Intro to business midterm

committee of managers should be appointed to plan the program

Babkok Corporation set up an effective program for social responsibility. Its top managers developed a policy statement outlining key areas of concern. This statement will serve as a guide for other employees as they become involved in the program. Now

true

Basically, there are four recognized degrees of competition: perfect competition, monopolistic competition, oligopoly, and monopoly. T or F

that is someone else job

Bob, a restaurant supplies and equipment manager, believes in the economic model of social responsibility. Which of the following would most likely be a quote from Bob in relation to social responsibility?

foreign corporation

Boeing is incorporated in Seattle, Washington. It has a large facility in Huntsville, Alabama and is considered what due to its business with Alabama?

false

Corporate officers are elected by the stockholders. T or F

International Monetary Fund

Countries experiencing balance-of-payments deficits can obtain short-term loans from the?

recovery

During which phase do high employment rates decline and levels of income increase?

True

Economists define a recession as two or more consecutive three-month periods of decline in a country's gross domestic product. T or F

true

Economists define a recession as two or more consecutive three-month periods of decline in a country's gross domestic product. T or F

False

Fewer workers producing more goods and services can lead to higher overall employment rates? T or F

labor

For a Pepperidge Farm production facility, managers and employees would be?

true

Real gross domestic product is an economic measure that has been adjusted for price increases of goods and services during a given period of time. T or F

horizontal merger

Recently there have been several mergers involving Big Four accounting firms. One such merger involved the firms of Arthur Young and Ernst & Whinney, who combined to form Ernst & Young. This is an example of a?

true

Reducing costs and enabling employees to work more efficiently are at the core of all attempts to improve productivity. T or F

the European Union

Several European countries have banded together to reduce the trade barriers between them and encourage trading among themselves. This is know as?

5 years

Since World War II, the average length of recessions has been?

making a profit and paying taxes that meet the need of society

Stanley, a bank manager, holds the economic model of social responsibility view. What is he most likely to say about the connection between taxes and social responsibility?

false

Surplus funds of a not-for-profit organization are distributed to members of the board of directors. T or F

they will be put out of business because they cannot compete with the prices

Taiwanese manufacturers are dumping toys in Germany. What will happen to German toy manufacturers if the German government allows this dumping to continue?

true

The World Trade Organization (WTO) was established by GATT to oversee the provisions of the Uruguay Round. T or F

true

The corporation, partnership, and sole proprietorship are the three most common forms of business ownership in the United States. T or F

an independent agency of the U.S government

The export-import bank of the united states is?

corporation

The form of business organizations most heavily regulated by the government is the?

Great depression

The government became less involved in business activities, is a characteristic of?

corporation

The most effective form of business organization for raising capital is the?

concept of sustainability

The needs of the present without compromising the future?

merger

The purchase of one corporation by another is referred to as a?

social responsibility

The recognition that business activities affect society and the consideration of that impact when making business decisions is referred to as?

Bria's personal assets will be protected in the event that the corporation fails and she losses everything

The retail card and gift shop chain that Bria started has since been incorporated. Which of the following best describes the limited liability that Bria has as the primary stockholder in this corporation?

microeconomics

The study of an individual's economic decisions would be an example of?

balance of payments

The total flow of money into a country minus the total flow of money out of the country over some period of time is called the country's

false

The total value of a nation's exports minus the total value of its imports is known as the balance of payments? T or F

labor

The work performed to produce goods and services is referred to as?

soft drink industry

There are three general types of franchising arrangements. In one approach, the franchisor authorizes retailers to sell a particular brand-name item. This type of arrangement is common in all the following areas except?

false

There is nothing unethical about accepting payments to do something you would normally do in your job anyway. T or F

gross domestic product

To compare the productivity of the United States to that of Japan, one should examine their respective?

direct investment

Totally owned facilities overseas are an example of?

partner

Tyler has been operating his business as a sole proprietorship but decides that it is too much work for him to do alone. He does not want to file a lot of government forms but would like to bring in someone to own and operate it with him. Tyler needs a?

individual and social factors opportunity,

What are the three sets of factors that influence the standards of behavior in an organization?

increases in productivity

What is not an effect felt by individuals in regard to the health of a nation's economy?

cultural diversity

What represents the differences among people in a workforce?

Industrial and agricultural products

What type of products did GATT focus on during the Kennedy Round?

world bank

What was established in the 1944 and offers low-interest loans and interest-free credit to developing countries?

oligopoly

When General Mills and a few other firms dominate the American cereal market, this is an example of?

profit

When a firm's sales revenues are greater than its expenses, the firm has a?

embargo

When the U.S government will not allow meat from another country to be marketed in the United States, it is imposing a?

S-corporation

Which of the following has a restriction on the number of owners, members, or stockholders?

loans to develop the country are interest free

Which of the following is false concerning the International Monetary Fund?

social

Winn-Dixie, a southern grocery store chain, has signs saying that tips are not accepted and employees are all informed of this policy. However, many of the baggers commonly accept tips from customers anyway and they often compare to see who makes the most. The factor affecting the ethical behavior of Winn-Dixie's employees is?

false

every partnership must have at least one limited partner. T or F

true

in the United States, all bribes are unethical. T or F

requires less commitment from all parties involved

requiring a joint venture with an existing foreign company offers all of the following advantages except?

profit-making organizations

small business investment company are?

environmental protection agency

the federal agency charged with enforcing laws to protect the environment is the?

true

true Joint ventures are created for a specific purpose and dissolved when that purpose is achieved. T or F

oligopoly

what is a market situation (or industry) in which there are few sellers?

not all businesspeople favor such programs

One problem affirmative action programs have encountered is?

consumers demand safe products

One reason American businesses must be concerned about product safety is that?

many buyers and sellers

Perfect competition is characterized by?

vertical merger

A ___ is a merger between firms operating at different but related levels in the production and marketing of a product.

true

A bill of lading is issued by the transport carrier to the exporter to prove the merchandise has been shipped. T or F

true

A business provides goods and services in exchange for sales revenue. T or F

true

A corporation chartered in Texas and doing business in Texas is known as a domestic corporation. T or F

true

A depression is a severe recession that lasts longer than a recession. T or F

false

A factory system of manufacturing involves the separation of a manufacturing process into separate tasks and the assignment of different tasks to different employees? T or F

inflation

A general rise in the level of prices according to economist.

import quota

A limit on the amount of a particular good that may be brought into a country during a given period of time is called?

satisfying their customer needs

A local retailer calls its customers when it receives merchandise that they may by interested in, provide individual service to each customer, provides forms and phone numbers for complaints and comments, and has a 100 percent satisfaction guarantee. Which objective is this business working hard to accomplish?

bureaucratic red tape

A newly formed country in the Caribbean has no high tariffs, yet other countries find it difficult to trade with the new country because of its requirements for labeling, product testing, and certifications. These restrictions can best be classified as?

true

A tariff is a tax levied on a particular foreign product entering a country? T or F

true

A tender offer is an offer to purchase stock from existing stockholders. T or F

True

According to Adam Smith, under laissez-faire capitalism, each person should be allowed to work toward his or her own economic gain without government interference. T or F

true

According to Adam Smith, under laissez-faire capitalism, each person should be allowed to work toward his or her own economic gain without government interference? T or F

True

Real gross domestic product is an economic measure that has been adjusted for price increases of goods and services during a given period of time. T or F

False

Monetary policies exert the government's influence on the amount of savings and expenditures by altering the tax structure and changing the levels of government spending. T or F

no, products must be safe for intended use

Amanda decides to try out her new iron on the pesky wrinkles she has on her legs. She suffers rather severe burns and is infuriated with the manufacturer because she feels her right to safety has been violated. Is Amanda correct?

communism

An example of a command economy is?

reducing the number of units exported

An import duty has the effect of all the following execpt?

true

Of the three factors mentioned and geography cannot be changed. T or F

false

An investor who is considering investing in Diane's Burger Bar would not likely want to see her business plan. T or F

only risk his initial investment

As a limited partner in a construction business, Joe?

rivalry for sales and potential customers

For firms like and Samsung, competition is?

both households and business in the form of taxes

For the U.S government to provide services, it collects revenue from?

true

Generally, there are three types of businesses: manufacturing businesses, service businesses, and marketing intermediaries. T or F

the right to choose

If Casio were to buy out all other calculator manufacturers, what consumer rights would be at stake?

True

If a firm's sales revenue exceeds its expenses, the firm has earned a profit. T or F

fiscal policy

In France, income taxes are reduced so that individuals will have more income to spend, which in turn will stimulate the economy. This is an example of?

True

Inflation is a general rise in the level of prices experienced by people in a nation? T or F

current technology

It changes the way business firms communicate with customers?

easy difficult

Lucas has been saving his excess funds for several years and has contemplated entering a partnership with a friend from college. Lucas hesitates because he knows that it is ___ to invest money in a partnership and ___ to get the money back out?

true

Major advances in consumerism have come through federal legislation?

todays care has pollution and harmful emissions

Maria drives a four-door sedan to work and other places every day. How does her car affect the environment now compared to a similar car thirty years ago?

service business

Maria owns and operates a catering business. This is an example of a?

be informed

MasterCard sends a customer a memo that discloses the true cost of borrowing with each billing statement. It does this because it realizes that the customer has the right to?

noise pollution

Modifying machinery and equipment is a form of reducing?