Business

Which of the following is a threat to small businesses?

A bigger regulatory burden compared to large businesses

Which of the following marketing concepts emerged during the marketing era?

A consumer focus that permeates successful companies in every department, at every level

In the context of small businesses and the economy of a country, which of the following factors can bring down entrepreneurship rates?

A high level of employment protection

Which of the following nations is most likely to have the lowest percentage of entrepreneurs?

A nation that places complex regulations on businesses

_____ is the overage that occurs when the total value of a nation's exports is higher than the total value of its imports.

A trade surplus

Anya is an administrator at Zenorx Inc., a start-up software company. She is responsible for acquiring capital for the company. In the context of the various factors of production that businesses rely on, which of the following functions is most likely to be a part of Anya's responsibilities?

Acquiring synthetic resources like computers and telephones

_____ are individuals who finance start-up companies with high growth potential in exchange for a share of ownership.

Angel investors

Tyron needs financing for his new business venture. He feels that the best way to obtain the funds would be to tap his personal financial resources. In the context of this scenario, the most appropriate source of personal finance for Tyron would be:

Bob, Tyron's rich uncle with whom he has a close relationship.

Which of the following statements is a similarity between general partnerships and sole proprietorships?

Both allow owners to avoid double taxation.

Which of the following is a similarity between buying an established business and buying a franchise?

Both find getting financing less challenging.

Which of the following is a similarity between ethics and social responsibility?

Both play a vital role in building profitable businesses and a vibrant community.

Which of the following is a similarity between angel investors and venture capital firms?

Both put in money in exchange for a share of ownership.

Which of the following statements best describes e-commerce?

Business transactions conducted online, typically via the Internet

In the context of the history of American business, which of the following statements is true of the relationship era?

Businesses aim to build long-term relationships with customers because satisfied customers can become advocates for a business

In the context of the history of American business, which of the following statements is true of the marketing era?

Businesses began to develop brands to help customers understand the differences among various products

In the context of how small businesses have contributed to the U.S. economy, in which of the following ways do small firms allow new thinking to take hold?

By displaying a refreshing lack of bureaucracy

_____ is an economic system based on private ownership, economic freedom, and fair competition.

Capitalism

_____ refers to the amount of harmful greenhouse gases that a firm emits throughout its operations, both directly and indirectly.

Carbon footprint

Which of the following scenarios illustrates the utilization of human resources as a factor of production?

Carlos hires a content writer to develop content for his online portal that sells fashion accessories

_____ refers to marketing partnerships between businesses and nonprofit organizations, designed to spike sales for the company and raise money for the nonprofit.

Cause-related marketing

Which of the following statements is true when a person makes a career choice based on what he or she loves doing?

Chances of personal success are boosted

Which of the following is a disadvantage of a limited liability company (LLC)?

Complexity of formation

Which of the following is a characteristic of successful entrepreneurs?

Confidence

According to the universal ethical standards identified by the nonprofit, nonpartisan Character Counts organization, which of the following illustrates the core value of citizenship?

Contributing to the community and protecting the environment

_____ refers to business contributions to the community through the actions of the business itself rather than donations of money and time.

Corporate responsibility

_____ refers to international trade that involves the barter of products for products rather than for currency.

Countertrade

Eugene Playem, a small firm that develops games, wants to raise capital to develop a new expensive video game. The firm's finance team plans to find several video game enthusiasts online, who can afford to invest money for the video game's development. In this scenario, which of the following funding options has Eugene Playem planned?

Crowdfunding

In the context of the history of American business, which of the following is a feature of the relationship era?

Cultivating current customers turn out to be more profitable than constantly seeking new ones

Before entering a foreign market, which of the following is a key factor that should be considered to evaluate the local economic conditions of the country?

Currency exchange rate

Which of the following statements is true about the debt ceiling?

Debt ceiling hikes are fairly routine.

In the context of monitoring ethics and social responsibility in organizations, which of the following statements is true of a social audit?

Determining how to measure the achievement of established goals is the second step in the process of conducting a social audit.

Hetlix Corp., a computer manufacturing firm, had its first manufacturing plant in Detroit. It built another manufacturing plant in Paris, despite the high costs involved. Which of the following strategies for reaching global markets has Hetlix Corp. adopted in this scenario?

Direct investment

In the context of various strategies for reaching global markets, which of the following strategies represents the deepest level of global involvement?

Direct investment

Which of the following is an advantage of sole proprietorships?

Ease of formation

From the franchisee's perspective, which of the following is an advantage offered by franchising?

Easy access to funding

_____ is a characteristic that most successful entrepreneurs possess.

Energy

_____ measure the value of one nation's currency relative to the currency of other nations.

Exchange rates

In the context of the history of American business, which of the following statements is true of the industrial revolution?

Factories hired large numbers of semiskilled workers who specialized in a limited number of tasks

_____ are four fundamental resources—natural resources, capital, human resources, and entrepreneurship—that both businesses and nonprofits rely on.

Factors of production

Which of the following is an appealing benefit that entrepreneurs enjoy?

Flexible schedule

_____ is a specialized type of foreign licensing in which a firm expands by offering businesses in other countries the right to produce and market its products according to specific operating requirements.

Foreign franchising

_____ involves a domestic firm granting a foreign firm the rights to produce and market its product or to use its trademark/patent rights in a defined geographical area.

Foreign licensing

_____ is an international economic and political movement designed to help goods and services flow more conveniently across international boundaries.

Free trade

Sheila wants to start her own business that would specialize in fashion accessories. However, she decides to continue with her current job at Potters Fashion Inc. as a fashion consultant for another three years to get to know the industry better. Which of the following entrepreneurial strategies is Sheila executing?

Gaining experience

The _____ is an international trade agreement that has taken bold steps to lower tariffs and promote free trade worldwide.

General Agreement on Tariffs and Trade

Which of following was a result of the bold steps taken by the General Agreement on Tariffs and Trade (GATT) to reduce trade restrictions worldwide?

Goods moved more freely than ever across international boundaries

_____ refers to developing and promoting environmentally sound products and practices to gain a competitive edge.

Green marketing

_____ is the total value of all final goods and services produced within a nation's physical boundaries over a given period of time.

Gross domestic product

Which of the following factors of production encompasses the physical, intellectual, and creative contributions of people working within an economy?

Human resources

_____ means buying products from overseas that have already been produced, rather than contracting with overseas manufacturers to produce special orders.

Importing

Which of the following statements is a difference between foreign licensing and foreign franchising?

In foreign licensing, the licensee does not assume the identity of the licensor, whereas in foreign franchising, the franchisee assumes the identity of the franchisor.

Which of the following is an advantage of starting one's own business?

Independence

_____ are organizations that pool contributions from investors, clients, or depositors and use these funds to buy stocks and other securities.

Institutional investors

To bring a code of ethics to life, experts advocate a forceful, integrated approach to ethics. In this context, which of the following steps is essential?

Integrating ethics into mandatory staff training

The _____ considers a C corporation to be a separate legal entity and taxes its earnings accordingly.

Internal Revenue Service

Which of the following statements is true of structural unemployment?

It encompasses people who don't have jobs because the economy no longer needs their skills.

Which of the following statements is true of the debt relief program implemented by the International Monetary Fund (IMF)?

It extended 100 percent debt forgiveness to some poor countries.

Which of the following statements is true of corporate responsibility?

It focuses on contributions made to the community through the efforts of a business.

In the context of various launching options when starting a new business, which of the following statements is a drawback associated with buying a franchise?

It has less opportunity for creativity.

In the context of monetary policy, which of the following statements is true of the reserve requirement?

It helps protect depositors who may want to withdraw their money without notice.

In the context of measuring economic performance, which of the following statements is true of gross domestic product (GDP)?

It ignores legal goods that are not reported to avoid taxation.

In the context of responsibility to the community, which of the following statements is true of corporate philanthropy?

It includes all business donations to nonprofit groups.

In the context of the technological environment, which of the following statements is true of business technology?

It includes any tools that companies can use to become more efficient and effective

Which of the following statements best describes the balance of trade?

It is a basic measure of the difference between a nation's exports and imports.

Which of the following statements best describes an S corporation?

It is a form of corporation that avoids double taxation by having its income taxed as if it were a partnership.

Which of the following statements best describes a C corporation?

It is a legal business entity that offers limited liability to all of its owners, who are called stockholders.

In the context of the free market system, which of the following statements best describes pure competition?

It is a market structure with many competitors selling virtually identical products.

Which of the following statements is true of countertrading?

It is a powerful tool for gaining customers and products that would not otherwise be available.

Which of the following statements is true of the economy?

It is essentially a financial and social system.

Which of the following statements best describes a comparative advantage?

It is the benefit a country has in a given industry if it can make products at a lower opportunity cost than other countries.

In a business, which of the following statements best describes profit?

It is the money that a business earns in sales, minus expenses.

Which of the following statements best describes a budget surplus?

It is the overage that occurs when revenue is higher than expenses over a given period of time

Which of the following statements best describes a budget surplus?

It is the overage that occurs when revenue is higher than expenses over a given period of time.

In the context of funding options for small businesses, which of the following statements is true of the U.S. Small Business Administration (SBA)?

It lends microloans through community nonprofit organizations.

Which of the following is a drawback of buying an established business?

It may entail inheriting the previous owner's mistakes.

Which of the following statements best defines foreign outsourcing?

It means contracting with foreign suppliers to produce products, usually at a fraction of the cost of domestic production.

Which of the following statements best describes the consumer price index (CPI)?

It measures the change in weighted-average price over time in a consumer market basket of goods and services that the average person buys each month.

Which of the following statements is true of the World Trade Organization (WTO)?

It monitors the provisions of the General Agreement on Tariffs and Trade agreements.

Which of the following statements is true of the Sarbanes-Oxley Act?

It requires that financial officers personally certify the validity of their financial statements.

Which of the following is a function of the International Monetary Fund (IMF)?

It supports stable exchange rates.

In the context of various strategies to become a successful small business owner, which of the following statements is true of an effective business plan?

It takes about six months to write.

Conela is a nonprofit organization that renovates abandoned government schools and facilitates their functioning. It is headed by two social activists and is funded by the government. Which of the following statements is true of Conela?

It takes in revenue like any other business

Drenexa Pharmaceuticals is based in the United States. In the context of the social environment, which of the following is most likely to be an impact of the rapidly aging population on Drenexa Pharmaceuticals?

It will gain profits as the rapidly aging population will cause the companies that cater to the elderly to boom

In the context of funding options for small businesses, which of the following statements is true of crowdfunding?

Its sites are used to funds nonprofits.

Which of the following scenarios illustrates entrepreneurship?

Jill who has a degree in landscaping has started her own landscaping service business and has hired several employees under her supervision.

In the context of the history of American business, which of the following statements is true of the production era?

Jobs became specialized, increasing productivity and lowering costs and prices

Which of the following is one of the largest crowdfunding sites in terms of traffic?

Kickstarter.com

In the context of the history of American business, which of the following statements is true of the entrepreneurship era?

Large-scale entrepreneurs emerged in the second half of the 1800s, building business empires

In the context of a business environment, which of the following is a key element of the U.S. economic environment?

Legislation that supports enforceable contracts

Which of the following is a similarity between millennials and digital natives?

Like millennials, digital natives tend to be extremely tolerant and inclusive

Which of the following is an advantage for small businesses?

Lower overhead costs

In the context of factors of production that businesses and nonprofits rely on, which of the following can be classified as capital?

Machine

_____ are small segments of a market with fewer competitors than the market as a whole.

Market niches

In the context of factors of production that businesses and nonprofits rely on, which of the following statements is true of natural resources?

Most of them must be extracted, purified, or harnessed

_____ are business-like establishments that employ people and produce goods and services with the fundamental goal of contributing to the community rather than generating financial gain

Nonprofits

Tafensoma, a developing country, adopts a law according to which its imports require red-tape-intensive licenses. In this scenario, which of the following types of trade restrictions has the country adopted?

Nontariff barriers

_____ involve buying and selling government securities, which include treasury bonds, notes, and bills.

Open market operations

_____ refers to the chance of giving up the second-best choice when making a decision.

Opportunity cost

Which of the following statements is true of sole proprietorships?

Owner receives the entire share of the firms' profits.

Which of the following examples of business conduct is legal but unethical?

Paying nonliving wages to workers in developing countries

Which of the following was an impact of the American Recovery and Reinvestment Act?

People traded good-paying jobs for lower-paying positions

Which of the following was an impact of the American Recovery and Reinvestment Act?

People traded good-paying jobs for lower-paying positions.

In the context of ethical choices, which of the following is a strong predictor of ethical leadership?

Personal empathy

_____ is the strategy of deliberately designing products to fail in order to shorten the time between purchases.

Planned obsolescence

Which of the following factors is most likely to be covered by the social environment dimension of a business?

Population size and density

Which of the following steps should an organization follow to bring its code of ethics to life?

Protection should be established for people who report illegal or unethical behavior.

Derek, after retiring as the CEO of Solitaire Graces Inc., decides to donate his time and expertise to assist newly established small businesses. He learns about an organization called the Service Corps of Retired Executives (SCORE), which is supported by the Small Business Administration (SBA), and joins as a volunteer. As a SCORE volunteer, in which of the following activities is Derek expected to be involved?

Providing free business counseling and mentoring for small business owners

In the context of corporate restructuring, which of the following is a common objective of a vertical merger?

Providing tighter integration of production and increased control over the supply of crucial inputs

The government of Ledroy Coast, an island country, has imposed restrictions on the number of cars that can be imported in one year from Randavia, a leading car manufacturing country. This has helped the domestic car manufacturers of Ledroy Coast in increasing their market share. Which of the following trade restrictions has the government of Ledroy Coast imposed in this scenario?

Quotas

In the context of corporate restructuring, which of the following is a common objective of a conglomerate merger?

Reducing risk by making a firm less vulnerable to adverse conditions in any single market

Which of the following is a drawback of franchising?

Restrictions on sale

In the context of various strategies that can help you become a successful entrepreneur, which of the following is a difference between Small Business Development Centers (SBDCs) and the Service Corps of Retired Executives (SCORE)?

SBDCs provide a range of free services for small businesses, whereas SCORE provides free counseling for small businesses.

In the context of carbon footprint, employee commutes, supplier emissions, and product-use emissions are categorized under _____.

Scope 3 emissions

Shayla is performing a social audit of her company. She needs to evaluate how well the firm is meeting its ethics and social responsibility objectives. To do this, she first establishes the goals that the company should strive to meet. Which of the following is most likely to be the subsequent step performed by Shayla?

She would determine how to measure the achievement of the established goals.

In the context of formation, which of the following is a similarity between limited liability companies (LLCs) and corporations?

Similar to the bylaws of a corporation, organizers of most LLCs draft an operating agreement.

_____ is the obligation of a business to contribute to society.

Social responsibility

The government of Sporadia learns that low-priced electronic goods from Arcadia are negatively affecting the sales of the domestic companies dealing with the same products. The Sporadian government decides to impose taxes on goods imported from Arcadia. In this scenario, which of the following trade restrictions has the Sporadian government imposed?

Tariffs

Which of the following is the world's largest common market, which is composed of 28 nations and more than half a billion people, and boasts a combined gross domestic product (GDP) of nearly $17 trillion?

The European Union

Which of the following is best known as a lender of last resort to nations in financial trouble?

The International Monetary Fund

_____ is a federal legislation passed in 2002 that sets higher ethical standards for public corporations and accounting firms.

The Sarbanes-Oxley Act

Which of the following is an international cooperative of 188 member countries that aims at reducing poverty in the developing world?

The World Bank

Which of the following is a disadvantage of sole proprietorship?

The company legally ceases to exist if the owner withdraws.

_____ is the rate of interest that the Federal Reserve charges when it loans funds to banks.

The discount rate

Which of the following is a key dimension of the business environment?

The economic environment

Which of the following is an advantage of starting a business from scratch?

The entrepreneur gets to build his or her own business concept and structure.

According to various research studies, which of the following is an indicator of economic growth?

The growing number of people with cell phones

In the context of the social environment of the United States, which of the following statements is true of diversity?

The growth in ethnic populations offers robust profit potential for firms pursuing them

Which of the following statements is true of foreign licensing?

The licensee pays a fee to the licensor.

Which of the following statements is true of franchises set up across borders?

The limit of a franchisee's right over a territory is decided through a franchise agreement.

In the context of the U.S. economic environment, which of the following is a government policy that supports business?

The relatively low federal tax rate

Which of the following consumer rights is referred to when businesses are legally responsible for injuries and damages caused by their products, even if they have no reason to suspect that their products might cause harm?

The right to be safe

Which of the following statements is true of limited liability companies (LLCs)?

There is no separate tax on the earnings of the companies if they choose to be treated as a partnership.

Which of the following was a reason for the collapse of financial institutions during the economic crisis in the United States?

There was a drop in mortgage values.

Which of the following statements is true of people with an external locus of control?

They believe that the actions of others can control their fate.

In the context of factors of production, which of the following statements is true of entrepreneurial enterprises?

They can kick-start an economy, creating a tidal wave of opportunity by harnessing other factors of production

In the context of the various strategies for reaching global markets, which of the following statements is true of imported products?

They don't carry the brand name of the company buying them.

Which of the following statements is true of small businesses?

They have more scope to provide personal customer service than large businesses.

In the context of a limited partnership, which of the following statements is true of general partners?

They have the right to participate fully in managing their partnership.

In the context of the competitive environment, which of the following statements is true of bleeding-edge firms?

They launch products that fail because they are too far ahead of the market

In the context of small business opportunities, which of the following statements is true of market niches?

They offer more than enough potential for small, specialized companies.

Which of the following statements is true of entrepreneurs?

They produce a ripple effect that enriches everyone around them

Which of the following is a reason why many members of the European Union have low entrepreneurship rates?

They provide strong unemployment insurance to their citizens.

Which of the following statements is true of millennials?

They shaped the Internet

In the context of the global economic crisis in mid-2000, identify a true statement about subprime loans.

They were given to borrowers with little or no documentation.

Greg started a business of tire shops and one by one opened several shops in various parts of his hometown. However, he had to shut down all the shops because they failed to make profits. At 65 years of age, he raised capital and started Gregton Inc., which is now a well-known two-wheeler manufacturing firm in his country. Which of the following entrepreneurial traits most likely contributed to Greg's success?

Tolerance of failure

In the context of C corporations, which of the following is a difference between preferred stockholders and common stockholders?

Unlike preferred stockholders, common stockholders normally have the right to vote in stockholder meetings.

Which of the following is a disadvantage of general partnerships?

Unlimited liability

_____ are companies that invest in start-up businesses with high growth potential in exchange for a share of ownership.

Venture capital firms

In the context of business ethics, which of the following situations best describes an ethical dilemma?

When a person is forced to choose among bad options

_____ are employees who report their employer's illegal or unethical behavior to either the authorities or the media.

Whistle-blowers

In the context of factors of production, which of the following is a natural resource?

Wind

In the context of socially responsible companies, codes of conduct work best with _____.

a commitment to finding solutions that work for all parties involved

Entrepreneurs who mortgage their homes for the business and stake their reputation on the success of an unproven product demonstrate:

a high tolerance of uncertainty.

In the context of the business cycle, _____ is an economic downturn marked by a decrease in the gross domestic product (GDP) for two consecutive quarters.

a recession

In the context of international trade restrictions, an embargo is:

a total halt in trade with a particular nation.

A(n) _____ is the benefit a country has in a given industry when it can produce more of a product than other nations using the same amount of resources.

absolute advantage

In the context of the production era, the "hard sell" refers to the:

aggressive persuasion designed to separate consumers from their cash

In the context of corporations, _____ is a corporate restructuring in which one firm buys another.

an acquisition

Audrey launched a start-up called Baintley Inc. Steven, her wealthy friend, believes that her company has high growth potential. He invests in Baintley Inc. in exchange for a share of ownership. In this scenario, Steven is a(n) _____.

angel investor

In the context of social responsibility, stakeholders refer to:

any groups that have a personal interest in the performance and actions of an organization.

Unlike corporations, limited liability companies (LLCs):

are subject to less paperwork.

In the context of business ownership, the document filed with a state government to establish the existence of a new corporation is referred to as the _____.

articles of incorporation

In accordance with corporate bylaws, stockholders elect a _____ and rely on it to oversee the operation of their company and protect their interests.

board of directors

Comfy Trend Inc., a clothing in the United States, licenses a garment manufacturing firm in Tokyo to operate under its name and trademark. The firm also buys the rights to use Comfy Trend Inc.'s production and business methods. This scenario is an example of a _____.

business format franchise

An advantage of a general partnership is that the:

business is taxed as the personal income of its owners.

In the context of factors of production that businesses and nonprofits rely on, _____ cannot be considered a natural resource.

cereal crops

In the context of corporations, the _____ and other corporate officers manage the company on a daily basis.

chief executive officer

A _____ is a formal, written document that defines the moral standards of an organization and gives employees the information they need to make moral decisions across a range of situations.

code of ethics

In the country of Harashimin, the government strongly backs the labor class of the country. It is authoritarian in nature and believes in exploiting wealthy citizens to fulfill its agenda of bringing social and financial equality in the society. In this scenario, the government of Harashimin has most likely adopted the political philosophy called _____.

communism

In the context of international trade restrictions, nontariff barriers tend to be fairly effective because:

complaints about them can be easy to counter.

In the context of the U.S. economy, small businesses:

comprise more than 99% of inner-city business establishments.

Lindsay is planning to start a new seafood restaurant. She has considered the opinions of many consultants, friends, and family members about her business idea. Despite overwhelming negativity, Lindsay has faith in her abilities as she possesses five years of experience in this field. In this scenario, Lindsay displays the entrepreneurial characteristic of _____.

confidence

A _____ is a form of business ownership in which the business is considered a legal entity that is separate and distinct from its owners.

corporation

Gerrilyn works for a business firm that manufactures breakfast cereal. The firm is owned by many individuals who are not personally responsible for any debts or losses incurred by it. Legally, the firm is considered a separate artificial person. In this scenario, Gerrilyn is working for a _____.

corporation

A _____occurs when a firm transfers total or partial ownership of some of its operations to investors or to another company.

divestiture

In the context of evaluating economic performance, productivity is calculated by:

dividing the amount of output by the amount of input.

In the context of barriers to international trade, variability in the level of infrastructure across nations is a(n) _____.

economic difference

Halposa, a developed country, has had armed conflicts with its neighboring country, Lemponga, for a few years. Hence, the newly elected Halposan government has decided to completely stop exporting consumer durables and electronic goods to Lemponga. In this scenario, the Halposan government wants to impose a(n) _____.

embargo

In the context of carbon footprint, Scope 2 refers to:

emissions that result from purchased electricity, heat, and steam.

People who risk their time, money, and other resources to start and manage a business are known as _____.

entrepreneurs

During the _____, the government of the United States stepped into the business realm to pass laws to regulate business and protect consumers and workers.

entrepreneurship era

Jason set up a textile mill in his hometown in 1865. He became a rich businessman by the time his son Earl took over the business in 1895. Soon after Earl started heading the business, the government passed laws to regulate business and protect consumers and workers. Due to this move by the government, the textile mill had to introduce a fixed salary structure for its employees and implement quality checks for the products manufactured. In the context of the history of American business, Jason had set up this textile mill in the _____.

entrepreneurship era

Perggy's Bakes, a bakery in New Orleans that exclusively sells its confectionery products online, makes its products only when it receives an order. The bakery produces the products as per the order and delivers to the customer's homes. It does not produce any excess products. In the given scenario, the price associated with the demand and supply of the products at Perggy's Bakes reflects the _____.

equilibrium price

The board of directors of a tile manufacturing company meet to discuss the installment of a new high-end machinery. They all agree that installing the machinery in the workplace could result in a lot of employees being laid off because of the reduced need for manual labor. At the same time, canceling the order placed for the machinery could cause legal issues as the company has already signed a contract with its suppliers. The board of directors thus weigh both the options to see which would cause them less inconvenience. In this scenario, the board of directors face a(n) _____.

ethical dilemma

Access to factors of production due to international trade:

evens out some of the resource imbalances among nations.

In the context of the various strategies for reaching global markets, _____ is producing products domestically and selling them abroad.

exporting

An individual who decides to establish a sole proprietorship must realize that he or she would be:

facing unlimited personal liability for the company's debts.

According to the universal ethical standards identified by the nonprofit, nonpartisan Character Counts organization, providing equal opportunity represents the core value of _____.

fairness

The term _____ refers to the sum of all the money that the federal government has borrowed over the years and not yet repaid.

federal debt

Entrepreneurs with an internal locus of control tend to:

feel that their success or failure is largely the result of their own actions.

When making a career choice, experts often advise graduating students to:

find a career they love as it will tend to be more rewarding

The term _____ refers to government efforts to influence the economy through taxation and spending decisions that are designed to encourage growth, boost employment, and curb inflation.

fiscal policy

Socially responsible firms support consumer choice by:

following the laws that prevent anticompetitive behavior such as monopolies.

In the context of various strategies for reaching global markets, _____ is also referred to as contract manufacturing.

foreign outsourcing

A _____ is a licensing arrangement under which one party allows another party to use its name, trademark, patents, copyrights, business methods, and other property in exchange for monetary payments and other considerations.

franchise

In the context of the various forms of operating a business, instant brand-name recognition is a benefit ensured by a:

franchise.

In the context of the global environment, the _____ has lowered prices and increased quality across virtually every product category, as competition becomes truly global.

free-trade movement

Small businesses have contributed to the U.S. economy by:

fueling innovation.

Max and Lucio start a retail store. They take turns to manage the store, and they share the profits equally. Max and Lucio understand that they are personally liable for any debts or losses that the store may incur in the future. This type of business venture exemplifies a _____.

general partnership

In the context of corporate restructuring, a _____ is defined as a combination of firms in the same industry.

horizontal merger

Daynon Inc. buys Leeston Corp., a firm that makes shipbuilding components, despite the opposition from Leeston's board of directors and its top management. This acquisition exemplifies a _____.

hostile takeover

A reason why countries eliminate international trade restrictions is to:

increase jobs from foreign companies.

As access to technology skyrockets and barriers to trade continue to fall, _____.

individual economies have become more interdependent

During the _____, as mass production took hold, huge factories replaced skilled artisan workshops.

industrial revolution

Colleen lost an important business project. According to her, she would not have lost the project if she had been organized in her work approach. This scenario indicates that Colleen most likely has a(n) _____.

internal locus of control

Which of the following is a reason for companies to engage in global trade?

it reduces dependence on one economy.

A key advantage of a C corporation is:

its ability to raise large amounts of financial capital.

Oponium, a laptop manufacturer, offers a variety of gaming laptops at discounted prices. However, the laptops have been designed in such a way that they have performance issues after being used for six months, thereby generating revenue for the company through service charges. In this scenario, Oponium's business conduct is:

legal but unethical.

Entrepreneurs must understand that no conventional lending source, whether private or government, will:

lend all of a start-up's funding.

Irina, Ron, and Benz want to start the business of designing the interiors of offices. All of them want to actively manage the company and do not want to be personally responsible for the debts and obligations of the company. Moreover, they do not want to hold regular board meetings. The three are most likely to form a _____.

limited liability company

Silva and Ron start a taxi service together. Ron only invests money in the venture and does not actively participate in managing the business. Silva, on the other hand, manages the venture entirely. According to the agreement between Silva and Ron, Silva is personally responsible for the debts and losses while Ron takes responsibility of the debts only up to a certain amount. The agreement also mentions that Ron cannot participate in the management of the business. In this scenario, Ron and Silva have formed a _____.

limited partnership

One of the drawbacks of sole proprietorships is that the owners:

may find it difficult to attract and maintain talented employees.

The starting point for socially responsible employers is to:

meet legal standards.

A _____ refers to a corporate restructuring that occurs when two formerly independent business entities combine to form a new organization.

merger

The Krakozhian fashion market has many brands that sell clothing. However, each brand sells clothing designed for different niches in the market. In this scenario, the market structure prevalent in the Krakozhian fashion market is _____.

monopolistic competition

A balance of payments deficit is the shortfall that occurs when:

more money flows out of a nation than into the nation.

In the context of franchising, a Franchise Disclosure Document (FDD):

must be provided to the franchisee at least 14 calendar days before the franchise agreement is signed.

Adrian recently lost his job and has been unsuccessful in finding a new one. To sustain himself and his family, he decides to open a small café. He believes that the café is his only economic option. Adrian is now trying to acquire funds from family and friends to open his café. In this scenario, Adrian is a(n) _____.

necessity entrepreneur

The _____ is a situation where the behavior of an incompetent or an irresponsible franchisee adversely affects not only the franchise as a whole but also the success of other franchisees.

negative halo effect

In the context of international trade restrictions, offering less-favorable exchange rates to certain importers is a(n) _____.

nontariff barrier

In the context of mixed economies, pure planned economies are practically nonexistent in today's world because they would:

not create enough value to support their people over the long term.

According to the U.S. Small Business Administration (SBA), to officially count as a small business the:

number of employees should range from fewer than 100 to 1,500.

The vast majority of limited liability companies (LLCs) elect to be taxed as:

partnerships.

In the context of ethical individuals, _____ refers to identification with and understanding of another's situation, feelings, and motives.

personal empathy

Aquin, a cell phone manufacturer, has released a new model of smartphones. The smartphones have been designed in such a way that they offer excellent performance in the first few months, but develop technical issues after a certain period. Thus, the customers are bound to repurchase a new phone within a short period. In this scenario, Aquin's strategy is an example of _____.

planned obsolescence

A reason why countries create international trade restrictions is to:

protect national security interests.

During the production era, in the early part of the 1900s, major businesses focused on:

refining the production process and creating greater efficiencies

According to the universal ethical standards identified by the nonprofit, nonpartisan Character Counts organization, treating others how you'd like to be treated, being considerate, and being tolerant of differences represent the core value of _____.

respect

According to the universal ethical standards identified by the nonprofit, nonpartisan Character Counts organization, being self-controlled and self-disciplined and being accountable for your choices represent the core value of _____.

responsibility

Ethics refer to:

sets of beliefs about good and bad.

In the context of the competitive environment of a business, the best measure of value is the:

size of the gap between product benefits and price

A(n) _____ is a systematic evaluation of how well a firm is meeting its ethics and social responsibility goals.

social audit

Deborah is an executive at Aviroend Inc. Her boss has assigned her the task of reviewing the firm's ethics and social responsibility objectives. To prepare a report, she gathers data from various sources, internal as well as external, and uses software tools to create graphs and charts that capture how socially responsible Aviroend has been since the establishment of its ethics and social responsibility goals. In this scenario, Deborah is performing a(n) _____ of Aviroend.

social audit

Companies that step in with on-site day care programs for workers facing challenges such as raising kids are fulfilling their:

social responsibility.

In the context of planned economies, _____ tend to have high taxes, which are designed to distribute wealth more evenly through the public.

socialist economies

In some western countries, eye contact during face-to-face communication is considered a sign of honesty. On the other hand, eye contact while talking is considered rude in some countries of Africa and Asia. In the context of international trading, this scenario illustrates _____.

sociocultural differences

Thiago has spent a long time working in various commercial establishments owned by some of his close relatives. He now wishes to establish his own business, a sporting goods retail store. Thiago plans to manage the store single-handedly. In the context of the various business ownership options, Thiago's store will be an example of a:

sole proprietorship.

The quality and quantity of goods and services available to a population is referred to as the _____.

standard of living

Two companies offer Gayle a job. The first is a successful, venture capital-backed, competently led start-up that has been operating for over a year. The second is a well-established corporation that has been running operations for 50 years. Gayle, after considering factors such as his family, decides to join the well-established corporation. This is most likely because:

start-ups find it difficult to provide health insurance coverage to their employees.

In the context of responsibility to the environment, _____ refers to doing business to meet the needs of the current generation without harming the ability of future generations to meet their needs.

sustainable development

Universal ethical standards are ethical norms:

that apply to all people across a broad spectrum of situations.

In the context of code of ethics, the best-known code is the Johnson & Johnson Credo, which has guided the company profitably through a number of crises. One of the striking elements of the credo is:

that it commits to a fair return for stockholders.

When starting a business from scratch, _____.

the logistics can be challenging

Socially responsible companies make it easy for consumers to express legitimate complaints and develop highly trained customer service people to respond to the complaints. This ensures customers _____.

the right to be heard

According to _____, customers can freely purchase the products that meet their needs.

the right to choose

Balance of payments is a measure of the:

total flow of money into or out of a country.

If the total value of imports is higher than the total value of exports, the country has a(n) _____.

trade deficit

A _____ refers to a group of countries that have reduced or even eliminated tariffs, allowing for the free flow of goods among the member nations.

trading bloc

Businesses that strongly focus on customer satisfaction tend to:

transform their current customers into loyal advocates for themselves

In the context of corporate restructuring, a _____ refers to a combination of firms that are at different stages in the production of a good or service.

vertical merger

Gladys, a doctor at Talthron Hospital, notices that one of the trustees of the hospital is falsifying the data of Medicare patients when submitting reports to the government. She reports this misconduct to the media. In this scenario, Gladys can be considered a _____.

whistle-blower