BUSI_100 (Introduction to Business) Chapter 1-8
Which of the following statements about ethics training is true?
Ethics training is formal training to develop awareness of inappropriate behavior and to practice appropriate responses.
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.
Exporting
_____ are goods and services that are made in one country and sold to other countries
Exports
_____ 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
The _____ is an international bank that normally provides short-term loans to countries that are unable to meet their budgetary expenses.
International Monetary Fund
_____ is all the money a company earns from providing services or selling goods to customers.
Revenue
Social investing:
is the practice of limiting investments to companies that have ethical policies that match those of the investor
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.
joint venture
When South Korea reduces the tariff that Japan (but only Japan) has to pay when it imports cameras into South Korea, it is called a:
preferential tariff
The _____ measures prices paid by producers and wholesalers for commodities, including raw materials and finished products.
producer price index
Japan bans importation of rice to protect its domestic rice industry. This ban is an example of:
protectionism
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 businesses provides its customers with a service?
a law office
Which of the following is the BEST example of a not-for-profit business?
the American Cancer Society
Which of the following statements about demand and supply curves is true?
All of the above statements about supply and demand curves are true.
Which of the following factors would most likely result in a dramatic change in demand?
An expectations about future prices
_____ is the practice of charitable giving by corporations; includes contributing cash, donating equipment and products, and supporting the volunteers' efforts of company employees.
Corporate philanthropy
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 a disadvantage of sole proprietor ownership?
Unlimited liability
The _____ is an agreement that dramatically lowered trade barriers worldwide and created the new World Trade Organization (WTO).
Uruguay Round
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):
buy-national regulation
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
A company can only be concerned about its _____ responsibilities once it has met its economic and legal responsibilities.
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.
ethical
The _____ of Algeria includes 3,973 km of railroads, 104,000 km of roads, and 54 paved airports. It also has only five telephones for every 100 citizens and only two Internet service providers.
infrastructure
_____ are organizations formed by individuals or businesses with similar interests to achieve greater economies of scale and economic power through collective ownership.
Cooperatives
Which of the following statements about cooperatives is true?
Cooperatives increase their members buying power.
An S corporation is generally set up to:
reduce tax burdens
Kayla Langton is considering the purchase of a Bonus Building Care franchise. Langton is likely to get assistance from the commercial cleaning franchisor in which of the following areas?
all of these
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.
social investing
Spanish customers view toothpaste as a cosmetic while consumers in the Netherlands view it as a necessary part of daily hygiene and use three times as much their Spanish counterparts. This example of _____ shows how important it is for marketers to understand.
cultural differences
Social responsibility goes beyond obligations provided by law or union contract. Two important aspects of social responsibility are that the obligation is both:
voluntary and broad
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
A corporation has:
all of the above
Rebecca Siddoway own and operate Country Candies. Siddoway specializes in making rich, creamy toffees that she packages in attractive gift boxes and sells through the mail. What would be the advantage to Siddoway if she decides to incorporate her business?
Corporations have an enhanced ability to attract financing.
_____ is the quantity of a good or service that people are willing to buy at various prices
Demand
_____ inflation is inflation that occurs when the demand for goods and services is greater than the supply.
Demand-pull
Which of the following is a disadvantage of sole proprietor ownership?
Difficulty in raising capital
Which of the following is an example of a natural trade barrier?
Distance
_____ is the practice of limiting investments to securities in companies that behave in accordance with the investor's beliefs about ethical and social responsibility.
Social investing
_____ is the practice of tying philanthropy closely to the corporate mission or goals and targeting donations to regions where a company operates.
Strategic giving
Which of the following statements about a socialist economic system is true?
The government owns or controls the major industries.
CoolBrands International has entered an agreement with Binney & Smith to create a line of frozen novelties based on the Crayola brand, including pops, bars, sandwiches, cups, cones, sundaes and shakes. CoolBrands will pay Binney & Smith a royalty for the right to use the Crayola trademark. This is an example of:
a licensing agreement
Which of the following is an example of a demographic factor?
a person's age
When a single firm accounts for 100 percent of industry sales, it is an example of:
a pure monopoly
Fairmount Food Group purchased Swissrose International Inc., market of several brands of specialty and food service cheese from ConAgra. The _____ will make Fairmount the largest U.S. importer and marketer of specialty and deli-style cheese.
acquisition
The unemployment rate is the percentage of the total work force that is not working but is:
actively looking for work
Social responsibility should extend beyond the shareholders to include:
all of the above
Which of the following is an example of a business?
all of the above
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
Understanding the external business environment requires marketers to be aware of:
changes in the law which impact how business is conducted
The Chubb Group, an insurance company, regularly supplies funds for programming on the public television network. Its donations are 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:
corporate philanthropy
Active ownership of a foreign company, with direct investors having either a controlling or a large minority interest in the firm, is called a(n):
direct foreign investment
The slope of the demand curve is:
downward and to the right
In 1998, the Canadian Magazine Publisher's Association (CMPA) predicted the demise of many Canadian magazines because the World Trade Organization (WTO) made it legal for U.S. publishers to introduce product into the Canadian market, without incurring the start-up costs involved in launching a new magazine. By using split-run magazines (modifying the U.S. edition so they contain Canadian ads), U.S. magazine publishers could offer lower rates to advertiser and sell the magazines for less money than Canadian publishers could. According to the CMPA, the U.S. magazine publishers would be engaged in:
dumping
Which of the following words best describes the business environment?
dynamic
In 2018, Austria exported $122.5 billion and imported products valued at $118.8 billion. Austria had a(n):
favorable balance of trade
The headquarters, seller, and supplier of the service or method of operation of a franchise is called the:
franchisor
The growing popularity of bread machines has become a new business opportunity for Shelly Clemins and Jan Schoenbarr. The women make and sell bread machine covers and fabric gift bags to hold the bread loaves made in the machines. The women share the responsibilities of running the business (called Bread & Butter) as well as its profits equally. Bread & Butter would be an example of a(n):
general partnership
A firm's stockholders have the right to do all of the following EXCEPT:
get discounts on the company's product or service
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
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:
incorporated Stirya
A corporation:
is accurately described by all of the above
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:
licensing
The implementation of an expansionary policy by the Federal Reserve would result in:
lower interest rates
A market in which there are a large number of firms that differentiate their products is called:
monopolistic competition
Ease of formation, flexibility, and diversity of management are advantages of the _____ form of business ownership.
partnership
Demography is the study of:
people's vital statistics
For most agricultural products, farmers produce homogeneous products, sell them to a common market, and generally cannot affect prices greatly. This is an example of which kind of market structure?
perfect competition
Free trade:
permits people to buy and sell where they please
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.
philanthropic
The highest level of the corporate social responsibility pyramid is:
philanthropic responsibilities
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:
social responsibility
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
The most common form of business organization is the:
sole proprietorship
Which of the following is an example of a disadvantage associated with a partnership?
unlimited liability
Back in the late 19th century, the Carnegie Steel company controlled not only the mills where the steel was manufactured, but also the mines where the iron ore was extracted, the coal mines that supplied the coal, the ships that transported the iron ore and the railroads that transported the coal to the factory. Through several _____ mergers the steel company gained control of the various resources it needed to product steel.
vertical
Which of the following is an example of an unethical business activity?
All of the above are examples of unethical business activities.
Croutakie seemed like a great idea. Chef Leo Nyami and Sara Rice decided to take advantage of the popularity of shitake mushrooms and create some shitake mushrooms products that could be sold to restaurant patrons and other gourmets through their new company. The mushrooms are expensive, and there were other unexpected financial problems, so Nyami and Rice asked Bill Ng to become a limited partner. This means that Ng:
agrees not to participate in day-to-day management of the firm
Which of the following describes a disadvantage associated with a corporation?
all of the above
The key element in socialism is:
governmental control
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
The franchisor generally does NOT provide the franchisee with:
help in employee selection
North American Van Lines and Allied Van Lines combined in a _____ merger that will create the world's largest moving company. Prior to the merger, North American was the leading company in moving high-end merchandise such as computer and hospital equipment, while Allied specialized in households.
horizontal
Which of the following would be stakeholders for a manufacturer of agricultural pesticides?
all of the above
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?
economic
At the base of the corporate social responsibility pyramid is:
economic responsibilities
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.
exchange rate
When the price of gasoline rises by 40 percent, but your salary remains the same, it is an example of a decline in your:
purchasing power
The _____ GDP takes inflation into account and uses adjusted market prices.
real
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:
strategic giving
Which of the following is an example of a trend in ethics and social responsibility?
strategic giving
Besides tariffs, a government can use a number of other tools to restrict trade. Which of the following is NOT a tool aimed at restricting trade?
subsidy
A(n) _____ is a tax levied by a nation on imported goods.
tariff
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
The most fundamental reason for the growth in world trade is probably due to:
the need for businesses to expand their markets
Which of the following is the best example of a service?
the pleasure you derive from seeing a good play
The development of new drugs is very expensive. For this reason Genentech, a large biotechnical company, has entered into a _____ with Swiss-owned Roche to develop a vaccine for tuberculosis. When the vaccine is developed or when the two biotechnical companies determine the vaccine cannot be developed using their current methodology, this relationship will dissolve.
joint venture
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:
social investing