BUS 101

__________is the process of funding ventures by raising money from a large number of investors via the Internet.

Crowdfunding

Russia and China are both rich in natural resources and human resources, and both countries have a solid level of capital. Yet, neither country is wealthy. The missing ingredient seems to be ___.

Entrepreneurship

_____________ refers to selling products in foreign nations that have been produced or grown domestically.

Exporting

Ted's new company is experiencing a steady decline in profit. He needs external financing to prevent his company's profits from declining further. Considering the fact that he wants to exercise sole ownership and control over the firm for as long as possible, Ted is likely to find angel investors who are interested in helping him meet his financial needs.

F

A business email should have as many attachments as possible to communicate a message.

False

Demographic factors include the milestones achieved during the development in the field of computers, telecommunications, and other digital products.

False

In the context of balance sheets, accounts receivable is an example of__________.

current assets

In the context of challenges to effective communication, the term _____ refers to any interference that causes the message you send to be different from the message your audience understands.

noise

Brian has decided to supplement his job application to Wendenlt Corporation with a cover letter to the senior manager of human resources. However, he knows neither the name nor the gender of the senior manager he wishes to address. In this scenario, which of the following is the most appropriate way Brian can address the recipient without displaying gender bias?

"Dear Senior Manager of Human Resources"

Which of the following statements is true of a franchisor-franchisee relationship?

A franchisor limits the franchisee's territory from expanding into other areas.

The government in the town of Rodenham has granted exclusive rights to a few telecommunications companies to operate in specific geographic areas. The companies have to provide their services in the areas allotted to them, and no company is allowed to extend its services to the areas allotted to its competitors. This system has been put in place because it would be inconvenient for each company to build its own infrastructure in all areas. The given scenario exemplifies:

A natural monopoly

_____ is a management tool that explicitly shows how a firm will acquire and use the resources needed to achieve its goals over a specific time period.

Budgeting

In the context of the technological environment of a business, which of the following statements is true of e-commerce?

Business-to-business selling comprises the vast majority of total e-commerce sales.

The employees of Carrick Inc., an electronics company, are requesting the management to adopt a new performance appraisal process to allow better transparency between different levels of the company. They propose to have one-on-one feedback sessions that would help reduce various appraisal bases. Identify the dimension of the social environment that this scenario exemplifies.

Ethics

George, the CEO of a company, always uses examples from the Bible to convey his messages to his diverse workforce. He also favors employees who can quote verses from the Bible while talking to him. The non-Christian employees of the company, therefore, feel excluded. From the given information, it can be said that George shows _____.

Ethnicity bias

Despite their large population, China and India represent a much smaller opportunity in terms of size and economic growth.

False

In face-to-face communication, the verbal content of a message conveys much more meaning to the listener than the tone of voice and body language

False

In the context if monetary policy, when the FED reduces the discount rate, banks will have to obtain funda at a higher cost.

False

In the context of the history of American business, the industrial revolution era encouraged workers to take individual ownership and personal pride in the production process.

False

Larry is part of the Board of Governors that manages the U.S. monetary policy. He has been elected by the President to serve a single 14-year term. In addition to setting the __ he is responsible for extending banking services to commercial banks. In this scenario, Larry is most likely part of the _______.

Federal Reserve

_____ refers to the unrestricted movement of goods and services across international borders.

Free trade

Wendy quit her job as the regional manager of Rubicon Inc., a multinational company, and started her own fashion boutique. Within two years, she began earning more than what she earned during her tenure at Rubicon. Which of the following advantages of entrepreneurship is highlighted in the given scenario?

Greater financial success

A coal mining company had employed around 250 miners who work 8-hour shifts every da. In the context of factors of production, the miners can be classified as ________.

Human Resources

Richard is a technical analyst at a marketing firm. He is highly regarded by his peers and supervisors who always seek his advice while making important decisions for the company. In this scenario, Richard can be classified as a(n) ______.

Human resource

Which of the following communication channels should ideally be used when you need to reach a large audience with an important message?

In-person presentation

The ________ is an organization of 188 member nations that promotes global economic cooperation and stable growth.

International Monetary Fund

________ refers to the Federal Reserve decisions that shape the economy by influencing interest rates and the supply of cash.

Monetary Policy

__________is a form of communication that does not involve the use words.

Nonverbal communication

The _______ limits conflict-of-interest issues by restricting the consulting services that accounting firms can provide for the companies they audit.

Sarbanes-Oxley Act

Which of the following is a disadvantage of franchising?

The franchise agreement usually requires the franchisee to follow the franchisor's procedures to the letter.

In the context of monetary policy, if the FED decreases the reserve requirement, ________________.

There will be more loans available

Timothy wanted to start a coffeehouse. However, he could not buy a space to start his business because of lack of funds. Which of the following threats is highlighted in the given scenario?

Too little money

A business email should have a compelling subject line

True

Choice of ownership determines the degree to which each owner has personal liability for the firm's debts.

True

Deflation refers to a period of falling prices across an economy, which is a sigh of economic trouble that goes hand-in-hand with very high unemployment.

True

Socialist economics tends to have high taxes, which are designed to distribute wealth more evenly through society.

True

The balance of trade plays a central role in determining the balances of payments.

True

The personal needs, the culture, and the family of an individual influence his or her ethical choices.

True

There is no limit on the number of partners who can participate in a general partnership.

True

Value in the relationship between the price of a good or a service and the benefits that it offers it customers.

True

According to research from the Ethics Resource Center (ERC), organizational culture is most influential in shaping the ethical conduct of individual employees.

Ture

Before starting his presentation on the benefits of taxi services, Mark engages the spectators by asking them to imagine themselves driving in a drunken state. He goes on to ask them the possible outcomes that they can imagine. This exercise ensures that Mark gets the spectators' complete attention. In the given scenario, Mark uses _____ to open his presentation.

audience involvement

Callie, an assistant supervisor in an automobile company, wants to actively contribute to the growth of the company by suggesting some changes in its administrative policies. However, she does not get the opportunity to do so because of a high power distance in the company. In the given scenario, Callie faces a(n) _____.

audience involvement

Rolette Clemens is a financial institution that provides loans to businesses. It rejects a textile company's request for a loan after it reviews the value of the company's assets, liabilities, and owners' equity and finds them to be unsatisfactory. In this scenario, Rolette Clemens most likely analyzed the company's _____ to assess its financial condition.

balance sheet

The three kinds of basic financial statements that are prepared in financial accounting are:

balance sheet, income statement, and statement of cash flows.

The most socially responsible companies establish ____ for their vendors, setting clear policies for human rights, wages, safety, and environmental impact.

code of conduct

The various ways in which a message can be sent, ranging from one-on-one in-person meetings to Internet message boards, are called__________.

communication channels

processes. This demand by the public represents _____.

consumerism

Homebound, a home decor company, annually donates blankets to various nonprofit organizations. These nonprofit organizations distribute the blankets among the poor. Given this information, Homebound's gestures is an example of:

corporate philanthropy

In the context of statement of cash flows, cash flows from operating activities show the amount of cash that flowed into the company from:

dividends

The primary reason people choose to become entrepreneurs is to:

earn more money.

An advantage of franchising is:

easier access to funding.

People with an external locus of control:

feel buffeted by forces such as random luck.

To give the company's stockholders, creditors, and other external stakeholders an accurate idea of the company's overall performance, Rowensport Corporation, a multinational company, releases statements that contain details of the company's profits and losses over the past five years. In this scenario, the company is most likely involved in _____.

financial accounting

Rubicon Inc., an American guitar manufacturing company, signed a contract with a supplier in Umreia, an Asian country, to manufacture guitars. Rubicon then imported these products and sold them in its markets under its own brand name. Rubicon did this because of the availability of cheap labor in Umreia that substantially cut down Rubicon's cost of production. In this scenario, Rubicon is most likely involved in _____.

foreign outsourcing

A firm considers _____ to increase size and market power within the industry.

horizontal mergers

Microeconomics focuses on:

individual businesses

Real gross domestic product (GDP) measures the total value of final goods and services produced within a nation's physical boundaries over a given period of time, adjusted for:

inflation

In the context of balance sheets, patents, trademarks, and copyrights are examples of _____.

intangible assets

In the context of budgeting, a flexible budget:

is designed to show the appropriate budgeted level of costs for each different level of sales.

When a business brings in less money than it needs to cover expenses, it incurs a ______.

loss

Aiden is a college student. As part of his economic project, he has to collect data on the on the consumption patterns of the households in his locality. In this scenario, involved in the study of ____.

microeconomics

A corporation is a separate entity from its owners where the:

owners are not personally responsible for the obligations of the company.

A(n)__________is a voluntary agreement under which two or more people act as co-owners of a business for profit.

partnership

Norman owns a large number of shares in a telecommunications corporation. Despite that, he does not have the right to vote in a meeting held specifically to elect the CEO of the company. In this scenario, Norman is most likely a _____.

preferred stockholder

Trade restrictions were created to:

protect national security interests.

Luke works in an accounting firm that offers services such as tax preparation and external auditing to corporate companies. Luke is currently providing consultation to a client that deals in automobile parts. In this scenario, Luke is most likely a:

public accountant.

Walid, an IT professional, is known for his perseverance, his self-discipline, and taking accountability for his actions. In the context of universal ethical standards, Walid most likely possesses the core value of _______.

responsibility

Ronnie works on a part-time basis for a company that provides home repair and maintenance services. Ronnie is specialized in handling the central heating systems in homes and is therefore needed to be at work only during the winter. Other than that, he is mostly unemployed for the rest of the year. In this scenario, the form of unemployment faced by Ronnie is _________.

seasonal unemployment

In the context of social responsibility, _____ include employees and investors who have a personal interest in the performance and actions of an organization.

stakeholders

An owner of a C corporation is called a _____.

stockholder

Carla and Liang both have shares in HD&Z Corporation, a C corporation that offers limited liability to all its owners. In this context, Carla and Liang are the _____ of HD&Z Corporation.

stockholders

The term _______ refers to the quantity of products that producers are willing to offer for sale at different market prices.

supply

Inicell Inc., an American camera manufacturing company, wanted to import a few camera parts from Ruellia, a Asian company. However the American government passed a taxation law that stated that a tax of 4% would be levied on all electrical imports. In the scenario, the American government imposed a(n) ___________.

tariff

Wichasha, an African country, exports barley and cotton worth $100 million to Illema, a European country, and it imports sugarcane worth $25 million from Illema. As such, the total value if Wichasha's exports is higher than the value of its imports. This difference between the value of Wichasha's exports and imports is known as ______.

the balance of trade

The total value of the goods exported by Maulini, a South American country, in the last fiscal year was lower in comparison to the total value of the goods imported by it. Given this information, Maulini a ____ in the last fiscal year.

trade deficit

Albert is the owner of a car service center. As a sole proprietor, any profit that he earns is:

treated as Albert's personal income.

In American culture, older people tend to experience negative age bias more often than younger people.

true

Jenny, an external auditor from a public accounting firm, verified the financial statements of a real estate company. At the end of her review, Jenny did not find any discrepancies in the figures presented by the company and the accounting methods of the company. In this scenario, the independent auditor's report most likely offered a(n) _____.

unqualified opinion

Yanmei, an employee at a news agency, learns that the reason her colleague was asked not to pursue a news story further was because the editor of the newspaper was bribed by the concerned party to suppress the matter. Yanmei reveals this information to the chief editor and her colleagues and also reports it it the media. In this scenario, Yanmei is a _______.

whistle-blower

Kimberly starts a presentation on child safety by sharing that "more than 200 million children today are child laborers, and 73 million of these children are below 10 years. Can we do anything about these numbers?" This makes the audience attentive and responsive throughout the presentation. In the given scenario, which of the following types of hooks does Kimberly use to open her presentation?

A startling statistic

Jacob is in urgent need of financing for his rapidly-growing online travel business Travelmunch. As Jacob does not usually pay off his loans on time, his credit score is very low. He feels overwhelmed and thinks that it would be ideal if he receives some guidance on how to run the business. Given his situation, which of the following key sources of funding would be ideal for Jacob?

A venture capital firm

In the context of fundamental principles of a free market system, which of the following statements is true of a supply curve?

It shows the relationship between price and quantity from a supplier standpoint.

Who among the following is most likely to benefit in a case where there is a weak dollar against the euro?

John is an american who exports to Europe.

James is always keen on putting his ideas into action regardless of the outcome. He perfects his craft by trying out different possibilities. If he is dissatisfied with the result, he tries out a different method but does not give up. Which entrepreneurial characteristic is highlighted in the given scenario?

Vision

Jeffery is asked by his supervisor to prepare a presentation on company policies for the orientation program. Jeffrey covers all essential topics and removes any unnecessary information to avoid confusion. In the given scenario, Jeffery is:

being concise.

Debbie, along with Mike and Rory, decided to start a new catering business. She invested her time, money, and effort in the project, and she directly managed the business development process. In this scenario, Debbie is most likely a(n) ________.

entrepreneur

In the context of the fundamental principles of a free market system, the ________ is associated with the point at which the quantity demanded of a product equals the quantity supplies.

equilibrium price

According to small business experts, while raising start-up funds from friends and relatives, it is:

essential to keep the relationship as professional as possible.

Loren LLC is a small bicycle store that competes effectively with much larger companies as its focus lies exclusively on selling bicycles for senior citizens and patients with orthopedic ailments. The company has been successful as it has:

exploited a small but profitable market niche.

The U.S. Small Business Administration (SBA) gives free money to start-up businesses, grants interest-free loans, and fully guarantees loans from local commercial lenders.

f