Midterm 3 questions
Which set of ethics codes defines an organization's guiding values, creates an environment that supports ethically sound behavior, and stresses shared accountability?
Integrity-based ethics codes
______ are creative people who work as entrepreneurs within corporations. Multiple choice question.
Intrapreneurs
What type of business relationship benefits both a trainee and a business owner and occurs when a trainee is hired to learn small-business management while assisting the owner in getting daily work done?
apprenticeship
Limits on the number of products in certain categories a nation can import is best described as
import quota
Which of these are centers that offer new businesses in the critical stage of early development low-cost offices with basic services such as accounting, legal advice, and secretarial help?
Business incubators
What is the name of the U.S. free trade agreement with Costa Rica, the Dominican Republic, El Salvador, Guatemala, Nicaragua, and Honduras?
CAFTA
Which code of ethics emphasizes preventing unlawful behavior by increasing control and penalizing wrongdoers?
Compliance-based ethics codes
______ refers to accepting the risk of starting and running a business.
Entrepreneurship
A contractual agreement where someone sells a business idea and gives the rights to use the name and sell a product/service in a given are is considered a:
Franchising
The four functions of management include:
Planning, organizing, leading, controlling
What is considered to be a major hurdle to successful global trade?
Sociocultural differences
Mediating trade disputes among nations and overseeing cross-border trade issues and global business practices are functions of:
The World Trade Organization (WTO)
True or False: Equity financing is about ownership, not about borrowing
True
True or false: Most entrepreneurs do not get their ideas from a flash of inspiration; they come more from their passions or looking at problems.
True
True or false: The principles of management are similar for a small neighborhood business and a giant global firm
True
A systematic evaluation of an organization's progress toward implementing socially responsible and responsive programs is called:
a social audit
what is the legal obligation of a corporation
acquire wealth for stockholders
The guiding principle of free economic exchange is ______ ____theory.
comparative advantage
The guiding principle of free economic exchange is:
comparative advantage theory
Corporate social responsibility is based on a _____
concern for the welfare of society
A foreign country's production of private-label goods to which a domestic company then attaches its brand name or trade mark is called
contract manufacturing
The concern businesses have for the welfare of society, not just for their owners is referred to as
corporate social responsibility
which business has double taxation?
corporation
Export Assistance Centers work with small and medium-sized businesses who wish to get involved in
direct exporting
People learn their organizational _____from observing the standards, values, and behaviors of leaders and other employees.
ethics
A social audit is used by organizations to
evaluate its progress toward implementing socially responsible programs
A company in another country that is owned by a U.S. company would be an example of a
foreign subsidiary
The definition of ____ states: the movement of goods and services among nations without economic or political barriers.
free trade
The definition of ______ _____states: a partnership in which two or more companies,often from different countries, join to undertake a major project.
joint venture
Of all the strategies for reaching global markets, which one offers the least amount of commitment, control, risk, and profit potential?
licensing
What entry strategy gives a firm the right to manufacture another firm's product or use its trademark for a royalty fee?
licensing
when the US dollar is trading for less than a foreign currency, the cost of foreign goods are
more expensive
Two advantages small firms have over large firms include more personal customer service and the ability to respond quickly to ____.
opportunities
A foreign subsidiary is a company owned in a foreign country by another company called the
parent company
A business that is independently owned and operated, is not dominant in its field of operation, and meets certain standards of size in terms of employees or annual receipts is a(n):
small business
Job seekers interested in working in global trade should consider applying to:
small businesses major companies
When it comes to ethics,_____ sets the standards for moral behavior, that is behavior defined as right or wrong.
society
Who sets the standards of right and wrong as defined by ethics?
society
which business entity is the easiest to form?
sole proprietorship
Naomi invests in new businesses in exchange for partial ownership in those businesses. Naomi is a(n) _____.
venture capitalist
Free trade is the movement of goods and services among nations___
without political or economic barriers
The total value of a nation's exports compared to its imports measured over a particular period is the definition of
balance of trade
What is the global strategy in which a firm allows a foreign company to produce its product in exchange for a fee?
Licensing
When it comes to getting involved in international business what are the three strategies that require the least amount of commitment and effort?
Licensing, exporting, franchising