BUS101 Final Exam Study

International trade-dependent jobs have grown at a rate three times the growth of U.S.-dependent jobs.

True

Management is the process of guiding the development, maintenance, and allocation of objectives.

True

Many people consider knowledge to be a fifth factor of production.

True

Established small businesses are defined as companies that have been in business at least fifteen years and employ between 50 to 500 employees.

False

Ethical decision making begins in the marketing department.

False

Ethics training programs typically teach how to disguise unethical behavior and not how to avoid unethical behavior.

False

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

If the company wants employees to take ethical training seriously, the training should not include games.

False

If the sole proprietorship acquires a legal business name, the owner then has limited liability.

False

The philosophy of utilitarianism is used to explain why restaurants, theaters, and hotels should make themselves handicapped accessible.

False

To be a useful code of ethics, the code should offer broad policies and procedures rather than detailed rules.

False

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

True

Articles of incorporation usually specify the life of a corporation as a certain number of predetermined years.

False

Which of the following countries has a high standard of living?

The United States

The difference between small business owners and entrepreneurs is that small business owners:

accept the status quo and take a short-term view of the future

When Art Baer read that Singapore would lift its ban on chewing gum, he thought to himself, "There has to be a market there." Baer, 26, knew if he was going to move beyond the daydreaming stage, he had to move fast. After investing $20,000 of his own money into developing a product he called Impress Gum, Baer quit his job, flew to Singapore, talked to the right people in the government, lined up a manufacturer, and hired a marketing firm to promote his gum, which fights tooth decay. Baer is an example of a(n) ______ entrepreneur.

classic

Another factor influencing business ethics is _____, or what is fair according to prevailing standards of society.

justice

The standard of living in any country is:

measured by the output of goods and services people can buy with the money they have

An entrepreneur is a person who _____ a business.

owns and operates

A company that has a global vision:

recognizes and reacts to international business opportunities

The form of business ownership that is easiest to dissolve is the:

sole proprietorship

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

the birthday candles you purchased to go on your sister's birthday cake

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

the pleasure you derive from seeing a good play

Some global corporations are large enough to create major changes in the external environment.

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 first step in starting your own business is the creation of a unique marketable idea.

False

The major difference between a good and a service is how the producer uses the factors of production to create each.

False

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

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

Of all forms of business ownership, corporations account for the largest share of both:

Sales and profits

A business is an organization that strives for a profit by providing goods and services desired by its customers.

True

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

An entrepreneur is a person who opens and manages his or her own business.

True

People who combine natural resources, labor, and capital in a profitable venture are called entrepreneurs.

True

Social responsibility is a voluntary obligation.

True

The corporation's board of directors elects the corporate officers.

True

Andy Yocom saw prime advertising space on the flags on the golf course. He reasoned that any marketing messages would get prominent attention if they were placed on the flags since golfers focus on them when they take their shots. As a result Yocom used his own initiative and money to start Invision Golf Group Inc. Yocom is an example of a(n):

entrepreneur

The person who takes the risk of starting and managing a business to make a profit is called a(n):

entrepreneur

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

Utilitarianism:

is difficult to implement because it is hard to tell how one decision will impact a large number of people

The _____ of any country is measured by the output of goods and services people can buy with the money they have.

standard of living

Which of the following is NOT an example of a good that would be sold in a department store?

the advice of a wedding planner

In a limited partnership, all of the partners have limited liability.

False

Labor, as a factor of production, relates only to the production of manufactured goods; services are not included.

False

How has terrorism affected global trade?

Terrorism has curtailed the liberal inflows of skilled and blue-collar workers.

Entrepreneurs are people with vision, drive, and creativity, who are willing to take the risk of starting and managing a business to make a profit.

True

The distributive process by which the burdens and rewards that society has to offer are shared varies from society to society.

True

The most basic responsibility of all businesses is its economic responsibility.

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

The sole proprietorship is considered a legal entity; therefore, it is taxed separately from the owner.

False

Registration procedures for incorporation are uniform from state to state across the U.S.

False

What is the primary difference between a good and a service?

A good is tangible, and a service is intangible.

Which of the following businesses provides its customers with a service?

A law office

Multipreneurs are business people who have tried a succession of entrepreneurial start-ups without finding an area in which they could be successful.

False

Not-for-profit organizations have the same goals as for-profit organizations.

False

Which of the following is an example of a business?

All the businesses listed in the question

The _____ is defined as the difference in value of a country's exports and imports over a period of time.

Balance of trade

What type of business organization generates the most total sales?

Corporation

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:

Ethics

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

Ethics

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:

Export

_____ are goods and services that are made in one country and sold to other countries.

Exports

A positive aspect of opening a small business is that it takes very little management skill because it is small.

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

All businesses approach ethics the same way.

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

As a factor of production, capital includes money.

False

Dissolving a partnership is easier than dissolving a sole proprietorship.

False

Entrepreneurs, as a general group, dislike risk taking.

False

In the 21st century, we define justice as

an equitable distribution of the burdens and rewards that society has to offer

The difference between the small business owner and the entrepreneur is that the entrepreneur:

assumes the risk of the business

Which of the following businesses provides its customers with a good?

bicycle manufacturer

When Allison Logue found out her children were allergic to corn, she started looking for sweets and starches that were corn-free and was dismayed to find very few such products on the market. As a result, she has started her own small business to produce and market corn-free desserts. It is a small market, and Logue plans to keep her business small. Logue is an example of a(n):

micropreneur

When 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 convinced someone to teach her to sail, and after mastering sailing, she started an all-woman sailing school called Womanship. Pogell started small and plans to stay small. She would be correctly called a(n):

micropreneur

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 proprietorship

The form of business ownership that has the most difficulty in raising capital is the:

sole proprietorship

The most common form of business organization is the:

sole proprietorship

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

_____ 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.

Utilitarianism

Business owners and managers have a great deal of control over the internal environment of business, which covers the day-to-day business decisions.

True

Entrepreneurs typically are innovators who start companies to pursue their ideas for a new product or service.

True

Factors of production are common to all productive activities, regardless of the economic system.

True

Human rights include an individual's right to life, to freedom, and to the pursuit of happiness.

True

Micropreneurs are entrepreneurs who start small and plan to stay small.

True

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

True

More than half of small businesses have between one and four employees.

True

One of the disadvantages of the sole proprietorship is that the owner has unlimited liability.

True

Mamma's Diner was a small restaurant that was a popular hangout for many Bedford College students, but because of the owner's inability to make the bathroom stalls handicapped accessible for the one wheel-chair student on campus, it was forced to close down. The belief that this it was morally wrong to deprive the majority of the people of this experience is an expression of the philosophy associated with:

utilitarianism

When Linda McAnem began Stirya, a New York-based computer services company, she ran it as a sole proprietorship. As the business grew, she realized that she did not want to be personally liable for the business's debts and wanted her business accounts to be separate from her personal accounts. Therefore, she should have:

Found limited partners

Which of the following is an advantage of sole proprietor ownership?

Freedom from government regulation

The Blue Bird Bus Company in Georgia sells buses to the South African government. To South Africa, these buses are an example of:

Imports

_____ 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

Which type of business organization experiences the least governmental regulation?

Sole proprietorship

Which of the following statements about utilitarianism 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.

Jon P. Farmer is the founder of Kolopua Hawaii LLC, a company that markets Pure Hawaiian Air. Bottles of Pure Hawaiian Air contain air that smells like the floral bouquet that greets tourists as they get off the plane in Hawaii. Retailing for about $5 apiece, the bottles are sold at gift shops in Hawaii, as well as to travel agents nationwide who give them to clients. As a(n) _____, Farmer's annual income exceeds $100,000 annually.

entrepreneur