Intro to Business Honors

Which of the following statements about strategic alliances is true?

A strategic alliance is sometimes called a strategic partnership.

Multipreneurs are businesspeople who have tried a succession of entrepreneurial start-ups without finding an area in which they could be successful.

False

When Raoul Welsh is evaluating the construction industry in terms of interest rates, employment cycles, and the rate of new home building nationwide, he is looking at microeconomics.

False

It is a firm's responsibility to its customers to deliver what it has promised.

True

More than half of small businesses have between one and four employees.

True

Organizations can be evaluated on two basic dimensions with regard to social responsibility--legality and responsibility.

True

People who combine natural resources, labor, and capital in a profitable venture are called entrepreneurs.

True

The franchise agreement:

is the contract that details the terms of the franchise

Which of the following is an example of an unethical business activity?

All of the above are examples of unethical business activities.

Which of the following is a characteristic of the entrepreneurial personality?

Ambitious

What type of business organization generates the most total sales?

Corporation

The only social responsibility that a company has to its investors is an economic responsibility--it must make a profit.

False

The two sources for debt financing are angel investors and venture capitalists.

False

Which of the following statements about those people designated by demographics as millennials is true?

Millennials are technologically savvy and prosperous young people.

Of all forms of business ownership, corporations account for the largest share of both:

Sales and profits

How does the current boom in mergers and acquisitions differ from ones in earlier years?

There is a greater number of U.S. and foreign companies making cross-border acquisitions.

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

An advantage of a small manufacturer over a large manufacturer is the speed with which new products can be introduced to the marketplace.

True

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

Corporations face many more government restrictions and regulations than sole proprietorships and partnerships.

True

Full employment means 94-96 percent of the working force is employed.

True

Inadequate early planning is often at the core of small business failures.

True

Some multinational corporations are so large that they resemble small countries.

True

The International Monetary Fund (IMF) was created to promote trade through financial cooperation by working to eliminate trade barriers.

True

The distributive process by which the burdens and rewards that society has to offer are shared varies from society to society.

True

The need for businesses to expand their markets is one of the most fundamental reasons for the growth in world trade.

True

The opposite of free trade is protectionism.

True

The tax that the United States imposes on imported carbon steel products is called a tariff.

True

When Addison Wilcox buys an H&R Block franchise, he becomes a franchisee.

True

When a country sells its products in a foreign country at a cheaper price than usual, and sometimes even at a loss, it is dumping products.

True

When companies in the same industry merge to achieve economies of scale and to expand their product lines, it is called a horizontal merger.

True

A(n) _____ is a type of loan often used to finance buildup of inventory for seasonal (cyclical) businesses just before their strongest sales period.

Unsecured bank loan

The _____ is an agreement that dramatically lowered trade barriers worldwide and created the new World Trade Organization (WTO).

Uruguay Round

The franchisor generally does NOT provide the franchisee with:

help in employee selection

The fifth factor of production identified by many managers and academicians is:

knowledge

In 2018, Rwanda exported $98 million and imported products valued at $243 million. Rwanda has a(n):

unfavorable balance of trade

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

The Uruguay Round of trade negotiations:

was the most ambitious global trade agreement ever negotiated

Monetary policy deals with tax revenues and expenditures at the national level.

False

The Federal Reserve System can print money and raise taxes.

False

The higher the price of a good or service, the greater the quantity demanded.

False

Which of the following is a disadvantage of sole proprietor ownership?

Difficulty in raising capital

Which of the following is an example of a natural trade barrier?

Distance

All businesses approach ethics the same way.

False

Armenia had a favorable balance of trade in 2018 when it exported $800 million in goods and services and imported $1.5 billion.

False

Corporate philanthropy excludes any noncash donations.

False

Direct Small Business Administration (SBA) loans are made from funds set aside each year by Congress.

False

Ethics training programs typically teach how to disguise unethical behavior and not how to avoid unethical behavior.

False

Expropriation is a political risk in which a country seizes the assets of a foreign firm and does not compensate the firm.

False

Having a global vision simply means having a willingness to sell outside one's national borders if, and when, the opportunity arises.

False

If the sole proprietorship acquires a legal business name, the owner then has limited liability.

False

In a limited partnership, all of the partners have limited liability.

False

In the past few years, the federal government has cut back burdensome government regulations and paperwork to the point that they are almost non-existent for small business owners.

False

Labor, as a factor of production, relates only to the production of manufactured goods; services are not included.

False

Legal challenges arising from laws designed to control anticompetitive behavior occur in monopolistic competition.

False

Articles of incorporation do NOT include:

a list of all stockholders' names

Social responsibility should extend beyond the shareholders to include:

all of the above

In terms of economic trends, the complete opposite to communism is:

capitalism

The Chubb Group, an insurance company, regularly supplies funds for programming on the public television network. Its donations are an example of:

corporate philanthropy

In a complicated negotiated, Minmetals in China agreed to purchase at least 24,000 tons of copper cathode for $35 million from Pasar in the Philippines. According to the terms of the sale, Pasar will provide at least $12 million worth of coal to a Chinese power company that will provide the electricity needed to operate Minmetals. This is an example of a(n):

countertrade

_____ financing is a form of business financing consisting of borrowed funds that must be repaid with interest over a stated time period.

debt

The two forms of business financing are _____ (borrowed funds) and _____ (ownership funds).

debt; equity

Active ownership of a foreign company, with direct investors having either a controlling or a large minority interest in the firm, is called a(n):

direct foreign investment

Inflation and interest rates are most closely associated with _____ within the external business environment.

economic forces

The _____ is the value of one currency in terms of another.

exchange rate

When the government raises taxes on consumers and businesses, it is dealing with _____ policy.

fiscal

Laws have curtailed smoking, and as a result, the sale of cigarettes is down. Rather than fighting the law, the cigarette industry is looking for ways to take their business beyond cigarettes. Many experts believe that the cigarette producers have found a way around the law with the promotion and distribution of smokeless tobacco, which has shown consistent sales gains over the last decade. In terms of the social responsibility pyramid, at which level is the cigarette industry operating?

legal

U.S. plane manufacturer McDonnell-Douglas has authorized Mitsubishi Heavy Industries, a Japanese company, to use its trademarks, patents, and other proprietary knowledge to manufacture F-15 fighter planes. Mitsubishi Heavy Industries pays McDonnell-Douglas. This is an example of:

licensing

Codes of ethics:

may be influential in determining a person's decision-making behavior

Because the government owns the factors of production in public lands, postal service, and some water resources, Great Britain is considered a(n):

mixed economy

In 2018, the country of Brazil, had imports of $78.02 billion and had a favorable balance of trade. This means that Brazil had:

more than $78.02 billion in exports

In a(n) _____, a few sellers can exert substantial control over prices.

oligopoly

An entrepreneur is a person who _____ a business.

owns and operates

A common use of business plans is to:

persuade lenders and investors to finance the venture

A company has achieved the level of _____ responsibilities when it has met its ethical, legal, and economic responsibilities.

philanthropic

When South Korea reduces the tariff that Japan (but only Japan) has to pay when it imports cameras into South Korea, it is called a:

preferential tariff

The main incentive in capitalism is:

profit

Which of the following is a reason why small business thrives in the United States?

rapidly changing technology

_____ is the practice of limiting investments to securities in companies that behave in accordance with the investor's beliefs about ethical and social responsibility.

social investing

Wal-Mart has announced that it will only sell fresh and frozen fish that come from environmentally sound sources and bear the label of the Marine Stewardship Council. Wal-Mart's size gives it a unique opportunity to improve the fishing industry. This concern for _____ is one of many initiatives Wal-Mart is introducing to improve our environment.

social responsibility

Tonya Thomas is tired of working for other people. She wants to start her own administrative services businesses and control her own work schedule. She wants to have sole responsibility for all business decisions. Thomas should form a(n):

sole proprietorship

For the past ten years, Lou Lopez has been a welder for Ford Motor Company. This morning her boss informed her a robot would replace her. Lopez's unemployment is an example of _____ unemployment.

structural

A(n) _____ is a tax levied by a nation on imported goods.

subsidy