Intro to Business Midterm Exam

Aaron Medford has invested $600 in the corporate stock of a manufacturer of offshore oil drilling equipment. If the company goes bankrupt, the most Medford could lose would be:

$600

Why do many people fear trade and globalization?

Many fear trade and globalization will lead to massive job losses.

Leadership is:

guiding others to achieve specific goals

One of the keys to ethical business behavior is:

how the company's top management conducts themselves

Which of the following statements about a general partnership is true?

Partners in a general partnership co-own the company's assets.

_____ is the money a company earns from providing services or selling goods to customers.

Revenue

_____ 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.

Utilitarianism

Labor, as a factor of production, refers to:

all workers in business

Intrapreneurs: -receive regular salaries and employee benefits -have the characteristics of creativity, vision, and risk taking. -have a high degree of autonomy in spite of the fact they work for a large corporation -run mini-companies within large corporations -are accurately described by all of the above

are accurately described by all of the above

Jack Welch, former CEO of General Electric, was known by his employees as "Bloody Jack" because of the downsizing and restructuring he insisted the company do if its various departments were unable to achieve organizational goals. Knowing this nickname, you can assume that Welch used _____ power to accomplish his goals for GE.

coercive

How has diversity impacted the marketing and customization of products?

Along with their numbers, the buying power of minorities is growing.

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

Ambitious

_____ is the practice of charitable giving by corporations; includes contributing cash, donating equipment and products, and supporting the volunteers' efforts of company employees.

Corporate philanthropy

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

Difficulty in raising capital

_____ contributes to an employee's self-worth, which, in turn increases productivity and reduces absenteeism.

Empowerment

Which of the following statements about ethics training is true?

Ethics training is formal training to develop awareness of inappropriate behavior and to practice appropriate responses.

_____ is at the core of most business failures.

Inadequate planning

A corporation has: -limited liability -ease of transferring ownership -continuity of life -ability to attract financing -all of the above

all of the above

A well-written business plan should contain: -a marketing plan -executive summary or company overview -a vision and mission statement -a management plan -all of the above

all of the above

Which of the following is an example of a business? -Jack & Jill, a specialty clothing store for young children -Wal-Mart -Ford Motor Company -Lawson & Tyler law offices -all of the above

all of the above

The difference between the small business owner and the entrepreneur is that the entrepreneur:

assumes the risk of the business

Dewayne Gibbons of Burger King decided to introduce a new sliced chicken sandwich without consulting any of his subordinates or the franchise. Managers who use this style of decision making exhibit the _____ style of leadership.

autocratic

The _____ is the total amount of money that flows in and out of a country.

balance of payments

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 did convince someone to teach her to sail, and after mastering sailing, she started an all-woman sailing school called Womanship as a sole proprietorship. When she dies, the:

business dies with her

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.

classic

The Healing Garden is the manufacturer and marketer of organic beauty aids. Its annual $40,000 donation to The Nature Conservancy in support of the nonprofit organization's pledge to preserve the environment is an example of:

corporate philanthropy

A corporation:

does not have a size limitation

A homebuilder who disposes of asbestos shingles by burying them on his own property may please the home owner because it is a less expensive means of disposal but will be punished by various legal agencies if any become aware of his crime. At which stage of the social responsibility pyramid is the builder most likely operating?

economic

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

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.

entrepreneur

A company can only be concerned about its _____ responsibilities once it has met its economic and legal responsibilities.

ethical

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

exchange rate

When Linda McAnem began Stirya, a New York-based computer services company, she ran it as a sole proprietorship. As the business grew, she realized that she did not want to be personally liable for the business's debts and wanted her business accounts to be separate from her personal accounts. Therefore, she should have:

incorporated Stirya

Lachlan Stuart is employed by International Paper, a company that values his vision and creativity. To stay ahead in a very competitive industry, International Paper gives Stuart, and his division has almost complete autonomy to develop innovative and effective communications. Stuart is an example of a(n):

intrapreneur

Social investing:

is the practice of limiting investments to companies that have ethical policies that match those of the investor

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

knowledge

The new employee that Dunn Photographic Services hired is an example of which factor of production?

labor

An organization's _____ is its general purpose or reason for existence.

mission

The _____ of the Booth Western Art Museum reads, "The Booth Western Art Museum will educate, entertain, and inspire a diverse audience by creating a place where people feel welcome, find meaning and value, and delight in exploring the uniqueness of Western American art and culture."

mission statement

Michael Bronner made a killing in the direct marketing business as the cofounder and CEO of Bronner Slosberg Humphrey, a wildly successful direct-marketing firm. His newest venture, Upromise Inc., enlists some of America's largest corporations to help families pay for college and is extremely successful. The 40-year-old Bronner will more than likely start at least one more new company before he retires because Bonner is a(n):

multipreneur

Spring Airlines is a start-up business in China. It uses the management function of ____ to arrange that the three airplanes it operates are where they are supposed to be when they are supposed to be and have the appropriate number of operating personnel.

organizing

Japan bans importation of rice to protect its domestic rice industry. This ban is an example of:

protectionism

Hassan Nasrallah, the leader of Hizbullah: grew up very poor but very smart, and although he wears the robes of a minor Shiite cleric, he is a world-class politician. He has been called the most charismatic figure in the Muslim world. Nasrallah exerts _____ power over his followers.

referent

Which of the following is probably the MOST difficult environmental factor for owners and managers to forecast, influence, or integrate into business plans?

social change

The form of business ownership that has the most difficulty in raising capital is the:

sole proprietorship

The most common form of business organization is the:

sole proprietorship

The world's largest bank, Deutsche Bank, set as its objective to make its brand name as recognizable in the United States as FedEx and Visa are over the next ten years. The implementation of this long-range plan would require _____ planning.

tactical

China imposes a 45 percent tax on the market value of all chickens that are imported from the U.S. into China. Another name for this type of tax is a(n):

tariff

The Royal Government of Bhutan imposes a 10 percent tax on all operating tables, examination tables, and dentist's chairs imported into Bhutan. Another name for this type of tax is a(n)

tariff

Hudson Kling mows yards during the summer. Which of the following is an example of revenue for Kling?

the $10 tip Mrs. Pierre gave him for doing such a fine job of mowing her yard

Which of the following is the best example of a service?

the pleasure you derive from seeing a good play

Manila Water, the provider of the water and sewerage services in the capital of the Philippines has purchased the government owned water and sewerage system for the entire country. In terms of the managerial hierarchy, its president Antonino Aquino is in _____ management.

top

In 2018, Country A exported $84.9 billion and imported products valued at $74.69 billion. The difference between the dollar value of its exports and imports represents a:

trade surplus

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

unfavorable balance of trade

In a _____, the factors of production are owned collectively rather than individually, and no incentives to work harder or to produce quality products are provided.

communist economic system

A clothing wholesaler that buys most of its inventory from manufacturers in the Caribbean should have a _____ plan in the event a hurricane demolishes the manufacturing facility of one of its principal suppliers.

contingency

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

A country that exports more goods than it imports is said to have a(n):

favorable balance of trade

Shell Oil Company used Intertek Caleb Brett, an Australian research laboratory, to provide all analytical services needed to support one of its full scale refinery. With this _____, Shell replaced domestic employees at the site of the refinery with employees from the Australian firm.

outsourcing

Ease of formation, flexibility, and diversity of management are advantages of the _____ form of business ownership.

partnership