Gen Bus 311 Exam 1

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

a. A consumer focus that permeates successful companies in every department, at every level b. A need for nonprofit organizations to work together with businesses to improve the quality of life in a society c. A need to identify whether an overall economy thrives or disintegrates d. A focus on increasing profits that result in high standards of living for people across the country a

Which of the following statements best describes e-commerce?

a. A production technology that focuses on refining production processes and creating greater efficiencies b. A marketing claim that refers to the trade of goods that have no impact on the environment c. Business transactions conducted online, typically via the Internet d. The rate at which a firm transforms designed products into actual products c

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

a. An income deficit b. Opportunity cost c. A trade surplus d. Price elasticity of demand c

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

a. Both are formed by filing articles of incorporation. b. Both allow owners to avoid double taxation. c. Both are considered legal entities separate from their owners. d. Both allow owners to enjoy limited liability. b

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

a. Both are mandated by law and are codified in the legal system. b. Both play a vital role in building profitable businesses and a vibrant community. c. Both rarely influence the decisions of individual employees in a workplace. d. Both refer to abstract philosophies about right and wrong on an individual level. b

_____ 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.

a. Countertrading b. Foreign licensing c. Geographical-bound investment d. Gross private domestic investment b

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

a. Determining how to measure the achievement of established goals is the second step in the process of conducting a social audit. b. It helps an organization to plan how it can achieve its social responsibility goals in the future. c. It helps in identifying how activist customers, investors, unions, and environmentalists deter organizations from achieving their social responsibility goals. d. When conducting a social audit, identifying threats of government legislation can demotivate industries from self-regulating. a

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?

a. Direct investment b. Foreign franchising c. Countertrading d. Exporting a

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

a. Double loop marketing b. Cause-related marketing c. 360-degree marketing d. Niche marketing b

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

a. Embezzling money b. Providing rock-bottom prices only to distributors in underserved areas c. Paying nonliving wages to workers in developing countries d. Practicing collusion with competitors c

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

a. Exchange rates b. Voluntary export limits c. Restructured values d. Joint venture assets a

Which of the following statements is true of sole proprietorships?

a. Firms are treated as a separate legal entity. b. Firms are not affected by the withdrawal of the owner. c. Owner receives the entire share of the firms' profits. d. Owner of the firm is able to enjoy limited liability. c

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?

a. Government policies b. Human development index c. Currency exchange rate d. Inflation rate c

Which of the following is a drawback of franchising?

a. High level of risk b. Lack of access to funding c. Lack of brand-name recognition d. Restrictions on sale d

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?

a. Import quotas were imposed to benefit domestic producers. b. Goods moved more freely than ever across international boundaries. c. Subsidies to local firms were increased so that they could compete with importers. d. Legislations against international dumping of goods increased. b

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

a. Improving efficiency by eliminating duplication of facilities and personnel b. Providing tighter integration of production and increased control over the supply of crucial inputs c. Increasing size and reducing competition within an industry d. Reducing risk by making a firm less vulnerable to adverse conditions in any single market b

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

a. 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. b. In foreign licensing, the licensee pays a start-up fee to the licensor, whereas in foreign franchising, the franchisee does not pay anything to the franchisor. c. In foreign licensing, the licensee assumes the identity of the licensor, whereas in foreign franchising, the franchisee does not assume the identity of the franchisor. d. In foreign licensing, the licensee does not pay anything to the licensor, whereas in foreign franchising, the franchisee pays a start-up fee to the franchisor. a

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

a. Individual ownership in various production processes was promoted. b. Factories hired large numbers of semiskilled workers who specialized in a limited number of tasks. c. The government passed laws to regulate business and protect consumers and workers, creating balance in the economy. d. Balance of power shifted away from producers and toward consumers b

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?

a. Integrating ethics into mandatory staff training b. Ensuring that a company's ethics code is local and not global in scope c. Preventing top managers from overcommunicating the importance of ethics d. Establishing and enforcing strict laws against whistle-blowers a

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

a. It accurately predicts when economic changes will occur or how long they will last. b. It measures the total value of imports as compared to the exports of a nation. c. It reduces when the products produced involve high levels of pollution. d. It ignores legal goods that are not reported to avoid taxation. d

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

a. It helps protect depositors who may want to withdraw their money without notice. b. It allows banks to hold lesser funds if the Fed changes its bulk amount collection schemes. c. It refers to the requirement of having a predetermined amount of contingency money. d. It involves buying and selling of treasury bonds, notes, and bills. a

Which of the following statements best describes a C corporation?

a. It is a form of corporation that avoids double taxation by having its income taxed as a partnership. b. It is a legal business entity that offers limited liability to all of its owners, who are called stockholders. c. It is a form of business ownership in which the firm is considered by law merely as an extension of its owner. d. It is a form of business ownership in which two or more members act as co-owners and have unlimited liability. b

Which of the following statements best describes an S corporation?

a. It is a form of corporation that does not seek to earn a profit and differs in several fundamental aspects from C corporations. b. It is a form of corporation where the number of stockholders is unlimited. c. It is a form of corporation that avoids double taxation by having its income taxed as if it were a partnership. d. It is a form of corporation that can be formed without filing any paperwork with a government agency. c

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

a. It is a market structure with one business completely dominating the industry. b. It is a market structure with many competitors selling virtually identical products. c. It is a market structure where new producers are not allowed to enter the competitive market. d. It is a market structure where single producers can control the price that customers would need to pay for a product. b

Which of the following statements is true of the economy?

a. It is essentially a financial and social system. b. Its rise or downfall has no effect on the common man. c. It solely indicates how resources are maintained in government-owned institutions. d. It is inclined toward politics and rarely affects businesses. a

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

a. It is the application of right and wrong as well as good and bad in a business setting. b. It refers to the obligation of a business to offer high wages to the underprivileged. c. It includes all business donations to nonprofit groups. d. It involves a partnership between a business and a nonprofit. c

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

a. It is the rate at which a new product moves from conception to commercialization. b. It includes any tools that companies can use to become more efficient and effective. c. It is the rate at which similar products from competitive brands attract consumers. d. It includes the creative contributions of everyone who works within an economy. b

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

a. It provided monetary help at zero percent interest to poor countries. b. It extended 100 percent debt forgiveness to some poor countries. c. It stretched the clearance deadline for all debts held by poor countries without applying additional interest rates. d. It helped some poor countries with huge debts by instructing the other member nations to invest in them. b

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

a. It reduces dependence on one economy. b. It reduces the inflow of innovation. c. It increases resource imbalances among nations. d. It measures the difference between companies' exports and imports. a

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?

a. It will benefit because it will have access to a larger labor pool that can drive its expansion plans. b. It will face a loss as the rapidly aging population will cause the size of the market for pharmaceutical companies to shrink. c. It will be at a disadvantage as the focus of the state and federal government is currently on the younger population. d. It will gain profits as the rapidly aging population will cause the companies that cater to the elderly to boom. a

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

a. Jobs become specialized, increasing productivity and lowering costs and prices. b. Manufacturing firms hire skilled artisans to facilitate mass production of goods. c. Cultivating current customers turn out to be more profitable than constantly seeking new ones. d. Major businesses focus more on refining production processes than on competing with each other. c

Which of the following statements is true of foreign licensing?

a. Licensors do not run the risk of unethical licensees becoming their competitors. b. The licensee assumes the identity of the licensor. c. Ownership of the firm is transferred from the licensor to the licensee. d. The licensee pays a fee to the licensor. d

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

a. Like millennials, digital natives tend to be extremely tolerant and inclusive. b. Like millennials, digital natives feel entitled to a great job when they graduate college. c. Like millennials, digital natives tend to have very long attention spans. d. Like millennials, digital natives approach adulthood hoping to be discovered. a

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

a. Money b. Machine c. Labor d. Land b

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

a. Most of their value tends to decline as demand increases or supply decreases. b. They include agricultural products, which people create through planting and tending. c. They are created and upgraded by businesses using capital. d. Most of them must be extracted, purified, or harnessed. d

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

a. Policies that ensure high federal tax rates for businesses b. Protocols that restrict mergers between nonprofits and private businesses c. Regulations that decrease corporate accountability d. Legislation that supports enforceable contracts d

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

a. Protection should be established for people who report illegal or unethical behavior. b. Employees should be allowed to choose the kind of moral principles that they wish to follow. c. The code of ethics should be limited to being local in scope and need not address global issues. d. The code of ethics should not apply to outside parties such as suppliers, distributors, and customers of the organization. a

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?

a. Quotas b. Voluntary export restraints c. Tariffs d. Embargoes a

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

a. Reduced competition in the global economy b. Individual economies around the world turning independent c. The growing number of people with cell phones d. The decreasing population in countries c

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

a. Reducing risk by making a firm less vulnerable to adverse conditions in any single market b. Improving efficiency by eliminating duplication of facilities and personnel c. Increasing size and reducing competition within an industry d. Providing tighter integration of production and increased control over the supply of crucial inputs a

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?

a. She would quantify the involvement of the firm in community activities. b. She would do a research on how competitors are working toward the achievement of social responsibilities. c. She would determine how to measure the achievement of the established goals. d. She would evaluate future goals and seek funding to achieve them. c

Which of the following is a difference between the Troubled Assets Relief Program (TARP) and the American Recovery and Reinvestment Act?

a. TARP included a $150 billion investment in green energy, whereas the American Recovery and Reinvestment Act made no investments in green energy. b. TARP was a $700 billion economic bailout plan, whereas the American Recovery and Reinvestment Act was an $825 billion economic stimulus package. c. TARP was implemented exclusively to assist in building infrastructure, whereas the American Recovery and Reinvestment Act was passed to bail out financial institutions. d. The money released through TARP was not repaid at all, whereas the money released through the American Recovery and Reinvestment Act was partially repaid by insurance companies. b

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

a. The Freedom of Information Act b. The Glass-Steagall Act c. The Foreign Corrupt Practices Act d. The Sarbanes-Oxley Act d

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

a. The no-taxes policy for new firms b. The exemption from trade regulations c. The exemption of import duties d. The relatively low federal tax rate d

Which of the following is a disadvantage of sole proprietorship?

a. The owner cannot have complete control over the management of the company. b. The formation of the company requires investing a large sum of money. c. The profit gets shared equally among all employees. d. The company legally ceases to exist if the owner withdraws. d

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

a. The physiological environment b. The communal environment c. The natural environment d. The economic environment d

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

a. There was a drop in mortgage values. b. Borrowers refinanced their loans to lower their payments c. Housing prices went up too quickly. d. There was a hike in the debt ceiling. a

In the context of monetary policy, which of the following statements is true of commercial banks?

a. They are not eligible to fund businesses. b. They decide the taxable income slabs for their districts. c. They regulate the supply and circulation of money in the country. d. They accept demand deposits and make loans for the public. d

In the context of the global economic crisis, which of the following statements is true of subprime mortgage loans?

a. They could not be obtained easily, and repayment was mandatory. b. They were given to borrowers with high credit scores. c. They were seen by the lenders as low-risk loans. d. They were only given to debtors with high income-to-debt ratios. c

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

a. They encompass the intellectual and creative contributions of everyone who works within an economy. b. They focus mostly on transforming customers into loyal advocates of the company's products. c. They can kick-start an economy, creating a tidal wave of opportunity by harnessing other factors of production. d. They concentrate mostly on merging with nonprofit organizations so that huge investments by the entrepreneurs can be avoided. c

In the context of the different degrees of competition, which of the following is a reason why monopolies are considered illegal?

a. They generate a strain on the supply of raw materials. b. They can harm the economy. c. They lead to copyright issues when identical products are sold by different sellers. d. They support dubious producers. b

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

a. They launch innovative products that have a small existing market. b. They launch cheaper versions of already existing successful products. c. They launch successful products that are in high demand among consumers. d. They launch products that fail because they are too far ahead of the market. d

In the context of monetary policy, which of the following statements is true of open market operations?

a. They protect depositors who may want to withdraw their money without prior notice. b. They involve a market structure in which many competitors sell virtually identical products. c. They are based on private ownership, economic freedom, and fair competition. d. They involve securities that the government issues to finance its deficit spending. d

Which of the following statements is true of millennials?

a. They were born between 1975 and 1980. b. They shaped the Internet. c. They approached adulthood planning to work for success. d. They did not feel entitled to a great job when they graduated from college. b

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

a. They were preferably given to borrowers with low debt-to-income ratios. b. They were given to borrowers with little or no documentation. c. They required a high down payment. d. They were seen by the lenders as high-risk loans. b

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?

a. Trading blocs b. Embargoes c. Nontariff barriers d. Quotas c

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

a. Unlike preferred stockholders, common stockholders have the right to float shares of the company. b. Unlike preferred stockholders, common stockholders are entitled to evade taxation on their income. c. Unlike preferred stockholders, common stockholders normally have the right to vote in stockholder meetings. d. Unlike preferred stockholders, common stockholders can opt out of the corporation without prior notice. c

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?

a. Voluntary export restraints b. Tariffs c. Embargoes d. Quotas b

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

a. a commitment to finding solutions that work for all parties involved b. a resolve to maximize financial benefits for the business c. the absence of monitoring and enforcement d. rigorous compliance of rules even when faced with ethical dilemmas a

The prices of all the commodities have gone up in the country of Sraznesia, and this has led to country-wide protests. The situation worsens as the average prices increase more than 50% a month, resulting in more aggressive protests from the citizens. In the given scenario, this price rise will most likely lead to _____.

a. a credit crunch b. a depression c. privatization d. hyperinflation d

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. a credit crunch b. stagnation c. inflation d. a recession d

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

a. bulk-pack protocol b. free-trade movement c. foreign globalization measure d. federal sales act b

In the context of monetary policy, when the Fed reduces the discount rate, banks:

a. can obtain funds at a lower cost. b. owe more money to the Fed. c. can buy and sell government securities. d. must cut back on the loans they make. a

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

a. cereal crops b. water c. land d. mineral deposits a

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

a. complaints about them are always easy to prove. b. complaints about them can be easy to counter. c. they include quotas levied against exports. d. they include taxes levied against imports. b

In the context of the global economic crisis, _____ are defined by experts as loans to borrowers with low credit scores, high debt-to-income ratios, or other signs of a reduced ability to repay the money they borrow.

a. concessional debts b. subsidized credits c. endowment loans d. subprime mortgages d

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 _____.

a. corporation b. partnered company c. regulatory body d. proprietorship a

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 _____.

a. corporation b. sole proprietorship c. limited partnership d. general union c

The _____ is a measure of inflation that evaluates the change over time in the weighted-average wholesale values.

a. cost-weighted activity index b. producer price index c. knowledge economic index d. buyer cost rating index b

In the context of fiscal policy, most economists agree that:

a. curbing inflation would result in shortage of manpower. b. fiscal strategies are in no way influenced by political philosophies. c. lower taxes can leave more money in people's pockets for them to spend or invest. d. preplanning the pension of individuals can have adverse effects on their job prospects. c

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

a. differentiating themselves from their competitors. b. creating wealth by manipulating prices and exploiting workers. c. refining the production process and creating greater efficiencies. d. customer satisfaction and building long-term relationships with customers. c

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 _____.

a. distributorship b. conglomerate merger c. business format franchise d. divestiture c

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

a. embargo b. trading bloc c. export restraint d. nontariff barrier d

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.

a. ethical review b. social audit c. quality check d. socio-commercial analysis b

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

a. exporting b. licensing c. outsourcing d. franchising a

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

a. find a career they love as it will tend to be more rewarding. b. concentrate on performing routine tasks as this will improve their employability. c. focus on the sector that promises quick career growth. d. focus only on careers with the highest income potential. a

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.

a. foreign franchise b. continental union c. trading bloc d. strategic alliance c

The nation of Radonia recently approved the sale of its national railway service to a company called Dontsky Rail Corporation. The company has no association with the country's government and operates on its own terms. The sale of Radonia's national railway service to Dontsky Rail Corporation is an example of _____.

a. globalization b. a joint venture c. a coalition d. privatization d

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 _____.

a. hostile takeover b. compulsive blend c. bootstrap fusion d. lobster trap a

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:

a. illegal and unethical. b. legal and ethical. c. illegal but ethical. d. legal but unethical. d

A reason why countries eliminate international trade restrictions is to:

a. increase jobs from foreign companies. b. protect domestic industries. c. protect national security interests. d. retaliate against countries who engage in unfair trade practices. a

A reason why countries create international trade restrictions is to:

a. increase jobs from foreign companies. b. reduce prices and increase choices for consumers. c. protect national security interests. d. use resources more efficiently on a worldwide basis. c

Access to factors of production due to international trade:

a. increases the dependence of international firms on a single economy. b. stops economic meltdowns from spreading across nations. c. evens out some of the resource imbalances among nations. d. inhibits the growth of innovation. c

If the Federal Reserve increases the reserve requirement, _____.

a. it is not likely to impact banks b. banks must hold more funds c. interest rates on loans will dip d. there will be more loans available b

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

a. marketing era b. entrepreneurship era c. production era d. relationship era b

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

a. marketing revolution b. relationship era c. industrial revolution d. entrepreneurship era c

A key advantage of a C corporation is:

a. minimal paperwork. b. the ease with which it can be formed and operated. c. its ability to avoid double taxation. d. its ability to raise large amounts of financial capital. d

A pure market economy:

a. necessitates high taxes. b. provides sufficiently for the old and the sick. c. does not make sufficient provision for the environment. d. does not allow people the freedom to be innovative. c

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 _____.

a. nonprofit corporation b. limited liability company c. sole proprietorship d. general partnership b

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

a. not enable the government to exercise control over the market. b. curtail people's individual freedom to choose a source of livelihood. c. not provide sufficiently for the old and the sick. d. not create enough value to support their people over the long term. d

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) _____.

a. planned obsolescence b. illegal impasse c. moral lapse d. ethical dilemma d

The starting point for socially responsible employers is to:

a. practice collusion. b. meet legal standards. c. determine how to measure the achievements of each worker. d. maintain a clear reporting structure for ethical concerns and grievances. b

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 _____.

a. production era b. marketing era c. entrepreneurship era d. relationship era c

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

a. sociocultural difference b. legal difference c. economic difference d. political difference c

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

a. stakeholder criterion. b. legal roles. c. consumerism duties. d. social responsibility. d

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

a. stockholders b. chief executive officer c. board of directors d. profit-making investors b

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:

a. that it commits to a centralized organizational structure. b. the firm focus on ethnocentrism. c. that it commits to a fair return for stockholders. d. the firm focus on collusion. c

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 _____.

a. the right to be safe b. the right to choose c. the right to be heard d. the right to be informed c

Socially responsible firms support consumer choice by:

a. using strategies such as planned obsolescence for the firm's growth. b. involving consumers when accounting for traditional financial indicators, such as earnings. c. following the laws that prevent anticompetitive behavior such as monopolies. d. being involved in competitive practices such as predatory pricing. c

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.