BUS test 1
buy-national regulation
A German law that prohibited the use of hops grown outside of the country in the production of German-made beer was overturned in the late 1980s. This law was an example of a(n):
countertrade RATIONALE: A countertrade is a form of trading arrangement in which part or all of the payment for purchased goods or services is in the form of other goods and services
A _____ is a form of trading arrangement in which part or all of the payment for purchased goods or services is in the form of other goods and services.
philanthropic
During a two-month period Lladro Comercial, S.A., the manufacturer of handcrafted porcelains, donated ten percent of its retail profits to the Susan G. Komen Breast Cancer Foundation. The action was legal and ethical and allowed the company to still be profitable. According to the pyramid of corporate social responsibility, it was acting at the _____ responsibilities level.
taxation and spending
Fiscal policy is concerned with:
Along with their numbers, the buying power of minorities is growing.
How has diversity impacted the marketing and customization of products?
capitalism
Individual ownership of property is a key element in:
strategic giving
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:
all workers in business
Labor, as a factor of production, refers to:
philanthropic responsibilities
The highest level of the corporate social responsibility pyramid is:
lower interest rates
The implementation of an expansionary policy by the Federal Reserve would result in:
exporting
The least costly and least risky method for selling a product on the global market is:
gross domestic product
The most basic measure of economic growth is the:
the need for businesses to expand their markets
The most fundamental reason for the growth in world trade is probably due to:
contractionary policy
When the Federal Reserve implements a _____, it tightens the money supply by selling government securities or raising interest rates.
expansionary policy
When the Federal Reserve implements a(n) ______, it increases the growth of the money supply.
Corporate philanthropy
_____ is the practice of charitable giving by corporations; includes contributing cash, donating equipment and products, and supporting the volunteers' efforts of company employees.
Strategic giving
_____ is the practice of tying philanthropy closely to the corporate mission or goals and targeting donations to regions where a company operates.
Outsourcing
_____ refers to sending work functions to another country resulting in domestic workers losing their jobs.
social investing
Alonzo Dwork will not buy stock in a company that sells bottled water because more than 1.5 million barrels of oil are used annually to make the plastic bottles used for water, and nearly 90 percent of these bottles are disposed of after one use. Dwork is a strong believer in environmental protectionism, and this _____ is his way of expressing that belief.
strategic alliance
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:
culture
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:
communist economic system
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.
ethical
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.
$125
Iris Souza started the summer with $30. She took $10 and made signs for her dog walking service. She posted the signs all over her neighborhood. She used the other $20 to buy a stout leash and a pooper-scooper. At the end of the summer, after buying herself a new pair of shoes for $50 (she had worn her other shoes out walking dogs), she had $125 left. What was Souza's profit for her summer job?
legal
Laws have curtailed smoking, and as a result, the sale of cigarettes is down. Rather than fighting the law, the cigarette industry is looking for ways to take their business beyond cigarettes. Many experts believe that the cigarette producers have found a way around the law with the promotion and distribution of smokeless tobacco, which has shown consistent sales gains over the last decade. In terms of the social responsibility pyramid, at which level is the cigarette industry operating?
political and legal
Laws passed by the U.S. Congress concerning how U.S. businesses trade with Cuba would be an example of _____ factors that influence the business environment.
legal but irresponsible
Many weight-loss programs advertise that they can help individuals lose a great deal of weight without any changes in the individual's lifestyle. Typically when the person who has lost the weight leaves the program, he or she regains all the lost weight. This yo-yoing is almost as bad for the body as the excess weight. These weight-loss programs are engaged in _____ behavior.
are not accurately described by any of the above
Members of millennial generation:
legality and responsibility
Peter Drucker, a well-known management scholar, has said that companies should be evaluated on two basic dimensions:
strategic giving
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:
all of the above
Social responsibility should extend beyond the shareholders to include:
Protectionism
The European Union (EU) bans the importation of hormone-fed U.S. beef and bioengineered corn and soybeans on safety grounds although Americans eat this food every day. This ban is so consumers in the EU will buy domestic beef and products made from domestically produced corn and soybeans. This ban is an example of:
corporate philanthropy
The Healing Garden is the manufacturer and marketer of organic beauty aids. Its annual $40,000 donation to The Nature Conservancy in support of the nonprofit organization's pledge to preserve the environment is an example of:
Exporting
The Northwest Cherry Growers (headquartered in the state of Washington) sells much of its locally grown produce to Taiwan. _____ was the easiest and least expensive way for the growers' association to sell to global markets.
contract manufacturing
The Sara Lee Company sells the Hanes brand of hosiery in the United States. The manufacturer of this hosiery brand in Great Britain sells it under the brand name of Pretty Polly. The Sara Lee Company is using _____ to broaden its global marketing base without investing in overseas plants and equipment.
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):
is difficult to implement because it is hard to tell how one decision will impact a large number of people
Utilitarianism:
social responsibility
Wal-Mart ran a series of ads in trade journals with the following headline: "We're Looking for Quality Products That Are Guaranteed Not to Last." What Wal-Mart was in fact doing was asking its suppliers to develop more environmentally friendly products and to use material that could be recycled. This concern about the environment is one way that Wal-Mart practices:
A good is tangible, and a service is intangible.
What is the primary difference between a good and a service?
exchange rate
When Ted Giovanni was preparing for his trip to Brazil, he found that he could go to his bank and trade his 10 U.S. dollars for 37.11 Brazilian real (the nation's currency). In this instance, the _____ was one U.S. dollar to 3.711 Brazilian real.
a pure monopoly
When a single firm accounts for 100 percent of industry sales, it is an example of:
cyclical
When the economy is in a recession, many companies must lay off workers, which causes _____ unemployment.
fiscal
When the government raises taxes on consumers and businesses, it is dealing with _____ policy.
the United States
Which of the following countries has a high standard of living?
fiscal unemployment
Which of the following is NOT a form of unemployment?
a person's age
Which of the following is an example of a demographic factor?
strategic giving
Which of the following is an example of a trend in ethics and social responsibility?
The employee reported to his supervisors that a co-worker had misappropriated company funds.
Which of the following is an example of an ethical business activity?
All of the above are examples of unethical business activities.
Which of the following is an example of an unethical business activity?
social change
Which of the following is probably the MOST difficult environmental factor for owners and managers to forecast, influence, or integrate into business plans?
the American Cancer Society
Which of the following is the BEST example of a not-for-profit business?
All of the above statements about ethics training are true.
Which of the following statements about ethics training is true?
None of the above statements about individual rights is true.
Which of the following statements about human rights 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.
Which of the following statements about social responsibility is true?
Utilitarianism holds that an action that affects the majority adversely is morally wrong.
Which of the following statements about utilitarianism is true?
Utilitarianism is designed to create both winners and losers.
Which of the following statements about utilitarianism is true?
all of the above
Which of the following would be stakeholders for a manufacturer of agricultural pesticides?
Stakeholders
_____ are all the individuals or groups to whom a business has a responsibility.
Exports
_____ are goods and services that are made in one country and sold to other countries.
Empowerment
_____ contributes to an employee's self-worth, which, in turn increases productivity and reduces absenteeism.
Demand-pull
_____ inflation is inflation that occurs when the demand for goods and services is greater than the supply.
Cost-push
_____ inflation is triggered by increases in production costs which increase the costs of final goods and services.
Utilitarianism
_____ 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.
Profit
_____ is the amount of money remaining from a firm's sales revenue after it deducts production costs, interest costs, and taxes.
joint venture
AT&T entered into a _____ with Compagnie General d'Electricite, a French company. The French company brings its patents on digital telephone switches, and AT&T provides the marketing know-how to the relationship.
can be either a cash or a noncash donation
Corporate philanthropy:
refers to the practice of tying philanthropy closely to the corporation's mission or goals
Strategic giving:
ethics
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:
direct foreign investment
The Japanese automobile manufacturer Mazda produces the Premacy SUV in Haikou, China at a plant it built in the Chinese province. Mazda is using _____ to engage in global trading.
is accurately described by all of the above
A code of ethics:
ethical
A company can only be concerned about its _____ responsibilities once it has met its economic and legal responsibilities.
philanthropic
A company has achieved the level of _____ responsibilities when it has met its ethical, legal, and economic responsibilities.
recession
A decline in real GDP that lasts for two consecutive quarters is called a(n):
social investing
A group of investors in a retirement fund removed their money from the fund when they learned the fund manager had invested in a gambling casino. The investors' religious beliefs lead them to believe in the fundamental evil of all forms of gambling. These investors were engaging in:
economic
A homebuilder who disposes of asbestos shingles by burying them on his own property may please the home owner because it is a less expensive means of disposal but will be punished by various legal agencies if any become aware of his crime. At which stage of the social responsibility pyramid is the builder most likely operating?
monopolistic competition
A market in which there are a large number of firms that differentiate their products is called:
empowered its employees to help customers
A retailer that allowed its employees to handle a customer complaint without having to ask for permission or direction from management would have:
federal budget deficit
A(n)_____ occurs if a country's total expenditures are higher than the revenues received from the taxes it gathers.
Social responsibility B. Business ethics C. Consumerism D. The marketing concept E. Business morality
Codes of ethics:
utilitarianism
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:
code of ethics
The _____ for the Music Teacher's National Associations establishes a standard of conduct and recommends a set of responsibilities teachers should have toward students, colleagues and the public. These guidelines assist the professional music teacher in gaining the respect of peers and avoiding conflicts and complaints with students and others. It points out to members what are and what are not considered fair, honest and reasonable practice when dealing with students, colleagues and the public, it provides guidance for such aspects as advertising practices, appropriate relationships, and personal and professional integrity.
Uruaguay round
The _____ is an agreement that dramatically lowered trade barriers worldwide and created the new World Trade Organization (WTO).
balance of trade
The _____ is defined as the difference in value of a country's exports and imports over a period of time.
exchange rate
The _____ is the value of one currency in terms of another.
consumer price index (CPI)
The _____ represents the prices of a market basket of goods and services as measured monthly by the Department of Labor.
socialism
The economic system under which basic industries are operated by the government or owned by the private sector under strong government control is called:
all of the above conditions can and do exist RATIONALE: The unemployment rate is the percentage of the total labor force that is actually looking for work but is not actually working.
The government does not consider full employment to mean 100 percent of its citizens are employed because:
lower inflation
The implementation of a contractionary policy by the Federal Reserve would result in:
World Bank
The original purpose of the _____ was to help build infrastructure in developing countries and to help relief the debt burden of these countries.
supply
The quantity of a product or service that businesses will make available at various prices is called:
inflation
The situation in which the average of all prices of products is rising is called:
upward and to the right
The slope of the supply curve is:
actively looking for work
The unemployment rate is the percentage of the total work force that is not working but is:
monopolistic competition
Think about all the restaurants that are located near your campus. You have probably noted some new ones appearing, and others closing because of lack of business. What type of competition exists in the restaurant business?
natural resources
Thom Nielssen owns 500 acres of woodland. His forest is an example of which factor of production?
relationship management
Today companies are focusing on _____, which involves building, maintaining, and enhancing interactions with customers and other parties so as to develop long-term satisfaction through mutually beneficial partnerships.
social responsibility
U.S. Steel has established an alcoholic rehabilitation program for the city of Pittsburgh. The company provides the facilities and the personnel to operate the program. U.S. Steel is practicing:
Liscensing
U.S. plane manufacturer McDonnell-Douglas has authorized Mitsubishi Heavy Industries, a Japanese company, to use its trademarks, patents, and other proprietary knowledge to manufacture F-15 fighter planes. Mitsubishi Heavy Industries pays McDonnell-Douglas. This is an example of:
business cycles
Upward and downward changes in aggregate economic activity, as measured by GDP, are called:
The World Trade Organization (WTO):
has emerged as the world's most powerful institution for reducing trade barriers and opening markets