Intro to Business
Which of the following countries has a high standard of living? Nigeria Malaysia Bolivia The United States Guatemala
The United States
Which of the following is the best example of a good? The driving lessons you took The physical examination you received from your doctor The birthday candles you purchased to go on your sister's birthday cake The airplane flight you took to attend a funeral The life guarding class you took last summer
The birthday candles you purchased to go on your sister's birthday cake
International trade-dependent jobs have grown at a rate three times the growth of U.S.-dependent jobs True or False
True
Summer Dean was walking through the mall and found a gym bag lying on the ground. The decision Dean must make as to whether to keep the gym bag and its contents for herself or turn it into the mall's lost and found department involves: Ethics The marketing concept Consumerism Cultural awareness Social reciprocity
Ethics
_____ is the set of moral standards for judging whether something is right or wrong. Consumerism Ethics Legality The marketing concept Social responsibility
Ethics
_____ are goods and services that are made in one country and sold to other countries. Tangibles Imports Exports Countertrades Tariffs
Exports
Having a global vision simply means having a willingness to sell outside one's national borders if, and when, the opportunity arises. True or False
False
If the company wants employees to take ethical training seriously, the training should not include games. True or False
False
If the sole proprietorship acquires a legal business name, the owner then has limited liability. True False
False
Labor, as a factor of production, relates only to the production of manufactured goods; services are not included. True or False
False
Multipreneurs are businesspeople who have tried a succession of entrepreneurial start-ups without finding an area in which they could be successful. True False
False
Registration procedures for incorporation are uniform from state to state across the U.S. True False
False
Some global corporations are large enough to create major changes in the external environment. True or False
False
Strategic planning is long-range, formulated by top management, and made as if the company operated in a vacuum True False
False
Telecommunications equipment manufacturers in the United States sell their products to people who live in Canada. To Canadians, the telecommunications equipment is an export. True or False
False
The major difference between a good and a service is how the producer uses the factors of production to create each. True or False
False
The philosophy of utilitarianism is used to explain why restaurants, theaters, and hotels should make themselves handicapped accessible. True or False
False
The sole proprietorship is considered a legal entity; therefore, it is taxed separately from the owner. True False
False
Social responsibility is a voluntary obligation. True or False
True
The U.S. has one of the very few areas in the world where kaolin can be mined. Kaolin is a necessary ingredient in many products ranging from stomach medication to paper. The U.S.-produced kaolin is sold all over the world. Kaolin is a(n) _____ for the countries that purchase it. Countertrade Import Tariff Export Embargo
Import
The most common form of business organization is the: Limited partnership Sole proprietorship Corporation Cooperative General partnership
Sole proprietorship
The difference in value between a country's imports and exports is called its balance of trade. Ture or False
True
The distributive process by which the burdens and rewards that society has to offer are shared varies from society to society. True or False
True
The most basic responsibility of all businesses is its economic responsibility. True or False
True
The opposite of free trade is protectionism. True or False
True
The tax that the United States imposes on imported carbon steel products is called a tariff. True or False
True
Paul Hyatt owns and operates DeepClean, a Florida-based company that cleans up mold and mildew in homes and businesses. As the sole proprietor of the business, he has unlimited liability, which means: he must have liability insurance he usually has to put in an unlimited number of hours he is fully liable for all business debts he is free from government regulation he has unlimited access to funds
he is fully liable for all business debts
When Allison Logue found out her children were allergic to corn, she started looking for sweets and starches that were corn-free and was dismayed to find very few such products on the market. As a result, she has started her own small business to produce and market corn-free desserts. It is a small market, and Logue plans to keep her business small. Logue is an example of a(n): interpreneur multipreneur intrapreneur growth entrepreneur micropreneur
micropreneur
As a factor of production, capital includes money. True or False
False
The _____ is defined as the difference in value of a country's exports and imports over a period of time. Balance of exchange Federal deficit Federal surplus Balance of trade Balance of payments
Balance of trade
Which of the following businesses provides its customers with a good? Accounting firm Bicycle manufacturer Movie theater Hair salon Hotel
Bicycle manufacturer
The Blue Bird Bus Company in Georgia sells buses to the South African government. To South Africa, these buses are an example of: Exports Imports Countertrades Tariffs Intangibles
Imports
_____ are products that are bought from one country for use in another just as the U.S. buys wood pulp and timber from Canada. Tariffs Exports Imports Tangibles Countertrades
Imports
In the 21st century, we define justice as An equitable distribution of the burdens and rewards that society has to offer The creation of a situation in which all involved are winners The avoidance of wrong A global concept, which is defined the same throughout the world Support for the development of legal measures to define ethics
An equitable distribution of the burdens and rewards that society has to offer
Which of the following businesses provides its customers with a service? A wheat farmer A pecan grower A law office A mattress manufacturer A used book store
A law office
Which of the following is an example of a business? Lawson & Tyler law offices Ford Motor Company Jack & Jill, a specialty clothing store for young children Wal-Mart All of the above
All of the above
All businesses approach ethics the same way. True or False
False
Criticism of South Africa's post-apartheid government contends that the new government has not extended liberties to its black majority population, but has instead concentrated on proving to a white minority that a black-run administration can govern a reasonably sophisticated economy and society. The belief that the new South African government is behaving unethically is an expression of the philosophy associated with: Utilitarianism Distributive justice Consumerism Social responsibility Preconventional morality
Utilitarianism
When Art Baer read that Singapore would lift its ban on chewing gum, he thought to himself, "There has to be a market there." Baer, 26, knew if he was going to move beyond the daydreaming stage, he had to move fast. After investing $20,000 of his own money into developing a product he called Impress Gum, Baer quit his job, flew to Singapore, talked to the right people in the government, lined up a manufacturer, and hired a marketing firm to promote his gum, which fights tooth decay. Baer is an example of a(n) ______ entrepreneur. growth-oriented classic opportunistic risk-aversive debt-based
classic
Andy Yocom saw prime advertising space on the flags on the golf course. He reasoned that any marketing messages would get prominent attention if they were placed on the flags since golfers focus on them when they take their shots. As a result Yocom used his own initiative and money to start Invision Golf Group Inc. Yocom is an example of a(n): entrepreneur venture capitalist capitalistic adventurer franchiser ultra capitalist
entrepreneur
When Suzanne Pogell wanted to learn to sail, but she could find no one to teach her because men were the ones who sailed, and women were their crew. She finally convinced someone to teach her to sail, and after mastering sailing, she started an all-woman sailing school called Womanship. Pogell started small and plans to stay small. She would be correctly called a(n): interpreneur multipreneur intrapreneur growth entrepreneur micropreneur
micropreneur
A business is an organization that strives for a profit by providing goods and services desired by its customers. True or False
True
A company that uses departmentalization groups jobs under the authority of one manager for the purposes of planning, coordination, and control. True False
True
A disadvantage of a partnership is that any partner may have to pay all of the debts of the company regardless of who incurred the debts. True False
True
An entrepreneur is a person who opens and manages his or her own business. True False
True
People who combine natural resources, labor, and capital in a profitable venture are called entrepreneurs. True or False
True
Which of the following is an advantage of sole proprietor ownership? Freedom from government regulation None of the above Ease with which qualified employees can be found Ease with which capital can be raised
Freedom from government regulation
The United States buys copper from Chile's Escondido copper mine. The copper is used to make wiring for the U.S. telecommunications industry and for many other purposes. For the U.S., the copper is an example of a(n): Countertrade Export Embargo Tariff Import
Import
Canadian logging companies sell timber in the United States. To the U.S., the timber is a(n)_____, and for Canadians, the timber is a(n) _____. Import; Export Countertrade; Exchange Export; Exchange Export; Import Import; Countertrade
Import; Export
Mamma's Diner was a small restaurant that was a popular hangout for many Bedford College students, but because of the owner's inability to make the bathroom stalls handicapped accessible for the one wheel-chair student on campus, it was forced to close down. The belief that this it was morally wrong to deprive the majority of the people of this experience is an expression of the philosophy associated with: Utilitarianism Social responsibility Distributive justice Consumerism Preconventional morality
Utilitarianism
_____ is a philosophy that focuses on the consequences of an action to determine whether it is right or wrong. This philosophy holds that an action that affects the majority adversely is morally wrong. Preconventional morality Distributive justice Utilitarianism Consumerism Social responsibility
Utilitarianism
Jon P. Farmer is the founder of Kolopua Hawaii LLC, a company that markets Pure Hawaiian Air. Bottles of Pure Hawaiian Air contain air that smells like the floral bouquet that greets tourists as they get off the plane in Hawaii. Retailing for about $5 apiece, the bottles are sold at gift shops in Hawaii, as well as to travel agents nationwide who give them to clients. As a(n) _____, Farmer's annual income exceeds $100,000 annually. venture capitalist franchisee franchisor entrepreneur financier
entrepreneur
The person who takes the risk of starting and managing a business to make a profit is called a(n): entrepreneur venture capitalist capitalistic adventurer franchiser ultra capitalist
entrepreneur
An entrepreneur is a person who _____ a business. finances manages locates owns and operates works for
owns and operates
Jules Sylvester had always loved reptiles. When he was asked by a movie producer if he could locate some anaconda snakes for a movie, a business was born. Sylvester is the proud owner and operator of Reptile Rentals. The California-based business, which he started with no financial help from anyone, is often called on to provide "creepy, crawly" moments in the movies. Jules Sylvester is an example of a: S corporation limited partnership sole partnership sole proprietorship general proprietorship
sole proprietorship
The form of business ownership that has the most difficulty in raising capital is the: limited partnership corporation sole proprietorship general partnership cooperative
sole proprietorship
The difference between small business owners and entrepreneurs is that small business owners: are innovators started the business to pursue their idea for a new product or service are risk takers accept the status quo and take a short-term view of the future are accurately described by all of the above
accept the status quo and take a short-term view of the future
The difference between the small business owner and the entrepreneur is that the entrepreneur: manages the business files taxes for the business assumes the risk of the business is responsible for the profits of the business is accurately described by all of the above
assumes the risk of the business
The _____ of any country is measured by the output of goods and services people can buy with the money they have. Total consumption rate Quality of life Consumer productivity Standard of living Input per person
Standard of living
Business owners and managers have a great deal of control over the internal environment of business, which covers the day-to-day business decisions. True or False
True
Corporate officers are elected by the board of directors? True False
True
Entrepreneurs are people with vision, drive, and creativity, who are willing to take the risk of starting and managing a business to make a profit. True False
True
Entrepreneurs typically are innovators who start companies to pursue their ideas for a new product or service. True False
True
Factors of production are common to all productive activities, regardless of the economic system. True or False
True
Human rights include an individual's right to life, to freedom, and to the pursuit of happiness. True or False
True
Many people consider knowledge to be a fifth factor of production. True or False
True
Micropreneurs are entrepreneurs who start small and plan to stay small. True False
True
Mines in Colombia produce emeralds and sell them to jewelers in the United States. To Colombia miners, emeralds are an export. True or False
True
More than half of small businesses have between one and four employees. True False
True
One of the basic functions of management is controlling. True False
True
One of the disadvantages of the sole proprietorship is that the owner has unlimited liability. True False
True
Planning is the process of deciding what needs to be done to achieve organizational objectives; identifying when and how it will be done, and determining by whom it should be done. True False
True
Theory X managers view their workers as untrustworthy and unmotivated. False True
True
Which of the following statements about utilitarianism is true? Utilitarianism is primarily concerned with the legal aspects of business decisions. Utilitarianism holds that an action that affects the majority adversely is morally wrong. Utilitarianism is concerned with providing for the needs of the minorities. None of the above statements about utilitarianism is true. The concept of utilitarianism supports affirmative action programs.
Utilitarianism holds that an action that affects the majority adversely is morally wrong.
Which of the following statements about utilitarianism is true? Utilitarianism is designed to create both winners and losers. Using utilitarianism, a manager can accurately calculate how his or her decision will affect the majority of its stakeholders. Utilitarianism is a legal concept-not an ethical one. There are no negative costs associated with utilitarianism. The application of the utilitarianism concept will only produce winners.
Utilitarianism is designed to create both winners and losers.
What type of business organization generates the most total sales? Cooperative Sole proprietorship General partnership Partnership Corporation
Corporation
Botswana produces diamonds, copper, nickel, soda ash, meat, and textiles, which it sells to the members of the European Union. To Botswana, the diamonds, copper, nickel, soda ash, meat, and textiles it produces are examples of: Embargo Tariff Export Countertrade Import
Export
A positive aspect of opening a small business is that it takes very little management skill because it is small. True False
False
According to the principle of absolute advantage, each country should specialize in the products that it can produce most readily and cheaply and trade those products for products that foreign countries can produce most readily and cheaply. True or False
False
Armenia had a favorable balance of trade in 2018 when it exported $800 million in goods and services and imported $1.5 billion. True or False
False
Articles of incorporation usually specify the life of a corporation as a certain number of predetermined years. True False
False
Dissolving a partnership is easier than dissolving a sole proprietorship. True False
False
Entrepreneurs, as a general group, dislike risk taking. True False
False
Established small businesses are defined as companies that have been in business at least fifteen years and employ between 50 to 500 employees. True False
False
Ethical decision making begins in the marketing department. True or False
False
Ethics training programs typically teach how to disguise unethical behavior and not how to avoid unethical behavior. True or False
False
For partnerships to be legal, they must be established in writing. True False
False
In a limited partnership, all of the partners have limited liability. True False
False
Not-for-profit organizations have the same goals as for-profit organizations. True or False
False
The exchange rate is the interest rate that foreign banks receive when borrowing money from the United States. True or False
False
The time that an employee spends on a particular job determines his or her specialization of labor. True False
False
To be a useful code of ethics, the code should offer broad policies and procedures rather than detailed rules. True or False
False
Utilitarianism: Creates win-win situation Is easy to implement because of its childlike simplicity Supports the belief that life should be fair Is difficult to implement because it is hard to tell how one decision will impact a large number of people States that any act that jeopardizes the individual's rights is wrong
Is difficult to implement because it is hard to tell how one decision will impact a large number of people
Another factor influencing business ethics is _____, or what is fair according to prevailing standards of society. Validity Justice Righteousness Equity Utilitarianism
Justice
The standard of living in any country is: Measured by subtracting the supply of goods and services from the demand for goods and services The general level of human happiness is based on such things as life expectancy, educational standards, health, sanitation, and leisure time Measured by the output of goods and services people can buy with the money they have Higher for less developed countries like Angola, Bangladesh, and Ceylon than it is for the U.S. Dtermined by the money left over after all expenses are paid
Measured by the output of goods and services people can buy with the money they have
A company that has a global vision: Recognizes and reacts to international business opportunities Is interested in nothing more complicated than exporting Follows its competition into foreign markets Has a very nationalistic view of the world Does not see competition from foreign marketers as a threat
Recognizes and reacts to international business opportunities
Of all forms of business ownership, corporations account for the largest share of both: Number of firms and employees Number of firms and sales Income and employees Sales and profits Bankruptcies and employees
Sales and profits
Which type of business organization experiences the least governmental regulation? Public corporation Sole proprietorship Limited partnership Joint venture Private Corporation
Sole proprietorship
When he read Chicken Soup From the Soul, Joe Farmer was struck by how many of the stories mentioned the scent of the islands. So Farmer created bottles filled with Hawaiian air and some scented essence beads. When customers shake the bottles up and open the lids, they're transported back to paradise. While many marketing experts did not think that consumers would buy bottles of air, Farmer has earned more than half a million dollars of sale during his first year of operation. Farmer was an example of a _____ entrepreneur. growth-oriented classic opportunistic risk-aversive debt-based
classic
The form of business ownership that is easiest to dissolve is the: public corporation limited partnership sole proprietorship subsidiary cooperative
sole proprietorship
