balance of trade.
True
The opposite of free trade is protectionism.
True
The tax that the United States imposes on imported carbon steel products is called a tariff.
True
Canadian logging companies sell timber in the United States. To the U.S., the timber is a(n)_____, and for Canadians, the timber is a(n) _____.
Import; Export
The Blue Bird Bus Company in Georgia sells buses to the South African government. To South Africa, these buses are an example of:
Imports
Mines in Colombia produce emeralds and sell them to jewelers in the United States. To Colombia miners, emeralds are an export.
True
What type of business organization generates the most total sales?
Corporation
_____ are products that are bought from one country for use in another just as the U.S. buys wood pulp and timber from Canada.
Imports
In a limited partnership, all of the partners have limited liability.
false