BUSI 1301 Midterm Review
The Global Entrepreneurship Monitor (GEM) shows that people living in high-income countries tend to be much more willing to start their own business than people living in low-income countries
False
The amount of input divided by the amount of output equals productivity.
False
The difference between a firm's revenue and its cost of goods sold is its accounts receivable
False
The most common type of corporation is an S corporation
False
The reserve requirement is more than stated bank deposits
False
The value of natural resources rises with low demand and high supply
False
If an email is intended for a recipient who is likely to feel negative about it, you should end the email on a positive note
True
In economics, the _____ explains the rate of taxes and resulting levels of tax revenue
The Laffer Curve
In the context of consumerism, smart business view customer complaints as an opportunity to create better products and strong relationships
True
In the context of franchises, the term accounts receivable refers to money owed to a parent company by franchisees who bought its goods on credit
True
In the context of international trade, often countries with the highest trade barriers have the least competition
True
In the context of small businesses and the economy of a country, entrepreneurship rates are significantly lower in countries where it is hard to get fired
True
In the context of the U.S. economy, small firms tend to be effective innovators because of the presence of revolutionary new ideas
True
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
One of the disadvantages of general partnerships is the lack of continuity
True
Public accountants provide services such as tax preparation, external auditing, or management consulting to clients on a fee basis
True
Small businesses often have an advantage in foreign markets where customers want to deal directly with a company's top management
True
Studies in the Wallstreet Journal suggest that during face-to-face communication, 38% of the meaning comes from tone of voice
True
Sustainable development means weaving environmentalism throughout the business decision making process
True
The central banking system of the United States is the Federal Reserve
True
The consumer market basket of goods and services, in which the CPI measures changes in weighted average price over time, is created by the U.S. Bureau of Labor Statistics
True
The most basic form of a partnership is known as a general partnership
True
The net income of a company is calculated by subtracting expenses from revenue
True
In the accounting equation, assets are equal to liabilities minus the owners' equity
False
In the context of competitive advantage, the value of the first best choice represents the opportunity cost of producing a second product
False
In the context of global trade, exchange rates can directly measure global commerce
False
In the context of monetary policy, when the Fed reduces the discount rate, banks will have to obtain funds at a higher cost
False
In the context of monetary policy, when the economy contracts the fed typically decreases the money supply
False
In the context of self-reliance, when things go well, people with an internal locust of control feel that the actions of other people have led to their success
False
In the context of social responsibility, a corporation that does not have profits, has a first priority to virtue as a D corp
False
Social audit is the system evaluation of positive and negative views about a business firm
False
Speed-to-market is the rate at which a company's competitors copy its product innovations.
False
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.
False
Digital natives only spend when a business offers them value
True
Fabotels is a hotel aggregator that buys budget hotels that succumb to financial losses and then refurbishes them under the company's brand name. Fabotels recently purchased Ravine Comforts, a small lodge that was running into huge debts. The business deal between Fabotels and Ravine Comforts exemplifies a(n) _____.
Acquisition
The Federal Trade Commission
Actively promotes fair competitive practices
Diana has to give a presentation on air pollution and its effects at a conference. She begins by asking the participants to imagine themselves carpooling to work instead. This helps the relate to the topic. Diana uses _____ to open her presentation
Audience involvement
A limited partnership is an agreement between two or more individuals to operate a business as co-owners for a limited period of time
False
An ethical dilemma involves clear misconduct at the workplace
False
Based on statistics from the U.S. Small Business Administration (SBA), small businesses account for 78% of all private sector employees
False
Contingent expenses are costs that a firm incurs in the regular functioning of its business
False
Corporate philanthropy includes all business donations to non-profit groups except employee time
False
Despite the growth rates in many high population countries, most of these nations remain ahead of the U.S. in growth and prosperity
False
Economists declare an official recession when gross domestic product decreases for six consecutive quarters.
False
Ideally, the opening of your business presentation will summarize your key points
False
Which of the following statements is true of organizational barriers to communication?
They are hard to change
A benefit of using active voice in business communication is accountability
True
A corporation can be a partner in a partnership
True
According to research from the ERC, organizational culture is most influential in shaping the ethical conduct of individual employees
True
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
B corps are new structures that value profits but not more than other priorities like employees
True
Balance sheets usually classify assets into at least two major categories: current assets and property, plant, and equipment assets
True
