Intro to Business Exam 1

Which of the following best describes a purpose driven business?

A company that strives to do more than just make money.

Which of the following can create bias in AI systems?

Algorithms and data built with human bias

Which of the following Acts guarantees equal opportunities in education and employment for those with health issues and who may require reasonable accommodation to perform certain job tasks?

Americans with Disabilities Act (ADA)

________ laws limit what businesses can and cannot do to ensure that all competitors have an equal chance of succeeding.

Antitrust

Which of the following is the broadest indicator of international trade and shows how much is spent on international transactions?

Balance of payments

________ refers to the resources or capabilities a company must have before it can start competing in a given market.

Barriers to entry

________ is the study of the relationship between organisms and the natural environment.

Ecology

________ is/are the massive data sets that companies collect and analyze to find trends and insights.

Big data

Who is responsible for reviewing the long-term plans and major strategic decisions of an organization?

Board of directors

Which of the following is one of the ways the government helps to stabilize or stimulate the national economy?

Changing monetary policy

Which is the highest-ranked officer of a corporation?

Chief executive officer

________ refers to some aspect of a product or company that makes it more appealing to target customers.

Competitive advantage

Which of the following is a component of the specific market environment within which each business operates?

Competitors

Consumers have the right to buy safe products, and to buy them safely. Who enforces this?

Consumer Product Safety Commission

What key aspect of running a business includes the ability to offer valuable goods and services while contributing to society?

Corporate social responsibility

Which type of analytics finds patterns in numerical data?

Data mining

Which of the following is a characteristic feature of economic contraction?

Decreased unemployment rates

Which of the following refers to the amount of a good or service that customers will buy at a given time at various prices?

Demand

________ is/are led by innovation, initiative, and the willingness to take the risks in creating and operating businesses.

Entrepreneurship

Which of the following regulatory agencies is responsible for monitoring the hiring practices of companies and can require them to compensate individuals who have been victimized by unfair hiring practices?

Equal Employment Opportunity Commission (EEOC)

________ is/are the principles and standards of moral behavior that are accepted by society as right and wrong.

Ethics

Which of the following is one of the least risky forms of international business activity?

Exporting

Which of the following strategies is best when attempting to enter a foreign market slowly and then designing the firm's product offerings for that market?

Exporting

The ________ is the federal agency responsible for protecting money in customer accounts and managing the transition of assets whenever a bank fails.

Federal Deposit Insurance Corporation

Which of the following involves changing the government's revenues or expenditures to change the growth rate of the economy?

Fiscal policy

Which of the following acts outlaws payments that are intended to get government officials to break the laws of their own countries or to secure "improper advantage" in gaining or retaining sales?

Foreign Corrupt Practices Act

________ allows a firm to sell the rights for the use of a specific business system, including trade secrets and brand names.

Franchising

Which of the following best describes deregulation?

Having fewer rules and relying on the market to prevent excesses

Which of the following refers to people and their individual talents and capabilities?

Human Resources

________ is/are where criminals steal personal information and use it to commit other types of fraud.

Identity theft

________ limit the amount of particular goods that countries allow to be imported during a given year.

Import quotas

________ refers to buying goods or services from a supplier in another country.

Importing

Which of the following best describes a gig economy?

Independent contractors who work on short-term projects

________ can be used to get timely, accurate information to the right people via computer and communication systems.

Information technology (IT)

In the global marketplace, which of the following is often a type of key asset needed to successfully utilize an advantage?

Intellectual

________ verify the financial reports of public companies as required by law.

Internal accountants

Which of the following arguments supports the idea of free trade?

International trade takes place without any government interference.

Which of the following offers investing and advisory services to organizational customers, including governments?

Investment bank

Which factor of production represents the collective intelligence of an organization?

Knowledge

________ agreements entitle one company to use some or all of another firm's intellectual property in exchange for a royalty payment

Licensing

________ offer financial services to businesses, particularly in the area of international finance.

Merchant banks

________ use(s) cloud technology to provide services through mobile and digital channels, thereby reducing the cost of banking services.

Neobanks

The ________ establishes procedures for creating geologic repositories of radioactive waste.

Nuclear Waste Policy Act

________ involves donating money, employee time, or other resources to various causes without regard for any direct business benefits for the company.

Philanthropy

What can companies use to protect themselves in long-term purchasing contracts?

Price-escalation clauses

The ability to cover all costs of customization while offering competitive prices in an international market should be considered in which functional strategy category?

Pricing

________ rate is the rate a bank charges its best loan customers.

Prime

Which of the following is a key difference between private corporations and public corporations?

Private corporations are owned by a few people, whereas public corporations can be owned by anyone who has the means to buy stake.

________ is the act of designing new and better ways to run a company's operations.

Process R&D

Which of the following is an objective of protectionism?

Protecting industries and workers through government policies

________ occurs when no single firm is large enough to influence prices and distort the workings of the free-market system.

Pure competition

________ activities are intended to identify new ideas and designs that have the potential to result in new goods and services.

Research and development

________ is money that an organization brings in through the sale of its goods and services

Revenue

________ are politically motivated embargoes that revoke a country's normal trade relations status.

Sanctions

Which of the following creates competition for finite resources, thereby forcing trade-offs by participants in the economy?

Scarcity

Which of the following has helped buyers educate each other, shifting power from sellers to buyers?

Social media

________ refers to the quantities of a good or service that producers will provide on a particular date at various prices.

Supply

________ is defined as meeting the needs of the present without compromising the ability of future generations to meet their own needs.

Sustainable development

Where is the world's largest economy?

The European Union

If a country needed help in dealing with a natural disaster, where might they go?

The International Monetary Fund

Social media has given consumers numerous ways to ask questions, voice concerns, and otherwise demand attention, supporting which consumer right?

The right to be heard

Which of the following is a disadvantage of a sole proprietorship?

They usually have fewer financial resources and fewer ways to get funds from lenders or investors.

Which of the following has been created to promote trade and ensure economic growth of member nations?

Trading blocs

________ refers to the degree to which information flows freely within an organization, among managers and employees, and outward to stakeholders.

Transparency

Which of the following federal legislations limits a credit card holder's liability for unauthorized use?

Truth in Lending Act (Consumer Protection Credit Act) (1968)

Which of the following reflects the percentage of the labor force currently without work?

Unemployment rate

Which of the following is a key difference between a corporation and a sole proprietorship?

Unlike a sole proprietorship, a corporation has limited financial liability.

Which one of the following is true regarding the economic environment of business that shapes the behavior of buyers and sellers?

Virtually every decision made is influenced by the economic environment.

________ is a permanent forum for negotiating, implementing, and monitoring international trade procedures and for mediating trade disputes among member countries.

World Trade Organization

A deep and prolonged recession is known as ________.

a depression

Two areas of concern with artificial intelligence from an ethical perspective are embedded biases and ________.

a lack of transparency and accountability

In a(n) ________, one company buys a controlling interest in the voting stock of another company.

acquisition

Activities undertaken by businesses to recruit and promote members of groups whose economic progress had been hindered through either legal barriers or established practices are known as ________ programs.

affirmative action

In a general partnership, ________.

all partners have joint authority to make decisions

Choosing an unethical course of action, even where choices are clear, results in ________.

an ethical lapse

Governments established ________ in an effort to ensure all competitors have an equal chance of succeeding.

antitrust legislation

The Magnuson-Moss Warranty Act (1975) requires complete written warranties in ordinary language and requires warranties to be ________.

available before purchase

The term ________ is used to characterize the fluctuations in an economy's rate of growth over a period of several years.

business cycles

A(n) ________ is a framework of how a business intends to generate revenue.

business model

The money, equipment, and buildings that a business needs in order to produce goods and services are called ________.

capital

Businesses that need very large amounts of money, equipment, or other material resources in order to get started are ________ businesses.

capital-intensive

A(n) ________ refers to a written statement setting forth the principles that guide an organization's decisions regarding what is right or wrong.

code of ethics

An S corporation ________.

combines limited liability of a corporation with the federal taxation advantages of a partnership

Legal systems in Great Britain and the United States are based on ________, in which tradition, custom, and judicial interpretation play important roles.

common law

A ________ merger occurs when a parent company buys one or more companies in unrelated industries.

conglomerate

The ________ measures the rate of inflation by comparing changes in the prices of a representative basket of goods and services such as clothing, food, housing, and utilities.

consumer price index (CPI)

When the U.S. dollar is strong, U.S. exports will likely ________.

cost more in other countries

When demand for goods and services drops, businesses reduce production, resulting in economic contraction. The unemployment resulting because of this phenomenon is known as ________ unemployment.

cyclical

A(n) ________ shows the relationship between the amount of product that buyers will purchase at various prices, all other factors being equal.

demand curve

Businesses can impact society in both positive and negative ways. Occupying land and displacing existing businesses are examples of ________.

disrupting communities

What types of technologies are strong enough to create or destroy companies?

disruptive

Companies have a choice in CSR, but at a minimum, all should practice ethical choices that ________.

do no harm

The conditions that affect the cost and availability of goods, services and labor, and the behavior of buyers and sellers are BEST described as the ________ environment.

economic

________ is/are the study of how a society uses scarce resources to produce and distribute goods.

economics

The point at which the demand and supply curves intersect—the point at which the quantity demanded and supplied are balanced is called the ________.

equilibrium point

Multinational corporations are companies that ________.

establish a physical presence in multiple countries through foreign direct investment

A situation in which you must choose between two conflicting but arguably valid alternatives would be known as a(n) ________.

ethical dilemma

The number of units of one currency that must be given for a unit of the second currency is known as the ________ between the currencies.

exchange rate

An S corporation is allowed to have ________.

fewer than 100 investors

Profits of sole proprietorships ________.

flow directly to the owners

A company that is incorporated in one state but does business in several other states where it is registered is called a(n) ________.

foreign corporation

In a ________, companies can decide what to produce, how to produce, whom to sell to, and at what price to sell.

free-market system

In a ________ strategy, managerial control is highly centralized and major decisions for the company's international operations are made at the company's headquarters in the home country.

global

Money serves as a(n) ________ to simplify transactions because a buyer can trade it for a good or service.

indication of value

Dumping ________.

involves selling a product at a price lower than the cost of production

A disadvantage of the corporate structure is that it ________.

involves strict reporting requirements

Unlike general philanthropy, strategic CSR ________.

is aligned with a company's overall business strategy

The risk and reward relationship ________.

is fundamental to businesses in every modern economy

A sole proprietorship ________.

is owned by only one person

In a(n) ________, two or more firms work together to create a new business entity that is legally separate and distinct from either parent company.

joint venture

The policies and practices of government bodies would shape the ________ environment for a business.

legal and regulatory

The ________ function of an organization coordinates the incoming flow of materials and the outgoing flow of finished products.

logistics

Creating branding and advertising strategies to communicate with potential customers would fall under the ________ function of a business.

marketing

In a ________, two companies join to form a single entity either by pooling their resources or by one company purchasing the assets of the other.

merger

According to the ________ view, the only social responsibility of business is to pay taxes and obey the law.

minimalist

Nongovernmental organizations are usually ________.

nonprofit groups that provide charitable services or promote causes

An organization that seeks to operate efficiently and effectively to achieve its goals without focusing on profit as a motive is a ________.

nonprofit organization

When the number of competitors in a market is small, and competitors influence each other through production and pricing decisions, a situation known as ________ is created.

oligopoly

The value given up when a different opportunity was pursued is referred to as ________.

opportunity cost

A(n) ________ is an unincorporated company owned by two or more people.

partnership

Supporting job-training efforts in the community as a way to develop the workforce is an example of ________.

philanthropy

The economic system that allows individuals the least degree of economic freedom is ________.

planned

With a ________, a targeted company invokes some move that makes it less valuable to the potential raider, with the hope of discouraging the takeover.

poison pill defense

The ________ measures price at the producer or wholesaler level, reflecting what businesses are paying for the products they need.

producer price index (PPI)

________ is the term used to describe the difference between revenue and expenses.

profit

The term ________ indicates two consecutive quarters of decline in the country's gross domestic product.

recession

When a downward swing or recession is over, the economy enters into a period of ________.

recovery

In a publicly held corporation, the board of directors is ________.

representatives of the shareholders

According to the ________, consumers have the right to know what they are buying, how to use the product, and potential risks.

right to be informed

Population trends that change the composition of consumer markets and the workforce are a part of a company's ________ environment.

social

The classic theory of comparative advantage suggests that each country should ________.

specialize in those areas where it can produce more efficiently than other countries

All groups affected by a company's activities are referred to as its ________.

stakeholders

The ________ depicts the relationship between prices and quantities that sellers will offer for sale, regardless of demand.

supply curve

Taxes, surcharges, or duties levied against imported goods are known as ________.

tariffs

A(n) ________ is a country that allows companies the opportunity to shield some of their income from higher tax rates in their own countries.

tax haven

The term ________ refers to forces resulting from the practical application of science to innovations, products, and processes.

technological environment

Money serves as a ________ when it is used as a way of accumulating wealth until it is needed.

temporary store of value

Corporate officers are the ________.

top executives who run a corporation

A country has a trade surplus when the ________.

value of its exports exceeds the value of its imports

A country has a trade deficit when the ________.

value of its imports exceeds the value of its exports

A person's disclosure that exposes illegal or unethical behavior by others within the organization is ________.

whistle-blowing

With the ________ tactic, a third company is invited to acquire a company that is in danger of being swallowed up in a hostile takeover.

white knight