BUS100 Final Exam

Which of the following statements about the operation of a corporation is correct

A corporation is a separate legal entity and is legally formed under state laws

In what way does monopolistic competition favor consumers

A large number of sellers and products increases supply of similar, but not identical, products and services, so to increase demand sellers are like to reduce prices

The Sarbanes-Oxley Act requires that

CEO's verify their companies' financial statements and vouch for they accuracy with the SEC

________ is the movement toward a more interconnected and independent world economy

Globalization

________ are broad, long-term accomplishments and organization wants to achieve and ________ are short term targets designed to help achieve them

Goals and Objectives

A free trade area that included Canada and the US, but not Japan, is the

North American Free Trade Agreement (NAFTA)

Which of the following types of ownership is limited to 100 owners

S corp

the _____ is an independent agency of the federal government that was formed to aid, counsel, assist and protect the interests of small businesses

Small business administration

Which of the following refers to an interconnected system of different demographic factors A) social networking B) political environment C) cultural environment D) economic environment E) social environment

Social environment

If Ecuador has a dispute with France over the importation of bananas, from which agency can Ecuador seek arbitration?

WTO

A franchise is a method of doing business in which

a company's products or services are sold to independent third-party operations under the company's name

Maria is the owner of Pet Heaven, a new pet day care, grooming, and boarding business. Maria envisions her business expanding to five locations in her sale within three years. To help her succeed, which of the following does Maria MOST need A) familiarity with state licensing requirements B) a formal business plan C) more customers D) a business partner E) an MBA

a formal business plan

The WAWA chain of convenience stores has over 500 locations in five states in the mid-atlantic region of the US. WAWA is an example of

a regional business

Jose called an electrician to repair some applications in his home. Which of the following terms BESt describes the electricians repairs A) a good B) a benefit C) a service D) a liability E) an appointment

a service

in business planning, what is the main course of action created by top-level managers

a strategic plan

Judeo-Christian ethics include all of the following EXCEPT

accepting that there is no universal moral truth

Diane Pollock was recently promoted to middle management based on her excellent interpersonal skills. These skills help her because one of the primary roles of a middle manager is to

act as a liaison among different groups in the company

Patricia often acts without thinking of the consequences. She usually comes home late and even skips her turn to do household chores. When someone asks her if she thinks what she does is right or wrong, she says she doesn't really know and she doesn't really care. Patricia's behavior can be classified as

amoral

The country of Kappa sells pizza for 1.00 each within its boarders. But Kappa exports pizzas to a price of .30. This is an example of

an administrative trade barrier

Which of the following is NOT an advantage of buying an existing business? A) an existing business has an existing customer base B) an existing business has less competition C) it is simpler than beginning a new business from scratch D) it might be easier to obtain financing to purchase the existing business E) there is a reduction in start-up time and energy

an existing business has less competition

James lives near a university and observes that almost every student uses a cell phone. He decides to open a small shop offering repair services for cell phones. His shop is an instant success. James has satisfied an area of need called

an opportunity niche

When a wealthy individual invests his or her own money into a business project or start-up company with little intention to influence decision making, he or she is MOST often called a(n)?

angel investor

Bootstrap financing includes all the following EXCEPT

borrowing from a bank

The nation of Baa-Baa raises sheep relatively more efficiently than the nation of Snuggle. Snuggle weaves woolen blankets relatively more efficiently than Baa-Baa. Baa-Baa decides to specialize in raising sheep, to sell wool to Snuggle, and to buy blankets from Snuggle. Snuggle decides to specialize in blanket weaving, to sell blankets to Baa-Baa, and to buy wool from Baa-Baa. This international trade illustrates?

comparative advantage

taken together, the iPod and iTunes are

complementary goods

to make good decisions, a successful manager must be able to think abstractly in order to picture the organization as a whole to understand its relationship to the rest of the business community, In other words, the manager must have

conceptual skills

Corporate social responsibility can de defined as a company's obligation to

conduct its activities with the aim of achieving social, environmental, and economic development

Which of the following industries is LEAST likely to form an oligopoly

consulting

_________ is the process by which managers performance and make sure the company's plans and strategies are being or have been properly carried out

controlling

Mr. Gonzales wants to help fellow farmers in his community, but he is not interested in making a personal profit. His main goal is to join with the other farmers so they can have better bargaining power when purchasing supplies. Which of the following business types will Mr. Gonzales most likely form? A) cooperative B) not-for-profit C) sole proprietorship D) C corp E) general partnership

cooperative

a toy company regularly donates some of its profits to charitable organizations. This company is exercising

corporate philanthropy

______ refers to how much of a product or service people want to buy at any given time

demand

____ is a decrease in the rate of inflation

disinflation

Which of the following is a disadvantage of forming a corporation? A) difficult transfer of ownership B) unlimited liability of owners C) limited life D) leed flexibility raising capital E) double taxation

double taxation

Jenny and Rose are hairstylists that have decided to open their own salon by starting a general partnership. The first step is ensuring a successful partnership would be to?

draw up a partnership agreement

_________is the process of preforming research and analysis of a business to uncover an hidden problems associated with it

due diligence

In a large corporation, shareholder responsibilities include?

electing a board of directors

When the banana supplier Chiquita begins to improve conditions for its workers by constructing schools for employee's families, this is an example of which of the pillars of corporate social responsibility

ethical sourcing and procurement

________ is relatively easy and inexpensive compared with establishing a physical presence in a market, but it is not economical for heavy or bulky products with high transportation costs

exporting

The various resources used to create a company's goods and services are collectively referred to as

factors of production

The government determines the appropriate level of taxes and spending through its

fiscal policy

GATT stands for _____ on tariffs and trade

general agreement

Kris and Amy own a workout facility in which they are co-owners. Both take an active role in the management of the business and each accepts unlimited liability. Kris and Amy operate as a

general partnership

A code of conduct

gives employees guidance on how to handle themselves in challenging ethical situations

Airbus competes on the basis of price while selling a standardized or homogenous product. The company is using a _______ strategy

global

What are substitute goods

goods that can be used in place of others

The _____ is the most widely used indicator of economic growth in the world today

gross domestic product

a sole proprietor's income and expenses flow through

his or her personal tax returns

As s result of their influence on the quantity, variety, and quality of products, trade barriers _________ domestic consumer

hurt

Which of the following is contributing to the acceleration of globalization? A) restricting the amount of foreign direct investment B) a shrinking role for developing nations C) the dominance of the US economic system D) increasing democratization E) a rise in the number of non-US small, local businesses

increasing democratization

The feds manage the country's money supply through its monetary policy to control inflation by doing all of the following except A) manipulating reserve requirements B) changing certain interest rates C) increasing taxes D) trading in foreign exchange markets

increasing taxes

A free market economy is one in which

individuals and private firms made decisions based on consumer needs and wants

A rise in the general level of prices over time is called

inflation

the following are characteristics shared by both for-profit and not-for-profit corporations EXCEPT_____ A) having limited liability protection B) electing a board of directors to run the organization C) holding board meetings D) issuing shares of stock E) offering employee fringe benefits

issuing shares of stock

Technology has has a significant impact on small businesses because

it creates new business opportunities and new ways to conduct business

All of these following are advantages of sole proprietorship except A) limited liability B) single ownerships C) no separate tax form D) ease of formation E) control and flexibility

limited liability

__________ is the process of working with people and resources to accomplish the goals of an organization

mangement

Which of the following does a franchise company offer to people who want to start a business A) marketing and financial tools to run a business B) product extension merger C) vertical merger D) horizontal merger E) lower initial costs than when starting a business from scratch

marketing and financial tools to run a business

A multinational company

may be challenged by language barriers

Celeste is interested in studying the effects that natural disasters have on the value of goods and services in the affected areas. Her area of study should be

microeconomics

The government manages the supply of money through its

monetary policy

__________ occurs when there is only one provider of a service or product and no substitutes for the service or product exist

monopoly

McDonalds selling seaweed-flavored fries in Asian countries is an example of a company pursuing a ____ strategy

multi-domestic

___________ of all start-ups fail in the first year

nearly one-fourth

According to moral relativism

no single view is more valid than the other

the most significant difference between a partnership and a sole proprietor is the

number of people contributing resources

__________ refers to a company's choice to relocate its production facilities overseas or subcontract at least some of the components to foreign companies at low costs

offshoring

Which of the following methods do not-for-profit corporations primarily use to generate revenues

organizing fund-raising events

Ben recently purchased 100 shares of stock in Feger's Sports , Inc. Ben is an ___ of fever'a sports Inc

owner

_______ occurs when there are many buyers and sellers of products that are virtually identical and any seller can easily enter and exit the market

perfect completion

John is an employee at a car manufacturer. Today he has come into work to find that production has stopped because the government has determined that the steel used in the cars will be better used in the manufacture of a new railway line. John doesn't mind, because although his wages are low, he gets paid weather there is any work for him to do or not. John MOST likely lives in a

planned economy

Maggie wants to start a fine dining restaurant in her town and dreams someday of having a chain of restaurants all over the country. She can be considered a growth entrepreneur because she

plans to have her business expand beyond her original restaurant

Which of the following is LEAST likely to be a characteristic of successful entrepreneurs A) prefers not ro work for other people B) is motivated to succeed C) prefers to not work around other people D) likes to take risks E) is flexible and self-directed

prefers to not work around other people

With a global strategy of conducting business internationally, a company competes

primarily on the basis of price while selling a standardized product

Robert wants to upgrade his real estate company's computers systems. Which of the following factors of production would Robert find LEAST useful for his project

real capital

Unethical behavior is defined as behavior that does not conform to a set of approval standards of ______ behavior

social

In a sole proprietor ownership, if business assets are not enough to pay business debts, than personal assets, such as the sole proprietor's house, personal investments, and retirement plans can be used to pay the debt. This is called

sole liability

Paula is thinking of making homemade perfumes and selling them to her relatives. She has not filed any legal documents to start he business. Paula would be operating as a

sole proprietor

One a company's vision and mission statement have been articulated, management must assess a company's SWOT, which stands for

strengths, weaknesses, opportunities, threats

US importers prefer a _______ dollar

strong

The amount of a product or service that is available for purchase at any given time is called

supply

if the value of the nations of Nu's exports is greater then the value of its imports, Nu has a trade

surplus

In a partnership, all profits and losses flow through each partner's

tax returns

Technical skills may include

the ability to operate a printing press

When a company's revenue is greater than its expenses, it means that

the company earns a profit

Which of the following would LEAST likely be a source of a company's values and principles A) the company's record of legal compliance B) the owner's behaviors and priorities C) the company's code of ethics D) the company's marketing campaign E) the company's mission statement

the company's marketing campaign

A demand curve illustrates

the effects of price on quantity demanded

A supply curve illustrates

the effects of price on quantity supplied

the main function of economic is to study

the exchange of goods and services between individuals, businesses, and nations

Socialism is similar to communism in that

the government distributes goods and services

the revenue requirement is defined as

the minimum amount of money banks hold in reserve to cover deposits

What best determines the level of competition A) the degree of change in income levels B) the number of substitutes for a certain good or service C) the degree of population change D) the existence of complementary goods E) the number of complementary products or service

the number of substitutes for a certain good or service

If you are planning to start a new business, how long should you realistically expect it to take for your business to earn a profit

there to five years

Small businesses are important to the economy because?

they generate about 64% of new jobs in the US

what is a company's unique responsibility to its stockholders

to make a profit

A company that is organized around specific business functions and where there are several levels of first line and middle managers is a

vertical

A dance studio and a dance wear manufacturer decide to combine. This type of merger is called a

vertical merger

A version statement identifies

what the businesses want to be in the future

At what state in the decision-making process would managers be most likely to seek customer or market opinion

when choosing the best plan of action

In order to enter the Spanish market, a moroccan firm establishes a store that is entirely owned by the Moroccan firm. This is an example of a

wholly own subsidiary