Exam 1 - BUS 1010

Nicodemo recently finished paying his taxes after his first year running his own business. He signs into his bank account and is pleased to notice that he was left with a significant cash balance. Which of the basic rights under capitalism does this best represent?

THE RIGHT TO MAKE AND KEEP PROFITS

A nonprofit organization that helps the local victims of a hurricane is involved in

a philanthropic effort

An integrity-based ethics code supports responsible employee behavior by emphasizing shared

accountability among employees

India can operate numerous call centers compared to other countries due to low cost of labor and abundant labor force. India can best be described as having

an absolute advantage

The United States wants to increase sales of compact cars in the country, so it bans all imports of foreign compact cars. This best represents the concept of

an embargo

The Fed has begun lowering interest rates. What will be the most likely outcome of this action?

business will most likely borrow from banks

Bedazzled headbands have become a very popular item with children in the past year. The market is flooded with them. What is most likely to happen as a result?

buyers will want to pay less for the headbands

Ozara is the plant manager for Estate Manufacturing. He is leading the efforts to double plant capacity with a new building. Which of the five factors of production is Ozara most impacting?

capital

A large office supply company sells many of its consumer products over the Internet. This is known as

career choices and entrepreneurial activity

Anton grew up in the Soviet Union during the early 1980s and remembers waiting in long lines with his father to get meat and bread. He also remembers his parents talking about a waiting list for the larger apartment they had hoped to move into. Which of the drawbacks of communism does this best represent?

central planning flaws

Brazil is very good at manufacturing coffee but does not have easy access to automotive technology. Germany, on the other hand, has some of the best automotive technology in the world but does not have access to coffee. As a result, Brazil sells coffee to Germany and Germany sells automotive technology to Brazil. This best demonstrates the concept of

comparative advantage

Ryder works for a technology firm that has designed a proprietary software that tracks employee productivity by utilizing employees' heartrate. At this time, it is the only company offering this software. Ryder's firm can best be described as having a(n) ________ advantage.

competitive

"Any employees caught stealing from the supply cabinet will be fined and reported to their supervisor for disciplinary action." This statement is an example of a(n) _____ ethics code.

complaince-based

Ecuador is a large producer of bananas, but it must import oil from other countries. If Ecuador made a deal with an oil producing country to use bananas as partial payment for oil, it would be engaging in

countertrading

Ivar oversees the finance team at Ouranos Company. The company is in the United States and is considering a new production facility overseas. It is comparing a few different countries for the location. Ivar is researching the rate at which U.S. money can be exchanged for money in each of the other countries. This figure is best known as the ________ rate.

currency exchange

China's One Child policy resulted in an imbalance of males to females in the country. This is a ________ change that can affect business.

demographic

You have a company that makes high-end chocolates, and you want to begin selling to retailers in other countries. In other words, you want to participate in

direct exporting

After a hurricane in Florida, a beverage company delivered free bottles of water to residents. How is this company helping society in this case?

donating goods to the community

A large office supply company sells many of its consumer products over the Internet. This is known as

e-commerce

Time Keepers, Inc. wants to expand into a South American country, but the necessity of the use of bribery to do business there has made it financially unfeasible. Which of the five forces affecting the business environment is most impacting Time Keepers' expansion decision?

economic

Cluny realizes there are no automatic car washes in his town. He takes out a loan and builds an automatic car wash later that year. Cluny is best described as a(n)

entrepreneur

To encourage high ethical standards and support a strong ethical climate, a company's leadership should

establish a code of ethics

The job of the ________ is to integrate the organization's ethics and values initiatives, compliance activities, and business practices into the company's decision-making processes.

ethics officer

The United States grows more soybeans than it consumes, so it sells the excess to other countries. This illustrates the concept of

exporting

China's response to U.S. tariffs against them was to put tariffs on U.S. soybean exports, hurting soybean farmers in the United States significantly since China typically buys more than half of U.S. soybean shipments. This is an example of how ________ can affect markets.

government influences

Dreamcatcher Toys is preparing for the holiday rush. It uses staffing firms and its own recruiting team to nearly double the production team each year. Which of the factors of production does the staffing increase best represent?

human resources

Jonathon works for a U.S. company that doesn't produce goods domestically, but instead buys them from other countries and resells them in the United States. Jonathon's company illustrates the concept of

importing

The hot new video game system is having production delays, which is limiting the number of units available for resale. How will sellers most likely react in this situation?

increase prices

BigAir buys parts from a domestic company and sells its finished planes to Mexico. The company that makes the parts engages in

indirect exporting

Faith works for a construction company. The company specializes in building new sections of highways or repairing existing stretches of the same. These highways are part of a country's

infrastructure

A'ja opened her own consulting firm last year specializing in technology training. She knows that companies in the marketplace are always looking for ways to keep their employees current with new technology, so A'ja dedicates a portion of her week to studying technology trends. She uses this information to develop new programs that will add additional value for her customers. Which of the factors of production does this best represent?

knowledge

Alexei lived in Russia in the 1970s when the communist state was in control. He worked at a factory job and wasn't particularly motivated to pursue a better job, even though he hated the one he had. What is the most likely drawback to communism in this scenario?

lack of incentitives

A U.S. manufacturer makes low-quality furniture that breaks easily. This is an example of something that is ________ but ________.

legal, unethical

Holidays Galore is a seasonal business, so in the off season when it is buying inventory, it is often short of cash. The business usually borrows money from the bank to tide it over until the busy season begins. The bank is Holidays Galore's

lender

There are many health food stores in Moses's community, but only one in his neighborhood, so he frequents that one. What kind of market does this store face?

monopolistic competition

Ten Thousand Villages in Chicago is a fair trade boutique that imports and sells handmade items from around the world. Which benefit of capitalism does this company offer to consumers in Chicago?

more goods and services

Tamalika is the owner of a small company that provides hot meals to disaster victims. She is hoping to make enough profit to pay her bills and expand the reach of the organization next year. Tamalika most likely runs a ________ business.

nonprofit

Many companies have found that having staff with certain specialties on its payroll is expensive, so they hire people in other countries who have the training and skills to do the work for them. This is called

offshoring

When Corey started his athletic wear line, he didn't account for the large number of competitors and he lost most of his savings in the first year. Which drawback of capitalism did Corey experience?

possibility of heavy losses

Ethics are ________ that influence behavior.

principles of right and wrong

Japan is hoping to make the price of electronics produced within the country more competitive. After some consideration, it implements a tax on all computers shipped into the country. Japan has most likely implemented a(n)

protective tariff

Saskia recently inherited a large amount of stock in the ThermCo Corporation. What kind of stakeholder does Saskia represent?

shareholder

A company can measure its level of ________ by evaluating whether a given company activity creates social value through innovation.

social entrprenuership

Armida is a lawyer with the American Civil Liberties Union (ACLU). She is regularly in court working to ensure fair treatment of all individuals in the business world. The ACLU can best be described as a(n)

special interest group

CertPro Logistics was recently in the news after being fined for failing to honor an important government contract. What is most likely to happen?

the company's reputation may be diminished

Legal responsibility, or obeying the laws of host countries as well as international law, is a key element of

the corporate social responsibility pyramid

Clara is planning to open her own business next year. Last week she purchased a building where she plans to locate the store. Which of the basic rights under capitalism does this best represent?

the right to own property

A major reason employees stay at their companies is

their organization's concern for ethics

Maggie Cohen is a law student who is desperate to get a passing grade on a final exam. But she refuses to cheat, even though she can reasonably do so without being caught. When another student asks her why she doesn't cheat, she just shrugs and says, "I wasn't raised that way." She is demonstrating a deeply held attitude know as a(n)

value

Which organization would be best suited to assess the damage caused to a country by a tsunami or earthquake?

world bank