BUS102: Exam 1:

A: The technological environment

Spearhead Flight Academy uses flight simulation games to train its students in the basics of aviation. It uses these games to make its students more effective and efficient. In addition, it also offers six months of flight training. In this context, which of the following dimensions of the business environment is affected the most? A: The technological environment B: The economic environment C: The global environment D: The social environment

A: Equilibrium Price

The Kingsabode Daily is a community news agency that distributes newspapers to the residents of Kingsabode County. To meet the demand and to ensure that there is zero wastage of resources, the news agency prints 250 newspapers that are distributed in the 250 homes in the county. The price associated with such a demand and supply pattern is called the _____. A: equilibrium price B: parity price C: basic price D: producer price

Natural Resources

All inputs offering value in the natural state. For example, land.

D: Carbon Footprint

An American petroleum company is facing legal action because it discharges a significantly higher level of greenhouse gases than the level permitted by the Environmental Protection Agency. In this scenario, the company is guilty of increasing its _____. A: green procurement B: liquid-to-gas ratio C: ecological debt D: carbon footprint

Business

Any organization/activity that provides goods/services in an effort to earn a profit.

B: Become increasingly pivotal to long-term business success.

As globalization gains speed, intercultural communication will: A: disappear in a few years because people will adopt a uniform global culture. B: become increasingly pivotal to long-term business success. C: improve through the use of technical jargon. D: become less significant.

B: False

Despite the growth rates in many high-population countries being weak, most of these nations remain ahead of the United States in terms of development and prosperity. A: True B: False

Entrepreneurship Era

Distinct era of business based in the late-1800s. Entrepreneurs ruled and bettered quality of life. Created monopolies causing government to pass laws to regulate business.

Marketing Era

Distinct era of business. After WWII, businesses started allowing power to consumers. Brand-making begins.

B: Cut back on the loans they make.

During a period of inflation in the United States, the Federal Reserve sells treasury bonds. Buyers of these bonds write checks to the Fed, and the Fed cashes these checks from banks. Given this information, the banks will most likely: A: increase the loan amount. B: cut back on the loans they make. C: cut back on the discount rate. D: increase the discount rate.

A: True

Effective communication happens when one transmits relevant meaning to one's audience. A: True B: False

Social Environment

Embodies the values, attitudes, customs, and beliefs shared by groups of people.

Industrial Revolution

Era of business from mid-1700s to mid-1800s. Huge factories replaced workshops. Production was efficient but loss of personalization.

A: True

Fiscal strategies are closely tied to political philosophy. A: True B: False

C: Social Responsibility

Fritzman Inc., a market research company, stocks its office pantry with an array of organic drinks and snacks to promote healthy eating habits among its employees. It also provides all its employees a free membership to a local gym. These gestures are Fritzman Inc.'s idea of _____. A: corporate philanthropy B: consumerism C: social responsibility D: freeganism

Economic Environment

Government takes active steps to reduce the risk of business, to stabilize the economy, and to induce growth. Affected by corruption and ethical lapses, such as shady accounting.

Technological Environment

Impact of digital technology has transformed businesses.

A: True

In the context of creating and maintaining an ethical organization, more-engaged employees are much less likely to behave badly. A: True B: False

D: Involvement of Social Responsibility

In the context of the strategies for reaching global markets, which of the following is a key risk of foreign outsourcing? A: Inability to lower labor wages B: Exclusion of the brand name of the outsourcer C: Increase in the costs of production D: Involvement of social responsibility

Free Trade

International trade free of government interference.

B: A simile

Lawrence starts his presentation on a new project by comparing the project to a baby. He states that just as parents are careful while taking care of a new baby, managers should be careful during the initial stages of a project. In the given scenario, which of the following types of hooks does Lawrence use to open his presentation? A: An engaging question B: A simile C: An anecdote D: A startling statistic

Capital

Machines, tools, buildings, information, and technology. Synthetic resources. This does not include money.

D: A startling statistic

Maurice, the marketing head of a nonprofit organization, always begins his presentation on a project by sharing lesser-known facts and figures about the impact of the relevant issue. This helps the members of the audience get a better picture of the importance of the issue and makes them more attentive. Given this information, it can be assumed that Maurice uses _____ to open his presentations. A: a simile B: an engaging question C: audience involvement D: a startling statistic

Demographics

Measurable characteristics of a population.

Profit

Money that a business earns in sales, minus expenses, such as cost of goods/salaries.

B: Gender Bias

Olivia, the CEO of a company, generally uses words such as "she" and "her" to refer to managers and other employees. She also uses feminine examples in her presentations to the entire company. As a result, the male employees of the company feel excluded. Given this information, it can be concluded that Olivia shows _____. A: age bias B: gender bias C: ethnicity bias D: nationality bias

Entrepreneurs

People who risk time, money, etc. to start and manage a business. If their business does well it helps others.

Human Resources

Physical, intellectual, and creative contributions of everyone in an economy.

Standard of Living

Quality and quantity of goods and services available to a population.

A: International Monetary Fund

The _____ is an organization of 188 member nations that promotes global economic cooperation and stable growth. A: International Monetary Fund B: World Trade Organization C: Bank for International Settlements D: World Bank

C: Age Bias

The content manager of a company wants to promote an inexperienced young employee to the position of assistant content manager over an experienced older employee. He does not feel the need to do a formal assessment of both employees' work history and their aptitude for the job. According to him, his team needs a young individual who is quick in his work. Which of the following biases does the content manager show in the given scenario? A: Ethnicity bias B: Gender bias C: Age bias D: Race bias

Business Technology

Tools used by businesses to become efficient and effective, such as e-commerce.

D: Natural Resources

Twilight Glitters sells ornate diamond jewelry. The company obtains diamond ore from the Yakutia region of Russia. In this scenario, the ore obtained by Twilight Glitters can be classified as _____. A: human resources B: man-made resources C: capital resources D: natural resources

Nonprofits

business-like establishments that employ people and produce goods and services with the fundamental goal of contributing to the community rather than generating financial gain.

General Agreement on Tariffs and Trade (GATT)

international trade agreement that has taken bold steps to lower tariffs and promote free trade worldwide.

B: Fairness

Anaida is an entrepreneur who believes in providing equal opportunity to people regardless of their age, gender, race, or religion. She is open-minded and detests the idea of taking advantage of others. In the context of universal ethical standards, Anaida most likely possesses the core value of _____. A: frugality B: fairness C: citizenship D: responsibility

Global Environment

Businesses constantly interact with other economies. Jobs have migrated to lowest bidder with highest quality.

Competitive Environment

Companies develop long-term, mutually beneficial relationships with customers. Speed to market provides competitive advantage.

Production Era

Distinct era of business in the early 1900s. Businesses wanted more efficiency, thus the assembly line was created by Henry Ford. Hard sell emerged.

Relationship Era

Distinct era of business. Businesses want long-term customers. The key to which is technology.

B: It is a movement that suggests that customer rights should be the starting point of any business.

In the context of a socially responsible organization, which of the following statements is true of consumerism? A: It describes the judgmental and excessive bargaining power of buyers. B: It is a movement that suggests that customer rights should be the starting point of any business. C: It focuses on the right of the customers to be involved in the pricing of certain products. D: It is a drive that supports contribution to nonprofits through cause-related marketing.

B: Both can be used when your content is uncontroversial.

In the context of communication channels, which of the following is a similarity between memos and email? A: Both can be used when your content is complex or high-priority. B: Both can be used when your content is uncontroversial. C: Both ensure that your audience experiences your full message directly. D: Both have high channel richness.

D: It includes foreign borrowing and lending.

In the context of global trade, which of the following statements is true of balance of payments? A: Its deficit indicates more money flowing in than out. B: It excludes overseas investments. C: Its surplus indicates more money flowing out than in. D: It includes foreign borrowing and lending.

A: As technology changes, nations may gain or lose comparative advantage in various industries.

In the context of international trade, which of the following statements is true of comparative advantage? A: As technology changes, nations may gain or lose comparative advantage in various industries. B: It is the tendency of a country to choose goods that have a higher opportunity cost compared to other countries. C: Despite evolving workforces, developing countries maintain a static comparative advantage. D: It is subjected to the industries in developing countries facing major trade barriers.

A: Roads

In the context of key economic considerations when entering a foreign market, the transportation infrastructure in a country most likely includes _____. A: roads B: power plants C: banking D: the Internet

B: Interest rates begin to rise.

In the context of monetary policy, which of the following is a result of an increase in the reserve requirement? A: Credit becomes readily available. B: Interest rates begin to rise. C: Number of bank loans begin to increase. D: Banks can no longer hold any funds.

B: The threat of government legislation keeps some industries motivated to self-regulate.

In the context of monitoring ethics and social responsibility, which of the following statements is true of a social audit? A: It does not account for social-responsibility indicators, such as community involvement. B: The threat of government legislation keeps some industries motivated to self-regulate. C: Determining how to measure the achievement of goals is the starting point for a social audit. D: Firms that monitor themselves are entitled to tax exemptions for most of their services.

D: Many industrial titans forced out their competitors.

In the context of the history of American business, during the entrepreneurship era, _____. A: the balance of power shifted from producers and toward consumers B: large-scale entrepreneurs failed to dominate their markets C: the overall standard of living across the country declined rapidly D: many industrial titans forced out their competitors

D: Firms encourage a great level of mutual respect between employees and employers through open communication.

In the context of the social environment of business, which of the following statements is true of workers? A: Workers, today, are more willing than ever to pay dues by working extra-long hours. B: When joining a firm, employees are devoid of expectations related to job responsibility and flexibility. C: Firms are increasingly sharing information with their employees to achieve their objective of strong short-term performance. D: Firms encourage a great level of mutual respect between employees and employers through open communication.

C: The cost involved in direct investment is high.

In the context of the strategies for reaching global markets, which of the following statements is true of direct investment? A: Foreign franchising is a type of direct investment. B: It represents an especially strong opportunity for small firms. C: The cost involved in direct investment is high. D: It is the most basic level of international market development.

A: True

In the context of the three types of emissions tracked by corporations, Scope 1 emissions refer to direct emissions produced by corporate operations. A: True B: False

A: True

In the context of your career choice, the broader economy will influence the level of your personal financial success. A: True B: False

D: General Agreement on Tariffs and Trade

Marsa and Hunare are Asian nations. Jorwen, Kellpit, and Denqor are North American nations. These five nations recently signed a multilateral agreement that allows them to carry out business operations with minimal tax implications. This arrangement would allow Jorwen, Kellpit, and Denqor to import goods from Marsa and Hunare, which have low labor costs and high production quality. This agreement among these five nations is most likely possible because of the _____. A: Retail Association Cooperative Agreement B: European Investment Treaty C: American Free Trade Agreement D: General Agreement on Tariffs and Trade

D: Workforce Advantage

Mavin is the regional manager of Crustie Mex, a packaged food company. He is respected by his peers and subordinates for his immense knowledge and skills. Mavin decides to quit the company for a higher position at another firm. The CEO of Crustie Mex entices him with a competitive compensation package and promotion because he knows that Mavin is an important resource. The given scenario most likely exemplifies the concept of _____. A: social responsibility B: free trade C: blurred retirement D: workforce advantage

D: Remind himself that his project unit wants him to succeed.

Miguel has an idea for a new project management software application that can enhance the efficiency of his unit's operations. His supervisor has asked him to present his ideas to the entire unit. Miguel is excited about the opportunity, however, he is a little nervous because he has never presented in front of a big audience, such as his project unit. To mitigate his speech anxiety, Miguel should: A: improvise during his presentation so that it sounds natural. B: play a recorded audio message in his voice alongside the presentation. C: focus on an inanimate object at the back of the room, beyond the audience. D: remind himself that his project unit wants him to succeed.

B: Body Language Barriers

Richard, the sales manager of a toy company, wanted to put forward an idea for improving the sales of the products to the board of directors. However, when he was presenting the idea in the monthly team meeting, the board members were not able to concentrate as they got distracted by Richard's slouched posture, his inability to look them in the eye, and his constant foot movement. In the given scenario, which of the following communication barriers prevented the board members from paying attention to Richard's idea? A: Physical barriers B: Body language barriers C: Organizational barriers D: Language barriers

C: The fiscal cliff

New Tapan, an African country, invested resources in the defense sector, and as a result, its budget deficit grew. To decrease the budget deficit, the government of New Tapan cut down its expenditures in several other sectors and imposed higher taxes. Similar measures implemented by the government in the United States would most likely create _____. A: an earmark B: a reserve requirement C: the fiscal cliff D: the debt ceiling

Speed to Market

Rate at which a new product moves from conception to commercialization.

Value

Relationship between the price of a good/service and benefits that it offers its customers.

C: Establish the goals required to conduct the social audit.

Rene's boss asks her to perform a social audit of the company following mass media's harsh criticism of the company's ethical standards. In this case, Rene will first: A: determine how to measure the achievement of goals during the social audit. B: evaluate if the firm had achieved its initial social responsibility objectives. C: establish the goals required to conduct the social audit. D: quantify the involvement of the firm in societal development activities.

A: Organizational Culture

Research from the Ethics Resource Center suggests that _____ has more influence than any other variable on the ethical conduct of individual employees. A: organizational culture B: workplace diversity C: socioeconomic background D: sexual orientation

A: The Competitive Environment

Restazure, a beauty therapy center, focuses on customer satisfaction and building long-term relationships with customers. The firm ensures that customers are provided with high-quality services, and feedback is collected after every customer visit. It also provides its members with seasonal discounts and points every time they avail any of the center's services. In this context, which dimension of the business environment is affected the most? A: The competitive environment B: The technological environment C: The political environment D: The global environment

Profit

Revenue - Expenses = _________________________

C: Recovery

The economy of Sutanvia is under severe financial distress. However, over the last few months, the economy has gradually picked up, and employment levels are slowly rising back to normal levels. Consumers are also beginning to engage in regular buying activities. In this scenario, the economy of Sutanvia is currently in the _____ phase of its business cycle. A: expansion B: relapse C: recovery D: contraction

C: The United States scored lesser than most of the European countries in the index of perceived corruption.

Transparency International, a leading anticorruption organization, published its yearly index of "perceived corruption" across 168 countries in 2015. Its findings showed that: A: the corruption level in the world's poorest countries was very low as most businesses were owned by the government. B: countries such as India and China had a higher score in the index of perceived corruption than the United States. C: the United States scored lesser than most of the European countries in the index of perceived corruption. D: there was greater corruption in the business cultures of richer countries than poorer countries.

B: Political differences

Uniesia, an Asian company, wants to set up a production facility in Maurinia, an African country, because of the low labor costs in the country. However, Uniesia is unable to do so because of the situation of constant civil unrest in Maurinia. In the given scenario, Uniesia is most likely facing the barrier of _____. A: sociocultural differences B: political differences C: economic differences D: ethical differences

A: True

Value is the relationship between the price of a good or a service and the benefits that it offers its customers. A: True B: False

Loss

When a business incurs expenses greater than its revenue.

C: Opportunity Cost

When a country produces more of one good, it must produce less of another good (assuming that resources are finite). The value of the second-best choice—the value of the production that a country gives up in order to produce the first product—represents the _____ of producing the first product. A: sunk cost B: money cost C: opportunity cost D: differential cost

B: Using common words.

Which of the following practices is most likely to strike the right tone in a business message? A: Avoiding personal pronouns B: Using common words C: Using the passive voice D: Avoiding contractions

B: It is the financial reward that comes from starting and running a business.

Which of the following statements is true of profit in a business? A: It is estimated by calculating the total interest amount due when a business has availed multiple loans. B: It is the financial reward that comes from starting and running a business. C: It is the difference in the number of customers served between two financial years. D: It is the difference between the stock at the start and end of an inventory reporting period.

D: John is an American who exports goods to Europe.

Who among the following is most likely to benefit in a case where there is a weak dollar against a euro? A: Elise is an American who is touring Europe. B: Joinieker Inc. is an American firm with European operations. C: Nierin Corp. is an American firm that imports goods from Europe. D: John is an American who exports goods to Europe.

B: Natural Monopolies

_____ are market structures with one company as the supplier of a product because the nature of that product makes a single supplier more efficient than multiple, competing ones. A: Pure competitions B: Natural monopolies C: Monopolistic competitions D: Oligopolies