Busexam1
The cosmetics industry in the district of Dunkenburg has many competing companies that sell personal care products. However, each company manufactures products that correspond to different income groups, and these products have different uses. The market structure of the cosmetics industry in Dunkenburg exemplifies _____. a. pure competition b. monopoly c. monopolistic competition d. oligopoly
A
In the context of the dimensions of the business environment, which of the following is true of the competitive environment? a. Getting current customers to buy more of one's products is very expensive for a firm. b. Convincing potential customers to try one's products for the first time can be quite easy for a firm. c. Unlike current customers, potential customers can be turned into loyal advocates. d. Vocal promoters of a firm's products can get the firm new customers effectively.
D
In the context of the history of American business, which of the following statements is true of the marketing era? a. Skilled artisan workshops were replaced by huge factories. b. Major businesses focused on refining the production process and creating greater efficiencies. c. Large-scale entrepreneurs dominated the market and raised the standard of living across the country. d. The balance of power shifted away from producers and toward customers
D
In the context of the workforce advantage in the business environment, finding and holding the best talent will likely become a crucial competitive issue in the next decade as the baby boom generation begins to retire. However, job market contraction may not be an issue, because: a. baby boomers include about 47 million people, while the generation that follows includes 77 million. b. baby boomers contribute to dysfunctional turnover, which is likely to reduce after they retire. c. reverse mentoring can ensure that young employees are properly trained by baby boomers. d. many baby boomers opt to postpone retirement in the face of inadequate financial resources.
D
Which of the following is a feature of capitalism? a. The system works toward improving the lot of the working class at the expense of the super-rich. b. Private-sector businesses are not free to hire and fire at their discretion. c. The government owns and operates key enterprises that directly affect public welfare. d. Private-sector businesses are free to make their own choices regarding what they will produce.
D
T/f The structure of the Board of Governors of the Federal Reserve is such that no single president can appoint all of the Board's members
False
T/f In the context of monetary policy, when the Fed reduces the discount rate, banks will have to obtain funds at a higher cost.
False
T/f People can create natural resources by growing and harvesting agricultural products
False
T/f The value of all natural resources tends to rise with low demand, high supply, or both.
False
T/f n the context of the history of American business, the "hard sell" emerged during the relationship era of marketing
False
T/f In the context of international trade, often countries with the highest trade barriers have the least competition
True
T/f In the context of the barriers to international trade, per capita income is a key factor that determines the economic differences between two countries.
True
T/f In the context of the barriers to international trade, the infrastructural differences between two countries fall into the category of economic differences
True
T/fUnfair business practices such as predatory pricing hinder capitalism from achieving its potential
True
The controversial $700 billion economic bailout plan passed by Congress in early October 2008 was called the _____. a. American Recovery and Reinvestment Act b. Troubled Assets Relief Program c. Clayton Antitrust Act d. NCUA Corporate Stabilization Program
B
A giant telecommunications company that was previously owned by the government of Sunzabia, a European country, is sold to an independent industrialist to ensure that the company is handled in a more efficient way. The given scenario exemplifies _____. a. privatization b. globalization c. a joint venture d. a coalition
A
Companies typically engage in _____ to meet the needs of customers that don't have access to hard currency or credit. a. countertrade b. franchising c. a strategic alliance d. product churning
A
In September 2008, during the fiscal crisis in the United States, the stock market lost more than a third of its value, and 11.1 million Americans were out of work. Neither businesses nor individuals could borrow funds to meet their needs. Which of the following dimensions of the business environment does this illustrate? a. The economic environment b. The competitive environment c. The technological environment d. The social environment
A
In the context of international trade, which of the following companies is facing the barrier of legal differences? a. An Asian company that can only import a limited amount of crude oil from an Arab country because of international trade restrictions b. A European company that sells products that cater to specific demographics of foreign countries c. A North American company that takes contracts from overseas manufacturers to produce custom products at a low price d. An African company that introduces a new clothing line in an Asian country that reflects the latter's cultural and traditional values
A
T/f In the context of federal debt, if spending is lower than revenue, the government incurs a budget deficit.
False
A(n) _____ is a structure for allocating limited resources. a. dynamical system b. credit system c. economic system d. accounting system
C
In the context of fiscal policy, which of the following actions by the government helps boost the economy in the long term? a. Providing jobs, such as mail carrier b. Creating deflation in the market every few years c. Investing in public assets, such as a national renewable energy grid d. Artificially creating a budget deficit every few years by withdrawing funds from the market
C
In the context of international trade restrictions, a(n) _____ is a total ban on the international trade of a certain item. a. voluntary export restraint b. tariff c. embargo d. quota
C
Pride of Peers is a bakery chain that specializes in preparing homemade confectionaries. The company donates most of its earnings to rehabilitation centers for war victims and keeps just enough to buy raw materials. The primary goal of the company is to contribute to the rehabilitation of war victims. In this scenario, Pride of Peers would most likely be classified as a _____. a. political organization b. paper organization c. nonprofit organization d. corporation
C
T/f In the context of carbon footprint, emissions that occur outside a company's boundary, but over which it has some control, are classified as Scope 2 emissions.
False
A Japanese company encourages its employees to participate in charitable activities. The company gives annual paid leave of ten days to its employees to volunteer at nonprofits or take part in activities that support environmental causes. Given this information, the company's initiative is an example of _____. a. consumerism b. green marketing c. corporate philanthropy d. integralism
C
In the context of global trade, a balance of payments deficit means that: a. foreign borrowing and lending are excluded from calculating the balance of payments. b. more money flows in than out. c. more money flows out than in. d. foreign payments and receipts are excluded from calculating the balance of payments
C
T/f In the context of foreign direct investment, a joint venture involves the merger of companies.
False
T/f During the production era, managers focused mostly on customer satisfaction and not on production efficiency
False
T/f A country has an absolute advantage when it can produce more of a good than other nations, using the same amount of resources
True
T/f Although a trade deficit signals the wealth of an economy that can afford to buy huge amounts of foreign products, a large deficit can be destabilizing
True
T/f Balance of trade incorporates trade with all foreign nations.
True
T/f Foreign licensing helps circumvent government restrictions on importing in closed markets
True
T/f In the context of consumerism, smart businesses view customer complaints as an opportunity to create better products and stronger relationships.
True
T/f In the context of creating and maintaining an ethical organization, when employees perceive more management commitment, they tend to be more fully engaged.
True
T/f The amount of input divided by the amount of output equals productivity
True
_____ is a form of unemployment that involves layoffs during recessions. a. Cyclical b. Isochronal c. Periodical d. Seasonal
A
In the context of international trade, India, China, and the Philippines attract multibillion-dollar investments because: a. they are more developed than any other developed country in the world. b. they have a large cohort of technically skilled university graduates who work for about one-fifth the pay of comparable American workers. c. the value of euro is lower in the Asian market than in the American market. d. the level of risk associated with establishing business relationships with firms belonging to the Asian market is minimal
B
Black Marbles Resort is a resort in Miami. The members of the marketing department of the resort work hard to develop long-term associations with the resort's customers. They call them to receive feedback about their recent visits to the resort and offer huge discounts on their next visit. In the context of the history of American business, the marketing department is most likely using concepts that were popularized during the _____. a. entrepreneurship era b. production era c. relationship era d. technology era
C
In the context of the fundamental principles of a free market system, which of the following statements is true of the equilibrium price? a. It refers to the price at the point where the supply curve and the demand curve intersect. b. It is the price at which a seller breaks even. c. It is the point at which the final cost of production equals the price of the raw materials used for a product. d. It refers to a situation where the cost price of a product is equal to its selling price.
A
Olivia is a part-time worker at a jam-producing company in her village. Her job entails picking and cleaning grapefruits. Because grapefruits grow only in winter, Olivia is unemployed for most part of the year. In the given scenario, Olivia's unemployment exemplifies _____. a. seasonal unemployment b. frictional unemployment c. classical unemployment d. cyclical unemployment
A
The West Asian country of Quinland is experiencing an economic downturn. There has been a decrease in its gross domestic product for two consecutive quarters. In this scenario, Quinland is most likely facing an _____. a. economic recession b. economic expansion c. economic stagnation d. economic integration
A
Neminski, an Arab country, is renowned for its rich oil reserves. It earns approximately $1.3 billion annually by selling crude oil to other countries. Given this information, Neminski is most likely involved in _____. a. foreign outsourcing b. exporting c. foreign franchising d. countertrade
B
In the context of price levels, which of the following is used by the government to evaluate inflation? a. The seller pricing rank b. The consumer price index c. The price-weighted activity index d. The knowledge pricing rank
B
In the context of the code of ethics of a company, which of the following is a step that is virtually always included when experts advocate a forceful, integrated approach to ethics? a. Ensuring that the company's ethics code is local and not global in scope b. Communicating about the importance of ethics c. Considering ethics as a separate unit and not integrating it into mandatory staff training d. Establishing and enforcing strict laws against whistle-blowers
B
In the context of the legal and ethical dimensions of business conduct, it is illegal and unethical to: a. provide rock-bottom prices only to distributors in underserved areas. b. engage in sexual harassment. c. pay nonliving wages to workers in developing countries. d. endorse low-nutrient foods with inadequate information about the risks
B
Janet reasons, "It is wrong to lie. However, it is okay to overstate my expense account on my recent business trip because I need the money, and my company has not given me a raise in the past year." In this scenario, Janet is an employee who views ethics as _____. a. universal b. relative c. moral absolutism d. a double-barreled argument
B
Vieorien, a company based in the country of Dannistel, has permitted a foreign company the rights to produce its products and to use the Vieorien trademark. However, Vieorien does not have the authority or the rights to dictate the business operations of the foreign company. In this scenario, the foreign company that Vieorien deals with is the _____. a. lessor b. lessee c. licensee d. licensor
C
In the context of monetary policy, which of the following is a result of a decrease in the reserve requirement? a. Interest rates begin to increase. b. Banks make less number of loans. c. Banks need to hold more funds. d. The availability of credit increases
D
In the context of planned economies, countries that adopted communism in 1900s developed: a. individualism and narcissistic values among people. b. a plethora of choices regarding jobs and buying options. c. transparency at every level of government. d. crippling shortages and surpluses.
D