BUS 104 Final

_____ is the reduction of a currency's value relative to another currency.

Devaluation

_____ is the process of parceling the work and assigning tasks to workers.

Division of labor

_____ combine the inputs in the production of goods and services for what are intended to be profitable ventures.

Entrepreneurs

A well-designed product transcends cultural barriers. It does not need to be changed to suit different countries or cultures.

False

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

Having a global vision simply means having a willingness to sell outside one's national borders if, and when, the opportunity arises.

False

The exchange rate is the interest rate that foreign banks receive when borrowing money from the United States.

False

When a domestic company allows a foreign firm to use its brand in exchange for royalty fees, it is called a joint venture.

False

_____ is the degree to which group members want to stay in the group and tend to resist outside influences.

Group cohesiveness

_____ is at the core of most business failures.

Inadequate planning

Those people designated by demographics as _____ are defined as Americans born between about 1981 and 1997.

Millennials

_____ involves coordinating and allocating a firm's resources so that the firm can carry out its plans and achieve its goals.

Organizing

_____ refers to sending work functions to another country resulting in domestic workers losing their jobs.

Outsourcing

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

Revenue

Curtiss Anaya is planning to sell kites on the beach this summer to pay for next year's school expenses. _____ refers to the potential that Curtiss will lose money and waste his time and end up at the end of the summer with not enough money to cover his expenses.

Risk

_____ is the degree to which tasks are subdivided into smaller jobs.

Specialization

Which of the following statements about dumping is true?

The U.S has passed laws to make dumping illegal.

Which of the following is an example of an ethical business activity?

The employee reported to his supervisors that a co-worker had misappropriated company funds.

Which of the following statements about social responsibility is true?

The obligation that a business has to act socially responsible extends beyond the investors in the company to include workers, suppliers, consumers, and communities.

Mines in Colombia produce emeralds and sell them to jewelers in the United States. To Colombia miners, emeralds are an export.

True

The difference in value between a country's imports and exports is called its balance of trade.

True

The need for businesses to expand their markets is one of the most fundamental reasons for the growth in world trade.

True

The tax that the United States imposes on imported carbon steel products is called a tariff.

True

When a country sells its products in a foreign country at a cheaper price than usual, and sometimes even at a loss, it is dumping products.

True

When a single firm accounts for 100 percent of industry sales, it is an example of:

a pure monopoly

IBM purchased MRO Software Inc. for $740 million. MRO was a niche provider of software and services to help customers including nuclear power plants and oil companies. IBM, plans to fold MRO into its software unit. This is an example of a(n):

acquisition

_____ have been set up to expand job opportunities for women and minorities.

affirmative action programm

Bob Nichol and Martha Bohner own and operate a small company that bakes and sells Thunder Muffins, gigantic muffins full of blueberries, blackberries, or raspberries. They sell the muffins at a local farm that is open to the public on weekends. Since they operate the business as a partnership, they should:

agree to share the business's profits and losses

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

angel investors

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 did convince someone to teach her to sail, and after mastering sailing, she started an all-woman sailing school called Womanship as a sole proprietorship. When she dies, the:

business dies with her

Emily Millou is planning to open a bed & breakfast inn. To borrow money from the bank, she should prepare a ______, a formal, written plan that discloses details about her product, markets, competition, and financial status.

business plan

The _____ defines the relationships of authority from one level of organization to the next, from top to bottom.

chain of command

A _____ provides employees with the knowledge of what their firm expects in terms of their responsibilities and behaviors toward their fellow employees, customers, and suppliers.

code of ethics

_____ is the process of negotiating labor agreements between union members and management.

collective bargaining

A "mixed economy" is an economic system that:

combines private and government ownership of the factors of production

In a _____, the factors of production are owned collectively rather than individually, and no incentives to work harder or to produce quality products are provided.

communist economic system

Venezuela can grow and sell cut flowers for floral bouquets more easily and more cheaply than most other countries can produce the same flowers. When it comes to flowers, Venezuela has a(n):

comparative advantage

Which of the following is NOT an example of a factor of production?

competition

In an act of _____, Amgen, the largest biotechnology company in the world, has donated more than $70 million to advance science education, improve quality of care and access for patients, and support resources that create sound communities where Amgen staff members live and work.

corporate philanthropy

A large furniture and appliance rental business is considering sponsorship options. It has brought together vice-presidents from the various functional areas of the company to determine which sponsorships will most effectively reach the rental company's prospective customers. The rental company has established a:

cross-functional team

As part of her marketing project, Lily Unruh is studying how Marriott operates. Since she thought it was simply a hotel chain, she was amazed to learn that its food divisions provide food for school cafeterias, airlines, hotels, and fast-food restaurants. Marriott's food divisions are departmentalized by:

customer

A small business owner that uses _____ to finance his or her venture is using borrowed funds that must be repaid with interest over a stated period of time.

debt

A corporation's earnings are taxed as corporate earnings and as dividends to the stockholders. This is known as:

double taxation

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

Which of the following is the best example of a service?

the pleasure you derive from seeing a good play

The three basic levels of the managerial hierarchy are:

top, middle, and supervisory

A term that means that business damages and/or debts can also be attached to the personal assets of the owners is ______ liability.

unlimited

A _____ is a formal complaint, by the employee or by the union, that management has violated some part of the contract.

grievance

The quality of life is:

he general level of human happiness based on such things as life expectancy, educational standards, health, sanitation, and leisure time

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

International Association of Food Industry Suppliers has completed its _____ merger with the Food Processing Machinery Association. The action represents a coming together of equals in which both boards and staffs are committed to creating a new association that is stronger and better equipped to serve its members' growing needs to more effectively compete in their marketplaces.

horizontal

One of the keys to ethical business behavior is:

how the company's top management conducts themselves

_____ is the process of hiring, developing, motivating, and evaluating employees to achieve organizational goals.

human resource management

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

_____ do not own their own companies but apply their creativity, vision, and risk taking within a large corporation rather than starting a company of their own.

intrapreneurs

The standard of living is low in Honduras. This means:

its citizens cannot afford to buy much

A _____ is when two or more companies form a special entity to undertake a specific project, usually for a specific period of time.

joint venture

_____ is defined as whatever is considered fair according to the prevailing standards of society.

justice

The fifth factor of production identified by many managers and academicians is:

knowledge

Karl Metzger plans to invest $5,000 in a partnership with his brother to produce and sell handcrafted violins, zithers, and other string instruments. Metzger does not plan to work in the business and wants no more liability than his investment. He should be a:

limited partner

_____ is a form of on-the-job training in which a senior manager or other experienced employee provides job- and career-related information to a new employee.

mentoring

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

money

The standards used to determine whether a group member's actions are acceptable are called group:

norms

Within the music industry, four companies (UMG, Sony-BMG, EMI, and Warner) control 90 percent of the music you hear. The music industry operates in a(n) _____ market structure.

oligopoly

A(n) _____ is a picture of the relationships among tasks and those employees given authority to do those tasks.

organization chart

A company has used ______ if it hires a mailing house to stuff its multi-part advertising message into envelopes and make sure that its mailings comply with government regulations.

outsourcing

_____ is the assignment of various functions, such as human resources, accounting, or legal work, to outside organizations.

outsourcing

The fact that a corporation has limited liability means:

owners' liabilities are limited to the amount invested

_____ appraisals are comparisons of actual job performance with expected performance.

performance

The highest level on the pyramid of social responsibility has to do with a business's _____ responsibilities.

philanthropic

_____ classes are specific groups who have legal protection against employment discrimination.

protected

A company that has a global vision:

recognizes and reacts to international business opportunities

_____ is the attempt to find and attract qualified applicants in the external labor market.

recruitment

A disadvantage of franchising to the franchisee is:

restricted operating freedom

A corporation's board of directors:

sets major corporate goals and policies

The _____ is the main government agency that assists small businesses with advice and financial assistance.

small business administration

Rudy and Ritchie Ling ran a camp this summer for children in their neighborhood. Rudy spent $135 on supplies and earned $250 before expenses. Ritchie spent $140 on supplies and made $210 before expenses. What is the combined revenue for the two brothers?

$460

With its ease of registration and pro-corporate policies, _____ is called the "state of incorporation." About half of the Fortune 500 companies are incorporated there.

Delaware

Double taxation in a corporation means:

earnings of the corporation and dividends of the shareholders both are taxed

The lowest level on the pyramid of social responsibility has to do with a business's _____ responsibilities.

economic

A total prohibition against importing certain products is called a(n):

embargo

An ______ is a person who takes the risk of starting and operating a business.

entrepreneur

One form of business ownership involves _____, a form of business financing consisting of funds raised through the sale of stock.

equity

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

ethics

For fees of five to fifteen percent of gross sales and multi-year contracts, an _____ handle all aspects of exporting for small businesses.

export management company

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

exporting

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

_____ is the concern of businesses for the welfare of society as a whole.

social responsibility

A job _____ spells out the skills, knowledge, and abilities a person must have to fill a job.

specification

For Lladro Comercial, S.A., the manufacturer of handcrafted porcelains, its employees, suppliers of the paints used to decorate its porcelains, retailers of its products, and people who benefit from its philanthropy are all:

stakeholders

____ are 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

With _____, a business ties its philanthropy closely to the corporate mission or goals.

strategic giving

China imposes a 45 percent tax on the market value of all chickens that are imported from the U.S. into China. Another name for this type of tax is a(n):

tariff

Which of the following is the BEST example of a not-for-profit business?

the American Cancer Society

Criticism of South Africa's post-apartheid government contends that the new government has not extended liberties to its black majority population, but has instead concentrated on proving to a white minority that a black-run administration can govern a reasonably sophisticated economy and society. The belief that the new South African government is behaving unethically is an expression of the philosophy associated with:

utilitarianism

The philosophy of _____ can be used to explain the idea that "people should act so as to greatest good for the greatest number of people."

utilitarianism

_____ is financing obtained from investment companies that specialize in financing small, high-growth companies and receive an ownership interest and a voice in management in return of their money.

venture capital

The merger of McKesson, the leading U.S. drug wholesaler, and HBOC, a producer of health-care inventory software, is an example of a(n) _____ merger.

vertical