Business Principles 1301

the official inflation rate is tracked by calculating changes in a measure called the (CPI), which stands for:

Consumer price index

The most basic form of a partnership is known as a general partnership

True

_ has high channel richness, and especially with state-of-the-art equipment, it conveys much of the richness of actually being there.

Videoconferencing

ideally, the opening of your business presentation will summarize your key points.

false

balance of payment includes financial flows such as foreign investment.

true

Texting is an example of a communication channel with high channel richness

False

The U.S Small Business Administration (SBA) microloan program lends an average of $50,000 to start-up businesses through community nonprofit organizations.

False

The most common type of corporation is an S corporation.

False

When drafting an email using block paragraphs, you should use single spacing between paragraphs.

False

Effective communication happens when one transmits relevant meaning to one's audience.

True

Franchising is used by companies to move into foreign markets.

True

Globalization has made ethics and social responsibility complicated for workers at every level.

True

If an email is intended for a recipient who is likely to feel negative about it, you should end the email on a positive note.

True

In American culture, older people tend to experience negative age bias more often than younger people.

True

In foreign Licensing, Licensors run the risk that unethical Licensees may become their competitors, using information that they gained from the licensing agreement.

True

In the context of business ethics, in an ethical dilemma, every potential course of action has some significant negative consequences.

True

In the context of creating and maintaining an ethical organization, when employees perceive more management commitment, they tend to be more fully engaged.

True

In the context of ethical behavior, encouraging fraudulent accounting is illegal and unethical.

True

In the context of nonverbal communication, leaning forward during a conversation is considered a sign of interest.

True

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

True

In-person presentation is a communication channel with high channel richness.

True

One of the disadvantages of general partnerships is the lack of continuity.

True

One of the limitations of a not-for-profit corporation is that it cannot have stockholders.

True

Planned obsolescence represents a clear violation of social responsibility.

True

The Internal Revenue Service classifies each limited liability company (LLC) based on the tax treatment the company selects.

True

The earnings of not-for-profit corporations are exempt from federal and state income taxes.

True

The personal needs, the culture, and the family of an individual influence his or her ethical choices.

True

There is no limit on the number of partners who can participate in a general partnership.

True

Voice mail is an example of a communication channel with low channel richness.

True

When entrepreneurs develop new products that we didn't even know we needed until we had them, they are showing the entrepreneurial characteristic of vision.

True

Boson Corp., an American software development company, wants to expand its business in international markets. Therefore, it buys property in Greitch, a South Asian country, and sets up a production facility despite the high costs involved. In this scenario, Boson Corp. is most likely involved in _____.

direct investment

Define Hyperbole

exaggerated statements or claims not meant to be taken literally.

Socially responsible firms support consumer choice by:

following the laws that prevent anticompetitive behavior such as monopolies.

Define Ad hoc

for this purpose, in business unplanned projects

In the context of the stakeholder approach to business, the federal government is a key stakeholder in:

pharmaceutical companies

In the context of international trade restrictions, _____ are limitations on the amount of specific products that may be imported from certain countries during a given time period.

quotas

Carpe Diem

seize the day

A clothing company, Clendtine Fashions, pledges five percent of its annual revenue to environmental causes around the world. Being one of the top international companies, the founders of the company have an obligation to contribute toward the betterment of the world. This scenario is an example of Clendtine Fashions's participation in _____.

social responsibility

With an increasing number of workers facing challenges such as raising kids and caring for elderly parents, responsible companies are stepping in with programs such as on-site day care, company-sponsored day camp, and referral services for elder care. These actions show that these companies are fulfilling their _____.

social responsibility

Define fruition

the point at which a plan or project is realized

Define iteration

the repetition of a process

Resorto, a European country, exported sugar worth $600 million between 2015 and 2016 and imported tea worth $750 million during the same period. In this scenario, Resorto most likely had a _____ between 2015 and 2016.

trade deficit

Albert is the owner of a car service center. As a sole proprietor, any profit that he earns is:

treated as Albert's personal income

A benefit of using active voice in business communication is accountability.

true

A country has an absolute advantage when it can produce more of a good than other nations, using the same amount of resources.

true

Although a trade deficit signals the wealth of an economy that can afford to buy huge amounts of foreign products, a large deficit can be destabilizing.

true

American culture associates youth with creativity and independence.

true

Effective communication happens when one transmits relevant meaning to one's audience.

true

In the context of international trade, often countries with the highest trade barriers have the least competition.

true

In the context of the barriers to international trade, per capita income is a key factor that determines the economic differences between two countries.

true

In the context of the barriers to international trade, the infrastructural differences between two countries fall into the category of economic differences.

true

A large film production company merges with a popular sound processing studio, resulting in the formation of a new company out of the two previously independent firms. This is most likely an example of a _____.

vertical merger

In face-to-face communication, the verbal content of a message conveys much more meaning to the listener than the tone of voice and body language.

False

In the context of limited partnerships, the general partners of a company assume limited personal liability for any of the company's debts.

False

It is possible to establish a corporation by a simple verbal agreement.

False

One of the advantages of a C corporation is ease of formation.

False

Communication must be static and one-way rather than dynamic and two-way.

False

Definition Caveat Emptor

Buyer Beware

The government of Lebitz, a European country, learns that low-priced textile imports from Pruneia, an Asian country, are affecting the sales of domestic textile companies. The Lebitzian government decides to levy a 6% tax on all textile goods imported from other countries. In this scenario, which of the following trade restrictions does the Lebitzian government impose?

A tariff

What is the origin of the name America?

Amerigo Vespucci

A Japanese company encourages its employees to participate in charitable activities. The company gives annual paid leave of ten days to its employees to volunteer at nonprofits or take part in activities that support environmental causes. Given this information, the company's initiative is an example of _____.

Corporate philanthropy

Paulina, the CEO of a steel company, invites Joseph, the representative of a potential partner firm, to visit her company. She is careful not to stress on Joseph's religious background as a means to start off a conversation. Instead, she maintains a strictly professional conversation with Joseph and stays neutral to his religious background. Which of the following biases does Paulina avoid in the given scenario?

Ethnicity bias

A business email should have as many attachments as possible to communicate a message.

False

A corporation is a voluntary agreement under which two people act as co-owners of a business for profit.

False

A corporation offers more flexibility than a limited liability company (LLC) in terms of tax treatment.

False

A disadvantage of an S corporation is that it can have no more than 50 stockholders.

False

A limited partnership is an agreement between two or more individuals to operate a business as co-owners for a limited period of time.

False

An advantage of Google Presentations software is that it is invulnerable to hackers.

False

As globalization gains speed, intercultural communication will become less important to business success.

False

Dominic feels that an incredible string of bad luck has affected his personal life. He also feels that his boss is subjecting him to unfair treatment at work for no fault of his. Dominic's perceptions suggest that he has an internal locus of control.

False

Ideally the opening of your business presentation will summarize your key points.

False

Regency Placade, a renowned European electronics company, wants to set up a subsidiary in Finim, an Asian country. After conducting a survey, the company finds that Finim lacks the resources required for production. Therefore, Regency Placade decides to abandon the idea. In this scenario, which of the following most likely affected Regency Placade's plan?

Limited access to factors of production.

who said humanity has won its battle, liberty now has a country?

Marquis de Lafayette

In the context of limited partnerships, which of the following statements is true of limited partners?

Their personal wealth is not at risk as long as they do not actively participate in managing the company.

Which of the following statements is true of organizational barriers to communication?

They are hard to change

A benefit of using active voice in business communication is accountability.

True

A corporation can be a partner in a partnership

True

A corporation is a business entity created by filing a form, which is known in most states as the articles of incorporation.

True

A limited liability company (LLC) can elect to be taxed as a corporation.

True

According to research from the Ethics Resource Center (ERC), organizational culture is most influential in shaping the ethical conduct of individual employees.

True

Diana has to give a presentation on air pollution and its effects at a conference. She begins the presentation by asking the conference participants to imagine themselves carpooling to work instead of using their individual vehicles. This small exercise helps the participants to relate to the topic at hand. In the given scenario, Diana uses _____ to open her presentation.

audience involvement

In the context of the legal and ethical dimensions of business conduct, it is illegal but ethical to:

collaborate with other medical clinics to guarantee low prices in low-income counties.

Openi, an island nation, is able to increase its textile production without having to compromise on the production of other materials. This is in contrast to other nations that need to lower the production of other materials to increase their textile production. In this scenario, Openi has a _____ in textile production.

comparative advantage

In a sole proprietorship, any debts the company incurs are:

considered to be the owner's personal liabilities.

A _____ is a form of business ownership in which the business is considered a legal entity that is separate and distinct from its owners.

corporation

definition of duplicity

deceitfulness; dishonesty

Rubicon Inc., an American guitar manufacturing company, signed a contract with a supplier in Umreia, an Asian country, to manufacture guitars. Rubicon then imported these products and sold them in its markets under its own brand name. Rubicon did this because of the availability of cheap labor in Umreia that substantially cut down Rubicon's cost of production. In this scenario, Rubicon is most likely involved in _____.

foreign outsourcing

In the context of the various roles, employees take up in an organization, who among the following is least likely to spend most of their time listening?

hourly employees

In the context of the legal and ethical dimensions of business conduct, rewarding integrity is an example of _____.

legal and ethical behavior

In the context of the barriers to international trade, establishing standards on how certain products are produced is most likely a(n) _____.

nontariff barrier