Business Exam #1

In general, it is wise for a business to a. strive to create negative relationships with all stakeholders to discourage competitors. b. strive to create positive relationships with all stakeholders. c. only focus on customers, since customers provide the revenue for the business. d. only focus on shareholders, since shareholders provide the ownership stake in thebusiness.

B

Kiva believes that the better way to help communities overcome poverty is by a. making donations rather than lending money. b. lending money rather than giving donations. c. lending $25 or more with no expectation for borrowers to pay back. d. making donations with the option to lend.

B

If the price of a product were to go down, which of the following will most likely happen? a. The quantity demanded will increase. b. The quantity demanded and supplied will stay the same. c. The quantity demanded will decrease. d. The quantity supplied will decrease.

A

Kiva's belief that the whole community benefits from an entrepreneur's desire to earn a profit reflects which concept? a. invisible hand b. socialism c. compassionate capitalism d. communism

A

Allowing customers to search other Redbox kiosks for a particular movie is made possible by new a. technology. b. green movements. c. demographics. d. competition

A

Are shareholders stakeholders? a. Yes b. No c. Yes, but only shareholders who control at least 10 percent of the business arestakeholders. d. Yes, but only shareholders who control at least 25 percent of the business arestakeholders.

B

What kind of economic system does the United States operate within? a. communism b. a mixed economy c. socialism d. mix of socialism and communism

B

When supply and demand meet at the equilibrium point, prices in the market will a. stay put. b. trend toward that price. c. change demand. d. change supply.

B

If Redbox is successful at attracting customers to a location, and Redbox locations are near McDonald's, then McDonald's could possibly realize a. less revenue. b. outsourcing. c. more revenue. d. a factor of production.

C

This organization was created to provide more trade agreements between countries and solve trade disputes if/when they arise. a. Common Market b. NAFTA c. WTO d. GATT

C

Gaby is motivated to work hard in a capitalistic society, because a. the government tells her to do so. b. she wants to do well for herself. c. she is greedy. d. she has no choice.

B

If you choose to start your own business and work for yourself, then you would be a(n) a. stakeholder. b. entrepreneur. c. laborer. d. researcher.

B

The three major factors associated with Corporate Social Responsibility are a. acting ethically, always using environmentally friendly products, and acting in the organization's best interest in returning a profit. b. maximizing positive societal impact, minimizing negative societal impact, and acting inthe organization's best interest in returning a profit. c. using ethically sourced materials, adding diversity to the workplace, and seeking to returna profit to the shareholders. d. using ethically sourced materials, adding diversity to the workplace, and seeking to breakeven with profits.

B

What is the difference between a stakeholder and a shareholder? a. There is no difference, because they are the same. b. Stakeholders have a vested interest in the business' success, whereas shareholders haveownership in in the business. c. Shareholders help share at some level in the business, whereas stakeholders only have astake in the business. d. None of these choices are correct.

B

How are governments considered stakeholders? a. Governments are not considered stakeholders. b. Governments are considered stakeholders because they ultimately control the board of directors of the business. c. Governments are considered stakeholders because they play a role in the outcome of the business through taxes, increased property values, and regulations designed to protect consumers. d. Governments are considered stakeholders because they are shareholders, and shareholders are stakeholders.

C

The use of outsourcing is primarily designed to reduce _____________ for the business that is implementing this strategy. a. tariffs b. production c. costs d. employees

C

When companies follow the key factors of Corporate Social Responsibility, a__________ usually results, thus __________. a. tax benefit; increasing profits b. positive public image; repelling more customers. c. positive public image; attracting more customers d. negative public image; repelling more customers

C

A company that uses a strategy of selling its products to a distributor in another country would be using a. foreign direct investment. b. licensing. c. contract manufacturing. d. exporting.

D

If Martha were to add recycling containers inside her store for her customers, this would a. probably end up costing her more money and time but could result in less satisfied customers and harm her profitability. b. probably cost less money, but result in more satisfied customers. c. infuriate customers and investors. d. probably end up costing her more money and time but could result in more satisfiedcustomers and future profitability.

D

If the value of all the goods/services that United States exports is greater than the value of all that it imports, then this is referred to as a a. trade deficit. b. balance of payments. c. trade advantage. d. trade surplus.

D

Is following a model of Corporate Social Responsibility required? What is the rationale? a. Yes, but many businesses only follow this model in order to appeal to niche customers. b. Yes, because it leads to higher profits in the future. c. No, and many businesses do not want to seek good corporate social responsibility, because it often requires them to pay workers more money. d. No, but many organizations seek to be a good corporate citizen in order to receive a positive public image

D

Sustainability refers to a. recycling in general. b. the overall ability of the company to generate a profit in the future. c. a product's ability to be recycled. d. a product's or company's ability to exist without causing harm to the environment.

D

What is Kiva's approach to microfinancing? a. resource development b. free-enterprise capitalism c. command financing d. crowdfunding

D

Why should a business be concerned with stakeholders? a. Businesses should not have to worry about stakeholders very much, because they do not own the business. b. A business should be concerned with stakeholders because stakeholders control the board of directors of the business. c. A business should be concerned with stakeholders because stakeholders represent the competition of the business. d. A business should be concerned with stakeholders because stakeholders represent a broad group of people who stand to gain or lose by the actions of the business.

D

As a global company, Electra Bikes sells its products to other countries. This process is referred to as a. exporting. b. importing. c. outsourcing. d. insourcing.

A

Built on an ethical standard of providing stylish eyewear at reasonable prices and creatingan environment that supports ethically sound behavior, Warby Parker is demonstrating__________ ethics codes. a. integrity-based b. compliance-based c. corporate-based d. profit-based

A

Electra Bikes is an American brand with a global presence. Which of the following trade agreements allowed Electra Bikes to expand its business by opening a new market in Canada? a. NAFTA b. the EU c. MERCOSUR d. ASEAN

A

If more and more countries decide to enact trade protectionism, then CH2M Hill would probably realize a. fewer opportunities and revenue. b. a free trade environment. c. increased growth. d. an import quota.

A

In business, managers and employees are faced with many decisions. Management writer Ken Blanchard and religious leader Norman Vincent Peale provide a set of questions individuals should ask themselves when facing an ethical dilemma. Which of the following is not one ofthose questions? a. Will it help me further my career? b. Am I acting fairly? c. Is it legal? d. Is it balanced?

A

In order to keep its manufacturing costs down, Electra manufactures its bikes in Taiwan because it is cheaper for the company than producing the bikes in the United States. The process of contracting the production of goods to an overseas company is called a. outsourcing. b. exporting. c. insourcing. d. Importing

A

In what way do Vision Spring and War by Parker participate in corporate social responsibility? a. by establishing an ethical standard b. by building a profitable business c. by providing fashionable eyewear d. by placing profits above all else

A

Organizations like Kiva.org offer aspiring entrepreneurs in developing countries small loans to help them get their businesses started. These loans are called a. microcredit. b. reserve funds. c. barter exchange. d. command financing.

A

The business relationship between Electra Bikes and Trek provides Electra with a competitive advantage. This business arrangement would be classified as a. a joint venture. b. a free trade agreement. c. an export agreement. d. a foreign direct investment

A

The chance of losing time, money, reputation, and so on, is known as a. risk. b. empowerment. c. loss. d. outsourcing.

A

Warby Parker and VisionSpring operate under a "triple bottom-line" philosophy that takes into consideration company profits, human capital, and a. the environment in which the firm operates. b. ethical marketing practices. c. its competitors. d. a commitment to technology.

A

Warby Parker and VisionSpring's business partnership demonstrates success through its ethical business practices and commitment to corporate social responsibility. Which of the following is not one of the partnership's core business philosophies? a. focusing on investors b. helping others c. providing jobs for others d. keeping costs low

A

When Electra decided to produce its "pedal-assist" motor bike it had to adhere to speed regulations. The company found out, however, that safety regulations differ greatly among various countries and it opted to use the U.S. standard which calls for a lower speed motor. This is an example of how _______ forces can affect global trade. a. regulatory b. technological c. sociocultural d. environmental

A

Which key factors impact whether budding entrepreneurs around the world can start and own a business? a. access to financing, government involvement, freedom to start a business b. access to a market, government involvement, industry saturation c. product, price, place, and promotion d. type of economic system, marketing strategy, business plan

A

___________ is the study of population with regards to its size, density, age, race, gender,income, and so on. a. Demography b. Factor of production c. Capitalization d. Topography

A

In a socialist country, how does the government get the money to buy and own major industries, like telecommunications? a. borrowing it from other countries b. physical coercion c. through taxes d. charitable gifts from its citizens

C