BUSN 1001 - Exam 1

Tyson Michaels runs a home improvement contracting business. They are working on a project and one of his employees drops a utility knife on the ground while walking into the construction area. A young girl finds the knife later that day and cuts herself. This situation best describes an example of which type of tort law?

Negligence

Odalis is the new thics officer for Berhane, Inc. The CEO heard about corporate responsibility, and he wants to start running the company using the Carroll's pyramid as a guide. He asks Odalis to describe the pyramid and its areas of focus. Which of the following is Odalis's best response?

Profit is the first responsibility, followed by legal, ethical, and philanthropy

Piper runs her own lifeguard training company. Each month she pays a rental fee to the city of the use of their swimming pool. The rent payment is an example of an

expense

Ann Arbor China Dolls makes well over half of their revenue by shipping their dolls to foreign countries. This example most closely represents the concept of

exporting

Carme wants to open a coffee store in her hometown in Ecuador. She reaches out to Starbucks and agrees to pay them a fee and percentage of profits she makes in order to open a store using the Starbucks name. This example best describes

franchising

The owner of Century Water wants to open sales to other nations. His employees are concerned that government regulations will make this impossible, but he knows that is is possible thanks to the concept of

free trade

Charger Technology is planning to open a new facility overseas. It forms an internal team to investigate target countries to rate their telecommunications and utilities services. These services are best described as being part of a country's

infrastructure

Abraham lives in a communist country. He does what is required of him when working, but nothing more. Abraham has never gives much thought to any entrepreneurial ventures either. Abraham's situation best represents which of the following drawbacks to communism?

lack of incentive

Yukon Bicycles manufactures bikes using inexpensive parts and labor. The bikes typically break down quickly and require lots of costly repairs. This action can be best described as

legal but unethical

Mugdha loves collecting antiques and decides to open a small shop in a local strip mall selling her antiques. Her new business would best be described as a ___________ organization.

non-profit

Estrella is preparing a business plan for her new company. According to her plan, "Gizmodic will manufacture various busy toys like fidget spinners and hand puzzles. We will run targeted ads during children's TV shows and at sporting events. Gizmodic will also partner with cereal companies to share coupons in boxes that consumers purchase." This info was most likely part of what section of Estrella's business plan?

Marketing

Leon has been asked to lead a project for his employer and is working from the company's Vietnam facility for the summer. One of the Vietnamese employees arrived late for a meeting and Leon was disappointed when the employee did not apologize. Instead the employee simply smiled. Later that day, Leon is surprised to learn that smiling is considered an expression of apology in Vietnamese culture. In what area did Leon most likely demonstrate a cultural misunderstanding?

Nonverbal communication

The United States recently imposed a tax on coconuts in order to raise money to be used for government spending. The tax can best be described as

a revenue tariff

Dany lives in the Chicago suburbs and uses her hoverboard wherever she goes. She is frustrated whenever she goes to Chicago and is forced to walk or use a bicycle to get around. She decides to create a company called Chicago-go Hoverboards, which will place kiosks around the city where users can rent a hoverboard and use it for an allotted time before dropping it off at a different kiosk. dany is classified as an

entrepreneur

Tall tale video has been rapidly growing since it opened 10 years ago. Last year the company instituted an employee volunteerism program. The company will provide employees with five paid days to volunteer in the community. Which of the following benefits of capitalism does this best represent?

help for the less fortunate

Goel realizes that a legacy computer program developed by er employer can be repurposed and sold to serve a new purpose for potential customers. Goel is best described as an

intrepreneur

Nolan works for FCP Bank and meets with the finance team from GBP North to discuss a loan. GBP wants to build a new facility but doesn't have the money to make the change on their own. Nolan is an example of a(n)

lender

Fix-it Home Repair offers one week of paid time off to its employees each year to volunteer with charities in the area. Who would benefit the most in this situation?

local community

The US government thinks that the economy is slow. Which of the following would be their best option in this situation?

lower interest rates

Eulalie graduated from college with a mechanical engineering degree. She has always been interested in designing cars and decides that she wants to open her own automobile company. She discusses her plans with her friend, who tells her that it is difficult for new companies to enter the automobile market because it is an

oligopoly

Ticker Electronics receives many of its processing parts from overseas. The leadership team pays a surprise visit to one of the production facilities and sees employees working in very unsafe conditions. They also notice that there are children working in the factory and that the typical workday is 12 hours or more without breaks. Ticker's supplier is most likely

operating as a sweatshop

Zardarious was given the opportunity to buy his friend's well-established gastropub. Zardarious is ready to own a business but isn't sure he should buy the business. Which of the following would be the most compelling argument for Zardarious to buy the gastropub?

opportunity to make profits quickly

Mumbi is visiting her grandmother for the weekend. She sees a twenty dollar bill on her grandmother's dresser and considers taking it, so she has spending money for the evening. Her parents raised her to believe that it is wrong to steal from others, so she quickly dismisses the thought. Which of the following most likely influenced her decision?

Values

Yasmani opened a sporting goods store this year. He made 100K in sales during January and he calculated a total of 10K in profits for the month. During February, Yasmani again had 100K in sales along with 80K in expenses. What was his total profits for Jan and Feb?

30K

TekTek manufactures custom gaming computers. They have been looking to expand overseas but have been hesitant to do so because many of their exclusive vendor agreements would not be honored in the new country. This is best described as an example the _____________ element of __________ forces on businesses

Contract enforcement; economic

National Family Financial provides free space at their headquarters for community blood drive each month. Which of the following best describes how National Family is helping society?

Donating resources

Madison has been working as a payroll manager for more than 10 years. She began writing additional checks to herself about five years ago. This example can best be described as

Employee fraud

Xander is putting the finishing touches on the last section of his business plan for a new opportunity he is pursuing. He really wants to focus on the benefits of his new idea for anyone reading his plan. Xander is most likely working on the _______ part of his business plan

Executive Summary

Huri lives on a small tree farm in South America. She uses the trees to build handcrafted decorations, which she sells online. Recently, the government notified her that they would be seizing her property in order to use the lumber for a building project. This situation can best be described as an example of

Expropriation

ekSpot is a US company that provides on-demand customer service to clinets. The owners want to cut costs, so they hire a vendor in Brazil to provide customer service. Hiring the vendor leads to a 40% reduction in expenses. TekSpot's hiring of the vendor can best be described as

Global Outsourcing

Cherise is hired to to technical writing for an IT startup business. Cherise is an example of the __________ resources for the business

Human

Insight Pharma is planning to enter the global market. The leadership team has begun searching for an executive with experience developing production strategies. The executive can best be classified under which of the following factors of production?

Human resources

The senior leadership team at Trax Outdoor Supply wants to promote ethical behavior within the company. Which of the following actions would be their most appropriate course of action?

Implementing a formal ethics code

Ronette works in accounting for her employer and notices that the CFO has been writing checks directly to herself using company expense funds. She is confident in reporting this issue because she knows the __________ will ___________.

Sarbanes-Oxley Act; protect whistleblowers

The CEO at Teledata Systems created a program to help employees in need. If an employee has an issue like a health problem or the loss of a home due to fire, they can submit a request for help. At this point, Teledata will collect donations of money or Paid time off and will match them before presenting them to the employee in need. Teledata's program best represents an example of

Social entrepreneurship

Gracie is in charge of the shipping department at Paperlite Manufacturing. She regularly meets with supply and distribution vendors. She also interacts with other employees in the company from time to time. Which of the following best describes the individuals Grace meets and interacts with at in her job?

Stakeholders

After a swine flu epidemic in China, over half of the nations pigs had to be euthanized, leading to a shortage of bacon. Bacon became scarce, which in turn drove up the price of bacon for consumers. Which of the following concepts does this example best represent?

Supply and demand

Mariann works for the Bureau of Labor Statistics. She is currently tasked with gathering prices on various goods and services. Once she is finished, she will be weighting and averaging the figures. Mariann is most likely calculating the

consumer price index

Japan is running low on their supply of oil but does not have the money needed to import oil from Saudi Arabia. Instead, they agree to pay for half of the oil with cash and the other half with electronic components. This can best be described as an example of

countertrading

Zanzibar Investing has been cantacting investors at TBYL Media offering to purchase their stock at a price that far exceeds the market. Zanzibar is launching a ______ by using a ________.

hostile takeover; tender offer

Weston is working as a corporate recuiter but wants to open his own headhunting business working from home. He decides to call his mom's friend Derrick for advice. Derrick has been a headhunter for more than 20 years and agrees to sit down for monthly coaching sessions about the headhunting industry. Derrick is acting as a ______ to Weston

mentor

Grete recently moved back to her home country of Denmark to open her own technology consulting firm. She is incredibly frustrated at how difficult it has been to hire technology professionals to work for her. Which of the following drawbacks to socialism is most likely causing this issue?

possible brain drain

The last two quarters have seen a decline in prices. Consumers have cut back on their purchases and several companies have filed for bankruptcy as a result. This situation is best described as a(n)

recession

Kelia opened her own motorcycle customization ship last year. After paying her bills and taxes for the year, she was pleasantly surprised by the balance remaining in her bank account. Which of the four basic rights under capitalism does this best represent?

right to make and keep profits

Manny has started a new business creating websites from his home office. Manny knows it can be a challenge to work from home and wants to do everything he can to be successful. Which of the following would best help Manny in his new endeavor?

setting a daily routine and sticking to it

Holly is moving from Boston to Madison for a new job next week. She is excited because her salary is staying the same, while her cost of living will decrease by 10%. Holly is going to experience an improvement to her ______________

standard of living

Citadel Finance has been accused of charging customers for services that they did not request. The government investigated Citadel and fined it for its actions. Many consumers felt that the fines should have been more severe, so they have banded together to organize nationwide boycotts of Citadel's services. The boycotts can best be described as

Legal and ethical

China has developed numerous efficiencies for producing consumer electrics like phones and laptops. China can best be described as having

absolute advantage

Colby and Jade are planning a new business venture together. They decide to have dinner to discuss the pros and cons of their potential partnership. Which of the following best describes a potential drawback to opening a partnership?

difficulty selling the business

Angelo is frustrated because he must drive 30 miles to a different city whenever he wants to buy comic books. After doing some research, he determines that others feel the same way, so he opens his own comic store in town. Angelo is best described as an ___________

entrepreneur