Final exam Business

If Mattel and Hasbro merged, this would be known as a _____.

horizontal merger

In a communist country such as North Korea, what types of goods have the greatest importance?

Goods needed by the government

Which of the following is not one of the four states included in a typical business cycle?

Repression

A _______ is a partnership formed to operate for a specific time period or to accomplish a specific purpose.

joint venture

One of the main advantages of corporations as a form of business is _____, or each owner's financial liability is equal to the amount of money that they have paid for the corporation's stock.

limited liability

A plan designed to increase the number of underrepresented employees within an organization is known as _______.

an affirmative action program

Business ethics _______.

applies moral standards to business settings

Felicia and Bernard have decided to go into the quarry business together. They start by writing an agreement that explains the parameters of the business they will own and the responsibilities and roles each of them will have in the business. They have created a(n) ____.

article of partnership

When people or organizations foul water, air, or land, whether knowingly or unwittingly, the action is called _______.

pollution

Due to the COVID-19 pandemic, the United States suffered more than two consecutive three-month periods of decline in its gross domestic product; this is best described as a(n) _______.

recession

A social audit is best characterized as a _______.

report on a business's performance and initiatives with regard to social issues

Karume starts his own business as a sole proprietor. This form of business has the advantage of ____.

the owner keeping all of the profits from the business

When consumers spend their money to purchase Apple iPhones or computers with an AMD processor, or when they discontinue buying such items as DVDs, they are telling resource owners _______.

what to produce

The ability to produce a specific product more efficiently than any other nation

Absolute Advantage

Which of the following best describes cultural diversity?

Appreciating the differences among people in a workforce

Which of the following best illustrates a command economy?

Communism

Which of the following forms of business create a double taxation situation?

Corporation

To achieve affirmative action goals, companies turned to quotas; however, the courts have done which of the following with regard to quotas as a part of affirmative action programs?

Courts have ruled quotas unconstitutional but commended their purpose.

The reduction of the value of a nation's currency relative to the currencies of other countries

Currency Devaluation

A contractual agreement in which one firm permits another to produce and market its product and to use its brand name in return for a royalty or other compensation

Licensing

All business activities that involve exchanges across national boundaries

International Business

A firm that operates on a worldwide scale without ties to any specific nation or region

Multinational Corporation

What two additional rights have been added to the original Consumer Bill of Rights?

Right to consumer education and right to service

•Which of the following best expresses the relationship between sales and profits?

Sales revenue−expenses = profit

Imelda wants to form a business in the easiest way possible. What form of business should she use?

Sole Proprietorship

A tax levied on a particular foreign product entering a country

Tariff

Adebola is preparing a research paper for her Introduction to Business class regarding early government regulations that affected American business. Which of the following was the first federal act to regulate business practices?

The Interstate Commerce Act

LG fails to provide an instruction manual with one of its new high efficiency washing machines. Which basic consumer right has LG's omission violated?

The right to safety

An effective program for social responsibility takes time, money, and organization.

True

Once they are made aware of a pollution problem, most firms are proactive in addressing it rather than waiting to be cited by the Environmental Protection Agency (EPA).

True

Only about half of business firms survive the first five years.

True

•Inflation is a general rise in the level of prices experienced by people in a nation.

True

Jagdish had a problem with a coffee maker he purchased recently. He has been trying for days to speak with the company by emailing and calling its toll-free number, but it rings forever or sends him through a long menu with no opportunity to speak to an individual or to leave a message; his emails go unanswered. Jagdish feels his basic consumer right to _______ has been violated.

be heard

The organized effort of individuals to produce and sell, for a profit, the goods and services that satisfy society's needs is called _______.

business

•Fluctuations in a nation's economy are referred to as its _______.

business cycle

A system where the basic economic questions are determined, at least to some degree, through centralized government planning is referred to as a _______ economy.

command

Ga-ram works at an institutional bakery and is paid a wage set by the government. He does not like his job but is not allowed other options. Ga-ram must purchase necessities for his family at fixed prices. The country Ga-ram lives in can be described as a _______ economy.

command

If Ford, GMC, Honda, Toyota, and Volkswagen merged into one multinIn a communist country such as North Korea, what types of goods have the greatest importance?ational corporation, this would effectively _______.

create a monopoly

Supporters of increased social responsibility would most likely say that the goal of a firm is to _______.

create value and benefits for owners, employees, and society

The process of creating, making, delivering, and promoting products that are environmentally safe is called _______.

green marketing

Firms have routinely rejected job applicants with little education or vocational training and a long history of unemployment, even when they lack skills and education because of disabilities, economic factors, or systemic racism. These individuals are known as _______.

hard-core unemployed

A closed corporation is one that _____.

has a limited number of stockholders and sales and exchanges of the stock are restricted

Bongseon and Karim would like to form a corporation to provide string music education to children in their area. They want to form this business as a way to give back to the community and plan to have the children perform concerts in rest homes for older people who are unable to travel. Bongseon and Karim will most likely form a(n) ____.

not-for-profit corporation

Adidas organizes the annual Run for the Oceans to raise funds and awareness about the global problem of plastic waste polluting the oceans. It has also partnered with Parley to recycle plastic waste into sportswear products. This is an example of _______.

social responsibility

The right to be heard implies that companies should listen to consumer complaints and _______.

take appropriate action

One issue that affirmative action programs have confronted is _______.

that not all businesspeople favor such programs

•One of Samuel Slater's contributions to the development of business in the United States was the use of _______.

the factory system

A complete halt to trading with a particular nation or of a particular product

Embargo

Caveat emptoris a _______.

Latin phrase meaning "let the buyer beware."

An arrangement in which one firm contracts manufacturing or other activities to a firm in another country that specializes in those activities and can offer them at a lower cost than domestic firms

Outsourcing

In writing his final paper for Business Ethics class, Nikolaj copied significant parts of the paper from other sources without acknowledging those sources. Once his professor discovered this, he failed Nikolaj for the course. Which of the following violations did Nikolaj commit?

Plagiarism

An instruction pamphlet detailing steps for the care and use of a new electric appliance would fulfill which provisions of Kennedy's Consumer Bill of Rights?

The right to safety and the right to be informed

Which of the following best characterizes how the government uses tax dollars?

To purchase resources and products needed to provide services

Maricel has a horrible boss named Dimitri. Dimitri verbally humiliates and intimidates Maricel daily, telling her on the shop floor and in front of her coworkers that she is a terrible employee, and that he will fire her soon if she does not improve her performance. Dimitri's actions have made Maricel anxious and deeply depressed, and her productivity has only decreased as a result. Dimitri's statements to Maricel likely constitute which of the following?

Workplace bullying

•Perfect competition is characterized by _______.

many buyers and many sellers

Online interaction that allows people and businesses to communicate and share ideas, personal information, and information about products is known as _______.

social media

The total value of a nation's exports minus the total value of its imports over a specified period of time

1. Balance of Trade

A negative balance of trade.

3. Trade Deficit

Exportation of large quantities of a product at a price lower than that of the same product in the home market.

Dumping

Selling and shipping raw materials or products to other nations

Exporting

Fewer workers producing more goods and services can lead to higher overall employment rates.

False

Manufacturers are not required by law to inform consumers about the potential dangers of using their products.

False

The problems associated with the disposal of waste have declined in recent years because of modern technology.

False

•When the federal government takes steps, such as reducing or increasing spending levels, that affect savings and spending by consumers and businesses, it is called _______.

fiscal policy

•Economists define a _______ as two consecutive three-month periods of decline in a country's gross domestic product.

recession

As a manager, when faced with an ethical conflict, Ari should always _______.

think about their own ethics; the company's ethics; and the interest of employees, stockholders, and customers

Provides a link between buyers and sellers in different countries

trading company

Serita and Tyler decide to form a partnership after discussing it for a few days. They have determined that a partnership has all of the following advantages except _____.

unlimited liability